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PERMISSION TO MEMBERS TO BE ABSENT Under the provisions of clause 2(d) of Article 46 of the Constitution of the Republic 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: NameFromTo 19981998 Mr Zulkifli Baharudin11 Aug17 Aug 19 Aug23 Aug 28 Aug5 Sep Mr Shriniwas Rai12 Aug20 Aug 24 Aug28 Aug Mr Goh Chee Wee17 Aug20 Aug Mrs Yu-Foo Yee Shoon18 Aug22 Aug Mr Chay Wai Chuen18 Aug22 Aug 24 Aug29 Aug Mr Hawazi Daipi 19 Aug19 Aug 23 Aug29 Aug 12 Sep14 Sep NameFromTo 19981998 Mr Yeo Guat Kwang 19 Aug19 Aug 23 Aug29 Aug Mr Loh Meng See22 Aug29 Aug Mr Chan Soo Sen23 Aug29 Aug 6 Sep11 Sep Encik Yatiman Yusof23 Aug29 Aug 4 Sep6 Sep Mr Inderjit Singh23 Aug29 Aug Mr Chiam See Tong24 Aug28 Aug Dr Toh See Kiat24 Aug28 Aug 15 Sep15 Sep Dr Lily Neo24 Aug28 Aug Mrs Lim Hwee Hua24 Aug29 Aug Mr Tan Soo Khoon24 Aug29 Aug 8 Sep11 Sep 15 Sep16 Sep Mr Zainul Abidin Rasheed24 Aug5 Sep Mr Simon S C Tay28 Aug1 Sep Dr Ow Chin Hock30 Aug9 Sep Mr Cyrille Tan31 Aug4 Sep Mr Lim Boon Heng31 Aug9 Sep Prof S Jayakumar1 Sep3 Sep Mr Choo Wee Khiang2 Sep4 Sep Mr J B Jeyaretnam 4 Sep4 Sep Mr Lee Kuan Yew 4 Sep4 Sep Encik Ibrahim bin Othman4 Sep6 Sep 10 Sep12 Sep Mr Leong Horn Kee5 Sep15 Sep 27 Sep30 Sep Dr Aline Wong5 Sep19 Sep Mr R Sinnakaruppan5 Sep15 Nov Mr Tang Guan Seng6 Sep8 Sep Mr Bernard Chen6 Sep10 Sep Mr Chew Heng Ching7 Sep9 Sep Dr Ker Sin Tze9 Sep21 Sep Dr Tan Cheng Bock10 Sep13 Sep RAdm Teo Chee Hean11 Sep13 Sep 21 Sep22 Sep BG George Yong-Boon Yeo13 Sep16 Sep Mr Mohamad Maidin B P M17 Sep21 Sep NameFromTo 19981998 Mr Peh Chin Hua17 Sep29 Sep Dr Lee Boon Yang29 Sep7 Oct Mr Ahmad Mohd Magad14 Oct21 Oct TAN SOO KHOON Speaker Parliament of Singapore
ASSENTS TO BILLS PASSED The following Bills were assented to by the President of the Republic of Singapore on the dates stated: 6 August 1998 Income Tax (Amendment) Bill 1998 18 August 1998 (1) Control of Plants (Amendment) Bill 1998; and (2) Merchant Shipping (Civil Liability and Compensation for Oil Pollution) Bill 1998. TAN SOO KHOON Speaker Parliament of Singapore
(Suspension of trading of shares) asked the Deputy Prime Minister why the Stock Exchange of Singapore (SES) suspended the trading of shares of Mid-Continent Equipment Ltd on SESDAQ, and whether the SES should have approved the `Initial Public Offer' application by the company, especially considering the large percentage of private placement shares.
