IRON AND STEEL MILL

Mr Lee Teck Him asked the Minister for Finance if he will encourage the setting up of another iron and steel mill in Singapore.

The Minister for Finance (Dr Goh Keng Swee): Mr Speaker, Sir, the answer is "No". There is no advantage to Singapore in a proliferation of steel mills. It will not increase employment or output. It will mean the sharing of a fixed domestic market by more producers, and will probably result in excess capacity. Most of our steel products are produced by National Iron and Steel Mills Ltd., in which Government has a significant equity holding. Prices of products as well as prices of scrap are controlled by Government, to ensure that customers and scrap dealers have a fair deal. More than 30 per cent of the output is exported and most of the profits of the Company are not distributed to shareholders but are ploughed back to the industry for further expansion, so as to create more jobs for Singapore citizens.

Mr Lee Teck Him (Ulu Pandan): (In Mandarin): Mr Speaker, Sir, in my view, one iron and steel mill is not good enough, because our country is in the process of development, and consumption of iron and steel is very high. For this reason, we should have a quota system. We should have a few iron and steel mills in Singapore. I have heard people saying that -

Mr Speaker: Order. Mr Lee, you heard what I told Mr Govindasamy just now. I cannot allow a speech at this stage. Do you have a supplementary question?

Mr Lee Teck Him: No, Sir.