MALAYANISATION (Public Service) (Statement by the Chief Minister)

The Chief Minister (Mr D. S. Marshall): If it please you, Sir, as you are aware, I shall be tendering my resignation as Chief Minister at the end of this sitting, and in accordance with constitutional procedure all my appointed Ministers will be resigning with me.

It is, however, Sir, the view of your appointed Ministers that it is possible and desirable, both politically and administratively, to proceed with Malayanisation irrespective of the recent constitutional setback and the impending change of government. I have to inform you that we have requested that an approach be made to the Secretary of State and to the Staff Associations concerned with a view to the earliest possible implementation of the following recommendations:

(1) Appointment of a Malayan Director of Personnel;

(2) Appointment of a Malayan Permanent Secretary - designate to the Treasury;

(3) Appointment of a Public Service Commission with executive powers and a directive to take into consideration the recommendations of the Malayanisation Commission's Majority Report when it considers appointments and promotions; and

(4) A scheme for full abolition terms.

Your appointed Ministers, Sir, are of the view that the abolition terms should provide for full compensation to all expatriate officers, payable not later than the end of four years after the Public Service Commission with executive powers takes office; such compensation to be paid if officers retire earlier with the consent of the Government. On the other hand, if officers wish to retire within this four-year period, they are free out the consent of the Government dur to do so but will then only be entitled to half the abolition terms.

The approach of your appointed Ministers, Sir, is based on the principle that, where there is compulsory termination of a career, full abolition terms should be given; but where there is merely interference of the career without depriving the officer of his livelihood, then he should await the end of the four years or earlier agreed termination before receiving full compensation, but if he insists on retiring earlier, half the abolition terms would be generous compensation for the disturbance and departure from some of the existing service principles affecting expatriates.

The reason, Sir, for the provision of half and not full abolition terms on voluntary retirement is intended to ensure that Malayanisation is carried out in a planned and efficient manner.

Your appointed Ministers, I must add, Sir, do not accept the principle of a standstill for promotions of expatriates as recommended by the Majority Report but seek in place thereof promotion to grades and not to posts, so that expatriate officers' remuneration and ultimate abolition quantum are not prejudicially affected, though this would mean a considerable additional burden on the country's finances.

Mr Lee Kuan Yew (Tanjong Pagar): Mr Speaker, Sir, although this may be a matter out of the competence of the present Chief Minister, does he not agree that this is a subject which should be debated on a White Paper rather than on a statement by the Chief Minister?

The Chief Minister: Sir, I am informing the Assembly of the approach of the appointed Ministers to this problem. When a decision is finally arrived at in conjunction with the Secretary of State, who holds the whip hand, then the matter will be presented to this Assembly for its own confirmation or otherwise of the decision.