(Suspension of trading of shares) Mr Speaker, Sir, trading in the shares of Mid-Continent Equipment Group Ltd ("Mid-Continent") on SESDAQ began on 22nd July 1998 following its initial public offer ("IPO") of 18 million shares at $0.15 each. SES suspended trading in the counter on 31st July 1998, following a sharp run-up in prices and large volumes during the first eight days of trading, and confirmed on 11th August 1998 that the shares in Mid-Continent had been cornered. The SES has referred the case to the CAD to investigate possible offences of manipulation under the Securities Industry Act. The attachment (Cols. 985 - 988) that I have circulated to Members sets out fully the facts of the case. Attachment - The Trading and Suspension of Mid-Continent Shares on SESDAQ (Cols. 985 - 988) The SES approved Mid-Continent's IPO application because Mid-Continent met the listing requirements for a company to be admitted to SESDAQ, according to the existing rules and procedures. However, the Mid-Continent case revealed weaknesses in these rules and procedures that need to be put right. Concentration of Placement Shares The problem with the Mid-Continent IPO was an over-concentration of shares in the hands of a few persons. 90% of the IPO shares were placed privately with only five persons. The company's shares were therefore vulnerable to being cornered when trading started. It is not MAS or SES policy to require companies to sell the majority of shares in an IPO by open subscription by the public, or to limit the private placement tranche to only a small percentage of the IPO shares. The listing rules for SESDAQ allow a company to use private placement for up to 25% of its IPO shares, or a higher proportion if the SES agrees that there are good reasons for doing so. In practice, the SES has been flexible in allowing companies to sell IPO shares via private placement, particularly for Main Board listings. SES has used this discretion more widely for SESDAQ listings since August 1997, in view of the difficult market conditions. Mid-Continent was similarly allowed a large private placement tranche of 90%. The problem was not this large private placement per se, but the small number of placees and the resulting over-concentration of IPO shares. The present SES rules are inadequate to prevent such over-concentration. Moreover, neither the company nor the issue manager is required to inform the SES of the number of placees and their respective shares of the IPO issue. For several years now, the SES has left it to the issue manager to ensure a sufficient shareholding spread after an IPO so that trading in the secondary market would be orderly. This needs to be reviewed. In Hong Kong and the United Kingdom, a company can distribute up to 75% of its IPO shares via private placement, but this is subject to a tight limit on the value of shares placed to each investor. Hong Kong also requires a minimum number of such placees. MAS has asked the SES to propose rules to prevent over-concentration of IPO shares, including the maximum percentage that can be placed privately and the minimum number of placees. Once provisions to prevent over-concentration of IPO shares are put in place, issue managers will be responsible for complying with them and ensuring a sufficient shareholding spread for orderly trading in the secondary market. The SES will also introduce requirements on standards of conduct for issue managers to bring them in line with the best practice internationally. Responsibility for Approving Listing Applications We are also reviewing the procedures for approving listings. Presently, the SES is solely responsible for approving applications by companies to list on the stock exchange. In 1983, after a spate of listings of doubtful quality, the Minister for Finance had directed the Securities Industry Council (SIC) to advise the SES on new listing applications. The final decision on listings still rested with the SES, but there was close consultation between the SES and SIC. But this arrangement ceased last year after the SIC decided that it no longer needed to review SES listing decisions . The Corporate Finance Committee chaired by Mr Lim Yong Wah is studying the appropriate roles for the SES and MAS in approving listing applications and the issue of shares by companies. One issue is whether the MAS should be given the power to overrule decisions of the SES on listing applications, where it considers this necessary to protect the public interest. Regulators in some other jurisdictions can exercise such veto powers within a mandated time period. However, such powers should be used sparingly and only when the regulator has strong reasons to believe that doing so is in the public interest. Approval of Listing Applications under a Disclosure-Based Regime The MAS agrees with the proposal by the Corporate Finance Committee for a predominantly disclosure-based regulation regime. This will give more room for the market, rather than the regulator, to judge the commercial merits of transactions. It will help to develop deeper capital markets, with broader participation from institutional investors. But disclosure-based market discipline is not an automatic formula for sound and orderly financial markets. In established markets which adopt a disclosure-based regulatory philosophy, the stock exchange or regulator does not totally suspend judgement on the proposals put to it. The stock exchange or regulator should not attempt to judge commercial merit, but in some instances it may have non-commercial grounds to conclude that a proposal is not in the public interest. For example, it may have reasonable cause to doubt the integrity of the directors or major shareholders of a listing applicant. In such cases, it may consider disapproving the listing proposal. We too need to develop such safeguard mechanisms. I have explained MAS' position with regard to approving listing applications in order to clarify what a disclosure-based regime means, and not to comment on the specific case of Mid-Continent. MAS will evolve its regulatory style to allow more free play in the market. But it will not lower standards of integrity, or allow our financial markets to be brought into disrepute through manipulation and sharp practice.
