CURRENCY (AMENDMENT) BILL

Order for Second Reading read. 6.37 p.m.

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

Mr Speaker, Sir, I would like to explain briefly the necessity of this Bill. The Malaya British Borneo Currency Agreement, 1960, signed by the Governments of Singapore, Malaya and Brunei, established the Board of Commissioners of Currency, Malaya and British Borneo, as the sole currency issuing authority in their respective countries. Under the terms of this Currency Agreement, any of the Participating Governments can replace the Board as the sole currency issuing authority by lodging a notice of its intention to do so, 18 months prior to the date it wishes to commence its currency issue. Such a notice of replacement was lodged by the Government of Malaysia on 12th December, 1964. This notice, therefore, became effective on 12th June, 1966, that is, 18 months after it was lodged, and the Currency Board is then obliged to relinquish its right to issue currency in Singapore, Malaysia and Brunei. There is, however, provision in the Agreement for the Board to continue to issue currency for a further period of six months after the notice becomes effective, if it is requested to do so by the Participating Governments. Such a request was accordingly made and the Board was therefore empowered to issue currency in the territories of the three Governments concerned up to 12th December, 1966.

The Participating Governments had also agreed that the life span of the Board should be extended by a further six months, that is, up to 12th June, 1967. As the Currency Agreement does not provide for such further extension, it is necessary to amend this Agreement. The purpose of the Bill is, therefore, to give legal effect to this amendment so that the Board can continue to issue currency up to 12th June, 1967.

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 Ramaswamy}.

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