ECONOMIC DEVELOPMENT BOARD (AMENDMENT) BILL

Order for Second Reading read.

4.15 p.m.

Mr Lim Kim San: Mr Speaker, Sir, I beg to move,

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

Mr Speaker, Sir, I would like to spend some time reviewing the work of the Economic Development Board since its inception to the end of 1965. Largely as a result of the Board's efforts, a total of 151 pioneer certificates have been issued to 144 firms. Of these, 95 pioneer firms have gone into production and another 19 have their factories under various stages of construction. The proposed subscribed capital of all the 144 pioneer firms adds up to $266 million, more than half of which has been paid up. At full production these pioneer firms are estimated to produce some $869 million worth of goods per year and contribute some $237 million worth to our national income.

The actual output of the 95 pioneer firms in production had already reached $318 million in 1965 and these firms contributed $79 million to our national income.

As at the end of 1965, the pioneer firms in production employed 10,500 workers. It is estimated that when these firms reach full production, they will employ 21,650 workers.

The Economic Development Board also subscribed to the capital of industries and made loans to industries. The total amount committed to 12 firms in equity participation is $122,175,000, of which more than half has been disbursed. The Board approved loans to 37 firms amounting to $58,937,000, of which $36,673,000 has been disbursed.

As at December 1965, the Board has acquired, or committed to acquire, 6,618 acres of land for industrial development. Of these 6,122 acres are in Jurong and the rest distributed in eight smaller industrial estates in various parts of Singapore.

In the Jurong Industrial Estate, a total of 964 flats were allocated by December 1965, and a primary school, a post office, two commercial banks, two private clinics, five provision shops and a community centre, were opened.

Major projects which have been completed more recently, include the first deep-water berth at the Jurong wharves and the railway linking the Jurong Industrial Estate to Malaya.

The Economic Development Board also established the necessary machinery to help producers overcome their production and sales difficulties. Through the Industrial Research Unit, Light Industries Services, the Product and Design Centre, the Board has developed a very cordial relationship with industrialists who now look to the Board as a trusted consultant.

Sir, I have only mentioned some of the more tangible results of the efforts of the Economic Development Board, but this is sufficient to show that much has been done. More remains to be done and can be done. Experience has shown that the scope of activities of the Economic Development Board is very much restricted by the existing Economic Development Board Ordinance, No. 21 of 1961. For instance, there have been various enquiries received by the Board as to whether the Board could participate in the promotion or encouragement of tourist enterprises, such as participation in hotel building projects, and other tourist attractions. There have also been enquiries as to whether the Board would participate in transportation projects, such as the provision of shipping facilities for both cargo and passengers. These and many other activities cannot be performed by the Board under the present Ordinance. This set-back has, therefore, to be remedied by suitable amendments to the existing Ordinance.

Section 2 of the Economic Development Board (Amendment) Bill is designed to remedy the present situation by re-defining "industrial enterprises" to give the Board powers to participate, inter alia, in tourist ventures, aircraft repairs, the working of a mine or quarry, off-shore fisheries, transportation ventures, etc.

Opportunity is also taken, Sir, to incorporate other provisions which would improve the functioning of the Board. The Deputy Chairman when he acts in the capacity of Acting Chairman is given all the powers of the Chairman. Persons holding $10,000, or one-tenth of the nominal value of the issued share capital of companies which have contracts with the Economic Development Board, are made ineligible to become Board officers. Provision is also made for the establishment of a pension or provident funds scheme. The Board is empowered to appoint committees and delegate powers to such committees. The Board is given wider powers to raise loans, overdrafts and obtain credit facilities from suppliers so that it need not depend entirely on Government for loan funds. The Board is empowered to provide and maintain bungalows and scholarships to the Board's staff, compensation for the Board's staff who are injured on official duty and other arrangements which are extended by other statutory bodies to their employees. Finally, Sir, the Board is exempted from attestation formalities which are stipulated in the Registry of Deeds and the Lands Titles Ordinances.

To conclude, I would say that the Economic Development Board (Amendment) Bill has been drafted on the experience of past performance and with the view to meeting the challenge ahead.

Sir, I beg to move.

Question put, and agreed to.

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

The House immediately resolved itself into a Committee on the Bill. -[Mr Lim Kim San].

Bill considered in Committee.

[Mr Speaker in the Chair]

4.25 p.m.

The Chairman: I draw the attention of the House on page 9 to a typographical error in line 13, the figure "1" should be altered to the letter "l". Mr Minister, does that meet with your approval? I think it is a typographical error.

Mr Lim Kim San: Yes.

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