Mr Govindasamy, Sir, I beg to move, "That the Bill be now read a Second time." Sir, on the introduction of this Bill on the 4th November, I was obliged to make a full Ministerial statement under Standing Order No. 10 explaining the new enlistment policy and the reasons for the changes. I do not propose to go over the same ground except to recapitulate some of the main arguments. This change in enlistment policy derives from a decision made by Government more than a year ago that students who proceed from the Higher School Certificate to the university should, in increasing numbers, do their national service before university education and not after it. It was not desirable to introduce this change in one fell swoop. Instead, deferment will be allowed to H.S.C. students, but in decreasing proportions over two or three years. For instance, this year about half of the H.S.C, students had their national service deferred until the completion of their university education. Next year, the proportion would be a quarter, and by 1973 everyone completes his national service before going to the university, except those awarded Colombo Plan and other overseas scholarships whose selection rests with the Public Service Commission. I should stress here that deferment means precisely what the word purports to mean. Those deferred will do their national service after graduation. There is no question of letting them off for good. It is a commentary on the character of the Singaporean that those who had their national service deferred were considered lucky. I wonder whether people would hold the same view three or four years from now. Today I propose to deal with three aspects of the defence policy. The first is why the defence build-up is necessary. The second is the new pay and service conditions for the Armed Forces, details of which I promised in my statement last November to give on this occasion. Third, I want to give details of what is going to happen to H.S.C. students next year. As regards the necessity of our defence build-up, I am afraid it is necessary from time to time to remind our citizens of the hard facts of life. Lately, I notice a tendency among some citizens to be complacent. The reason probably is that things seem to be going reasonably well in the Republic. Some citizens seem to be incorrigible optimists and erroneously believe that the good conditions now prevailing form part of the natural, normal, and immutable state of the universe. The trouble with these optimists is that at the first sign of danger they are liable to lose their nerve and panic. Let me therefore recount some of the harsh facts of life in our part of the world. We were overrun by the Japanese Army less than 30 years ago. Some, 20,000 to 30,000 men were massacred and most of the population lived under near-famine conditions. From 1948 to 1960, the Malayan Communist Party mounted widespread guerilla insurgency in the Malay Peninsula which was suppressed at great cost with much difficulty and with the full support of British arms. Between 1954 and 1963, the Communist United Front Organisations in Singapore literally ran riot. Between 1963 and 1965, while in Malaysia we were the target of what was virtually an undeclared low-level war waged by the Sukarno regime of Indonesia. But for British military protection, we would surely have succumbed. If we look around Southeast Asia today, the view that meets the eye is far from reassuring. In South Vietnam, unlimited American fire-power through the deployment of the most scientific weapons systems on land, sea and air, backed by unstinting logistics and communications support, has failed to crush an army of peasants equipped only with rifles. The fighting has spread to Cambodia, while the position in Laos remains as insecure as ever. As a result of the pressure of public opinion, the American Government has decided to run down its combat operations in the Indo-China peninsula and leave the fighting to the South Vietnamese regime. Insurgency has raised its ugly head in Northern and Northeast Thailand as well as on the Thai/Malaysian border. Our two closest neighbours, Malaysia and Indonesia, are faced with acute domestic problems. Malaysia is trying to find a new political equilibrium and a new political style after May 13th last year. Indonesia has made a return to political stability and economic sanity through military government after more than a decade of mis-government by the Sukarno regime. The Indonesians are making welcome progress. But the difficulties they are facing are monumental. We can only hope that the Governments of Malaysia and Indonesia succeed in their endeavours, for if they do not, the troubles that follow may well spill over their borders. The British have reversed their earlier decision of total withdrawal east of Suez. However, the forces that they will station in Malaysia and Singapore are small, and even when these are added to those of Australia and New Zealand, they represent no more than a token acknowledgement that these three Governments have an interest in the peace and stability of the region. They have preferred not to close an important option by pulling back all their troops. We have to remember that these military forces have a different role from what they performed previously when there was a firm defence treaty, such as that between Britain and Malaysia, supplemented by tacit agreement with Australia and New Zealand. These defence obligations were clearly spelt out. Under the understanding envisaged under the Five-Power arrangements, their only commitment is to hold consultations in the event of a threat to Singapore or Malaysia. Against this background of general uncertainty in the region, and in the absence of any firm defence commitments from our Commonwealth associates, it is a matter of common prudence that we should strive to be as self-reliant as we can in matters of defence. Here, I have to repeat what is often forgotten in popular discussion of the subject. This is that there is a long time lag between a decision taken to build up a military capability and the actual acquisition of that capability. Between two and four years pass by between placing an order for military hardware and actual delivery. Then it takes more time to train men to use these weapons and equipment and an even longer period to achieve a high level of skill and competence. The time lag varies according to the sophistication of the weapons systems and may range from a