ANNUAL BUDGET STATEMENT

Order read for resumption of debate on Question [26th February, 1973], "That Parliament approves the financial policy of the Government for the financial year 1st April, 1973 to 31st March, 1974.". -[Minister for Finance].

Question again proposed.

2.32 p.m.

Mr Ang Nam Piau (Thomson): (In Mandarin): Mr Speaker, Sir, the Minister for Finance has once again presented a painless Budget in this House. He also announced in his Budget Statement seven items of tax reliefs and a surplus of $20 million. All this goes to show that Singapore is in a very sound financial position. This is a budget that is welcomed by all the people of Singapore, and I hereby support the financial policy.

Sir, our Government is now concentrating its efforts on industrialisation and urbanisation in order to catch up with the technologically advanced countries. It is also concentrating its efforts on technological developments as a means to further develop our economy. All this is very well because circumstances are such that we have to catch up with the other advanced countries. But I would like to take this opportunity to remind the Government that we should not overlook certain aspects of development that have taken place in some Western countries. The development of their technology and economy have brought about certain shortcomings. There is also the evolvement of escapism as a result of excessive material development. The spiritual aspect of human life must be looked into. Creativity, the emotions of human beings, should also be developed together with technological and material development.

Sir, in the process of urbanisation and industrialisation in Singapore, the Government has taken various steps to control social pathology and other shortcomings. These shortcomings which accompany material and technological development are air pollution, environmental pollution, noise pollution, industrial accidents, industrial diseases, traffic congestion, and a host of others. The abuse of the mass media is also one aspect of the shortcomings. People are more concerned with their own material enjoyment than the interests and welfare of the country. In other words, the people are becoming more and more selfish. They take less and less interest in the people around them. Degradation and decadence, therefore, set in. As a result of this phenomenon, crimes are mounting and anti-social activities are increasing. We have gangsterism, blackmail, juvenile delinquency, and a host of other anti-social activities. On top of all this, there is the problem of drug abuse. Drug trafficking is going on in Singapore. Young people are sporting long hair in spite of the Government's attempt to discourage it. It is regrettable that we can still see in this corner of the world young people taking drugs, sporting long hair, and engaging in activities outside the ambit of the law.

Sir, in order to create a healthy and wholesome social atmosphere and environment, we must not fall into the wake of some technologically advanced Western countries. Over and above economic development, the Government should pay attention to cultural development. The people must be inculcated with a sense of belonging. They must be educated in the effort to make Singapore a clean and pollution-free city. I do not think that campaigns like the "Tree Planting Campaign", "Anti-Mosquito Campaign" and "Family Planning Campaign" have been adequately carried out. I hope that the Government will allocate more funds to step up these campaigns in order to avoid the by-products and the ill-effects of industrialisation. Sir, although we cannot be assured that the ill-effects of industrialisation can be totally eradicated, I am sure that with all the efforts put in, we can reduce them to a certain extent.

Sir, we know that the prosperity and economy of Singapore are developing at a pace far greater than our neighbouring countries. This brings about unemployment in those countries, and these unemployed people are therefore pouring into Singapore. This may cause an "explosion" in future. I would, therefore, propose to the Government to encourage Singaporeans to invest in our neighbouring countries. Encouragement should also be given to our technicians and technocrats to help in the development of our neighbouring countries. This will not only help those countries to solve their unemployment problem and to raise their standard of living, but will also ultimately help us to check the danger of a potential "explosion" from occurring in Singapore.

Mr Speaker, Sir, even with an enlightened leadership, Singapore cannot function without the sincere co-operation of the people. If there is such a co-operation, I am confident that Singapore will have a brighter future.

2.40 p.m.

Dr Tan Eng Liang (River Valley): Mr Speaker, Sir, I must congratulate the hon. Minister for Finance for his pain-less Budget. It was a Budget which was quite rightly described by a newspaper as one "with a heart".

As one who comes from the manufacturing sector, I note with concern the fact that earnings from the manufacturing sector as measured by the GDP have declined in 1972 to only 20.1 per cent as against 25 per cent in 1971 and 27.5 per cent in 1970. I also note from the Minister's statement that the manufacturing investment commitments fell sharply from $716 million in 1971 to $252 million last year. While it is accepted that this drop may be due in part to investment commitments of the petroleum refining industry as well as the shipbuilding and repairing yards, this alone could not account for the big drop in investment.

Sir, I am glad to note that the Minister has mentioned in his statement that the future of Singapore is correlated to its being considered an ideal off-shore manufacturing base for multi-nationals and their subsidiaries, and that special efforts will be made to attract more investment to come to Singapore. While paying attention to attracting more investment to come to Singapore, it is also necessary to make a study of the possible causes of this decline in investment and manufacturing earnings. While we like to encourage new multi-national firms to come to Singapore, we must not overlook the existing ones, especially the local industries that are now established in the Republic.

