PRESIDENT'S SPEECH Debate on the Address (Second Day)

Order read for resuming adjourned debate on Question [30th July. 1971].

`That the following Address in reply to the speech of the President be agreed to: -

"We, the Parliament of the Republic of Singapore, express our thanks to the President for the speech which he de, livered on behalf of the Government at the opening of the Second Session at this Parliament.".'. - [Dr Chiang Hai Ding].

Question again proposed.

2.55 p.m.

The Minister of State for Foreign Affairs (Inche A. Rahim Ishak): Mr Speaker, Sir, the story is told of the President of Ireland. Eamon de Valera. that he was once arrested in the middle of what the authorities considered a subversive speech and sentenced to a year's imprisonment. On his release, being a true Irishman of American and Cuban extraction, he returned to the same spot where he was arrested and began his speech with the words: "As I was saying when I was interrupted...".

Mr Speaker, Sir,I can assure you that as a true Singaporean of Malay extraction. I was not arrested and imprisoned between 4.30 p.m, on Friday and noon today either for any political or criminal offence. [Laughter] Although I was at Changi during the week-end, it was nowhere near what the Minister for Home Affairs calls "Moon Crescent". [Laughter] I simply wish to continue with the speech I made last week.

President Nixon's move as announced on the 16th of July will, I think, lead to the establishment of relations with the People's, Republic of China. This development is historically inevitable. The United States can no longer ignore the political and legal existence, of China, just as China `has to recognise that she is living in a big world with two super-powers and other big powers. And although the latest American move has partly to do with the American position in relation to the war in Vietnam, it has in fact taken place because the policy the United States formulated for itself vis-a-vis China 22 years ago is becoming less relevant as the world has changed much since then. It was the United States which formulated this policy of recognising the Republic of China under Chiang Kai Shek and it is the United States which now wants to undo this policy.

More than 20 years ago America was the victor in the war and she was then the only super-power in the world. And she considered the Soviet Union as her No. 1 enemy. The United States believed herself to be lighting the Soviet Union in China. Korea, Vietnam and elsewhere. But over the years. the United States has realised, albeit belatedly, that what, ever policy China is conducting is on her own behalf and for her own interest. This has become all the more evident to her since China breached with the Soviet Union, it would appear that the United States is moving towards an accommodation with China as an increasingly strong independent power, just as she has been seeking accommodation with the Soviet Union to reduce conflicts.

For China, her policies are also changing. The United States is no longer regarded as the No. 1 enemy in interstate relations, although what she calls "American imperialism" might still be considered its ideological adversary. This is indicated clearly in speeches and broadcasts made by the leaders of the People's Republic of China. During the last five to six years China has become a nuclear power. This is an important factor to consider as China cannot from now onwards conduct diplomacy like when she was just a military power. From now China has to conduct power politics by the normal, international channels and the best way for her to do this is to join the United Nations. To this extent, China could be' considered sincere in her desire to join the. U.N, a:; she gradually picks up the old Leninist slogan of peaceful co-existence and peaceful competition between states with different social systems.

China's entry into the United Nations is inevitable. China is a big power, as said on 30th July, 1971, and Singapore cannot influence international events. There will be no change in Singapore's attitude towards what is called the "important question" issue on the entry of China in the United Nations. Singapore has always supported China's entry into the U.N.' WQ abstained on the Albanian resolution previously because the first part of that resolution, in our view, needed to be decided first before the second part could be decided upon. We believe that once China is admitted, the possibilities are that she will take her seat and automatically become a member of the Security Council.

Singapore's attitude is that as a small power our policy is to adjust to big realities created by the big powers. Singapore does not want to be under the influence of one power. There are, in any case, many powers around us which want to pursue their economic and other interests. The competition amongst the big powers is for markets and security' interests which are in fact legitimate objectives to pursue. Essentially, the competition is of an economic nature, Most countries in Southeast Asia are interested in economic development, and one more power, in this case China, which could help in this field, would be welcome.

The economic competition in Southeast Asia is made all the more complex by two factors, namely. China coming in with a market of 700 million people will increase the competition with other big powers. This naturally will increase attention by the United States to her economic interests when the Vietnam war is over. Therefore, there will then be a new situation with new vistas for all to watch and make the necessary adjustments. It would in our opinion, be as if a new and powerful neighbour has come to do business in the old neighbourhood.

3.03 p.m.

Mr Teong Eng Siong (Sembawang): (In Mandarin): Mr Speaker, Sir, I support the motion expressing our thanks to the President's speech. The President made a policy speech in this House on the 21st of last month and this has added a new page in our nation-building history. In his policy speech, the President has painted a beautiful picture of our achievements. He has also laid down correct directives in regard to our future task of nation-building. He has also laid stress on the importance of strengthening our defence capability in order to ensure our security and stability. Undeniably, this is what we should do to ensure our independence and sovereignty. When we gained our independences, some six years ago. I remember there were people who expressed doubts about our ability to maintain our security and sovereignty. However, after these six years of independence, we have achieved great progress in our defence capability. This is due to the concerted efforts of our people in co-operating with the Government. As the President has pointed out in his speech, we must be viable in our defence. Through the Commonwealth Five-Power defence arrangements, security and stability are assured for several, years ahead. We must make use of this time to consolidate our defence capability. It is true that in this task we should exert great efforts. Our national service youths have put up an excellent performance in our National Day celebrations. Everyone of them is well-disciplined. Therefore, I believe our youth will be able to take up the task of defending our country.

