BILLS OF EXCHANGE (AMENDMENT) BILL

Order for Second Reading read.

3.15 p.m.

The Parliamentary Secretary to the Minister for Finance (Mr Tang See Chim): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

The present law governing bills of exchange, cheques and promissory notes is the Malaysian Bill of Exchange Ordinance, 1949 (Federation of Malaya Ordinance No. 75 of 1949). The operation of this Ordinance was extended to Singapore by the Modification of Laws (Bills of Exchange) (Extension) Order, 1965, and remains in force by virtue of section 13 of the Republic of Singapore Independence Act, 1965.

Amongst other things, the Bill of Exchange Ordinance determines what a non-business day is for foreign exchange transactions and for the computation of time for the payment of bills of exchange.

Experiences in international currency crises in the past years have made local banks reluctant to conduct on Saturdays foreign exchange business, such as the sale of foreign currencies for the retirement of bills, telegraphic transfers, demand drafts and the purchase of foreign currencies in respect of export bills, etc. This is because if banks in Singapore transact foreign exchange business on Saturdays, they would not be able to cover their positions because of the Saturday closure of other international financial centres, particularly the London and the New York markets.

After due consideration, and taking account of the representations made to it by the Association of Banks in Malaysia-Singapore, the Government has decided to allow banks in Singapore to close their foreign exchange operations on Saturdays. This is in keeping with the practice of other international financial centres.

The Bill now before the House seeks to amend the law by making Saturdays non-business days and excluding them from the computation of time for the payment of bills of exchange. This amendment does not cover bills drawn and payable in Singapore currency - known as Singapore bills - and such other bills which the Minister may prescribe. For these bills, Saturday would still be a business day.

In view of the special relationship with Malaysia and Brunei, provision is made for the exemption of Malaysian and Brunei usance bills and cheques from the proposed amendments. Banks in Singapore have indicated that, in order to promote Singapore's tourist industry, they are prepared to continue to accept traveller's cheques on Saturdays.

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. -[Mr Tang See Chim].

Bill considered in Committee.

[Mr Speaker in the Chair]

3.20 p.m.

Clause 1 -

Mr Tang See Chim: Mr Speaker, Sir, I beg to move,

In page 1, line 4, to leave out from "Act," to the end of line 5 and insert "1970".

This is a technical amendment, Sir, necessitated by the elapse of time.

Amendment agreed to.

The Chairman: There is a note,

In page 1, marginal title, to leave out "and commencement".

That will be done.

Clause 1, as amended, ordered to stand part of the Bill.

Clauses 2 and 3 ordered to stand part of the Bill.

Clause 4 -

Mr Tang See Chim: Mr Speaker, Sir, I beg to move,

In page 2, line 23, to leave out "Saturday" and insert "Saturdays".

This is just a grammatical correction.

Amendment agreed to.

Clause 4, as amended, ordered to stand part of the Bill.

Bill reported with amendments; read a Third time and passed.