FIRMS AND COMPANIES AFFECTED BY INDONESIAN CONFRONTATION (Resumption of operations and effect on employment situation)

Mr Lim Soo Peng asked the Minister for Finance how many of the firms and companies that were assisted by the Government when they were affected by Indonesian confrontation and had to lay off workers have since resumed operation; and the extent to which such resumption of operation has affected the employment situation.

Dr Goh Keng Swee: The Government did not assist any firms or companies affected by confrontation. Assistance was given not to businessmen but to workers who lost their jobs as a result of confrontation. It is only possible for me to give the total number of firms and companies directly affected by confrontation and brought within the scope of the Economic Defence Scheme established in 1963. All in all, there were some 40 industrial establishments and 18 shipping companies brought within the scope of this scheme. Today 17 of the 18 shipping companies have resumed normal operations, while one shipping company - a small company with only one ship - has closed down. Of the 40 industrial establishments, 18 closed down during confrontation and have not resumed business since. However, new firms have been established in this field. The exact number is not known. In March this year, returns made to the Labour Ministry show that there have been one new shipping firm and eight new industrial firms established in the field of business with Indonesia.

As regards employment, these nine new firms employed 776 in March as against 2,063 employed by the 19 firms which closed down.