Besides the defence of our country, the maintenance of stability and the' development of our economy is also very important. Only in a stable environment can we have more investment, thereby creating more opportunities `if employment and raising the standard of living of our people.

Sir, in the President's policy speech, mention has been made of higher rates, of compensation for those people affected by resettlement. This is a very correct measure. We know that the Government's urban renewal scheme is in the long-term interest of our country. Therefore, it needs the full support of all the people. On the other hand, we must also give sympathetic consideration to people affected by resettlement so that they may not suffer any great loss. So the Government's decision to increase the rates of compensation and ex gratia payments is a measure that we all should praise and support.

I will now go through the various topics in the addendum to the President's speech. Mention has been made of the allocation of $5 million to resettle the hawkers in various parts of the island. The plan involves the building of market centres to accommodate the hawkers. This is undoubtedly a good plan because it will provide fixed localities for them to carry on their business, and also to enable members of the public to enjoy their food in a more congenial environment. I am sure this plan will meet with the approval of all the people, particularly the hawkers. In fact, the hawker centres around Farrer Road Circus and Newton Circus have given members of the public a very good impression because of their modern facilities and healthy surroundings. Thus more customers patronise them and, in this way, their business is improved. As a result, more hawker complexes will be built by the Government. This will be good news to the hawkers. We all know that lots of them lead a difficult life. They have to hawk under the hot sun and in heavy rain. In the past, they have been neglected. However, ever since the People's Action Party came to power, they have been better looked after. In the past few years, many new market and hawker centres have been built in Housing and Development Board estates for hawkers to do their business. Now that the Government is allotting a sum of $5 million to improve the hawker sites, more benefit and business will come to them. Therefore, it is a wise and judicious measure. It is also a concrete example that the Government has done something for the good of the hawkers.

Sir, in the addendum regarding the Ministry of Law and National Development, it is mentioned that the Housing and Development Board plans to build 100,000 housing units for the period 1971 to 1975. This will double the target it has achieved in the past. In spite of this rapid building plan, however, we are still short of housing accommodation. The measures taken by the Government have solved some of the acute housing problems. The hire-purchase ownership plan of the Government has solved the problem of housing to a great extent. This plan has been well received by the people. However. I would like to ask whether the Government can also extend this sort of hire-purchase terms to renters of H.D.B, shop premises. I agree fully with what the Member for Thomson has said in this House the other day about giving the occupiers of Housing and Development Board shop premises certain hire-purchase facilities to buy shop premises. To this regard, I remember that when we were debating the Finance Minister's budget statement in this House some four months ago, I put forward some suggestions to the Minister for Finance to enable the occupiers of Housing and Development Board shop premises to buy their shop premises on hire-purchase terms. The Finance Minister replied that he would have to look into the matter, before he could give an answer. Four months have now passed. Can the Minister please give his answer to this House?

Another question I would like to ask concerns the building construction industry. Recently we have heard some news about the acute shortage of cement. This shortage will seriously affect the Housing and Development Board and the private developers who are engaged in building houses. Therefore. I would ask the Minister to pay special attention to the problem of the shortage of cement, and to adopt adequate measures to remedy the situation.

In the addendum relating to the Ministry of Home Affairs, there is mention of the reorganisation of the Police Force in order to raise its efficiency, provide a better service to the public, and maintain law and order in our complex and urbanised society. No doubt, this is very important as a result of the increase in the number of satellite towns and our urbanisation programme. The problems of social stability, security, and the maintenance of law and order will then be more complex. In order to maintain law and order, we have to raise the standard of efficiency of the police, but to achieve its full effect, the co-operation of the people with the police is needed. The addendum has touched upon the improvement of salaries to the Police Force. I would say this is reasonable.

Sir, the addendum has also touched upon Government's policy in regard to a review of the present wage policy which it intends to carry out early next year. Undoubtedly this is good news to the workers who have contributed much to our economic development and nation-building. Because of their cooperation, commerce and industry has flourished. So it is reasonable that we should give them a better deal and higher wages. I fully support the measure. I would say that it is a very judicious policy to re-examine the wage policy.

Sir, in addition to making my general comments on the various measures which I have just touched upon, I would like also to deal with the other aspects outlined in the addendum to the President's speech which relate to defence, economy, education, culture and others. If we can follow these policies, then we will achieve more in these fields.

In order to help in this matter and to benefit all the people, I would like to offer five suggestions for the consideration of the Government:

(1) The national service policy should always be examined, so as to have the welfare of certain categories of national service personnel in mind. For instance, consideration should be given to allow the only sons of parents who are breadwinners of the family to do part-time national service, or exempt them from national service altogether. As regards professional personnel who are required by commerce and industry, we should give them certain facilities to enable them to have more time to serve our society, because in the President's speech mention has been made of the shortage of such personnel-managers, engineers, and architects. We should encourage them and allow them to do part-time national service so that they can contribute more to nation-building.