minimum of three years for simple military weapons to seven to ten years for more advanced weapons systems. This means that you cannot wait until you are in dire trouble before you decide to build up your defence forces. In my statement of 4th November, I promised improved pay and service conditions for our soldiers. I now mention some of the major items. Full details will be published shortly in the Government Gazette and in the Ministry of Defence Orders. The object of improving pay and general service conditions is to make a career in the regular force more attractive so that the defence service will receive its fair share of talented and ambitious young men. At the same time, these improved terms of service are an acknowledgement, albeit somewhat belated, of the loyal and devoted service of those regular officers of the 1st and 2nd Battalions, Singapore Infantry Regiment, who had to bear such a heavy responsibility of leadership in the rapid expansion of our defence forces. To start with, the pay of Other Ranks will be substantially increased. A soldier's pay consists of three components his rank pay, his vocation pay, depending on whether he is a rifleman, a cook, a vehicle mechanic, a machine gunner, or whatever it is, and a third element, a new one, called the technical pay supplement. Because of the great shortage of technical skills, our Armed Forces have been unable to recruit sufficient numbers in the technical vocations at the going rates of pay. Rank pay and vocation pay in these trades are inadequate compared to what the private sector is paying. So technical pay supplements are introduced. These vary between $40 p.m, and $400 p.m. Let me give some examples of the new pay Structure. At present, a private in the army gets a rank pay of $90, with an annual increment of $5 to a maximum of $115 p.m. The new pay scale will be as follows: $90: 95: 140x10-170. A corporal now gets a rank pay of $105x10-175. The new pay scale will be: $115: 170x10-$230. This represents an increase of $55 p.m, at the maximum. Similarly, a sergeant will get an increase of $80 p.m, at the maximum. Warrant officers are reasonably well paid; for instance, Warrant officer I scale is $350x20-450. The new pay scale will be $390x20-470. Vocation pay will not be affected. Examples of vocation pay are as follows. An army tailor gets an additional $5 p.m, to his rank pay; a rifleman Class II, $10 p.m.; a mortarman $35 p.m. A seaman Class I gets an additional $75 p.m, while a jet aircraft fitter Class I receives an additional $200 p.m. Since those rates are inadequate, a new technical pay supplement is to be paid to vocation grades in short supply. For instance, a corporal in his second year, serving as a communication fitter Class I, now gets a total pay of $240 p.m. Under the new scheme, he will get a total pay of $415 p.m., consisting as follows: Rank pay $170 Vocation pay $125 Technical Supplement $120 ---- Total $415 ==== The soldier who hits the jackpot is the communication technician Class I. He is normally of Warrant officer rank, and his total pay, that is, rank, vocation and technical supplement, adds up to between $1,015 and $1,160 p.m. A jet aircraft fitter can look forward .to $920 p.m, if he makes the top grade. These new rates of pay will come into effect as from 1st January next year. The revision in rank pay will cost the Government $10.3 million a year in additional pay if the establishment of the current year is filled. I now come to the retirement and disability benefits scheme as well as the new Army Pension regulations. Hitherto, these were a result of historical legacy of the time when our Army was part of the Malaysian Army during 1963-65. Because we had to cope with so many other pressing matters, revision of the inadequate retirement and pension benefits had to give way to more urgent tasks. This can no longer be delayed if we want to make a service career in the Army attractive enough to draw and retain good quality officers. The full details will shortly be published in the Government Gazette and explained in a pamphlet. I will only give some of the highlights. Soldiers are engaged on two different terms of service, depending on a number of considerations. First, they may be given a limit in the terms of employment for definite periods, say three, five or seven years, or they may be placed on the permanent regular service, in the same way as the civil service. At present, a sergeant on short service engagement as an infantry section leader Class II, with five years' service, receives a paltry gratuity of $250 on his discharge. Under the new scheme, his gratuity will be $2,565. Soldiers on the permanent regular service who retire on reaching the age of retirement will get a larger annual pension than present rates provide. For instance, a major with five or six years in that rank on completion of 22 years' service in the Army will get a pension of $660 p.m, as against $435 p.m, as of now. A Warrant officer I at present gets a pension of only $122.55 p.m, after serving 21 years. Under the new scheme, he will get $214.20 p.m. When a soldier dies in service, even when death is not due to service, such as illness or accident outside working hours, his survivors get an equivalent of one year's pay or a commuted pension or gratuity, whichever is the greater. This gratuity is payable whether the soldier is on permanent regular service or full-time national service, or a reservist called up for the reserve service. Where a soldier in regular service dies as a result of injury received in and attributable to service, a pension is payable to his widow and children, in addition to the gratuity of one year's pay. Take, for instance, the case of a Lt. Colonel with twenty years' service drawing $1,850 p.m., who dies in these circumstances. Under the new regulations, if he leaves a widow with three children under 18, the family will get a pension of $986.65 p.m., in addition to a gratuity of $27,750. A soldier who i5 disabled as a result of injury received in and attributable to military service, will receive an annual pension for the rest of his life, depending on the degree of disablement, the length of his pensionable service and his pay. For instance, a captain with 10 years' service drawing a pay of $1,000 p.m, who is totally disabled in this way, will receive a pension of $750 p.m, for the rest of his life. Finally children of soldiers whose death or disablement is due to military service, will receive assistance