CENTRAL PROVIDENT FUND (AMENDMENT) BILL

Order for Second Reading read.

4.10 p.m.

The Minister for Labour (Mr Jek Yeun Thong): Mr Speaker, Sir, I have the Yang di-Pertuan Negara's recommendation that this Bill be proceeded with. I therefore beg to move, "That the Bill be now read a Second time."

The Bill was originally introduced and had its First Reading at the sitting of the Legislative Assembly on the 7th of June, 1963. At its Second Reading on the 24th of July, 1963, the Bill was committed to Select Committee. At the first meeting of the Select Committee on the 28th of August, 1963, notice was given of certain amendments. These amendments are now incorporated in clauses 7 and 11. Except for these clauses, the provisions in the Bill remain the same as those in the original Bill introduced on the 7th of June, 1963.

The aim of this Bill is to enable amendments to be made to the Central Provident Fund Ordinance.

The main amendment is in clause 4, which will enable the Board to declare a higher rate of interest on contributions to the Fund than are now prevailing. At present the Board is precluded from declaring a higher rate of interest than 2� per cent per annum unless the assets of the Board at current market value exceed its liability by 10 per cent. The amendment proposed is in line with what has been introduced in the Employee Provident Fund (Amendment No. 2) Act, 1960, of the Federation of Malaya, which came into force on the 31st of December, 1960.

The Board is in a financial position to declare a higher rate of interest than 2� per cent per annum, as the redemption value of the Board's investments is very much more than its liabilities.

The other amendments proposed in the Bill are being introduced on the recommendation of the Board in the light of experience gained in administering the Ordinance since it came into force on the 1st of July, 1955.

The arguments and explanations for these amendments are the same for those given by the previous Minister for Labour on the 24th of July, 1963, when he moved the Second Reading of this Bill. I do not wish to waste the time of this House to repeat these explanations. I will invite Members to look up the Hansard for the explanations if they find them necessary.

Mr Speaker, 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 Jek Yeun Thong]

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