(Suspension of trading of shares) Mr Speaker, Sir, as the Deputy Prime Minister has said that he would not comment on the case, I would not ask about the case. May I ask him whether he could explain what are the rules and penalties against manipulation of shares?
(Suspension of trading of shares) Mr Speaker, I believe manipulation of shares is a criminal offence and one can go to jail.
HUMANITARIAN AID AND FINANCIAL ASSISTANCE - TO INDONESIA asked the Deputy Prime Minister whether the Singapore Government will review its humanitarian aid and financial assistance to Indonesia in view of the unfavourable comments and doubts expressed by Indonesian President B.J. Habibie.
HUMANITARIAN AID AND FINANCIAL ASSISTANCE - TO INDONESIA the Deputy Prime Minister): Mr Speaker, Sir, in his National Day Rally speech on 23rd August 1998, the Prime Minister laid out the rationale for our assistance to Indonesia. We have a vested interest in Indonesia's stability, growth and prosperity. Indonesia is a close neighbour and a major trading partner. We have large investments in Indonesia. An Indonesian collapse would hurt Singapore as well as affect the regional economic and investment climate. The Prime Minister also pointed out that because Singapore is a small country, our capacity to help Indonesia is limited. But we are committed to helping our neighbours within our means, so that Indonesia and the region can recover from the present crisis as soon as possible. At the sitting on 1st June 1998, the Deputy Prime Minister had informed Members that the Singapore Government would be proceeding with humanitarian aid to Indonesia as well as the proposed Bilateral Trade Finance Guarantee (BTFG) scheme. Subsequently, on 6th July 1998, the Singapore Government announced that it would provide humanitarian aid in rice and medicine worth S$12 million to Indonesia. Singapore and Indonesian officials have started work on implementing the assistance. Minister for Education and Second Minister for Defence, RAdm (NS) Teo Chee Hean, visited Indonesia from 5th-7th August 1998 to deliver the first shipment of humanitarian aid. Indonesian Minister of Defence and Security/ABRI Commander, Gen. Wiranto, received the humanitarian aid on behalf of the Indonesian Government at a hand-over ceremony on 6th August 1998. In his speech, Gen. Wiranto expressed his appreciation and gratitude to Singapore, and described the handing-over ceremony as a milestone in strengthening the ties of friendship between the two nations. On 4th August 1998, just before Minister Teo's visit to Indonesia, the Asian Wall Street Journal (AWSJ) had published an interview with President Habibie, covering Indonesia-Singapore relations. It quoted President Habibie as saying that "a friend in need is a friend indeed. I don't have that feeling from Singapore", and that "There are 211 million people (in Indonesia). Look at that map. All the green (area) is Indonesia. And that red dot is Singapore. Look at that." Minister Teo's visit to Indonesia was planned and scheduled earlier. It was not made in response to President Habibie's comments to the AWSJ. Minister Teo called on President Habibie on 6th August 1998. President Habibie repeated to Minister Teo what he had said to the AWSJ. But he also told Minister Teo that he had a vested interest in maintaining good Singapore-Indonesia relations. He thanked Minister Teo for Singapore's humanitarian assistance. Subsequently, other Indonesian officials have expressed their appreciation. The Indonesian media has also generally reported favourably on our humanitarian assistance. Kompas, a major Indonesian daily, on 12th August 1998 referred to it as evidence "that our bilateral relations remain in a good state". We will continue with our humanitarian assistance. Singapore and Indonesian officials are now working out the details of the second delivery of aid. As for the proposed Bilateral Trade Finance Guarantee Scheme, we remain prepared to proceed with the scheme, as we believe it can help to restore confidence in Indonesia. Singapore officials held the first meeting with their Indonesian counterparts in April. The Indonesian officials said at the meeting that they would have to study the proposal in greater detail. In his recent Jakarta trip, Minister Teo agreed with Coordinating Minister for Economy, Finance and Industry, Ginandjar Kartasasmita, that officials from both sides should continue discussions on the BTFG. Singapore officials are ready to resume discussions as soon as their Indonesian counterparts convene the next meeting.
