USE OF LOCALLY-MANUFACTURED MATERIALS (Stipulation in tenders)

Mr Bernard Rodrigues asked the Minister for Law and National Development if he will consider issuing a directive that the use of locally-manufactured materials, such as shutterboards, etc., where such materials meet the requisite standards and specifications, be stipulated when tenders are let out for Government, Housing and Development Board and other public projects, as a measure to promote local industries.

Mr Barker: Mr Speaker, in May 1965 the Government, with a view to encouraging local industries, issued a directive to all departments and statutory boards requiring them to use locally-manufactured goods as listed in the Economic Development Circular No. 2 of 1965 dated 7th May, 1965. Among the items covered in this list were plywood and veneer, corrugated cardboard and corrugated fibre board, and a host of other products already being manufactured in Singapore. This directive also required that in every contract a clause should be included requiring the contractor, wherever possible, to give preference to the use of locally-manufactured materials in lieu of equivalent imported materials.

This policy of encouragement of local industries was further confirmed and strengthened by Economic Development Circular No. 8 of 1965 dated 4th December, 1965, which prescribed that preferential purchase of locally-made products should be carried out even though the cost of such products was 5 per cent higher than the imported equivalents.

Since the issue of these two circulars, Government departments and statutory boards, including the Housing and Development Board, have been using locally-manufactured materials where such materials meet the required standards and specifications of their projects. No further directive is, therefore, considered necessary.

Mr Bernard Rodrigues (Telok Blangah): Mr Speaker, Sir, is the Minister aware that in 1965 there was an import of 19,149,896 square feet of plain plywood into Singapore, costing $2,908,072? And in January to March 1966 this year there was an import of 3,574,411 square feet of plain plywood into Singapore, costing $576,700?

Mr Barker: Mr Speaker, Sir, the Member's supplementary question should be directed at the Trade Division of the Ministry of Finance under which the Economic Development Board comes. However, I am aware of the import figures of plywood quoted by the hon. Member for Telok Blangah. I understand these figures are accurate, but I would like to point out that, in addition to imports, Singapore also exports plywood. In 1963 10 million square feet of plywood was exported at a cost of about $1.7 million, and from January to June this year about 15 million square feet of plain plywood was exported, costing about $2.2 million.

In order to protect local plywood industries, a quota system was introduced in April 1966 under which only 50 per cent of the total 1963 imports were allowed to be imported. Imports from Malaysia were, however, exempted. On the 29th October this year, this quota was further restricted to only 5 per cent of the 1963 figures. Malaysia was again exempted.

I would like to say that we are reluctant to impose a ban or quota on plywood coming from Malaysia, as we do not want to do anything to hinder trade between Malaysia and Singapore. Plywood is, in fact, practically a Common Market item.