FACTORIES SET UP UNDER INDUSTRIALISATION POLICY (Particulars)

[Mr Speaker in the Chair]

Mr Ng Kah Ting asked the Minister for Finance (a) how many factories have been set up under the Industrialisation Policy up to the latest convenient date; (b) how much foreign capital is invested; (c) how much local capital is invested; (d) how many workers are employed in those factories; (e) how many of those factories are operating satisfactorily; and (f) how many of those factories have closed down or ceased operation and how many workers became unemployed as a consequence.

The Parliamentary Secretary to the Minister for Finance (Mr Tang See Chim) (for the Minister for Finance): Mr Speaker, Sir, according to the annual Census of Industrial Production which covers establishments employing ten or more workers, there were 1,555 manufacturing establishments at the end of 1968, employing 72,200 workers. In 1959, there were 531 establishments employing 25,600 workers. In other words, factories and industrial workers nearly trebled since 1959. This covers the Member's queries (a) and (d) as appeared in the Order Paper.

As at June 1969, foreign paid-up capital amounted to $637 million. Of this, $264 million or 42 per cent came, from local sources, while $373 million or, 58 per cent came from abroad.

The actual capital investment in fixed assets exceeds the above and is estimated, at some $780 million. This is much higher than the paid-up capital, but is made possible because most of the companies are able to get credit facilities from various sources, and, besides, in most cases, land in industrial estates is leased from the Government, while buildings are either leased or mortgaged. Such credit availability has enabled sound enterprises to commence with lower capital requirements.

The above statistics on capital investments are based on a quarterly survey conducted by the Economic Development Board. The survey covers all pioneer firms in Jurong and non-pioneer firms in the nine major industrial estates and is not comparable with the Census of Industrial Production. The above covers the Member's queries (b) and (c).

With a few exceptions, Singapore factories are active and operating satisfactorily. Of the pioneer firms, nine have ceased operation. Their closure affected roughly 300 workers. These workers were mostly absorbed by other establishments. This last bit covers the Member's queries (e) and (f) as appeared in the Order Paper.

Mr Teong Eng Siong (Sembawang): (In Mandarin): Mr Speaker, Sir, is the Parliamentary Secretary aware that some factories in Jurong have a shortage of workers, especially technicians and artisans? If such a situation exists, can the Parliamentary Secretary inform the House what measures the Government intends to take to deal with it?

Mr Tang See Chim: Mr Speaker, Sir, while this question should properly be directed to the Minister for Labour, I suppose I can just say a few words. There is evidence recently that there is some shortage of skilled labour. The Government is taking all necessary steps to remedy this situation.