EXCHANGE CONTROL (AMENDMENT) BILL

Order for Second Reading read.

7.33 p.m.

The Parliamentary Secretary to the Minister for Finance (Mr Low Por Tuck): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

At the moment, the Exchange Control Ordinance (Chapter 216) imposes no control on the import into or export from Singapore of Treasury Bills. Non-resident controlled companies are free to transfer, sell or do anything with their holdings of Treasury Bills. Alternatively, residents are able to make loans to such companies in the form of Treasury Bills without hindrance. Furthermore, transactions in or in relation to Treasury Bills by persons who leave the scheduled territories either on emigration or repatriation are not brought under control.

When the Exchange Control Ordinance was passed in 1953, it was considered that, at that time, the provisions for the control of Treasury Bills were not necessary as the issue of such Bills was not then a regular feature of either Singapore or the Federation Government finance. However, the Federation Government is now issuing Treasury Bills, and the Singapore Government similarly intends to issue Treasury Bills in the near future.

Therefore, it is considered that the time has now come for Treasury Bills to be brought under control, and this precisely is the main purpose of this amendment Bill now under consideration. When amended, the Exchange Control Ordinance will conform more closely to the United Kingdom Control Act of 1947.

The Bill is also intended to effect an amendment to subsection (5) of section 2 of the principal Ordinance which contains a reference to British subjects. Reference to British subjects is not appropriate, in view of Singapore's present status as a self-governing State, and it is proposed therefore to delete that reference, and substitute reference to "citizens of the State of Singapore" instead.

Lastly, opportunity is also taken to correct a clerical error appearing in Part II of the Fifth Schedule to the Ordinance.

Sir, I beg to move.

Question put, and agreed to.

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

Assembly immediately resolved itself into a Committee on the Bill.-[Mr Low Por Tuck].

Bill considered in Committee; reported without amendment; read the Third time and passed.