Hansard, 1981-06-15

PERMISSION TO MEMBERS TO BE ABSENT Under the provisions of clause 2(d) of Article 46 of the Constitution of Singapore, the following Members have been granted permission 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 Chai Chong Yii (Bukit Batok) - from 16th to 20th June, 1981. Dr Tony Tan Keng Yam (Sembawang), Minister for Trade and Industry - from 16th to 21st June, 1981. Prof. S. Jayakumar (Bedok) - from 20th June to 5th July, 1981. HWANG SOO JIN Deputy Speaker, Parliament of Singapore The House being met the Clerk at the Table informed the House of the absence of Mr Speaker from this days Sitting. Whereupon Mr Deputy Speaker proceeded to the Table and took the Chair, pursuant to the Standing Order.

ORAL ANSWERS TO QUESTIONS - MONETARY AUTHORITY OF SINGAPORE - (Mass resignation of senior executives) To ask the First Deputy Prime Minister and Minister of Education what is the reason for the spate of resignations from the Monetary Authority of Singapore and whether the mass exodus of senior executives is likely to affect staff morale and work efficiency.

ORAL ANSWERS TO QUESTIONS - MONETARY AUTHORITY OF SINGAPORE - (Mass resignation of senior executives) Question No. 1, Sir.

ORAL ANSWERS TO QUESTIONS - MONETARY AUTHORITY OF SINGAPORE - (Mass resignation of senior executives) Mr Deputy Speaker, Sir, resignations from the Monetary Authority of Singapore increased sharply in January 1981 as a result of the findings of the Finance Ministry's Management Services Department's study team that the establishment was too large. The study was completed on 22nd December 1980 and sent to the departmental heads of the MAS. It will be rather strange if resignations did not take place. The number of staff who left between January and May was 131, averaging 26 per month as against 4% per month previously. Some of them left on their own accord, others were encouraged to do so, and the rest had their services terminated. As at 30th May this year, there was a holding of 96 senior officers against an establishment of 98, 60 officers against an establishment of 63, and 193 subordinate officers against an establishment of 205. Staff morale is as good as can be expected. It is still too early to assess work efficiency.

ORAL ANSWERS TO QUESTIONS - MONETARY AUTHORITY OF SINGAPORE - (Mass resignation of senior executives) Mr Deputy Speaker, Sir, I would like to ask the First Deputy Prime Minister whether he has read the front page report of the Business Times of 23rd May stating that the staffing position of MAS today was under-staffed and that MAS was quietly going round asking those who were retrenched and had resigned to come back. My question is: Is that report a fairly accurate report? In other words, is it true that MAS is today under-staffed? If it is so, what measures will be taken by MAS to improve the situation?

ORAL ANSWERS TO QUESTIONS - MONETARY AUTHORITY OF SINGAPORE - (Mass resignation of senior executives) Mr Deputy Speaker, Sir, the hon. Member had not paid attention to the figures I gave him. I repeat the staffing position: 96 senior officers as against an establishment of 98; 60 officers as against an establishment of 63; 193 subordinate officers as against an establishment of 205. I have read the article concerned. I think the hon. Member should address this question to the newspaper, not to me. May I suggest that hon. Members must not believe everything they read in the newspapers.

ORAL ANSWERS TO QUESTIONS - MONETARY AUTHORITY OF SINGAPORE - (Mass resignation of senior executives) Mr Deputy Speaker, Sir, is it not better for me to clarify this point with the First Deputy Prime Minister himself? It is because I have got certain doubts on whether or not the report was accurate that I am addressing the question to him. Is it not better to address the question to the First Deputy Prime Minister

ORAL ANSWERS TO QUESTIONS - MONETARY AUTHORITY OF SINGAPORE - (Mass resignation of senior executives) Mr Sia, I must remind you that this is Question time. Mr Sia Khoon Seong resumed his seat.

ORAL ANSWERS TO QUESTIONS - MONETARY AUTHORITY OF SINGAPORE - (Mass resignation of senior executives) Next question.

1980 NWC RECOMMENDATIONS - (Second Tier payment) asked the Minister for Finance whether the Government will pay only a one-time second tier National Wages Council (NWC) payment for the NWC year ending 30th June, 1981 to deserving civil servants and whether this 1980 second tier NWC payment will not be paid in each subsequent year in the way it is implemented in the private sector, and, if so, why the Government, as an employer, appears to have departed from its original position when it accepted the 1980 NWC recommendations in toto.