(2) In the addendum to the President's speech, mention has been made of foreign policy. It is stated that we should pay more attention to events taking place outside Singapore. This is correct. In addition to this, we should also establish closer and better relations with our neighbouring countries, Malaysia and Indonesia, including the British Commonwealth countries, as this is mutually beneficial. To achieve this, the Ministry of Foreign Affairs should work out a programme whereby Members of Parliament, or leaders of the countries concerned. could exchange visits.

(3) Regarding the control or curbing of prices of goods, the Ministry of Finance should do more work in this respect, apart from investigating the prices of certain goods. The Ministry should also take additional effective measures to safeguard the interests of the tax-payers to ensure that opportunities will not be given to speculators to increase the prices of their goods.

(4) The Ministry of Culture should shoulder more responsibilities and duties. Culture and the arts are an important part of the spiritual life of Our people. The concepts of virtue and national loyalty are also important factors to our people. The Ministry of Culture should encourage development and promotion of healthy cultural activities. The cultural programmes over Radio and Television Singapore should also be improved, so that decadent and bad culture will not be further propagated. In addition, the Ministry should try to inculcate in the people a sense of national consciousness and the idea of harmonious living in a multi-racial society.

(5) There is no mention in the addendum to the President's speech of matters relating to the rural areas. As a Member representing a rural constituency, I would like, in order to be fair, to say that since the P.A.P, came to power, much attention has been given to the rural areas such as the making of roads, bridges, and canals, and the installation of lights and other facilities. The Government has done much, but because of the size of the rural areas, there are still many areas which need to be developed. Therefore, I would urge the Minister concerned to pay particular attention to the rural areas and to allocate more money in the new financial year for the amenities and facilities of the rural people.

To sum up, Sir, the Government's policy speech has brought about a new mission in our task of nation-building. It also presents us with new challenges--the strengthening of our defence capability, the raising of our educational level, the development of our industries, the construction and rebuilding of our city area, and the development of our island to make it a beautiful garden city. Undoubtedly, these are necessary for the progress of the country, providing a good future and better living conditions for the people. But these objectives must have the support of the people. Though the tasks are difficult, I think there is nothing that we cannot achieve with the concerted effort and co-operation of the people, in fact, in the past six years, we have in the field of nation-building achieved many things. Of course, these are not easily achieved. With careful planning by the Government, coupled with the support and hard work of the people, particularly the workers, we have attained our present position.

In addition to this, in the past years we have also been faced with serious problems. For instance, because of the announcement of the British military withdrawal, we are faced with the problem of more unemployment. All these problems in the past have been troubling and bothering us. But through the effective planning of the various government departments, the rapid building up of our armed forces, and the implementation of industrialisation and tourist measures, we have already overcome the problems one by one. We can now enjoy a better and more stable environment, In view of the reasons which I have just mentioned, I believe that although we will be faced with many new problems, we shall, with the unity and support of the masses of the people, and with their close co-operation with the Government, be able to implement the various tasks and plans (if construction and nation building successfully, so as to consolidate our future for the good of our future generations.

Sir, this session has given us great tasks and responsibilities, in fact, a mission. To order to live up to the expectations of the people, we should try our best to help, so that our country may march forward to a better and more prosperous future.

Sir, I support the President's speech and the motion.

3.27 p.m.

The Minister for Finance (Mr Hon Sui Sen): Mr Speaker. Sir, in supporting the motion for the address of thanks to the President's speech. I think it may be of general interest to Members for me to make a somewhat more detailed statement than is contained in the President's speech about the recent take-over of Haw Par Brothers International Ltd, by Slater, Walker Securities Ltd. The reaction to this take-over indicates that there is sonic public apprehension in regard to two matters. One is the extent to which foreign interests should he allowed to take over and control Singapore companies. The other is the desirability of certain practices followed or adopted on take-overs which, though not illegal, would constitute unacceptable behaviour in an international financial centre.

In order that discussion on this subject may proceed intelligently, it may he of advantage if a report which has been compiled by Ministry of Finance officials is made available to Members. I have therefore handed copies of this report* (*Annex, cols. 137-142.) to the Clerk who will make it available to Members.

[Copies of report distributed to hon. Members.] Appendix 1 - SLATER, WALKER'S TAKE-OVER OF HAW PAR(Cols 137 - 140)

In regard to any supervision or regulation of take-overs, my Ministry is faced , with a number of conflicting considerations:

(a) It is desirable that inefficient companies should be taken over by more competent companies.

(b) There should not be unnecessary interference in takeovers where companies willingly merge.

(c) Consolidation by way of merging into larger economic units bring economies of scale.

(d) The fear that there may be a concentration of economic power in the hands of one group giving rise to monopoly or near monopoly conditions.

Our present policy is not to discriminate against foreign interests buying into Singapore companies generally, and in so far as Sterling area residents are concerned, there are no exchange controls on such transactions. However, it might now be opportune to prepare for an increase in take-over activities and also consider whether certain categories of Singapore companies should be kept under Singapore control, for example, banks and insurance companies. It is not suggested that foreign interests be totally, excluded in respect of such companies. On the contrary, minority foreign equity participation might even be encouraged if it increases the efficiency and competitiveness of the local company. Nevertheless, control by some system of vetting foreign participation in certain designated sectors of commerce and industry may be necessary and desirable. Perhaps also some equivalent to the London Panel on Take-overs and Mergers" is required This Panel has drawn up a set of rules and established a code of behaviour which all parties to a take-over are expected to observe. Essentially the Code drawn up by the London Panel seeks to ensure early disclosure of details of a bid so that all shareholders are placed on an equal footing as far as possible, and to ensure that the majority shareholders do not exploit their position at the expense of the minority.