in meeting educational expenses. This will extend to meeting the cost of tuition, board or living allowance of children, the cost of books, materials, equipment and so on to enable them to complete not only their primary and secondary education but also their university education. Scholarships will be made available to commissioned officers and non-commissioned officers serving in the permanent regular service. Those not in the regular service, such as national servicemen, may be awarded such scholarships if they sign on for regular service. These scholarships will be for study in universities in Singapore and, in the case of very talented soldiers, in universities abroad. Where the course of study is in Singapore, the soldier will be paid his normal Army pay; if in an overseas university, an overseas allowance is payable in addition. Allowances vary according to rank, the country where the courses of study are taken, and whether board and lodging are provided. These allowances are in line with Government rates. However, soldiers studying abroad will not be allowed to marry except with official permission, and then only to Singapore citizens. Award of scholarships will normally be made on a competitive basis among eligible candidates. Selection will be done by a Scholarship Selection Board chaired by the Chairman, Public Service Commission. In return for benefits under the scheme, a soldier will be required to enter into a bond and will serve in the Armed Forces on completion of his course of study in the same way as other Government-sponsored scholarships. For soldiers of exceptional promise who do not have the qualifications to enter a university, arrangements will be made to allow them time off to acquire such qualifications. As regards older officers who may not want to do a full university course, special short-term courses will be provided to widen their general knowledge, to improve their level of articulation, and generally to enable them to conduct themselves with the poise and deportment expected of an officer of the Singapore Armed Forces. In addition to these general courses, there will, of course, be specialist and professional training courses both in Singapore and in the Training Schools and Staff Colleges of friendly countries. I now turn to H.S.C, students and their liability for national service. Those who have sat for their examinations last month will be called up in two groups next year - 900 in January and the rest, some 600, in April. Next year the university's term will begin in July and not in May. Of the 1,500 H.S.C, students expected to pass their examination, about 1,200 will probably gain admission to the local universities in 1971. It is proposed that 25 per cent of those accepted for admission to the local universities be granted deferment. They will be taken out of their units in July, enter the university and complete their national service after graduation. The rest, those who remain in the Armed Forces, will enter the university in July 1973. The April intake will not have done two and a half years and they will serve out the balance of national service during the university long vacation. The 25 per cent to be deferred will be selected by ballot, except for medical and dental students, who will be included automatically in this 25 per cent. Medical and dental students will complete their -two and a half years' service on graduation as medical and dental officers in the Armed Forces. The practice of balloting differs from the method used this year when preference was given to students with better examination performance as well as students admitted to preferred courses such as engineering. In my statement of 4th November, I referred to the problem of getting sufficient numbers of officers in the support arms units, such as the artillery, signals and engineers. Officers in these units, in addition to doing the basic infantry officers' course, have to undergo several months' specialist training in their particular arms. With the reduction of officers' service from three to two and a half years, these support arms units may be hard pressed if all national service officers leave after two and a half years. I intend to award a bounty to national service officers who volunteer to stay for another six months. The amount of the bounty is under negotiation with the Treasury. The reduction of officers' service from three to two and a half years for next year's intake brings up the problem of equitable treatment for those enlisted before 1971. It -may be possible to reduce the term of service of some national service officers and allow them the option of leaving the Army before the full three years. It is not possible to extend this to all officers, but it seems to me that on grounds of equity, those officers who were born before 1-1-49 have the first claim for preferential treatment in this respect. The subject is under study in my Ministry and a decision will be taken shortly. The guiding principle in national service enlistment policy should be absolutely equal and fair treatment for all persons belonging to the same category. Whether a boy is the son of a Prime Minister, or of a banker or a cobbler makes no difference to his service liability. A further ideal would be to observe an unchanging set of selection criteria for all time. Unfortunately, this is not always possible as the rate of our military build-up must change with changing circumstances. This has given rise to unavoidable disparity and unavoidable discontent and, as far as possible, we have tried to meet the legitimate grievances of those who have felt that they have been unfairly treated. The fact that in large measure these people have been victims of chance does not assuage their feelings, but I think it will be generally conceded that we have gone as far as we could The improved terms and conditions of service which are outlined will be promulgated shortly in official orders and Gazette notifications. These will be supplemented by explanatory pamphlets. These improved terms are not ungenerous, but I do not think that we have been over-generous. Members of the Singapore Armed Forces lead a hard and strenuous life while training in peace time. In war time they risk their lives in the defence of our Republic. We should not do less than what we have to recompense them in the way of material award for themselves and security of livelihood for their wives and children. Sir, I beg to move. Question proposed. 4.24 p.m.