LOCAL AND FOREIGN INDUSTRIALISTS (Reaction to export and investment incentives)

Mr Teong Eng Siong asked the Minister for Finance what is the reaction from local and foreign industrialists to the incentives for export and investment granted by the Government from 1st January, 1967.

Mr Ramaswamy (for the Minister for Finance): The investment and export incentives for industries in Singapore were announced in the Budget Speech on 5th December, 1966. A draft Ordinance is now being prepared, embodying these new incentives in the legislation, and when completed, further publicity will he given to these incentives to both the local and foreign business and industrial centres.

However, purely on the very brief outline of the incentives given in the Budget Speech alone, the Economic Development Board has reported a significant increase in industrial inquiries made both at the Singapore Office as well as its overseas offices. There were a total of 180 industrial inquiries on record for 1966, or an average of 15 inquiries a month. In almost the first 2 months of this year (only up to 23rd February), there were already a total of 46 inquiries, or an average of 23 inquiries a month. These were from local as well as international corporations which have indicated interest in a wide range of industries, ranging from electronics to petrochemicals. Some of the proposals involve large sums of investments.

These inquiries reflect an almost 50 per cent increase per month. This increase in inquiries for the months of January and February has been achieved in spite of many public holidays. From the serious manner in which these inquiries have been made, the Economic Development Board is confident that many of these projects would be carried beyond the mere inquiry stage and would be implemented.

It should be pointed out that in all developing countries there is always a gestation period between the introduction of incentives and the achievements of full impact on the national economy. It takes two or three years to get a large industrial enterprise into full operation even if the final decision is made today. In our case we are confident that the impact on our economy may come even sooner than the normal pattern in other countries.

Mr Tang See Chim: Mr Speaker, Sir, would the Parliamentary Secretary to the Minister for Finance give us a breakdown of the figures of the inquiries for the year 1966? It is no use giving us the total figure for the year and then the average monthly figure, because the increase may be spread gradually over the period of a year, so that the increase in the first two months of 1967 may be part of a trend and may not, in fact, be due to the incentives announced in the Budget.

Mr Ramaswamy: I have not got the figures now.

Mr Speaker: In that case, Mr Ramaswamy, may I suggest that you circulate the information* in the Official Report rather than answer orally to a further question on the matter.

• The following information was furnished by the Parliamentary Secretary to the Minister for Finance:-

Summary of Industrial Inquiries for 1966 Month No. of Inquiries January 12 February 15 March 15 April 10 May 5 June 10 July 7 August 3 September 4 October 45 November 30 December 24