CURRENCY (AMENDMENT) BILL

The Minister for Finance (Dr Goh Keng Swee): Mr Speaker, Sir, I beg to introduce a Bill intituled "An Act to amend the Currency Act, 1967."

Bill read the First time.

Second Reading

Mr Speaker: Second Reading, what day?

Dr Goh Keng Swee: Now, Sir. I lay upon the Table a Certificate of Urgency signed by the President in respect of the Currency (Amendment) Bill.

Certificate of Urgency handed in.

Mr Speaker: The Certificate is in order. Are typed copies of the Bill available for distribution to Members?

Dr Goh Keng Swee: Yes, Sir.

Typed copies of the Bill distributed to Hon. Members.

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

It has been announced that there will be a gold coin issue to commemorate Singapore's 150th Anniversary. Originally the intention was to issue commemorative coins which will not have legal tender status. Legal tender issues in gold have generally been frowned upon by monetary authorities in view of the limited supply of monetary gold reserves. However, with the introduction of the two-tier gold market in March last year, this objection no longer applies and legal gold tender issues are becoming more frequent.

We have, therefore, also decided that the present gold coin issue to commemorate the 150th Anniversary will also be a legal tender issue. Accordingly, it is necessary to amend the Currency Act, 1967, which only allows the Currency Board to issue legal tender coins of denominations of $I and below. The amendments proposed to sections 14 and 19 of the Act therefore authorise the Currency Board to issue legal tender coins of any denominations and to make such coins legal tender for the payment of any amount. This means that these gold coins can be used to pay for goods and services and can be exchanged at the Currency Board or the banks for notes or coins of other denominations up to their face value.

The gold coins to be issued this August will be minted by the Chartered industries of Singapore Limited. Only a limited quantity will be available. Designs for the coins have been prepared by the Royal Mint on the concept submitted to them by the Government of Singapore. The coin has on its obverse side the crest of the Republic and on the reverse the Raffles Lighthouse which symbolises the position of Singapore as the beacon of South-east Asia. The coin measures 1.20 inches in diameter, weighs 0.80 troy ounces, and has a gold composition of 22 carats. The face value of the coins will be $150. Arrangements are being made for the coins to be issued to the public through the banks as well as at the office of the Currency Board.

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.