The other system of regulation is that established by the American Securities Exchange Commission. However, their approach is more cumbersome and a number of countries. France. Switzerland and Japan, have been examining the London Panel's mode of operation in preference to the American system. In Singapore it is probable that the London Panel type o approach modified to take into account local conditions may be more appropriate. This must be examined in relation to the Companies Act and the Securities Industries Act which are patterned on Australian legislation. I am advised that the Australian Companies Act has been recently amended to deal with takeovers in much greater detail, and these amendments might prove of help in drafting similar regulations for Singapore.

It is proposed that the Ministry of Finance and the Monetary Authority should, in conjunction with the Attorney-General, examine whether further amendments to the Companies Act to deal with take-overs are necessary or desirable, and whether a London Panel type of institution can play a role in developing an acceptable code of conduct and standards of behaviour in take-overs and mergers.

In the final analysis, of course, the best protection for Singapore companies and shareholders, as for companies and shareholders elsewhere, is to ensure the efficiency and good management of their companies.

Mr Speaker, Sir,I beg to support the motion.

3.35 p.m.

Mr Seah Mui Kok (Bukit Ho Swee): Mr Speaker, Sir, I would like to join my colleagues in this House to thank the President for his speech delivered at the opening of the Second Session of the Second Parliament on Wednesday. 21st July, 1971.

Sir, I am sure all Members of this House will fully support the Government's policy that we will not allow anyone to work up heat on the gut issues over language, culture and religion. Also no one who is working in the mass media has the right to play with the emotional reflexes of our different communities. Let us make it very clear that those who deliberately try to encourage. stir up or provoke trouble, under the pretence of language, culture or religion, must face the consequences. It is the duty of everyone and all local or foreign press here to assist in creating a , happy, harmonious, tolerant and understanding society among all the people of all races, of different languages, cultures and religions.

May I also express my full support for the measures that this Government will implement as outlined in the President's speech and in the addendum to the speech by the President.

Sir, the workers in Singapore have done their very best to help achieve success in our industrialisation programme and rapid economic growth. Through their co-operation with the employers and Government, there is industrial peace which helps to attract more investors to come to Singapore.

Since the Employment Act was passed by Parliament in 1968, the workers have made a lot of sacrifices, especially as they have to work longer hours, with lesser public holidays limitation of bonus payment wage restraints, etc

By now, most of the employers have enjoyed the present economic boom and they have already made substantial profits as well as expanded their business. I sincerely hope they will appreciate the workers' sacrifices and their contribution in helping them to make bigger profits. The time has come when they must give the workers better bonuses. By the middle of next year, they should give substantial wage increases to the workers. Some of the employers have already responded to the Government's appeal to give bigger bonuses and I hope more employers will do the same. The present wage restraints and the increase in prices of goods are causing financial difficulties and hardships to the workers. I would request the Government to relax the present policy of wage restraints as soon as possible and also to take drastic action against shopkeepers who increase prices of goods without justification.

The employers are fully aware that prices of goods have increased substantially and in spite of the good profits they are making, they are still reluctant to consider giving a temporary "high cost of living allowance" to the workers. This attitude is indeed very deplorable and unfair. Unless the workers get a fair wage to meet the present cost of living, they may have to take drastic action against their employers which will eventually disrupt the present industrial peace.

Sir, it was mentioned in the President's speech that the Government will systematically mechanise laborious and repetitive work. The private sector will be encouraged to do the same.

Sir, mechanisation is a necessity. I would request the Government and the private sector to carry out mechanisation in gradual stages and not to over-do it, so that the workers' job security will not be affected. If the employers expect industrial peace with the workers. I advise them to accept this request seriously. Should there be rapid mechanisation just purely for the sake of saving labour costs and retrenching the workers, there will be serious trouble. The N.T.U.C, and all its affiliated unions will fight back by taking industrial action. I hope this will not happen. I am sure the Government will not allow such a thing to happen.

I fully support the Government's intention to amend the Workmen's Compensation Act to cover non-manual workers who earn up to $750 per month, to treble the quantum of workers' compensation payable at present, to provide a more detailed list of injuries which would result in permanent partial incapacity, and to include silicosis and asbestosis in the schedule of occupational diseases.

Sir, I would now like to touch on public housing.

I am glad to know that more than 125,000 units of public housing have been completed. More than 700,000 people, that is, about 35 per cent of the population, are now occupying Housing and Development Board flats. I must congratulate the Housing and Development Board on the good work they are doing and I wish them more success in building more flats.

The Housing and Development Board are going to build 100,000 units for the period 1971 to 1975. May I request the Government to increase its target to 125,000 units, instead of 100,000 units, because most of the working-class people can afford to rent or buy only Housing and Development Board flats. The prices of houses and flats built by the private sector are so fantastic that even the middle-class income group cannot afford to buy them.

