DEVELOPMENT LOAN BILL

Order for Second Reading read.

6.45 p.m.

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

The Development Loan Act, 1967 (Chapter 66), authorises a sum of $1,000 million to be raised by way of loan for the purposes of the Development Fund. To-date, a total of $963 million has been raised under the provisions of the Act, leaving a balance of $37 million of the prescribed maximum.

Members are no doubt aware that besides external sources such as the World Bank, the Asian Development Bank and the international money markets, Singapore will have to continue to mobilise resources from the domestic sector to finance its development programme. For this purpose, it is envisaged that the loans raised for the Development Fund will amount to about $2,000 million over the next five years. The Bill, which is now before the House, is necessary since the previous legislation, which I mentioned earlier, cannot be suitably amended to increase the amount of loan that can be raised.

The Bill follows closely the provisions of the Development Loan Act, l967 (Chapter 66), with one difference. This is that the maximum amount of loan which can be raised under the Bill is $2,000 million, as compared to $1,000 million authorised by the 1967 Act. A new feature is that the proposed Development Loan Act will be administered by the Monetary Authority of Singapore instead of the Treasury.

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; reported without amendment; read a Third time and passed.