TRADE AND INDUSTRY (EXPANSION)

Mr John Ede asked the Minister for Commerce and Industry whether he will state what plans the Government has in view for the carrying out of its declared aim of attracting private capital from both local and overseas investors for the purpose of expanding trade and industry, and of raising the standard of living of all the people of Singapore.

Mr D. S. Marshall: May it please you, Sir, it is a question that seeks a thesis and somewhat, if I may say so, inappropriate for an oral answer, but I shall do my best. In the two months since His Excellency's Address outlining our commercial policy, Government has established a Trade Advisory Council. It has, as the House is aware, been in communication with our great trading neighbour, Indonesia, with a view to improving our commercial relationship. Furthermore, plans for an Industrial Development Corporation, to encourage local industries along the lines that have been so successful in Hong Kong, are now under intensive study. The Report of the International Bank for Reconstruction and Development is being studied in detail, Sir, and the question of the establishment of a Central Bank is being pursued. The appointment of an Economic Adviser and an Economic Commission, of which this House has heard, and which it is hoped will certainly take place in the course of this year, will assist in blueprinting an overall commercial, industrial and fiscal policy for the next few years. In the meanwhile, Sir, assistance in the industrial and commercial fields is taking the form of attention to individual applications on their merits, encouragement to the extent of granting hard currency, and allowing immigration of key personnel, where necessary, for the development of industry in this territory.

I would also draw attention to the Labour Ordinance which is before the House this morning and which is the first step in Government's plan for the amelioration of employer-employee relations and the establishment of industrial stability, so necessary for the encouragement of capital to take advantage of tie opportunities that are available in this country. I think I ought to add, Sir, that the provisions for technical education which are now afoot would, it is expected, considerably assist in the industrialisation, so necessary for our future welfare, the absorption of the unemployed of today, and the youth seeking employment of tomorrow.

Mr John Ede: Mr Speaker, Sir, could the Minister give more detailed information regarding the means the Government will use to attract private capital from both local and overseas investors; for example, by means of giving income tax reliefs, initial or annual or both, on the cost of factory construction and initial plant?

Mr Marshall: Mr Speaker, Sir, I have indicated that the question of the establishment of an Industrial Development Corporation is proceeding apace. To what extent our taxation policy may be directed towards giving relief for the encouragement of industry will await, Sir, the advice of our Economic Adviser and the establishment of the Industrial Development Corporation. But it is intended that that Industrial Development Corporation, when established, should give assistance of a very practical character and perhaps financial aid for the establishment of industry.

Mr John Ede: Sir, does not the Minister agree that as much haste as possible in this matter is necessary, so that we can go forward swiftly to expand our industries which are so necessary to us? I feel that -

Mr Speaker: Confine yourself to the question, please.

Mr John Ede: Does he not consider that awaiting an Economic Adviser, which I realise is being searched for diligently, is holding up this very necessary development?

Mr Marshall: No, Sir.

Mr M. P. D. Nair: How soon does the Minister for Commerce and Industry expect the Industrial Development Corporation to be established? Can he indicate any time limit?

Mr Marshall: I regret I cannot add further to my statement. Sir, I would not wish to mislead the House, but I can assure you that the plans are under intensive study.