In the past year, manufacturers in Singapore have been faced with increased costs in many areas. There were taxation and other increases which may have directly and sharply increased the manufacturing and production costs. These may have contributed to the decline in manufacturing earnings.

I would, therefore, like to suggest to the Minister to look into some of these factors which, in fact, are causing hardship to some of the existing industries, and which may have also deterred would-be investors from coming to Singapore. In addition, the high increase in production cost has either deterred the expansion programme of many manufacturers or has driven some of them to transfer their operations and or expansion to neighbouring countries. Some of these factors are:

(1) Increasing cost of raw materials

(2) Increase in freight charges

(3) Revision of PSA tariffs

(4) Revision of PUB electricity tariffs

(5) Revision of the water rates and the introduction of the block system of charging

(6) Additional cost of anti-pollution measures

(7) Increase in land rentals, leading to increase in assessments

(8) Increase in assessed land values leading to higher assessments

(9) Increase in workmen's compensation premium, resulting from the higher compensation payable, and

(10) Increase in CPF contributions.

There is justification for some of these increases, for example, the increase in CPF contributions. But I think it is the duty of the Government, if we are to encourage the growth of industries in Singapore, to exercise better control over some of the other increases. While we are trying to compete in an extremely competitive world market, it may not be possible for many manufacturers, especially the local industries, to bear all these increased costs within such a short space of time. Obviously it is very difficult to determine the extent of these increases in real terms of costs, or how they will directly affect the cost of production of the various industries. Nevertheless, these increases in terms of costs will make our products less competitive and, if they are for the local market, manufacturers will have no choice but to pass these increases on to the consumers, thereby causing inflation.

As I see it, this is a vicious cycle. Some of the increases, which I have mentioned above, are completely outside the control of the Government, but the other increases, such as in land rentals, in assessed land values, in additional cost of anti-pollution measures, and in the revision of rates for public utilities, can and should be controlled and coordinated if we are to maintain or even increase our rate of industrialisation. I would therefore like to urge the Government to seriously look into the matter before the activities of our manufacturing sector are affected.

Mr Speaker, Sir, another point I would like to raise concerns assistance to local industries to increase their exports. In June last year, at the annual dinner of the Singapore Manufacturers' Association, the Minister for Finance indicated that he would be prepared to consider granting income tax concession to locally-owned firms for participating in approved trade fairs, exhibitions, and trade missions, and which are not already enjoying export incentives or other incentives. I am therefore a bit disappointed that no statement to this effect is made in his Budget Speech. Although our exports of industrial products have grown substantially over the last 10 years, they are mainly due to the exports of multi-national companies, with the electronic and petroleum industries accounting for 53.8 per cent of the total industrial export in 1970. This shows that our locally-owned industries accounted for only 46.2 per cent or less than half of the total industrial export. Even then these export figures of local industries are confined to only a few industries, like shipbuilding and repairing, textiles, food and veneer products. The other local industries show a much slower rate of growth.

If the Government intends to stimulate the growth of local industries, a great deal has still to be done to assist them to broaden their base and to diversify. One of the more important factors is to encourage a higher growth of exports. I therefore feel that special consideration should be given to local manufacturers at this stage of their development. One way is to give a double tax deduction concession. I appreciate that no blanket concession can be given. I would therefore like to suggest that the Treasury or the Income Tax Department should work closely with those concerned to work out the criteria, so as to avoid abuse by individuals. But because of a few individuals who may abuse this privilege, there is no excuse to penalise all the others. The types of expenditure which should be considered for double taxation relief are those which are normally incurred, i.e, travelling and hotel expenses, freight for exhibits, construction cost of display stands and participation fees in trade fairs and entertainment supported by receipts, subject to certain limits. I am confident that officers from the Income Tax Department will know how to draw up criteria to avoid abuse and, if need be, I would even venture to suggest that a realistic limit be set for such double tax deduction concession.

Sir, I would also like to commend the Government for the recent increases in the salaries of top civil servants. I understand that not more than 322 officers are affected, which is a very small figure compared to the approximate 50,000 civil servants we have in Singapore. In line with the Government's thinking, we should not pay too much attention to material wealth, and that we should pay more attention to culture, paintings, music, etc. I would like to suggest that, in order to retain some of our more promising technical and scientific officers in the public sector and in the universities, statutory boards and the technical institutes, more funds should be provided for equipment and research in order to provide job satisfaction to this category of important personnel. To start with, I would like to suggest that maybe we should put aside for this purpose a sum of $2 million which is only half of the $4 million set aside for the increased salaries of the 322 officers. This $2 million will give added incentives and job satisfaction to the few thousands who are manning and performing yeomen's services in the universities, technical institutes and the technical divisions of the public sector. A man, especially an educated person, needs money to live, but given a sufficient salary he also needs something to live for.