HUMANITARIAN AID AND FINANCIAL ASSISTANCE - TO INDONESIA Mr Speaker, Sir, the humanitarian aid represents a sincere and genuine gesture of Singaporeans. I am sad only to be received by doubts and cynicism and reciprocated by callous remarks ---
HUMANITARIAN AID AND FINANCIAL ASSISTANCE - TO INDONESIA Order. Are you asking a question?
HUMANITARIAN AID AND FINANCIAL ASSISTANCE - TO INDONESIA I would like to ask the Minister whether he would inform President B. J. Habibie of Singapore's disappointment over his remarks.
HUMANITARIAN AID AND FINANCIAL ASSISTANCE - TO INDONESIA Mr Speaker, Sir, I think we take it from the point which I have mentioned. As I have said, the Prime Minister has said that Singapore has a vested interest in maintaining good relations with Indonesia and a vested interest in Indonesia's stability, growth and prosperity. President Habibie has also informed Minister Teo that he has a vested interest in maintaining good Singapore-Indonesia relations. So the leaders at the highest levels have said that they have vested interest in maintaining good bilateral relations. Singapore will work on that basis.
HUMANITARIAN AID AND FINANCIAL ASSISTANCE - TO INDONESIA Am I to understand that the remarks do not represent the views of Indonesian people and because of that, we will continue with our commitment to humanitarian aid to Indonesia?
HUMANITARIAN AID AND FINANCIAL ASSISTANCE - TO INDONESIA Mr Speaker, Sir, I do not wish to speculate on remarks and comments made by other leaders. I would confine myself to saying that both sides, at the highest levels, have expressed the wish to embark on good relations.
HUMANITARIAN AID AND FINANCIAL ASSISTANCE - TO INDONESIA May I ask the Minister whether in giving financial assistance to Indonesia, will Singapore Government consider adding environmental conditions so that our assistance will not inadvertently accelerate economic activities and conditions in agriculture and other sectors that give rise to the haze, and especially if it leads to fire?
HUMANITARIAN AID AND FINANCIAL ASSISTANCE - TO INDONESIA Mr Speaker, Sir, we have given and extended humanitarian assistance in good faith, considering the difficulties which are being faced by the Indonesian government and its people. When we give such aid, we give it in good faith and we cannot micro-manage and attach too many conditions of the nature that the Member has said.
HUMANITARIAN AID AND FINANCIAL ASSISTANCE - TO INDONESIA I wish to clarify with the Minister that I was speaking on the financial assistance and the possible bilateral trade financing scheme, not the humanitarian assistance which I accept.
(Setting up) asked the Minister for Finance whether the Government will consider setting up a development assistance programme, which is funded within our means and resources, to serve as a mechanism for providing (i) loans, grants, technical cooperation and other forms of assistance for meaningful projects in the region; and (ii) humanitarian aid, where the situation requires.
