Hansard, 1978-12-26

PERMISSION TO MEMBERS TO BE ABSENT Under the provisions of clause 2(d) of Article 30 of the Constitution of Singapore, I have granted permission to the following Members to be or to remain absent from sittings of Parliament (or any Committee of Parliament to which they have been appointed) for the periods stated:- Mr Sia Khoon Seong (Moulmein) - from 8th to 27th December, 1978. Mr Ng Kah Ting (Punggol), from 8th to 29th December, 1978. Encik Mansor Haji Sukaimi (Kampong Kembangan) - from 25th to 31st December, 1978. Mr P. Selvadurai (Kuo Chuan) - from 12th December, 1978 to 5th January, 1979. YEOH GHIM SENG Speaker, Parliament of Singapore

PRESIDENT'S ADDRESS The President (accompanied by two A.D.C.s) entered the Chamber, accompanied by Mr Speaker, who was preceded by the Serjeant at Arms (without the Mace), the Acting First Assistant Clerk, the Principal Assistant Clerk and the Clerk. On the Clerk announcing "The President", the President delivered his Opening Speech. 8.31 p.m. The President (Dr Benjamin Henry Sheares): Honourable Members, three major factors will influence events and help shape the deliberations of this next session of Parliament. First, most economists forecast a downturn in the economy in 1979. This will now be aggravated by the oil price increases of 14.5% spread over 1979. Some believe the downturn will be mild and brief, others that it may be moderate. The impact of a slow-down on Singapore may be mitigated if the economies of Japan and the EEC are able to grow as much as they did last year. Barring a recession, Singapore should still be able to make 6-8% economic growth next year. Second, the conflict between Vietnam and Kampuchea will have important consequences for Thailand and the rest of Southeast Asia. This conflict will not be resolved by a single or simple victory on the battle field. When one communist state sets out to subvert another communist state, victory for one does not mean the defeat and extinction of the leadership of the other, especially when a bigger communist power is not prepared to see its ally go down. Resistance can be expected to be prolonged and bitter when racial hatred goes deep into the history of the two peoples. The danger is that these clashes may spread beyond Kampuchea into Thailand. Third, the single most important issue in Singapore is the next political leadership. The responsibilities of government have become more complex and diverse in the past 20 years. The political leadership will require the continued support of able administrators in the public sector. Hence, at least one-third of the top talent of the younger generation must be in the Administrative Service and the statutory boards. This will require a total revamping of the rewards and salaries of senior officers in the public service. These changes must make it unmistakably clear to the young scholars in their 20's as they contemplate their future after their 5 - 8 year period of bond with the government, that the public service offers comparable rewards. If they choose to take up the challenge of the more demanding tasks in the service of the government, they will not be penalised, compared to what the private sector offers to the most talented and hardworking amongst the executives and professionals. This revision must be done with minimum delay and a measure of flexibility. Further, any formula for revision will need to be monitored and regularly further revised. Periodic 3-4 year revisions may be the only way to meet the varying and changing economic conditions. All said and done, it is the quality of the political leadership that is decisive. We can take heart that since I addressed this House two years ago, several younger Members have shown that they have the capacity to meet the intense demands of leadership. Given the experience and time to develop the camaraderie, the verve and vitality of leadership need never flag in the 1980's. At the conclusion of the President's Address, Mr Speaker, preceded by the Serjeant at Arms, the Clerk, the Principal Assistant Clerk and the Acting First Assistant Clerk, escorted the President (accompanied by two A.D.Cs) out of the Chambers and the House adjourned without question put pursuant to the Standing Order. Adjourned accordingly at Twenty-three minutes to Nine o'clock p.m.

