STATUTES AMENDMENT BILL

Order for Second Reading read.

2.47 p.m.

The Minister for Finance (Dr Goh Keng Swee): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

Sir, this Bill is an omnibus Bill which seeks to rectify the restrictive nature of existing legislation which limits the types of investments that may be made from funds of the Government. The existing legislation is over-restrictive on the types of investments that may be made so that the bulk of our funds have to be invested in trustee securities, and these are mainly fixed price gilt-edged securities.

Under the current legislation we are not in a position to provide any long-term hedge against endemic inflation in countries where these funds are held. Under the proposed amendments, investments may be made in any form as may be approved by the President. This will allow greater flexibility in our investment policy, as it will be possible to attract investments which would not fall strictly within the category of fixed price gilt-edged securities to be held by the Government.

The earlier outmoded restrictions on the investment of Government funds must be removed if Government is to follow a realistic and more effective investment policy with surplus funds.

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. -[Dr Goh Keng Swee].

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