(Setting up) Mr Speaker, Sir, Singapore is a small economy relative to the neighbouring countries in the region. The assistance that we can give through loans, grants and humanitarian aid would naturally be limited. Singapore should focus on areas where our help can be most effective. This would principally be in giving technical training, helping local companies establish economic activities in these countries, and offering humanitarian assistance where the situation requires. These are already adequately covered by well-established mechanisms. There is no need to start yet another development assistance programme. Singapore provides training and transfer of technical expertise to countries in the region through the Singapore Co-operation Programme (SCP), administered by the Ministry of Foreign Affairs. It comprises of two programmes, namely, the Third-Country Training Programme and the Technical Co-operation Programme. Approximately S$16.25 million has already been allocated to the Singapore Co-operation Programme this year, a considerable portion of which has been channelled towards Indonesia and Vietnam. Training is concentrated on areas where Singapore has special competency and experience, such as maritime management, information technology (IT), airport management, environmental management, economic and trade development and financial services. In 1997 alone, approximately 800 public officials from Indonesia, Malaysia, the Philippines, Thailand and Vietnam benefited from this programme. Singapore also provides help through the Regionalisation Assistance Schemes administered by the Economic Development Board for local companies venturing into the region. The Assistance Schemes comprise seven support programmes for Overseas Project Identification, Overseas Project Implementation, and two support funds for Joint Venture Feasibility Studies in third countries. The aim is to provide selective aid in the form of economic incentives - mainly grants and financing schemes - for local enterprises to undertake meaningful and viable development projects and other investments. These will in turn help generate employment and contribute towards economic development in these countries. In FY97, the Government spent approximately S$18 million on the Regionalisation Assistance Schemes. In respect of humanitarian aid, the Government has offered support in cash and kind towards humanitarian relief in various disasters around the world. These have typically been on the scale of tens of thousands of dollars. None have been of the magnitude of the S$12 million worth of rice and medicine Singapore is offering Indonesia over and above the S$5 million raised by the Singapore Red Cross.
(Setting up) I would like to ask the Minister if the ringgit deposits held by the Singapore Government can be deployed towards these or similar purposes for projects, say, in Malaysia and, if not, what is the status of Singapore's ringgit deposits in light of the recent capital control measures undertaken by the Malaysian government?
(Setting up) The question is slightly outside the ambit of the question. However, I do not think that the ringgit holdings should be used for specific purposes because we can fund all our aid projects from our normal pool of funds. On the question of the status of our ringgit deposits, the Prime Minister has already said that the Government has several billion dollars worth of ringgit in its reserves. Some of these ringgit are in the form of on-shore deposits placed with Malaysian banks in Kuala Lumpur. But the bulk of it is held in ringgit deposits in Singapore banks. The GIC is currently seeking clarification from the Malaysian authorities on the status of our on-shore ringgit deposits and GIC is also discussing with our local banks on ways in which the ringgit deposits can be repaid to the Government. However, whatever the outcome of these discussions, I can assure the Member that the GIC will not suffer any capital loss on its ringgit holdings.
BUY BACK OF COMPANY'S SHARES - (Implementation) asked the Minister for Finance whether he will consider allowing companies to buy back their shares from the market and, if so, whether such a scheme will be implemented in the near future.
