LOCAL INDUSTRIES (Government Policy)(Statement by the Minister for Commerce and Industry)

[Mr Speaker in the Chair]

(Statement by the Minister for Commerce and Industry)

The Minister for Commerce and Industry (Mr J. M. Jumabhoy): Mr Speaker, Sir, hon. Members will recall my promise made to this House at its September sitting to inform hon. Members of Government's plans for the promotion, encouragement and development of local industries. In accordance with that promise, I now wish to outline Government's policy in this respect:

(a) The Government will continue to encourage the investment of foreign capital and to create a suitable climate for investment.

(b) Government has no intention of changing its present policy with regard to the repatriation of profits or of capital.

(c) The Government will give all reasonable facilities for the entry into Singapore of skilled workers, technicians and engineers, if not available locally, and of any senior administrative personnel reasonably required for the development of industries and other commercial enterprises which are considered to be for the economic benefit of Singapore.

(d) The Government will continue to give facilities for the importation from competitive markets of raw materials, machinery and technical equipment necessary for industries which it is desired to encourage.

(e) Government intends that a survey of the colony's industrial potential and markets be carried out. Inquiries are now being made in order to obtain the services of experts to undertake this survey.

(f) Government intends to establish an Institute of Scientific and Industrial Research for the purpose of investigating and giving advice on the technological and economic aspects of industry. Arrangements have been made to obtain the advice of an expert on the setting up of this Institute.

(g) Government has decided to set up an Industrial Promotion Board with a $1,000,000 revolving fund to give financial assistance

to small industries. Legislation is now being drafted and a Bill will shortly be introduced in this House.

(h) Government is investigating the question of making tax concessions to industries whose expansion or establishment it is desired to encourage. The outcome of this investigation will be reported in due course.

The survey of the colony's industrial potential and markets that Government intends to be carried out will, for the first time, reveal the possibilities for industrial development that are at present unknown. The findings will act as a basis for future industrial development and be a useful guide to prospective investors who are desirous of ascertaining the industrial possibilities of Singapore.

Consideration of the extremely difficult and complex problem of tariff protection will be deferred until the Industrial Potential and Markets survey has been completed and studied.

It is intended that the work of the Institute of Scientific and Industrial Research should include investigations into industrial uses of local materials, the testing and standardisation of industrial products, the improvement of industrial techniques and quality of products, the utilisation of by-products, the solution of specific technical difficulties, and the estimation of costs and local market opportunities for particular industries whose establishment may be contemplated. The services of this Institute will be available not only to Government but also to private firms on payment of a fee.

The Financial Secretary (Mr T. M. Hart): Mr Speaker, Sir, I have to report that I have Certificates of Urgency from His Excellency the Governor in respect of four Bills. May I give them to the Clerk?

Mr Speaker: Can I have the Certificates, please?

Certificates of Urgency handed in.

Mr Speaker: The Certificates are in order. Please proceed, Mr Financial Secretary.