1980 NWC RECOMMENDATIONS - (Second Tier payment) Mr Deputy Speaker, Sir, the Member for Moulmein is right that Government will be paying the second tier NWC wage increase for 1980 as a one-time lump sum to deserving civil servants. As to the second part of his question, I am not aware that the private sector has adopted any uniform way of implementing the second tier NWC payment. However, the NWC recommendations for the 1981 NWC year may be of some interest in this connection. The NWC has recommended that the second tier payment could be made as a one-time payment or built into the wage structure, as the employer wishes. Where payment is a one-time payment and not incorporated into the wage structure, the equivalent quantum of the second tier should be set aside for payment to meritorious performers in subsequent years. Those who receive the second tier payment in any year would not necessarily receive the payment in a subsequent year. The intention is clear. The second tier wage increase will be paid for performance and not as of right. My Ministry is therefore considering how best the NWC guidelines can be implemented in the civil service. With regard to the final part of his question, I should like to remind the Member that in its application to employees in the public sector, Government's acceptance of NWC guidelines is usually stated as subject to modifications to take into account the special requirements of the public service.

ANNUAL WAGE SUPPLEMENT FOR RETIREES asked the Minister for Finance if he will consider allowing those Government employees who reach retirement age and retire in any particular year to qualify for the annual wage supplement for that year on a pro-rata basis according to the number of days or months served in that year, as otherwise they will miss out on their share of the annual wage supplement through no fault on their part.

ANNUAL WAGE SUPPLEMENT FOR RETIREES Sir, the Member for Cheng San may not know that in past years I have answered in the negative many questions similar to his on paying the non-pensionable annual allowance on a pro-rata basis to Government officers who retire in the course of the year. I can only say once again that the answer is "no". With many more new Members, I hope the matter will not develop into a hardy annual. In answering such questions, I have explained the rationale for the payment of this wage supplement, namely, that it is only for civil servants still in service on the last day of the year. It is not correct, therefore, for the hon. Member to speak of the retired civil servant's "share of the annual wage supplement". If he is not in service on the last day of the year, he does not qualify and has no share. There is no question of his being at fault or otherwise.

PATENTS LAW - (Amending Legislation) To ask the Minister for Law whether he is taking steps to introduce legislation to amend the patents law which grants protection only to patents which are granted in the United Kingdom; whether he is aware that, with the coming into effect of the international patent conventions, the United Kingdom has amended its patents law making it possible to grant protection in the United Kingdom to patents registered in other countries; and how long and what approach his Ministry will take in the drafting of amending legislation not only to correct the anomaly but also to provide legal protection to encourage research and development.

PATENTS LAW - (Amending Legislation) Question No. 4, Sir.

PATENTS LAW - (Amending Legislation) Mr Deputy Speaker, Sir, our current law on patents is the Registration of the United Kingdom Patents Act (Cap. 199) which merely provides for the registration of only United Kingdom patents, provided such applications are made within three years from the date of issue in the United Kingdom Patent Office. I am aware of the enactment of the Patent Act, 1977, in the United Kingdom on 1st June, 1978, which was partly the consequence of inter-governmental collaboration between countries of western Europe and internationally. The subject of patent law is highly technical in nature and involves complex legal ramifications. Singapore does not have the manpower - the experts required to set up our own independent patent system, involving a full examination by qualified examiners. An in-depth study, having regard to international conventions, changes in the low in the United Kingdom and more importantly, to our own economic needs, is necessary before decisions can be made on the manner in which our law should be amended. Various options, which are open to us, need to be carefully evaluated to ascertain how best to proceed in the matter. My Ministry and the Ministry of Trade and Industry consider that we should seek expert assistance from the World Intellectual Property Organization (WIPO) with the objec- tive of drawing up a suitable patent system to suit our resources and needs. Towards this end, we are considering sending a study mission, comprising representatives from the Ministry of Trade and Industry, Singapore Institute of Standards and Industrial Research, the Science Council, the Patents Office, and the Attorney-General's Chamber, to visit WIPO headquarters in Geneva, to ascertain what facilities and expertise are available there to help us in this task. The drafting of amending legislation can only be done after the study is completed. It is thus not possible for me at this juncture to give the Member for Boon Lay any time-frame for the completion of the study or to indicate the manner in which the law will need to be altered.

FATAL MOTOR ACCIDENTS - (Particulars) asked the Minister for Home Affairs, if he will give breakdown figures of the number of motor cars which were involved in fatal accidents for the years 1978, 1979 and 1980 and the number of the cars which were of British, European and Japanese manufacture.

