SINGAPORE INDUSTRIAL PROMOTION BOARD (Advances to defray expenditure)

12.30 p.m.

The Minister for Commerce and Industry (Mr J. M. Jumabhoy): Mr Speaker, Sir, I have His Excellency the Governor's consent to move, and do move,

That this Assembly approves under the provisions of section 6 of the Singapore Industrial Promotion Board Ordinance, 1957, the allocation of advances to the Singapore Industrial Promotion Board up to but not exceeding the sum of one million dollars for the purpose of enabling the Board to defray expenditure properly chargeable to capital account, including defraying initial expenses, and for the provision of working capital.

Members will recall that the Singapore Industrial Promotion Board Ordinance which I moved at last month's sitting came into operation on 25th January, and that the Ordinance was enacted for the purpose of establishing a Board to facilitate the industrial and economic development of the Colony, and to finance by loans industries which need such finances. As stated by me at last month's sitting of the Assembly, the Government intends that the Industrial Promotion Board should have at its disposal a revolving fund to enable loans to be granted to local industrialists to assist them in their schemes to promote or expand local industries. The sum of $1,000,000 should be adequate for the immediate needs of the Board but if further advances should be warranted by the scope of the Board's activities, I shall bring up further requests to Members in the House.

Sir, doubts have been expressed as to how the Board is going to judge applications for loans. As mentioned by me last month, section 4 (2) of the Ordinance lays down a general guide for the members of the Board. I shall read section 4 (2) , Sir. It says,

"Subject to the provisions of section 7 of this Ordinance, in carrying out the objects provided for in subsection (I) of this section the Board shall have due regard to the economic and commercial merits of any undertaking it promotes, assists, finances or manages and shall also take into consideration in considering such economic and commercial merits, the economic merits of any other undertaking in which it has an interest and the economic requirements of the Colony as a whole."

Section 5 (2) , Sir, is also relevant, and it reads,

"Whenever the Board shall lend money to or assist financially any undertaking, it shall so far as possible ensure that its loan or financial assistance is not unduly in excess of any loan or capital investment by any other person interested in such undertaking."

Beyond this guidance which is laid down in the Ordinance, the members of the Board will have to exercise their own judgment. I am sure they should be good judges because section 9 (1) lays down that besides the Financial Secretary's and my representatives on the Board, the Chairman and two other members should be persons appearing to me to have had experience of, and having shown capacity in, matters relating to banking, finance, industry or trade administration. They will, therefore, be persons of mature experience capable of exercising good judgment in such matters.

Consideration, Sir, is now being given to membership of the Board and it is hoped to make the appointments shortly. The Board will then select its own Manager, who will arrange for the formal commencement of its activities. Sir, I beg to move.

Mr Chew Swee Kee: Sir, I second it.

Question proposed.

12.34 p.m.

Mr Lee Kuan Yew: Mr Speaker, Sir, we approved this: in fact we passed the Ordinance creating the Industrial Promotion Board. But I would like to touch upon a matter on which the Minister has shed some light, namely, the appointment of the Chairman. Mr Speaker, Sir, we did not say anything against the Public Service Commission, nor did we withhold our felicitations to them because certain persons whom it was rumoured were going to be appointed for distinguished services to sport and other activities, were not appointed. I would like to tell the Minister for Commerce and Industry that it is rumoured that a certain industrialist, who has retired from active industrial practice and is now making a practice of going on commissions in administrative and advisory capacities, is being considered for this job. He has not got the confidence of my Party, and he has not got the confidence of a lot of other people, who -

Mr Marshall: On a point of order, Sir. Is it proper for the Member for Tanjong Pagar, on this particular motion, to indulge in personalities which are not sufficiently veiled for the person not to be known, and to suggest, first, that there is such an appointment in mind, and, second, that he is unsuitable? Sir, the question of appointment is not being raised here; the motion is entirely for the supply of the money.

