That is the proper response. Mr Speaker, Sir, in his Address, the President said: 'Singaporeans are maturing as a nation with our own lifestyles and our own aspirations. We can learn from the West and Japan. We want their technology and knowledge, but our basic values, the essentials of [our philosophy of] life, must be preserved. We cannot imitate the lifestyles or the ephemeral fancies of other peoples without doing damage to ourselves.' He also said that we must become: 'a more cohesive and a more united nation, with each Singaporean keenly aware of his responsibility to his family, to his fellow-workers, to his employer and to his country.' I agree, Sir, that we need to be selective in importing values from abroad. At the same time, we need to examine our own value system in order to weed out the undesirable propensities and qualities. Singaporeans have a particular vice which is seriously damaging to our work ethic, the quality and professionalism of our work, and which completely undermines the Ministry of Education's efforts to provide moral education. I refer, Sir, to the vice of gambling and speculation. The dictionary defines gambling as "playing games of chance to win money" and "risking and betting on the outcome of an event, sport, etc.". To speculate is to "risk loss for the possibility of considerable gain." Sir, I shall provide ample illustrations for this House of how widespread gambling and speculation are in Singapore, and much of it is encouraged by Government policies. The Board of Commissioners of Currency encourages speculation in coins and profits considerably by special issues of commemorative coins. There is Toto, the Singapore Sweep and the Four Digit-Lottery, all owned by Government, and all highly profitable. We have encouraged Lucky Draws. Every emporium has one. A number of banks offer attractive cash prizes in their Lucky Draws. They are simply following the footsteps of the POSBI The Singapore Labour Foundation, from time to time, has a Lucky Draw. The Ministry of Culture rightly forbids games of chance at fun-fairs and forbids Community Centres to have Lucky Draws. I wonder who gave authorization to the Singapore Cultural Foundation for its recent Lucky Draw? One- arm bandits are allowed in private clubs, to which the children of high executives, professionals and wealthy businessmen have access. SIA is now introducing one-arm bandits to provide relaxation to passengers. Of course, it will also be highly lucrative! Banks are now offering gold and silver accounts, the value of which fluctuates automatically with the prices of gold and silver. Incidentally, Sir, such accounts are promoted more vigorously when the prices of gold and silver are on the down-trend. There must be a lot of gullible people in Singapore! The stock market and the property market have become casinos! Perhaps, Sir, I can show how damaging gambling and speculation are to Singapore by using the property market as my example. In the last two years, property prices in Singapore in the prime areas have quadrupled, and even quintupled! How has this come about? There are two key factors. One is capital flowing in from abroad to buy property. The other is speculation, both by Singaporeans and foreigners. Allow me, Sir, to illustrate the process with two examples. Example I: A new condominium is advertised. On the day bookings are open, no member of the public has a chance to buy. The case reported two days ago was an exception - there were only 20 units offered in Seletar. Witness the mad scramble! Usually, the public has no opportunity to buy direct from the developer. The directors of the company, their relatives and friends, among them, bank clerks and officers and realty agents, are given the privilege to book. Until three months ago, all they needed to pay was $2,000. Now they have to pay 10% as downpayment. The property takes 18 months to two years to be developed and subsequent payments are by instalments. In the meantime, the units booked change hands many times, with several hefty additions to the price. I monitored the market recently. There were several examples of virtually identical units being offered for vastly different prices. One flat, for example, was offered for $600,000. Another similar one in the same block was offered for $800,000. When I asked the realty agents for an explanation, I was told that the person who offered the flat for $600,000 had bought it for $550,000 while the flat costing $800,000 had been purchased at $750.
000. Example II: A house which is already built is sold by A to B for, say, $500,000. The deposit is 1%, or $5,000. The option is for two weeks. If B succeeds in selling the house within the two weeks he makes a very handsome profit. Even if he exercises his option and pays the full 10% or $50,000, he will have 6-8 weeks to complete the transaction. In the interim he sells the house to C for $550,000 who in turn sells it to D for $600,000. Within a matter of months, property prices can rise 30% or more, because of the activities of speculators! Similar things happen in the market for office space and shops. People can get rich quickly overnight, except MPs. The market is full of stories about bank clerks, secretaries, developers' employees and real estate agents who have made fortunes in real estate. How did all this come about? In 1973/1974, Government succeeded in stabilizing the residential property market by restricting foreign ownership. A foreigner could only buy a residential property if he worked in Singapore or had legitimate business here. However, because of complaints by developers, this rule was soon relaxed to allow foreigners to buy condominium and apartments above six storeys unconditionally. Because of this relaxation, developers found it much more profitable to build condominiums and flats and neglected bungalows, semi-detached and terrace houses. The property market boomed as a result. Because of shortage of supply, even bungalows, semi-detached and terrace houses boomed. What are the effects of gambling and speculation in the property market? There are several. (1) The erosion of the work ethic. Why bother to work hard or learn new skills for a few hundred dollars a month when there is a fortune to be made in gambling, 4-Digit and so on, or speculating in shares and property? (2) Apart from those who already own property, or who are rich enough, the Singaporean, as one MP pointed out yesterday, is effectively priced out of the private residential property market. Today a young executive starting out can aspire at most to a HUDC flat, and even that is beginning to look like a distant dream. How many young couples have enough CPF to pay for a HUDC flat of between $150,000 and $200,000? (3) Condominiums are supposed to provide for higher density living to save land. But how many Singaporeans are living in