ADDENDA TO PRESIDENTIAL ADDRESS AT THE OPENING OF THE SECOND SESSION OF THE FOURTH PARLIAMENT ON TUESDAY, 26TH DECEMBER, 1978 - MINISTRY OF FINANCE Economic Policy For the next few years our aim is to achieve a real growth rate for the economy of at least 6 - 8% per year. This will enable us to employ all the young people joining the labour force each year, and raise our standard of living. We can do so only if international trade keeps growing, and prices of our goods and services are kept competitive in world markets. Monetary and Fiscal Policy We shall maintain the Singapore dollar as a strong and stable currency. The money, bond and capital markets will be further developed so that funds will be readily available for investments in Singapore and the surrounding region. With the rapid expansion of Singapore as an international financial centre, it is important that there be high ethical standards among company directors. We will, therefore, be shortly introducing proposals to amend the Companies Act to give better protection to investors. We shall continually review the public sector's role in the economy. In earlier years we invested in commercial enterprises in areas where the private sector did not take the lead. In the next few years, we will consider selling off parts of our earlier investments in some enterprises which have already fulfilled their pioneering roles. Our financial administration is being sharpened. The first phase of a system of programme-type budgeting has been introduced in the current fiscal year. We shall be going on to the second phase to review and determine budgetary programmes for each Ministry and Department. This will enable the performance of each Ministry to be examined against the targets set. We shall continue to depend largely on economic expansion to obtain the increased revenues to meet public expenditure. Where tax incentives are necessary to encourage investments in specific sectors, they will be given. Over the years, some of our taxation policies have become moribund and incompatible with changing circumstances. We shall, therefore, be undertaking a detail.ed review on estate duty. In the field of income tax, we shall work at broadening the base by getting more taxpayers such as the self-employed who can afford to and should pay tax to do so. This will make taxation more equitable and less of a burden for existing taxpayers. Industrial Development We shall want to get more industries to come to Singapore, especially those requiring higher skills. We shall also actively encourage industries already here to upgrade their products or processes. We shall try to help those labour intensive industries which want to relocate themselves overseas to do so. Through the Economic Development Board, we shall seek to promote such industries as industrial electronics, aircraft parts, metal and industrial machinery, office equipment, optical products, automotive components, scientific and medical instruments, ship equipment, and telecommunications equipment. Our target is to attract $450 million worth of new investments next year. Even though we have adequate stocks of factory buildings and industrial land, we shall continue to build a little ahead of demand, so that new industries can start their operations quickly. We shall seek to build more clean industries near population centres to provide jobs closer to homes. We shall expand our industrial training centres to train our workers in higher skills. Next year, another training centre to be set up jointly with the Japanese Government will be in operation. In the next few years we intend to give emphasis to industrial research. We shall aim at producing ever better products. Industries will be encouraged through the Product Development Scheme to do more design and development work. We need to continue to keep our goods competitive in the international market. We shall continue with the policy of orderly and moderate wage increases established by the National Wages Council. Productive workers will be rewarded and lazy workers penalised. We shall actively encourage more of our young professionals to become industrial entrepreneurs. Through the Local Entrepreneurial Scheme managed by the Economic Development Board, we will invest in or lend money for industrial projects put up by our local engineers, technicians or industrial managers. Trade Development Our objective is to make sure that our exports grow. We shall, therefore, have to be on guard against protectionism by the richer countries. We must sell our products to more and new markets. We shall improve ASEAN economic cooperation. We shall work closely with the private sector. Through the Trade Development Committee we shall encourage trade promotion policies. We shall ensure that financial help for our exporters provided by the Monetary Authority of Singapore in rediscounting export bills, the Development Bank of Singapore for long term loans to sell ships, and the Export Credit Insurance Scheme to cover export risks, all continue to be available on attractive terms. Where further incentives are necessary to promote trade, these will be considered. Tourism We shall encourage more tourists to come to Singapore and to stay longer. In 1979, our tourist arrivals are expected to exceed two million. We shall promote more conventions for business and professional groups, and encourage more hotel construction to ensure that hotel rates remain competitive. Statistical Development Next year we shall be actively preparing to conduct a Census of Population in 1980. The Census, conducted every ten years, will provide a detailed personal, social and economic profile of the population. The data will be of great help to Government to shape policies to meet the real needs of the people. The Civil Service Terms and conditions of employment will be made competitive with the private sector. It is important to ensure that at least a third of our ablest officers remain to serve the public sector. To increase productivity in the service, we shall increase mechanisation and computerisation of Government operations. HON SUI SEN Minister for Finance