Sir, I would also request the Government to reduce at least 50 per cent of the building projects undertaken by the private sector, especially on multi-storey flats, terrace houses, semi-detached houses or bungalows. By putting this limitation on them, construction workers and building materials will be available to the Government to build more Housing and Development Board fiats. It will eventually eliminate the long waiting list for Housing and Development Board flats. Perhaps this exercise will help to prevent the private sector from increasing the prices of houses so fantastically. It will also help the Government to build another 25,000 units.

Sir, I would like to touch on the resettlement of hawkers. May I request the Government to adopt a policy of flexibility in resettling hawkers at the market concourse or at hawker centres? I quite appreciate the importance of having a clean environment for the hawkers as well as for those who buy food from them. But to centralise all the hawkers into the market concourse temporarily and then to resettle them again finally at a hawker centre is causing hardship to a good number of them.

Government must realise that hawkers cater for a certain number of residents in the housing estate. By resettling them from a few temporary places in the housing estate to only one area in the market concourse will cause too many hawkers selling the same food. There will be strong competition among themselves and this will lead to much lesser profit or even financial loss. Their customers are from the residents in the housing estate and quite naturally a resident will not walk a long distance from his flat to go to the market just to buy a bowl of kway teow. Therefore, hawkers will be losing their customers and get lesser profit.

For example, the hawkers selling at Block 27 at Bukit Ho Swee have been resettled at the Beo Crescent Market Concourse. The hawkers' representatives have requested me to appeal to the Housing and Development Board authorities to allow them to return to Block 27 because of the following reasons:

(1) Business is not very good at the Beo Crescent Market Concourse,

(2) Selling at Block 27, each hawker could make a profit of $5 a day, and now at the Beo Crescent Market Concourse, the profit has been reduced to $2 or $3 a day.

(3) Most of them have families to support and with a small profit of $2 or $3 a day. they are facing financial difficulties.

(4) Strong competition in the market place because of too many stalls selling the same goods.

(5) Because of the two-shift system, they cannot earn enough.

(6) They cannot cater for the residents around Block 27.

(7) The residents would prefer them to hawk in the area, i.e., Block 27, because there are no shops in that area and it is convenient for them to send their children downstairs to buy food.

(8) The space between the blocks in this area is big enough for a row of stalls, leaving a broad enough space for the passage-way.

(9) They will give full co-operation to keep the place clean.

(10) They are prepared to erect their own shelters with advice from the Housing and Development Board and the Hawkers' Department.

I have already made my appeal on their behalf to the Housing and Development Board authorities, but their request has been rejected.

I would appeal to the Government to give sympathetic consideration to allow hawkers to do their business at certain places in the housing estates and they should be under the supervision of the Housing and Development Board and Hawkers' Department. They have been in the hawking business for years and it is difficult for them to change their profession.

3.47 p.m.

Mr Hwang Soo Jin (Jalan Kayu): Mr Speaker, Sir, I rise to join my colleagues in thanking the President for his speech to the House. In his speech, the President has put in a nutshell the tremendous progress made by the country since independence. He has also pointed out the directions in which future developments are to take place. For a country with such limited natural resources as our own, the progress made can be considered to be impressive by any standard and, on this occasion, I think it is only appropriate that we should record our appreciation of the excellent manner in which the people of Singapore have responded to the political leadership in ensuring success in the implementation of our policies. But for the determination and sacrifices on the part of our people, all that we have achieved will not have been possible.

The tremendous pace at which we have expected our people to adapt to changes can be seen from the large number of Bills submitted and passed by this House during the last session of Parliament. It may interest the House to know that some 140 Bills were passed during the last Parliament and have since become laws. Inevitably, the implementation of some, if not all, of these laws have brought about temporary inconveniences and even hardships to certain sections of the public. Whilst every endeavour has been made to lessen such inconveniences and hardships, there have been areas where we could perhaps have been more considerate or generous. A case in point is the rate of compensation paid to farmers affected by land acquisition. In this connection, I am pleased to note the Government's decision to give higher rates of compensation to tenants and ex gratia payments to squatters for resettlement.

Sir, apart from adequate monetary compensation, it is also essential, to my mind, to ensure that when people are resettled, the facilities or amenities available to them in the new areas are at least of the same standard as, if not higher than, that enjoyed by them previously. In saying so. I have in mind instances in the past where people in areas already provided with water and electricity were resettled in areas without such modern amenities. I am sure that there must be other parallel cases arising from the implementation of our policies. In our next phase of development, I feel it is important that we do not lose sight of the need to minimise any human miseries or inconveniences brought about by the implementation of any of our policies.

Mr Speaker, Sir, in his speech, the President has emphasised the need for our investors and entrepreneurs to develop new attitudes and to acquire the necessary sophistication and expertise for the management of industries and other enterprises. Sir,I have no doubt that our normally responsive business leaders will take heed of the advice. However, I feel that the Government can help by setting up an international business school where our business executives, especially the younger ones, may go for the necessary orientation and develop an international outlook. The courses conducted at such a school may aim particularly at providing participants with a good knowledge of international business operations and the political, social and economic conditions of the world at large. As we become increasingly an international trading and financial centre, it is essential that our businessmen are made more aware of methods, practices and conditions of international business. This will, in the long run, help to improve the sales of our products abroad.