our condominiums. I challenge the Ministry of National Development to take a survey not of bookings made but of actual occupation. (4) The prospective release of CPF funds for purchase of private property has fuelled the increase in prices further. I noted that about a week after the announcement, prices went up nearly 30%. Besides, how many Singaporeans will be able to buy, even with CPF? Suppose individual A has $100,000 in CPF (one of the few to have such a balance). The cheapest condominium unit costs $400,000, a mere 2-room unit. The banks' valuation of the property is at most $250,000 because the banks' valuations are always conservative and lag behind market prices, and loans are given only up to 80% of banks' valuation. Individual A is short of at least $50,000. What about stamp fees and lawyer's fees, which escalate with property prices? What about furnishing and minor renovations? (5) People who own private property cannot afford to die. Suppose individual B dies and leaves a semi-detached house worth $500,000. His heirs are allowed exemption of $200,000 and would have to find cash to pay estate duty on the remaining $300,000. (6) The boom in the private property market causes an escalation in construction costs. As a result HDB and HUDC prices are raised substantially. I know Ministers like to blame OPEC's oil price increases. And the Minister for National Development is no exception. Oil price escalations have some impact on construction costs but the real culprit is speculation, fuelled by inflow of foreign capital into the property market. (7) The property market boom will lead to an exodus of middle and higher level civil servants because salaries in the private sector adjust more quickly. The net result will be continuing escalation of executive and managerial salaries. The wage disparity will become very pronounced. What can be done? In the private residential market, the Government can reimpose the restriction on foreign ownership for condominiums and apartments. Anyone having legitimate interest in Singapore or living in Singapore will be entitled to purchase any unit, but not for renting out. This will immediately calm the market because speculation cannot take place without an unlimited supply of end-buyers. Let us remember that we have only 617.8 square kilometres of real estate. There is plenty of money sloshing about in the international monetary system. A little bit of that money coming in can create huge distortions in prices, wages and income and wealth distribution. Something should also be done about commercial and industrial properties. Hong Kong ought to provide us with an example of what distortions can be produced by a free-wheeling economy. It is like a mad house. Increasing rentals of office space, industrial buildings and accommodation have escalated costs of doing business there. A property market boom is wonderful for property owners but the economic price to pay is great, as I have tried to show. We cannot build the kind of society envisaged in the President's Address if we have policies that encourage rampant gambling and speculation. Now let me turn my attention to the Ministry of Education. Sir, there was considerable confusion over the meaning of a distinction and over the so-called T-score. In my view, Sir, confusion was completely unnecessary, if the Ministry had done two things in the first place. An examination - and I speak from 13 years' experience as a teacher (Applause] any examination that produces grades which bunch together with a mean of around 70 marks is a horribly bad examination. The teacher ought to be examined! In this case, the Ministry of Education ought to be examined. When you start giving pupils A's on their report slips and you expect the parents to take streaming without complaint, I do not know what you are doing. If at least you have standardized the scores and provided the T-scores which are much more realistic, then there would have been no complaints at all. But the First Deputy Prime Minister did a very smart thing. He invited Members of Parliament to tea. Next time, I suggest he invites them to lunch as the Minister for National Development did, Sir. The timing of both invitations was rather curious. Sir, the Ministry of Education wants to promote full-day schools. I wonder whether they have solicited the views of the teachers who will have to stay for the full duration of the day. I would expect some teachers to resign and I would also expect fewer women to become teachers because one of the attractions of becoming a teacher in school is the half-day work in school, or so they think. Another point concerning the Ministry of Education, Sir, is the question of salaries for teachers. Last week, I had the Personnel Manager of a bank come in to talk to my Honours students about a career in his bank. He came offering them $1,250 as starting salary. After six months, this will rise to $1,500 and after a year of training they would get $2,035 a month. This is doing better than teachers after 10 years of service, and this is about doing as well as a university lecturer with a Ph.D starting out. Let me next turn to the Ministry of Labour. Many Members have already commented on the so-called problem of job-hopping. I have always considered that problem to be a non-problem, for the simple reason that the statistics are suspect. If you ask any company, "Do you have job-hopping?" They say, "Yes, I have plenty." If ten people out of a thousand were to leave a particular factory every month and ten people get replaced but the other 990 remain fixed, you would show quite a substantial job-hopping in a year in the first place. If the Ministry of Labour were to do a careful study, it will find that there is a very good correlation between so-called job-hopping and the rate of economic growth in Singapore. It will find that in periods of very rapid growth in Singapore the incidence of job-hopping is higher. There is another term to describe this phenomenon, that is, the mobility of labour. I have talked to managing directors of multinational companies in Singapore, and when I hear about the paltry sums which they are paying to their workers it is no wonder that the workers leave them after three months. Any economist worth his salt will be able to tell the Ministry of Labour that we need a healthy mobility of labour if we are going to get the best out of our people in Singapore, If people's talents are not properly utilised in a particular firm and are better utilised elsewhere, then they ought to move. But we are thinking of policies that are going to tie people down to particular firms. Sometime ago the Ministry of Labour had a policy of tying work permit holders down for five years to a particular firm. It is no wonder that you get shoddy work, absenteeism and all the rest of it. An hon. Member: Unhappiness.