FATAL MOTOR ACCIDENTS - (Particulars) Mr Deputy Speaker, Sir, the number of motor cars involved in fatal accidents and their countries of manufacture for the past three years (1978-1980) are as follows:- 1978 1979 1980 a. No. of motor cars involved in fatal accidents 101 69 76 b. Country of Manufacture (i) Japan 54 45 57 (ii) Europe 13 16 12 (iii) Britain 30 7 4 (iv) Cars not identified 4 1 3 (e.g. hit-and-run cases, Malaysian cars) 101 69 76 The figures on motor cars involved in fatal accidents, by country of manufacture, are not meaningful unless they are related to corresponding figures on motor cars registered in Singapore. On 31st December, 1980, motor cars registered in Singapore, by country of manufacture, are as follows:- Japan . . 106,170 Europe . . 26,828 Britain . . 16,349 Others . . 3,227 152,574 If we divide the number of cars involved in fatal accidents by the stock of cars in respect of each country of manufacture and multiply the results by 10,000 we then have an index of fatal accidents involvement per 10,000 cars by country of manufacture. For 1980, the indices are as follows:- Country of Manufacture Index (per 10,000) Japan 5.37 Europe 4.47 Britain 2.45 Others 9.30

FATAL MOTOR ACCIDENTS - (Particulars) Mr Deputy Speaker, Sir, does the Minister attribute these fatal accidents to mechanical fault or to the fault of the driver?

FATAL MOTOR ACCIDENTS - (Particulars) Sir, the causes of the accidents are quite complex and they can be attributed to many causes. But from the cases of accidents which the Traffic Police have studied, the major fault is attributed to the human factor rather than mechanical.

CRIME IN CHONG BOON - CONSTITUENCY - (Particulars) asked the Minister for Home Affairs (a) what are the types and number of crimes committed in the Chong Boon Constituency; and (b) what steps or additional steps will be taken to minimize them.

CRIME IN CHONG BOON - CONSTITUENCY - (Particulars) Mr Deputy Speaker, Sir, in 1980, there were four cases of robbery, five cases of housebreaking, 14 cases of theft of motor vehicles, and one case of outraging modesty in the area which later that year became the Chong Boon Constituency. Two of the four cases of robbery and the single case of outraging modesty were solved. Of the 14 motor vehicles stolen, eight were recovered. In the period January to May 1981, there were three cases of robbery, two cases of housebreaking, eight cases of theft of motor vehicles, and one case of outraging modesty in Chong Boon. To-date, one case of robbery has been solved and two of the eight stolen vehicles have been recovered. The constituency falls under the Police F Division and is covered by the following regular Police patrols: (a) Vertical policing patrols of the HDB flats are carried out daily by Police full-time national servicemen and reservists. Here, coverage is selective. Where crimes have been committed, patrolling is more intensive. (b) A team policing car from the Paya Lebar Police Station is deployed daily in Ang Mo Kio New Town. The officers carry out selective checks on suspicious persons and mount road blocks to check on both persons and vehicles. (c) Two scooter-patrols are deployed daily in Ang Mo Kio New Town. Over and above the regular coverage I have mentioned, 'F' Division also mounts special anti-crime operations in localities in Ang Mo Kio New Town, including Chong Boon constituency, where the incidence of crime is high. Detectives are also deployed to mount observation and gather information in the area. These anti-crime measures have proved to be effective in keeping the crime rate low and will be continued. This month, the Police has started a crime prevention project called Neighbourhood Watch. This is a joint project of the Police Force and the Residents' Committees. In Neighbourhood Watch, groups of immediate neighbours are encouraged to organize themselves to protect each other and their homes from criminals. They can start off by acquainting themselves with each other's routine. If they know when their neighbour is out, they can keep an eye on his vacant flat. They can also be on the look-out for strangers. If all the residents are well organized, they can keep out criminals from their neighbourhood, Police officers who are members of Residents' Committees have been urged to take the initiative and form Neighbourhood Watch groups among their own immediate neighbours. The Neighbourhood Watch project will bring about more personal relationships among residents and greater cohesiveness in an HDB neighbourhood. In the long term, this is the answer to a more secure neighbourhood. Members of Parliament can help by getting every Residents' Committee in their constituency to actively participate in this project.

TRAFFIC REGULATIONS FOR EXPRESSWAYS asked the Minister for Home Affairs whether he will review the traffic regulations for expressways, in particular the speed limit.

