PIONEER INDUSTRIES (RELIEF FROM INCOME TAX) BILL

Order read for resumption of adjourned debate on Question - [3rd December]:

"That the Bill be now read a Second time."

Question again proposed.

10.08 a.m.

Mr Speaker: The Member for Changi was interrupted yesterday. I do not know whether he wishes to continue with his speech. He need not do so, of course, if he does not wish to.

Mr Lim Cher Kheng: Sir, I prefer to continue with my speech. Yesterday. I pointed out that it was high time for us to consider the important question of merger. If we believe that merger is the ultimate goal of both territories, then at least we should expect some sort of reaction from the other side; but up till now, Sir, our relations with the opposite side of the Johore Straits are very, very cold.

Our energetic Minister for Commerce and Industry once again wants to boost up industrialisation in this country. Of course, in principle as I said yesterday. I wholly support the Bill but we must face reality. I do not think that tax holidays for five years or even ten years will be sufficient to attract any investor to invest his money in this country except wealthy political refugees. I do not think that any genuine businessman or industrialist will have the determination to dump his money in this country to create new industries. So, I admit that I am quite pessimistic with regard to this Bill, unless this Government can assure us that the Federation Government has something in the nature of a long-term Pan-Malayan economic development plan or something like that; otherwise this Bill will be a farce in the eyes of the public, because many industrialists in Singapore have had to shut down their businesses during the last few years We cannot merely say that this was a result of the labour unrest. What about the imposition of tariffs at the Johore Causeway? If British-made goods can enjoy preferential tariff treatment, I cannot see why Singapore-made goods cannot enjoy similar treatment. I am sure that the Minister for Commerce and Industry has received numerous representations on this matter.

Sir, I wish to conclude by saying that unless this Government can assure us that the Federation Government has already agreed to have a Pan-Malayan industrial development plan, then he should stop fooling himself and the people if he thinks that industrialisation in Singapore can be a reality.

Mr J. M. Jumabhoy rose -

Mr Speaker: In reply?

Mr J. M. Jumabhoy: In reply, since no other Member wants to speak on this Bill. This is certainly, Sir, a contrast to the anxiety shown by everybody yesterday in wanting to speak on the Nanyang University Bill, perhaps because of the reason put forward by the Member for Tanjong Pagar - for vote-catching purposes! An important Bill like this, Sir, and so few speakers in this House!

Sir, the Member for Tiong Bahru cited the City Council requiring 50 per cent of the cost in advance to lay electric cables and its effect on industrial expansion. I admit, Sir, that this might have adverse effects on industrial expansion, but beyond the statutory powers that the Government has over the City Council, the City Council is a fully elected body and it has as much right to carry out its own policies as the Government has. Therefore, the Government cannot counter the City Council's actions. If there is a bad repercussion as a result of the City Council's actions, then it is up to the people to recognise it and throw the lot out at the next elections, if they wish to; but so long as the City Council acts as an elected body, the Government cannot do anything about it. That is the proper and democratic parliamentary system. Therefore, it is no use blaming the Minister or the Government for what it has done or pointing out that the City Council is taking this or that action.

The Member for Changi, Sir, has been emotional in the last two days. First, he launches into a tirade against me about the trade with China. Then he goes on to talk about the Federation. In fact, what he says is that the Singapore Government must ram down the throat of the Federation Government the fact that it has got to accept that Malaya and Singapore are one economic unit. Sir, short of going to war with the Federation, I do not see how the hon. Member or any Government in Singapore can do that. But what this Government is doing - this is what the hon. Member does not like, and he made it very clear yesterday - is trying to co-operate with the Federation. Co-operation begets co-operation and then -

Mr Lim Cher Kheng: Kow tow!

Mr Speaker: Order.

Mr J. M. Jumabhoy: That is quite clear, Sir. The Member wants us to go to war with the Federation, and we are not prepared to do that because we are thinking of the future of Singapore, and not a short-term policy as thought of by the hon. Member. We are democrats who try to get co-operation. I feel that if persons like the hon. Member will not put oil on fire by bursting into emotionalism, we have a good chance of making the Federation realise that it is in their own interests to co-operate with us on economic matters. However, it is issues which the hon. Member raises and the manner in which he raises them that are really causing the friction.

Mr Lim Cher Kheng: How long?

Mr J. M. Jumabhoy: Sir, beyond those two points, there are no real points made by any Opposition Member. I was rather sorely touched by one or two points made by the hon. Member for Changi yesterday when he was talking about trade with China. He referred to industry and touched on the Minister's announcement of protection policy. What has he done? He has been banging the table, and saying that we have trade on the one hand and industrial expansion on the other, and how do we reconcile the two? And he said this morning that the Minister should not fool himself and fool the people.