BUY BACK OF COMPANY'S SHARES - (Implementation) Mr Speaker, Sir, the share buy-back proposal is in fact included in the Companies (Amendment) Bill 1998 being tabled today. It had been developed after extensive consultation with the Stock Exchange of Singapore (SES), the Association of Banks of Singapore (ABS), the Singapore Merchant Bankers' Association (SMBA), the Law Society, companies and industry participants. The proposal will be implemented when Parliament has discussed and agreed to pass the Bill, which will hopefully be in November or earlier. The amendment, if passed, will allow the purchase or acquisition by a company of its own shares, without having to apply to court for approval. Currently, a company can only return capital to its shareholders by way of a capital reduction under section 73, which requires confirmation by the High Court. This can be a time-consuming and expensive process. Capital reduction also does not give listed companies the same flexibility as a share repurchase in terms of the method, timing and amount of capital to be returned to shareholders. Appropriate safeguards and disclosure requirements have been incorporated in the proposed amendments to ensure that share buy-backs by companies will not be abused to the detriment of shareholders and creditors. The details are set out in the Companies (Amendment) Bill 1998. Additional safeguards for public listed companies will be formulated by the Stock Exchange of Singapore as part of its listing rules.
NURTURING OF ENTREPRENEURIAL BUSINESS ENVIRONMENT - (Introduction of fiscal measures) asked the Minister for Finance (a) what kind of fiscal measures or policy changes the Government will introduce to nurture an entrepreneurial business environment in Singapore; and (b) what avenues are open to local enterprises to develop partnerships with Government-linked companies in order to capitalise on emerging opportunities in the region.
NURTURING OF ENTREPRENEURIAL BUSINESS ENVIRONMENT - (Introduction of fiscal measures) Mr Speaker, Sir, a number of policy changes and programmes have already been implemented to nurture an entrepreneurial business environment in Singapore. Our bankruptcy laws went through a major reform in 1995. One of the primary objectives of the new Bankruptcy Act was to encourage entrepreneurship, especially in cases where bankruptcy had arisen from misfortune rather than malpractice, by having a more liberal regime in bankruptcy discharges. With the liberalization, bankrupts are also encouraged to work towards an early discharge. The law was also amended to enable the Official Assignee to discharge more bankrupts by certificate. Further studies are currently being undertaken to determine if additional changes are necessary. The Government has also appointed a Corporate Finance Committee under the Financial Sector Review Group, which is currently looking into ways to facilitate the listing of start-ups on the stock exchange. Details will be released in due course. In addition, the Government has also been actively promoting the venture capital industry in the mid-1980s. As at the end of 1997, there was over $7.7 billion worth of venture capital funds managed in Singapore. Currently, these funds enjoy tax exemption on the gains from disposal of investments, and on certain investment incomes for a maximum of 10 years. To further encourage the growth of the venture capital industry, I have announced in this year's Budget Statement that the current 10-year limit will be extended, on a case-by-case basis, by up to a further five years, at a concessionary tax rate of not more than 10%. This will encourage venture capital funds to take a longer-term perspective of their investments and to minimize premature divestment. The Government has also established a $50 million Technology Development Fund (TDF) which co-invests with private venture capital firms to fund early stage ventures. Other similar funds include the $100 million Technology Commercialization Fund and the $100 million Pharmaceutical and Biotechnology Growth Fund. EDB Investments Pte Ltd, a subsidiary of the Economic Development Board, also runs venture capital funds that invest in start-up companies at various stages of development. As to the concern on the avenues open to local enterprises to develop partnerships with GLCs, I would like to point out that GLCs have been forming partnerships with smaller local enterprises for regional projects. However, the test is in the degree of complementarity between the specific needs of the GLCs and the capabilities of the SMEs. We should not force a pace beyond what commercial reality dictates. The Government has also been facilitating the development of partnerships between the GLCs and smaller Singapore companies. An example is through the business interaction and networking made possible at Trade Development Board trade missions. GLC/SME partnerships are already beginning to happen on the ground. For example, STIC, a GLC, has brought its core group of suppliers to Wuxi in China and paved the way for the latter to form business tie-ups with our suppliers there. Sembawang Shipyard has brought a number of local contractors to support their Karimun yard in Indonesia. Another example is PSA helping local companies bring their port-related innovations to overseas ports that PSA has invested in.
UNEMPLOYMENT AND JOB PLACEMENT asked the Minister for Manpower what is the latest unemployment figure; what is the success rate for the job placement service that his Ministry provides; and how many workers have been able to find jobs through this service.