TRAFFIC REGULATIONS FOR EXPRESSWAYS Mr Deputy Speaker, Sir, the Highway Committee, comprising members from the Traffic Police, Registry of Vehicles and the Roads Branch of the Public Works Department, has drafted the Expressway Traffic Rules, 1981, which will be promulgated after it has been vetted by the Attorney-General's Chambers. The roads which make up our expressway systems have been designed for vehicle speeds of up to 80 km per hour. While parts of the expressways are still under construction, interim speed limits of 70 km per hour and 50 km per hour in some stretches have been imposed for safety reasons. When the construction of the major interchanges is completed, and the East Coast Parkway and the Pan-island Expressway systems are fully operational, the Highway Committee will consider raising the allowable speed limit on suitable stretches of the expressways to 80 km per hour. The policy of the Highway Committee is to allow the maximum speed which is safe for travel on our expressways.

CHANGI AIRPORT - (Particulars) asked the Minister for Communications and Minister for Labour if he will make a statement regarding the construction of Changi Airport with particular reference to the following:-

CHANGI AIRPORT - (Particulars) Mr Deputy Speaker, Sir, I would like to know whether there will be any increase in airport tax when this airport is in operation.

CHANGI AIRPORT - (Particulars) Mr Deputy Speaker, Sir, I cannot answer that question. I would suggest that the hon. Member wait till the Hon. Minister for Communications and Minister for Labour comes back.

CENTRAL PROVIDENT FUND - (Increase in employees' contributions) asked the Minister for Communications and Minister for Labour why, despite Government's assurances in the past, contributions to the Central Provident Fund have once again been increased thereby eroding the benefits accruing from the recent increases in wages recommended by the National Wages Council and thus reducing the take-home pay of wage-earners.

CENTRAL PROVIDENT FUND - (Increase in employees' contributions) Mr Deputy Speaker, Sir, this year, the NWC recommended a wage increase guideline of $32 + 6% to 10% range and an additional 2% of the group monthly wage bill of June 1981 to be distributed among meritorious performers. Based on an average monthly wage of $535 calculated from CPF records of active contributors earning between $201 and $1250 per month in November 1980, the recommended total wage increase represents an increase ranging from 14% to 18%. Deducting the increase of 4% in the rate of CPF contributions will still result in a nett average monthly wage increase ranging from 10% to 14%. The additional 4% CPF contributions belong to the wage earners and hence there can be no question of eroding the benefit of the wage increase. The major consideration behind the Government's decision to increase employees' rate of CPF contributions by 4% is to enable contributors to use 381/2% instead of the previous 32% of CPF savings for the purchase of public housing. Because of the higher costs of labour and materials, prices of new HDB flats have increased by an average of about 38% from 1st June 1981. An analysis of the applicants on HDB's waiting list to buy flats shows that the number of applicants who have sufficient CPF savings to pay for Model A flats at the new prices using 32% CPF savings was 71.5% for three-room flats, 65.5% for fourroom flats and 63.0% for five-room flats. By increasing usable CPF savings from 32% to 381/2%, the percentages increased from 71.5% to 81.5% for three-room flats, from 65.5% to 75.00/o for four-room flats and from 63.0% to 73.0% for five-room flats. An average increase of about 10% of applicants for three, four and five rooms can now buy using only their CPF. The Government's policy is to enable as many Singaporeans as possible to own their homes. The Government is looking into other ways of achieving this, like spreading out the instalments to enable more Singaporeans to buy their homes using their CPF. There is a difficult period ahead. The costs of materials and labour for HDB flats are likely to go up because they depend on the cost of oil and the tight labour market. There will unfortunately be a small percentage of Singaporeans whose income levels may not be enough to enable them to acquire their own homes, particularly if their wives have never worked, or if their wives stop work before having accumulated enough savings in their CPF. They will have to rent HDB flats.

CENTRAL PROVIDENT FUND - (Increase in employees' contributions) Mr Deputy Speaker, Sir, is the Acting Minister for Labour aware that one of the main objectives of CPF contributions is for old age? But in the statement that he made just now, it is quite clear that it is also meant for something else besides old age. Would he care to comment on this?