I would like, Sir, to give the diary of events after my statement on 13th August to this House on the protection policy. On 21st August, at a Press conference, I announced the terms of reference of the Protection Advisory Committee - that was seven days after - and by the end of August I had announced the names of the Protection Advisory Committee Members, and that is very fast indeed. On 27th September we had the forms ready. Before that, Singapore had never thought of protection. Therefore everything had to start from scratch. Believe me, my officers, both past and present, have been working till very late at night to get things done. As I said, the forms were ready and they were issued to those interested and who wished to apply for protection. Just before I left for the United States to attend the Colombo Plan Conference, we had received eight applications. Some of them we consider are rather frivolous, as they have not given sufficient data; but there are three that we consider merit consideration and they have been given immediate consideration.

Hon. Members must realise that in a democratic system where there are Committees and so on, things have got to take their course. At times I do feel frustrated myself at the slowness of events, but if you are not going to have a dictatorial regime - where the Minister orders "so it shall be done" and it is done - we have got to go through all the procedures, even though they may be frustrating; and therefore it takes time, - things have got to be evaluated in their proper light, Sir. Every application has to be judged in its proper light.

Sir, one other comment which was made and which touched me rather sorely was why I am bringing up all this legislation at this late hour when this Government's life is about to expire. Sir, it is because I feel that there is no time to be lost. Economically, Sir, we are going downhill rather slowly now, but that slow movement downhill can develop into a much faster rolling down and it could end in economic disaster for us. I am not a scaremonger, Sir, but I see the position clearly. In fact, it is now generally acknowledged that our entrepot trade cannot support our growing population. It was I, Sir, who in this very House in 1956 first stated this fact that "there are people who cannot see the writing on the wall" - that "our entrepot trade cannot support us". At that time, Sir, I was accused of adopting an alarmist attitude, but now I challenge anyone, Sir, to say that I was wrong. Our trading deficits are getting bigger; unemployment is increasing, because the trade level is falling off, and also because of the increasing population.

Our trade depends on the economic and political policies of other countries and the experience I have gathered from my going to conferences and meeting various political leaders and commercial leaders of other countries - even though the Member for Telok Ayer might say it is all a waste of time for Ministers to go to conferences, even though other countries do send Ministers to such conferences - it does give me an insight into the ways of thinking of the countries with which we have got to trade. That is very important, and I would suggest to the next Minister for Commerce and Industry, whoever he may be, that it is very important for him to go out and meet leaders of other countries with whom we are trading and to evaluate their economic position, their policies and so on. Sir, from my experiences gathered at such meetings and mixing with other leaders, I cannot foresee a brighter future for our entrepot trade than it is now. Every country is naturally out to do what is best for itself. It is a cold, hard, competitive world and we must wake up to this fact and fight to survive. There is not a moment to lose in this fight. Sir, if you will only realise the long hours we work behind the inscrutable walls of Fullerton Building, or even in Empress Place, to keep this fight going; how the other Ministers give me their full support by attending meetings at odd hours and perusing lengthy papers during holidays - all to keep this fight going. And even the Attorney-General, Sir, has been overtaxed in preparing all this complicated and controversial legislation - I must take my hat off to him, Sir. And why? Does anyone like to work late at night and on holidays, when he can go to Changi beach and swim? It is because we recognize the responsibility that we have to carry on this fight. Sir, as long as I am the Minister for Commerce and Industry, I am determined that this fight shall go on. This legislation may perhaps be too late for me to make effective use of during my present term of office, but it shall be ready to enable me to continue this fight if I am returned to the same office of Minister for Commerce and Industry next year. If another person occupies that office, his task will be made much easier because the legislation will be there for him to make use of if he wishes to. If he does not, it can lie dormant. It is harmless.

Sir, I do not believe in letting things slide. I have been a businessman and I know that you have to push things along to get anywhere in this world, but it is not so in politics, as the Member for Tanjong Pagar would suggest, Sir. There are politicians and parties who take a defeatist attitude. Their only answer to all this is "merger with the Federation and until that merger takes place, it is futile to do anything". I do not take that attitude. I recognize that merger with the Federation is the answer to our problems. Sir, at the same time I do not believe in letting things slide and taking a defeatist attitude. I believe in doing something in the meantime; and all this legislation is for that purpose. The fight to survive must continue to prevent our tumbling down. Defeatism is not good for anyone.

Therefore, Sir, I hope hon. Members will give me their full support whenever I bring up this sort of legislation to this House. In fact, there are some more measures coming up to this House which I, the Attorney-General, and my colleagues are trying to rush through as quickly as possible. Perhaps we may not make use of them. If some other Minister occupies my office, he may make use of them. But I love Singapore, Sir - it is my home - and I say that anything done for the good of Singapore is good for me.

Question put, and agreed to.

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

Committee Wednesday, 14th January, 1959.