MINISTRY OF LABOUR The world economic outlook remains uncertain. Slower growth and increasing pressure for protectionism are still being experienced in the developed economies. Competition for markets and investments has intensified. Our economy has weathered the past years of recession well and the outlook in the short term, barring unforeseen economic upheavals, is fairly bright. To ensure further growth of our economy and to build up resilience to meet future contingencies the Ministry will continue to work with labour and management to promote industrial peace with justice and a work environment which is safe, healthy and conducive for workers to give of their best. At the same time, inculcation of good work attitudes and promotion of workers' welfare will also be undertaken. Labour-Management Relations Workers and management must continue to work in close accord and harmony. Their mutual interest depends on the viability of the industry they are in. While management should adopt progressive methods and policies to train and motivate workers and accord due recognition, workers must respond and adapt to change, upgrade their skills, develop a good work ethos and increase productivity. Management should also give priority to the provision of a work environment that induces workers to give of their best. For this reason the National Productivity Board will continue to assist companies, particularly small and medium-sized ones, to make improvements in their production technology and management systems to enhance productivity. Towards the same objective, the Board will continue to organise management and supervisory training courses for industries. Seminars will also be organised to familiarise foreign entrepreneurs and top management personnel with local industrial relations practices. The Board will also assist in the establishment of productivity committees and merit and demerit schemes. It will seek to provide new services in areas such as the application of computer controls and energy management. Unions for their part should continue to support industrial peace and orderly wage increases tied to economic growth and higher productivity. Workers must work hard, accumulate experience and develop skills. Their expectations must be adjusted in relation to the effort put in and the level of their skill and experience. To promote the work ethos, job-related clubs in companies will be encouraged and a "Know your Company and Industry" programme will be implemented. Inter-company and inter-firm competitions relating to work will also be promoted. The Ministry will continue to defuse and settle industrial disputes. To this end, it will closely monitor industrial relations in the Republic. It will also seek to provide improved advisory and conciliatory services through the training of its labour officers and their specialisation in selected industries. The Employment Act will be reviewed in the light of its administration and the changed circumstances since its enactment. Manpower Utilisation The Employment Service will implement new programmes to facilitate the supply of labour to industries facing labour shortages. Recruitment drives in schools and community centres will be carried out. Work permit policies will be regularly reviewed and adjusted to ensure that the demand for labour is met. Better liaison with employers who are major users of manpower can reduce the social problems of these policies. The Research and Statistics Department will undertake studies into labour policies in relation to the economic situation. Particular attention will be paid to manpower and wage policies. Such research will review the effectiveness of labour policies and recommend changes in economic and manpower policies where necessary. Social Security The Workmen's Compensation Act will be changed to provide fairer compensation for injured workers and dependants of deceased workers. The changes will also ensure the speedy payment of compensation through better administration and enforcement. There will be training and placement of workers disabled in industrial accidents. The Central Provident Fund Board is considering insurance schemes to provide better protection for members' families such as in the case of death early in employment. The schemes will also cover outstanding payments due on HDB/JTC flats of deceased members. Stringent enforcement will ensure CPF contributions are paid. Assessment of employers' liability will be computerised. In the next two or three years, further steps will be taken to increase the Board's investment returns. The possibility of using CPF savings for other justifiable purposes without losing sight of the primary objective of providing for old age will be examined. Industrial Safety and Health Concentration on improving safety in the two most hazardous industries - shipbuilding and repairing and construction - will continue. Particular attention will be paid to those shipyards and worksites with high accident rates. The Ministry will continue to work with managements, unions and workers of shipyards to prevent the occurrence of fires or explosions which can cause injury or death to many workers. Harsher penalties will be enacted to punish those responsible for such accidents. Action will be taken to reduce the number of accidents involving workers failing from heights and being struck by failing objects. The requirement of the erection of peripheral overhead shelters and work platforms will be strictly enforced. The possibility of using the access scaffold method