CENTRAL PROVIDENT FUND - (Increase in employees' contributions) Mr Deputy Speaker, Sir, the CPF was originally set up mainly as a savings fund of members for their old age. However, the CPF can also be used for other purposes, as is well known by the Member for Punggol. With effect from 1st July 1981, 38 1/2% of CPF savings can be used to purchase houses under the approved housing schemes such as the HDB, JTC, HUDC and Mindef housing schemes. CPF savings can also be used to purchase shares of Singapore Bus Service Limited. The Government has also agreed to allow CPF members to use their CPF savings to redeem outstanding mortgages on private residential properties, with effect from 1st June 1981. From 1st January 1982, they can use their CPF savings to purchase private residential properties. The amount of CPF savings that can be used is limited to 90% of the savings in the Ordinary Account and 90% of the monthly contributions to the Ordinary Account. If the CPF Home Protection Insurance Scheme is approved by Parliament, CPF members who have used their CPF savings to purchase flats or houses, and who have outstanding mortgages on these flats or houses, can use their CPF savings to pay for the premium of the mortgage reducing cover under the scheme.

CENTRAL PROVIDENT FUND - (Increase in employees' contributions) Mr Deputy Speaker, Sir, does this not clearly show that the purchasing power of the CPF savings will be eroded in time to come? Has this not been taken into consideration?

CENTRAL PROVIDENT FUND - (Increase in employees' contributions) Sir, the Government is also concerned about the erosion of CPF savings of members who already own their homes, and who are not using their CPF savings for any of the approved purposes. Such members can be assured that the rate of interest on CPF savings is presently being reviewed by the Government, with a view to giving members a better interest rate than the current interest rate of 61/2%.

CENTRAL PROVIDENT FUND - (Increase in employees' contributions) Mr Deputy Speaker, Sir, apart from eroding the benefit accruing from the recent increase in wages recommended by the National Wages Council, how does the Minister of State justify the increase in the rate of CPF contribution of an employee who has not received a wage increase from his or her employer?

CENTRAL PROVIDENT FUND - (Increase in employees' contributions) Sir, in a tight labour market situation that we now have in Singapore, it is unlikely that employers would let their employees have reductions in their take-home pay at the end of the month.

CENTRAL PROVIDENT FUND - (Increase in employees' contributions) Sir, if I can bring an employee who has not received an increase in wages, can the Minister of State guarantee that he be exempted from paying the increased CPF contribution?

CENTRAL PROVIDENT FUND - (Increase in employees' contributions) Mr Deputy Speaker, Sir, if the hon. Member for Khe Bong can bring such an employee who has not received an increase in wages as a case for conciliation, our Ministry officials will certainly look into the matter.

LEVY ON FOREIGN CONSTRUCTION WORKERS - (Particulars) asked the Minister for Communications and Minister for Labour (a) how much money has been collected so far by way of the $230 monthly levy imposed on each foreign construction worker from non-traditional sources; (b) what proportion of the money has been disbursed to assist employers in the construction and building industry; and (c) whether it is opportune to withdraw this levy for the moment in view of the severe labour shortage and spiralling construction costs.

LEVY ON FOREIGN CONSTRUCTION WORKERS - (Particulars) Mr Deputy Speaker, Sir, as at 30th April, 1981, the amount collected through the $230 per month levy on construction workers from non-traditional sources was $475,242. The Ministry of National Development is working out several schemes to provide financial assistance to assist contractors in their mechanization efforts. Details of these schemes will be announced and disbursements made soon. The House was told at the Parliament sitting on 20th March 1981 (Hansard, Vol. 40, No. 11) of the rationale for the levy. The levy imposed on employers of construction workers from non-traditional sources is intended in a way to raise the wage cost of employing such workers so as to discourage employers from an over-reliance of foreign workers. It is also to exert pressure on such employers to resort to more labour-efficient and mechanized methods of construction. If we made foreign workers available cheaply to the employers in the construction industry, then there would be no incentive to these employers to employ local workers and train them to attain a higher skill and to go into mechanized methods of construction. The rationale still holds, and it is therefore not opportune to withdraw the levy.

JALAN KAYU CONSTITUENCY - (Construction of more public lavatories, complaints against HDB staff, and tidying up of vacant land) To ask the Minister for National Development (a) whether he will direct the Housing and Development Board to look into the need to construct more public lavatories in that part of Ang Mo Kio New Town which falls within Jalan Kayu Constituency, especially in areas where senior citizens regularly meet: (b) what is the number of complaints of rudeness against HDB staff for each of the years 1979 and 1980 and what system is in force to ensure that all such complaints receive the prompt attention of senior management staff; and (c) whether he will take steps to tidy up the land in Jalan Kayu, originally acquired for pig farming, as the sites, overgrown with vegetation and used for illegal dumping of rubbish, are now posing a health hazard.

JALAN KAYU CONSTITUENCY - (Construction of more public lavatories, complaints against HDB staff, and tidying up of vacant land) Question No. 11, Sir.