I am aware that there is a provision of $120,000 under the Ministry of Science and Technology for applied research. There is also a similar provision of $100,000 under the Ministry of Health. But these amounts are insufficient to enable a proper and intensive research to be conducted. I would like to suggest, for the consideration of the Government, that this sum of $2 million be added to the research grant of the Ministry of Science and Technology for equipment and research, and that this grant be given more readily to those research workers in the public sector. What music and culture is to the society, research is to our scientists and engineers. I hope the Government will not overlook this important aspect and the needs of the very important sector of our society.

Mr Speaker, Sir, I would also like to comment on the salary scale of the technical officers who, to my mind, have been overlooked. This important class of technicians is in great demand nowadays. While we are building up our Industrial Training Board and our technical colleges, we have a greater need for this category of people, since more of them are required as teachers and instructors. The present salary scale of 5465-1030 per month will not be able to keep good and experienced staff in the technical institutes and in our schools. In industry such people are employed as supervisors, and they are given a much better salary scale. I would therefore like to suggest to Government that a more realistic salary scale be implemented and that the scheme of merit increments should also be applied to this grade of technical officers.

The last point I would like to comment on, Sir, is merely to echo the sentiments of most Members of Parliament in this House and the public at large. This is in regard to the tax relief for taxpayers who support dependent parents and grandparents. While this tax relief is most welcome by all, the amount of tax deduction of $300 per dependant is indeed on the low side. In addition, the relief should be given irrespective of whether or not the parents are staying with the taxpayer, provided genuine proof of support is given.

2.53 p.m.

Mr Yeo Choo Kok (Delta): (In Mandarin): Mr Speaker, Sir, in his Budget Statement the Minister for Finance has briefly described a survey of our economic performance in the past, which indicates that the current financial year will be better than the last one. There is economic progress with reduced taxation, and there will be a surplus of $20 million. This undoubtedly reflects our economic stability.

The Government recently has raised the salaries of Government officers in the Superscale in order to retain them in our public service. This is one way to reward officers for higher performance. I hope that this policy will also be implemented in respect of the other categories of Government officers, because without their help the Government cannot achieve its objectives.

Of the two considerations, one to encourage and to reward an officer for the work he has performed, and the other to prevent capable officers from joining the private sector, I must stress the importance of the first consideration. Whether it is a country, a society or an individual, it is not possible to survive on material alone. The spiritual aspect and value need to be encouraged, which will make the people lead fuller and more meaningful lives. Therefore, the revision of salaries of Government officers in order to retain their services so that they may not be attracted by the private sector, together with better treatment accorded to them, should be regarded as a kind of reward and an acknowledgement for the right spirit of service.

According to the Finance Minister, medical facilities and services will be strengthened and improved in the coming financial year. Living in this tense and industrialised metropolitan city, there is an increasing need for medical services and care. Any measure to increase and improve this service will be welcomed. Therefore, a community-sponsored institution such as the Chung Hwa Hospital should get Government support. Medical reliefs know no boundaries. The authorities should also give adequate training, management, study and financial aids to modernize and develop Chinese medicine.

The new budget policy will no doubt give relief to taxpayers who support parents and grandparents. Though the amount of tax relief is very small, this however reflects the valued concept of the Government in preserving our good tradition. I hope that the Government will also pay attention to the smaller families, which are the trend, particularly those living in flats. However, due to limited space in these flats, taxpayers may not have their parents and grandparents living with them. And very often, we find that children of taxpayers do not also live together with their parents. After all the amount of relief for support of parents and grandparents does not seem too generous. Therefore, there should be no qualification of residence to the claim for such tax reliefs.

Sir, in view of the current international monetary crisis and inflation, the presentation of a progressive budget for Singapore is a creditable achievement. I hope that with the judicious administration of the Finance Minister in this coming year we may achieve the targeted 15 per cent growth rate of our economy, as he had remarked in concluding his speech.

2.57 p.m.

Dr Augustine H. H. Tan (Whampoa): Mr Speaker, Sir, I rise to congratulate the Finance Minister for his lucid presentation of the Budget. The growth rate of 13 per cent in our GNP has been greeted with applause, especially in the context of a turbulent world economy. The Government's financial position is excellent and a boom psychology prevails in the banking sector, the property market and, until recently, the Stock Market.