UNEMPLOYMENT AND JOB PLACEMENT Mr Speaker, Sir, the labour market continued to soften in the second quarter of 1998. The seasonally adjusted unemployment rate was 2.3% in June 1998. This was slightly higher than 2.2% in March 1998 and substantially higher than 1.7% in June 1997. The actual unemployment rate without adjusting for seasonal factors was 3.2% in June 1998 compared with 1.9% in March 1998 and 2.4% in June 1997. Unemployment is traditionally high in June as this is the period that the new local tertiary graduates join the ranks of job seekers. An estimated 62,100 persons (seasonally unadjusted figure) were unemployed in June 1998 compared with 36,500 in March 1998 and 45,500 a year ago. The Employment Service Department of the Ministry of Manpower registered about 1,500 to 1,700 new job seekers per month in recent months. About 80% of job registrants were able to get job referrals from the Department. Based on companies' feedback, about 6% of the total job registrants were successfully placed in employment. The ESD records show that about 50% of the registrants were able to find employment on their own, or they rejected the job offers by the prospective employers. The reasons cited for rejection include the unsuitable nature of work, working hours, location of workplace, or salary.
UNEMPLOYMENT AND JOB PLACEMENT Will the Minister please enlighten the House as to whether the duration of unemployment has increased and also the nature of the unemployed, in other words, are these predominantly older and unskilled workers?
UNEMPLOYMENT AND JOB PLACEMENT Mr Speaker, Sir, I do not have the figures on the re-employment rate. But I understand that the re-employment rate between the first and second quarters has not changed substantially. There may have been a slight lengthening in the period of unemployment among those who were retrenched or out of work. With regard to the profile of the unemployed persons, as most of the retrenchments in the last two quarters, about 68% to 69% of the retrenched workers, came from the manufacturing sector, you will expect to find more women. In fact, there could well be a higher proportion of the older or middle-aged workers, ie, those above the ages of 35-40 and above, and that in itself presents an added dimension to the problem. Because they are older, less educated and less skilled workers they have greater difficulty finding new jobs and that is why we are investing so much money and effort in providing them with skills upgrading opportunities so that they can take on the new jobs that are being created in the other sectors of the economy.
UNEMPLOYMENT AND JOB PLACEMENT I would like to ask the Minister what is the prospect of graduates from universities and polytechnics, whether there are specific plans to help them to get jobs, and whether the Government departments and statutory boards will consider increasing their intake of these graduates in view of the shrinking job market in the private sector.
UNEMPLOYMENT AND JOB PLACEMENT Mr Speaker, Sir, as the labour market loosens and employment creation slows down, we can expect that even graduates will find greater difficulty in getting jobs, particularly new graduates, and this is to be expected. I hope that this year's batch of new graduates will understand this position and also, more importantly, revise their expectations. On our part, we will assist graduates who need job placement assistance. They can register with the Employment Service Department if they have difficulty finding a suitable job match on their own. We will help them find a suitable job match because we have a team of officers in our employment facilitation team who will make contact with all the employers in the various sectors that we know are still recruiting staff. We will try to help the graduates who register with us to find a suitable job match. As to the statutory boards and Government departments, let me assure the Member that Government departments and statutory boards will continue to recruit manpower according to their needs. Faced with this crisis, we should not try to take the approach of using the Government as a sponge to soak up the surplus manpower as the economy slows down. There is a limit to how much the Government can do to soak up this surplus manpower. What we have to do is to create real jobs for them. We should not just randomly recruit graduates because we want to provide a refuge for them in this period of economic slowdown. That would be unwise. It would lead to Government inefficiency and, in the long term, it will hurt us more than it will benefit us. What we should do is to try to stimulate development, bring in more investments, and create more jobs so that the graduates can get employment and make a real contribution to the economy.