CEMENT (Steps to overcome shortage)

Mr Ang Nam Piau asked the Minister for Finance if he will make a statement on the recent shortage of cement in Singapore, the reasons therefor and the steps he proposes to take to overcome it.

Mr Tang See Chim (for the Minister for Finance): Mr Speaker, Sir, my Ministry is not aware of any real shortage of cement recently, although there have been fears expressed of such a shortage. Any threat to the smooth tempo of building construction activity is, however, the concern of my Ministry which has, therefore, investigated this matter. The alarm appears to have been created because a small proportion of clinker imports did not meet the required specifications for cement manufacture. The production of acceptable cement in one of the factories consequently fell, and this created an unnecessary panic. However, the position of clinker supplies in Singapore is quite healthy at the moment, and the three manufacturers within the industry are co-operating with one another to maintain a production level in line with the demand.

It may be of interest to Members to know that the production capacity for manufacture of cement is at present one million tons per year, and this is expected to increase to 1.2 million tons by October 1971. The demand for cement in the year 1971 is expected to be in the region of about 850,000 tons, averaging 71,000 tons a month, or 2,400 tons per day. From the information provided by the industry, the manufacturers are at present supplying between 2,300 and 2,600 tons a day. This is sufficient to meet the local demand.

However, our cement industry is dependent on imported clinker, and any short supply of clinker could well affect the supply position in the cement industry. Because of this, my Ministry is keeping a constant review of the position of clinker stocks. Should we find that the clinker stocks are such as to threaten cement supplies, we shall not hesitate to take immediate action to allow imports into Singapore duty free to meet the local demand. It is very unlikely that this will be necessary.

It may be mentioned that my Ministry has established a consultative committee with representatives from manufacturers and the Contractors' Association to review the position of cement from time to time.