ECONOMIC DEVELOPMENT BOARD (AMENDMENT) BILL

ECONOMIC DEVELOPMENT BOARD (AMENDMENT) BILL: Order for Second Reading read.

2.22 pm

The Senior Minister of State for Trade and Industry (Mr S Iswaran): Mr Speaker, Sir, I beg to move, “That the Bill be now read a Second time.”

This Bill amends the EDB Act to provide the EDB with more flexibility to explore new businesses and industries as well as remove unnecessary restrictions that may hinder the EDB’s effective operation in today's rapidly changing world. In addition, this Bill incorporates provisions into the EDB Act that are commonly found in the more recent statutory board Acts.

Let me now go through the major amendments proposed in the Bill.

Flexibility to explore new businesses and industries

The first set of amendments is meant to give EDB added flexibility to explore new businesses and industries. Currently, the term “business enterprise” is defined in the EDB Act as entities that the EDB deals with. As the EDB is tasked to explore new businesses and industries that they have not dealt with before, this definition of “business enterprise” is potentially restrictive. Hence, clause 2 defines a new term, “enterprise” as any entity incorporated, formed or established in Singapore or elsewhere, whether or not for profit, and howsoever owned or controlled. It includes a corporation, a sole proprietorship, a partnership, a joint venture, a trust, an association or a branch of an enterprise. Clauses 12 to 16 replace the term “business enterprise” with “enterprise” wherever it appears in the Act.

Clause 5 updates and broadens the functions of the EDB. In particular, it tasks EDB to stimulate the growth, expansion and development of the Singapore economy in general and not just “Singapore as a total international business centre”, which is the existing statutory function. Pursuant to the broader function, EDB is to formulate investment promotion policies and plans as well as promotional incentives and strategies. Clause 5 also allows the Minister to assign new functions to the EDB by legislating in the Gazette , if the need arises.

Clause 12 updates the powers of the Board to deal with the broader functions that are proposed by clause 5.

Removal of unnecessary restrictions in today’s operating environment

The second set of amendments removes restrictions that hinder effective operation in today’s business environment. To allow the EDB to tap on the collective wisdom and experience of more Board members as the EDB explores new business areas, clause 4 of the Bill increases the number of EDB Board members from the current “not less than 4 and not more than 11” to “not less than 5 and not more than 15”.

Clause 6 allows the EDB to appoint a temporary Chief Executive Officer, without the need to seek the approval of the Minister, during the absence, or incapacity owing to illness or otherwise, of the CEO. The Minister retains the power to remove the CEO by giving instructions to the Board.

Clause 7 provides for the EDB to engage agents as it considers necessary for carrying out its functions and duties.

Incorporation of provisions that are more comprehensive than those found in the current EDB Act

The third set of amendments incorporates provisions commonly found in more recent statutory board Acts. For example, clause 9 of the Bill provides for the protection of the Board and its members, officers or employees against liability for errors or omissions in information supplied to the public if made in good faith and in the ordinary course of the discharge of duty. This provision is also found in the Acts of other statutory boards, such as ACRA, AVA, NEA, NPB, WDA, IPOS and SLA, which dispense information to the public.

Clause 11 updates the borrowing powers of the EDB by specifying that the EDB may borrow from the Government, or, with the Minister’s approval, from such source as the Minister may direct.

Clause 21 inserts a new First Schedule containing provisions relating to the constitution and proceedings of the Board. In particular, it allows the Chairman to authorise, in writing, any member of the Board to exercise any power or perform any function conferred on the Chairman by the Act. This provision is found in many other statutory board Acts, including SPRING, ACRA, HPB and AVA Acts. The First Schedule also requires the Board members to declare their interest in all instances where there may be a conflict of interest on any matter that is being discussed at a meeting of the Board.

Mr Speaker, Sir, the proposed amendments will help the EDB to meet the increasing demands and challenges of today’s business and economic environment. They will enable the EDB to carry out its functions and duties effectively, and ensure the continued economic development and success of Singapore and the companies on our shores.

Sir, I beg to move.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into a Committee on the Bill. – [Mr S Iswaran].

Bill considered in Committee; reported without amendment; read a Third time and passed.