of construction will be looked into. Educational activities will be stepped up. Action will be taken to ensure that all workers, direct or contract, attend the shipyard safety orientation course. Refresher courses will be run, especially for those involved in hazardous work. A similar safety orientation programme will be launched for the construction industry. Courses will first be organised for all foremen and site supervisors and later extended to all construction workers. Special training courses will be conducted for operators of mobile equipment such as cranes and forklift trucks. In the case of industrial health, the occupational cancer prevention programme covering factories using asbestos and benzene will be continued. The programme will be extended in the next two to three years to other cancer causing agents used in industry. Studies and surveys will be made into notifiable industrial diseases, like byssinosis and metal poisonings, to ascertain their incidence and to apply control measures. The Ministry will monitor the introduction of new industrial processes with a view to gearing itself for the safety and health problems they will pose. Preventive measures will be taken to control and minimise health and safety hazards arising from the establishment of the Sumitomo Petro-Chemical Complex and, upon approval, of the Mass Rapid Transit Project. The Institute of Occupational Safety and Health, when established, will concentrate on meeting the need for systematic training of safety and health personnel in industry. It will also undertake consultancy and research in industrial safety and health. ONG PANG BOON Minister for Labour

MINISTRY OF DEFENCE More Efficient Use of Manpower With the build-up of the Singapore Armed Forces (SAF) practically complete, the next task is to improve the quality of our personnel. This is all the more necessary because of the expected manpower resource constraints. With declining birth rates, manpower available for National Service has been diminishing over the years. We have taken various measures to ensure that manpower is more efficiently used in the SAF, to reduce the total manpower requirement. Wherever possible, manpower establishments have been trimmed down through the introduction of mechanisation and labour-saving devices. Computerisation has been introduced and will be expanded in both scope and capacity to achieve more effective management and control of manpower and logistic resources. A computerized system of allocation of technically qualified National Servicemen to technical vocations has been implemented. These National Servicemen will be able to fit better into industries when they leave the SAF. The pre-service experience of the National Servicemen is also considered in the deployment of such men so that they are properly utilized in the SAF. More women are being recruited into the regular service to fill posts which can be held by women so that combat fit men may be released and effectively deployed in combat units. The need to introduce National Service for women still exists but need not come about in the immediate future. Development of Leadership in the SAF As part of the overall effort to improve the quality of our manpower resources, the education level and skills of our regular SAF personnel are being improved. We will place much greater emphasis on continuation education. More part-time GCE 'O' and 'A' level classes will be conducted for regular Non-Commissioned Officers (NCOs) and Officers respectively. English classes are also being conducted for our regular NCOs. In addition, the SAF NCO Club conducts regular courses related to educational, cultural, social and sporting activities. To phase out dialect speaking in the SAF, language training will be expanded for both regulars and National Servicemen so that all SAF personnel will acquire a working proficiency in at least one language (English, Mandarin, Malay), National Education Courses designed to instil a greater sense of awareness and better understanding of the political and economic environment in the region are currently being conducted for regular and National Service officers and will be extended to reservist officers. There is a need to build up a corps of professional NCOs in the SAF to supervise the training of our National Servicemen and eventually our reservists. The SAF Boys' School trains boys who are interested in soldiering as a career for combat, technical and service roles in the SAF. The School provides these early school leavers with the opportunity of continuation education which will equip them with skills for their future employment in the SAF. Graduates from the School will eventually form the corps of our regular NCOs in the SAF. Improvement of the Reservist Corps The SAF Reservists Association (SAFRA), established to cater for the cultural, social and recreational needs of the SAF reservists, will continue to play a dominant role in organising activities to enhance the educational level and cultural life of reservists and their families. In addition to the present SAFRA Centre in Toa Payoh, plans are in hand to build at least two new centres in areas like Queenstown/Clementi and Bedok/Chai Chee where there is a large concentration of reservists, to foster a greater sense of esprit de corps among them. Control of Drug Abuse Drug abuse in the SAF is controlled by thorough detection among National Service enlistees and in-service personnel, followed by a comprehensive programme to rehabilitate addicts which will continue in force even after they leave the SAF. All measures will be vigorously pursued to stamp out and deter drug taking in the SAF so that National Servicemen who become drug takers leave the controlled environment of the SAF with a greater likelihood of becoming useful citizens. DR GOH KENG SWEE Minister of Defence