Speaking of export business, I take this opportunity of asking the Minister for Finance whether he is satisfied with the progress made by Intraco to date in assisting local industries in the promotion of the sales of their products abroad. Only too often Government agencies are inclined or tempted to allow the purely profit-making motive to over-ride all other wider and equally important, if not more so, long-term considerations which have originally prompted the setting up of such agencies. It is important, therefore, that the operations of all such agencies should be brought under constant review from time to time so as to ensure that they do not lose sight of the overall objectives. Whilst we expect these agencies to be financially viable, we also expect them in the long run to provide the necessary leadership to the private sector in bringing about a higher standard of expertise and sophistication.

3.53 p.m.

Mr Lim Guan Hoo (Bukit Merah): (In Mandarin): Mr Speaker, Sir, I endorse the motion tabled by the Member for Ulu Pandan. The present Government has had more than 10 years of experience in government. During this period we have seen the policy statements of the present Government. We have also seen with our own eyes the progress and achievements made under the leadership of the P.A.P. Government. We have also seen the rapid progress made in nation-building. Because of all this, I believe that the prospects of development that lie ahead of us can be seen clearly from the policy statement delivered in this House a few days ago. If we can forecast future developments from our present achievements, then conversely we can also look back at our achievements from the prospects that lie ahead. So when we make a study of the present policy statement, it is also time that we made a review of our efforts and achievements so far. If our efforts so far have not brought about higher achievements, then from the present policy statement we can only see the repetition of old problems. But this is not the case, because from the policy statement and the addendum, we can see a lot of new problems and new prospects. All these new problems and new prospects have been brought about by progress made in the past. We have to know what we intend to do in the future.

For example, at the present moment, we have more than 700,000 people living in Housing and Development Board flats. According to the latest plan of the Government, in 1975 some half a million people will be living in Housing and Development Board flats. So the total number of people living in Housing Board accommodation by 1975 will be more than half the population of Singapore. This, Mr Speaker, Sir, will indeed be a new development which we can see from the Presidential Address. This is something heartening and gratifying that could hardly be foreseen in 1959.

Sir, it would be unthinkable if this kind of forecast were made in 1959. In fact, we have already come to a stage of development which could not be imagined in 1959. I have looked into an early publication of the P.A.P.. The Tasks Ahead, and found that the various items listed and planned in this publication as aims have come to pass. The ideals of the past have become the achievements of today.

Sir, the 60,000 people in my constituency, Bukit Merah, are also enjoying in many ways the fruits of the progress made. What we can see there is a situation of the city engulfing the countryside, and not the countryside engulfing the city as propounded by the Communists. We can see also the process of urban renewal being carried out in Hong Lim Constituency which I any assisting, in an area of 1,700 acres, which had about one-quarter of the population of Singapore in the past, the pace of urban renewal is being stepped up. So very soon we shall be able to sec a new look, a new face lift, not only in this place but also in Sembawang and all over the island. We are also certain that the pragmatic approach of the Government is very praiseworthy. Whether it is in terms of urban renewal or rural resettlement, the people affected are invariably faced with problems to some extent, in this respect, the Govern-merit has already decided to increase the rate of compensation and ex, gratia payments to those people affected by the resettlement scheme so that their difficulties can be alleviated. This is another indication of the present Government's pragmatism and its sincerity in looking after the interests of the people. Mr Speaker. Sir, if over the past few years our national economy had not been consolidated and there had not been so much progress, we would not have been able now to increase the rate of compensation for these people. If we look around us, we can see that we are now able to do this all because we have been able to look after the national interests first. It is only after the national interests have been well taken care of that individual and group interests can be better looked after more easily. This is an example for the present as well as the future.

Progress or prosperity may not bring about more progress or more prosperity as a rule. It may, in fact, bring about some new problems, for example, the case of rising wages, if this problem is not properly handled, it may result in inflation. The increase in the rate of compensation for resettled people will in certain circumstances give rise to an increase in the price of land. In spite of all that, we cannot throw away the apple because of the core. Therefore, we must look at this problem from various angles. Where it is possible, we will increase wages at the right time, anc1, also, if necessary, the rate of compensation. By doing the right thing at the right time, we can achieve our wishes which can only be translated into reality under the enlightened leadership of the People's Action Party. Without this enlightened leadership, we can only see these things in our dreams.

Sir, I have been trying to express my views in as few words as possible to reflect my confidence in the present Government, and I would like to endorse my support for the motion of the Member for Ulu Pandan.

4.03 p.m.

Mr Ong Soo Chuan (Nee Soon): (In Mandarin): Mr Speaker. Sir, from the status of self-government in the l960s to nation-building after independence and the serious challenges in the face of multifarious problems in the 1970s, we have gone through a period of trial and tribulation, but have finally emerged as a successful and stable country in this turbulent region of South-east Asia. The internal political stability, the economic development, the rise in our Gross National Product, the international prestige we have built up, the establishment of trade links with more and more countries, the gradual development of Singapore as the financial centre of South-east Asia and as an example to developing countries - all these achievements have been brought about by the cohesiveness and unity of our people. For a better future, we still have to carry on working hard for what we have already achieved. Complacency, no doubt, is a hindrance to progress, but to ask for too much without regard to the practical and objective circumstances is equally bad. The fortuitous process through which our unique immigrant society has developed from colonial rule to internal self-government and, finally, independence provides many lessons for us and our future generations to remember. These lessons make us vigilant and appreciative of the value of the harmony and stability that we are enjoying as a multi-racial country.