Mr Speaker: On the point of whether or not it is proper for Members to make derogatory references to members of the public outside this Assembly, I have already commented on another occasion - it is not, in fact, a point of order.

On the other point, as to whether the remarks are relevant, I find that, under the Ordinance, the members of the Board are to be paid fees, and I take it that these fees would be coming out of this $1,000,000, so that perhaps, indirectly, the Member is correct in touching on the appointment but not on how the appointment should be made.

Mr Lee Kuan Yew: The point I would make and I will continue to make it - despite the protestations of the Member for Cairnhill - is this: that if they appoint somebody in whom we have no confidence, and in whom a lot of other people have no confidence - I am not saying anything derogatory, I am just stating that we have no confidence - the appointment will be the subject of constant attack and criticism. It would mean, in effect, the gradual loss of public confidence in this Industrial Promotion Board. Sir, I ask the Minister to bear that in mind when the appointment is being made. It is important, if we are not to start something on the Indonesian pattern, that the person who is appointed to this job is a man of integrity, someone who has never had public criticism levied at him before, particularly from the public service itself. He must be someone who can command that confidence, so as to leave no doubt in anybody's mind that public funds are not being fiddled with.

12.39 p.m.

Mr Lim Choon Mong (Serangoon): Mr Speaker, Sir, we have supported this Industrial Promotion Board in the hope that more industries will be saved and encouraged. On the motion asking for money, we would like the Minister for Commerce and Industry to bear in mind that members who are appointed to this Board should be impartial ones, because I have a fear that if the people who sit on the Board should come from one type of business that fears competition, they will definitely not want to encourage other types of business that will compete with theirs. It will be best therefore that people who are appointed to this Board should be impartial people, who have no financial interest in the matter of manufacture.

12.40 p.m.

Mr J. M. Jumabhoy rose -

Mr Speaker: In reply, Mr Minister?

Mr J. M. Jumabhoy: Sir, I think the Member for Tanjong Pagar has misunderstood the contents of the Ordinance. The Chairman is not going to be a full-time Chairman, like that of the Public Service Commission. The Chairman and members will just come to meetings and conduct the business of the Board at meetings. It is not the intention to have a full-time Chairman. As to fees, it depends on how much time they have to devote to the work of the Board before I consider whether Government will be willing to pay them any fee or not. I take it that members of the Board will be persons who are well-to-do because they must be connected, according to the Ordinance, with either industry, banking or trade administration, and therefore I am sure that if they are public-spirited they will give their services and experience free to the Board.

Probably what the Member is referring to is the appointment of the Manager, who will be a full-time man, and who will carry out investigations into the applicants' business, industry, and so on, and then give the results of these investigations to the meeting of the Board for them to make a decision. I do not know which person he has in mind, but I can assure him and the Member for Serangoon that all appointments to the Board will be made from persons who, after a great deal of thought, I consider to be impartial. Of course, I am restricted by the section in the Ordinance which says that for these appointments I shall have to take into account that the person selected should be someone who has had experience in industry, finance or trade administration. This stipulation was purposely put in because this type of board should be run by persons who are experienced in the businesses concerned. If you put anybody on the Board - a doctor or a lawyer, say - you may find that they will not be able to understand the problems of the industries concerned which are applying for loans.

There is one other point I wish to make, and that is that the members will be appointed by me with the prior approval of the Governor in Council. Therefore, if there should be any misjudgment by one member of the Council of Ministers, that is by the Minister for Commerce and Industry, there will be other Members of the Council of Ministers who will have to approve that misjudgment before the appointment can be made. This is another safety device provided for in the Ordinance.

Question put, and agreed to.

Resolved,

That this Assembly approves under the provisions of section 6 of the Singapore Industrial Promotion Board Ordinance, 1957, the allocation of advances to the Singapore Industrial Promotion Board up to but not exceeding the sum of one million dollars for the purpose of enabling the Board to defray expenditure properly chargeable to capital account, including defraying initial expenses, and for the provision of working capital.