To be a Singapore citizen is something to be proud of. This is because we have built up a country from the unity and cohesion of several races, cultures and religions. Through mutual understanding, mutual help and mutual tolerance, we have built a foundation of oneness based on the confluence of many units. We must continue to work hard to consolidate this foundation and to ensure that nation-building is above all other objectives. It is important that we establish our national consciousness and unity of purpose. It is unfortunate, however, that when we are engaged in the supreme task of nation-building and the establishment of unity of purpose, divisive words are being spread in all directions. This is very dangerous. The people behind this even attempt to go through the cultural front in order to advocate divisive thinking among our people. They exploit the various complicated and acute issues in our country in order to whip up suspicion among our people in the hope that they will cause communal conflict, and to undermine and destroy whatever we have built. The consequences will be tragic if they succeed, because the people will then be living with one another in a state of hostility or forever become the slaves of others. If we do not take timely and decisive steps to stop all these pervasive divisive influences, all the unity, cohesion and foundation that we have built up will be corroded and destroyed. What will then become of our society and our country? Of course, the result will be unthinkable.

At this time when we are taking decisive steps to stop all these pervasive divisive forces from operating in our country, there are some ignorant people who blindly accuse the Government of killing the freedom of the press. Indeed, freedom of the press is one of the basic principles of democracy. In its turn, the press also has a responsibility and obligation towards the nation. But all this is relative. It does not mean that the abuse of the freedom of speech beyond the ambit of the law should be permitted. Neither does it mean that we should allow the exploitation of the freedom of speech against the national interest. No doubt, it is a privilege and a right that every citizen should be able to express his views openly, but between the right and the obligation, we must find a proper balance so that the interests of the entire nation will be looked after according to the social conscience. Only then will the freedom of speech and expression find significance. At the present stage of our nation-building, national consciousness is still in the formative stage. We should not compare ourselves with countries with a longer history, particularly when we are a multi-racial, multi-cultural and multi-religious society. We must not allow the poison of divisive thinking to spread among our people, if we allow things to go their own way, many ignorant people will break away from the nation. Freedom of speech and expression should be in keeping with our national policies. We welcome constructive criticism, criticism made on an objective basis, particularly in regard to any deviation in the implementation of our national policies. On the contrary, if the freedom of expression is abused and exploited, then the harm done to the country will be immeasurable, Only responsible freedom of speech will have value and relevance to our country.

I have been stressing the importance of cohesion among our multi-racial people because as a society we are unique, if we do not do our best to preserve all the achievements made, we will be heading for destruction. Our country is like a sophisticated machine. All the parts must be properly operated and synchronised. If there is any loose part, the whole machinery will stop operating or go out of order. This is a very simple example. We can learn a lot of lessons and see many examples of what has happened around us. The facts are cruel, but we must not try to escape from reality. We must instead sharpen our vigilance and take preventive measures for what is to come, otherwise we will be very foolish. In order to ensure that our stability and prosperity will continue, all the people in Singapore must unite together and heighten their national consciousness. They must always remain vigilant and be in a position to know who are their enemies and who are their friends so that they will not be exploited. The future is unpredictable. In the process of self-preservation there should be no relaxation on our part. Only then shall we be able to stand forever and enjoy our freedom in international politics.

4.15 p.m.

Mr Yeo Choo Kok (Delta): (In Mandarin): Mr Speaker, Sir, Singapore is a country mainly dependent on industry and commerce. In order to keep up with our industrial development, we are entering the field of technological training. We have done a great deal to improve the teaching facilities at the Polytechnic to turn out enough competent technical and engineering personnel for our industries. All this is very correct. On the other hand, greater efforts are still needed for the development of managerial and executive staff and personnel for our big companies. The recent incidents involving Eupoc, the Starlight company and a British financial group show that we lack managerial talent. The President has also commented in his speech that "it is a sad and painful example of how poorly we run some of our limited companies listed on the stock exchange. We have to acquire sophistication and expertise to run large corporate holding companies and their subsidiaries." We must do all we can to train such personnel, especially in the light of our commercial development and the process of modernisation and professionalism now under way. Our two universities at present conduct courses on business and industrial management. In view of the acute shortage of such personnel, we must make a systematic and better use of the facilities in the two universities to meet our national requirements. We could then have more of such personnel for our industries. With the courses jointly conducted by the two universities, I believe we should be able to get suitable personnel.

The President has rightly said that food alone is not enough to bring up a good citizen. We must have proper educational and cultural activities. We must provide the mental pabulum needed. Because of the present lack of mental pabulum, even undesirable publications are welcomed by many. The Minister for Culture says that the Government has recently confiscated and destroyed about 20,000 copies of undesirable chain-picture publications meant for children. I do not know the number of such publications for children and adults that are still in circulation. But prohibition and confiscation are passive measures. These undesirable publications are brought into Singapore because there is a cultural and spiritual vacuum. The best way to fill that vacuum is to produce our own publications. We have many writers and painters. The Government could utilise their services and ask them to produce educational, meaningful and desirable articles for publication. Only then will we be able to counter such undesirable publications and reduce our dependence on imported ones, and supply healthy publications to our citizens.

Mr Speaker, Sir, we are a multi-lingual society and the Ministry of Education must improve the technique of teaching the second and even the first language. Research has shown that the best time for children to learn a second language is when they are under 12 years old, i.e., when they are in the primary school. Therefore, we should concentrate on the teaching of languages during this period to get the maximum effect. There are language laboratories in the various institutions of higher learning and the Adult Education Board. But there is no co-ordination and co-operation among these institutions in the teaching of languages. The Ministry of Education can therefore set up a unifying body, such as an advisory centre on the teaching of languages among the institutions. Then the activities and planning of these institutions would be properly coordinated, planned and directed to function satisfactorily. That would greatly help in teaching languages, both inside and outside the schools.

4.20 p.m.

Mr P. Govindaswamy (Anson) In Tamil: Mr Speaker, Sir, His Excellency the President made a speech at the Opening of the Second Session of the Second Parliament, and I support the Address of thanks proposed. I wish to give my own views. We have to encourage the establishment of a more just and equal society. The speech is tantamount to that. We have to devise ways and means to establish a disciplined society. Language, culture and religion should not be divisive factors. They should, in fact, contribute to unity among the various races. But there will be unity only when multi-racial, multi-religious and multi-lingual ties are steadfastly knitted together.

We know that the prices of commodities are increasing. The Government is in fact taking steps to check the price increases.

The Government has announced, through His Excellency the President, certain policies. I support them.

Mr Speaker, Sir, school children, the Police and Armed Forces personnel, workers, and other people belonging to establishments and institutions, will be staging a mammoth show to celebrate National Day. They have to rehearse the show a few times in order to produce a good show. They should therefore be given leave to attend rehearsals.

We have been independent for six years. Within this short period we have overcome many problems and have made progress. When we became independent, the people around us had doubts whether we could make the grade. But contrary to their expectations, we have gone forward. This is because the Government has worked hard and the public have given their co-operation. Nevertheless, there is a hindrance. This is the British military withdrawal. When this was announced, we were afraid that there would be unemployment. Due to our leaders' foresight, we have solved that problem. We are not only industrialising quite rapidly, but we are also employing trained foreigners who come here on work permits. But in doing this, the Government should be careful not to create unemployment among our own citizens. Perhaps the holders of work permits come here to work for a lesser salary, and the employers may also make use of this opportunity permanently. In this respect the Government should be cautious. Our citizens should not only be given proper training, but they should also be safeguarded against unemployment.

Sir, we are a small nation. Therefore, some may ask whether it is necessary to have a bigger defence force. But I would like to ask them one question. Why are we having gates and doors to our own houses? It is because we want security. In the same way, our country should also be made secure. So it does not matter even if we spend more money on defence. It would be helpful to our progress. We need to buy new equipment for training our armed forces.

Sir, we have to create a more equal and just society. We also have a duty to build houses for the people. But we need land for other projects too. So when people are affected by resettlement, I hope they will be satisfied with the compensation they get from the Government.

In this respect, I would offer two suggestions. When the Government take over land for redevelopment, if for some reason they are not going to develop it immediately, I suggest they offer it to the private sector for development. As far as industrial development is concerned, the same privileges offered to foreigners should also be offered to local people. When the local people want to erect buildings for industries, they have to comply with certain building regulations. I hope the Government will relax some of these regulations for local people.

Water is necessary for life. Before building more houses, the Government should have more reservoirs. The rain water should be channelled to the various reservoirs so that at any time they will be filled. I suggest that farmers use pumps to draw well water. Then they could make use of the well water for their needs. In the way, the water shortage could be overcome. Other countries have well facilities too.

I praise the Health Ministry for doing a good job. There are less mosquitoes now. This is very encouraging. Measures have also been taken to control pollution.

I hope more dispensaries could be built near housing estates. There are no facilities for medical treatment at night except in Government hospitals. Private doctors in the various constituencies should open their clinics during the night. They could take turns to be on duty during the night. I hope the Minister will approach them on this suggestion.

Government has given equal treatment to all the four languages. It has been successful in doing that. Moreover, two languages are compulsorily taught in schools now. In future, when our children know two or more languages, they will be able to understand one another better. They will then live in a better society.

I now wish to comment on Tamil education. In Tamil primary schools, the second language should be taught in such a way that it benefits the pupils. When we teach languages in schools, we should be careful not to create trouble over the language issue, as has happened in other countries. I hope the Minister will take note of this.

The Government has tremendously improved the communication system. I praise the Minister who reorganised the transport system. But there is still vehicle congestion at certain places. E hope this will be overcome soon.

I wish to praise the Police Force and make a request to the Home Affairs Minister. There are many foreigners who come to Singapore. Once they are here, they are given the opportunity to stay here permanently and get citizenship. At the same time, the Minister should pay attention and give citizenship to those who have stayed here for a long time. Also, when those people who are born and bred in Singapore marry foreigners, I hope the Minister will make the necessary arrangements to grant citizenship to foreigners who marry local people.

Finally, Mr Speaker, Sir, I wish to thank the Member for Ulu Pandan for moving the Address of thanks to the President for his speech.

4.30 p.m.

Mr Speaker: Order, order. I think the hon. Member has just made it! The time of adjournment in pursuance of the resolution has arrived. Debate to be resumed on what day?

Mr Barker: Tomorrow, Sir.