Close examination of the financial statistics, however, reveals evidence of distortions in the economy which are hidden in exciting growth rates. Instead of euphoria, I think we need to pay close attention to a number of what I consider to be potentially disruptive factors. First, as the Minister rightly pointed out, is the problem of inflation. The turmoil in the international monetary system is one major factor to contend with. Unless we can apply proper monetary and exchange controls, we shall continue to import inflation in two ways:

(1) via higher import prices, because of inflation in the advanced countries, which will affect our cost of living and costs of production, and

(2) via uncontrolled speculative short-term capital which swamps our property market and the Stock Exchange. Every time the U.S. Dollar is devalued and other currencies are up-valued, we have to decide on our exchange rate, keeping in mind four factors:

(i) to preserve our competitive edge in the major trading blocs;

(ii) to keep the cost of living from being pushed up by higher import prices;

(iii) to maintain full employment at a good rate of growth; and

(iv) to ensure a healthy balance of payments.

In an unsettled international monetary arena, a small country like ours must apply exchange controls on the import of speculative capital or else we shall be overwhelmed by excess liquidity and unhealthy inflation. It would not be necessary to control export of capital as long as our economy remains vibrant. Besides, this would be unwise as it would be a deterrent to inflow of productive long-term investment.

Mr Speaker, Sir, the recent move by the Monetary Authority of Singapore to increase reserve requirements of banks to 9 per cent is a necessary one to check excessive growth of money supply and corresponding inflation. However, I fear the measure will be ineffective, and I think it is discriminatory. Foreign banks are still free to bring in funds from abroad. This will place local banks at a disadvantage. Moreover, we should stipulate the absolute levels of foreign funds held by banks as well as maintain the higher reserve ratio. Otherwise with the increased inflow of funds, no matter what the reserve ratio, the money supply can be extended indefinitely. Paradoxically, Sir, we seem to have better control over our hawkers than over our bankers and stock brokers.

The second major factor that would need to be considered in checking inflation is the property market. The boom is induced in part by the general level of economic activity, but is greatly exacerbated by speculation, fuelled particularly by the inflow of hot money. The unhealthy boom in the property market has severely penalised the middle and lower-middle income groups, the executive and the professional people. It has also contributed significantly to the Stock Market boom as shares were re-valued in the light of higher property prices.

Sir, I believe Government should restrict ownership of residential properties to Singapore citizens and permanent residents, except for designated enclaves. Proxies may still be used to buy up property but severe penalties could he laid down. Countries like Switzerland have already long had such restrictions. In addition, all property transactions should be allowed no more than a rate of return of 15 per cent a year (with some flexibility for escalation of building costs). I prefer this to a capital gains tax because capital gains tax is expressed in terms of percentage, and you can always jack up the price to get more, and paying the Government taxes at the same time. But if you specify the rate of return, then, in this way, you can control the market better. In this way investment in properties will not be unduly profitable, speculation will be dampened and legitimate home-owners given the chance to be owners of property.

The third area where inflation needs to be checked is the Stock Market. I welcome the Securities Industry Bill and the accompanying controls on Stock Market activities. As the Prime Minister and other Ministers have pointed out, the get-rich-quick mentality will prove detrimental to our productivity and work ethos. The regulations must, however, be designed in such a way as to control speculation which hurts the small investor while providing a smooth capital market for long-term investment.

Mr Speaker, Sir, this year inflation will hit the lower income groups through the increase in import prices and the cost of services. I believe the National Wages Council should build in a component of cost-of-living adjustment, particularly for the lower wage earners. We can well afford the adjustment, Sir, provided the rate of inflation is higher in the advanced countries.

I also applaud the substantial allocation to Social Services -- an increase of almost 50 per cent. In particular, the accelerated Housing and Development Board programme will benefit the lower-income group. Housing constitutes a major pillar of social stability. Besides, improved housing conditions and better recreational facilities for the working class will contribute substantially not only to their stability but also to their productivity.

I also welcome the move by Government to provide tax reliefs for the support of parents and grandparents. However, as the last but one speaker said, the relief should be extended to include those parents and grandparents who are not living with the claimant. Extended families living under one roof, Sir, have become impractical in one and two-room flats.

Looking ahead, in the longer run, I believe three major areas need attention. Firstly, real development would require that our industries upgrade or acquire higher technology. On the one hand, with rising wage costs and the increasing drive of other developing countries to industrialise, our low technology industries will face stiff competition. On the other hand, it is difficult to induce the middle- and higher-technology industries to come out here as these are not so pressed by escalating production costs in their own countries. I note with concern the figures quoted by the Minister. As he stated, manufacturing investment commitments fell from $716 million in 1971 to $252 million last year. This, Sir, reflects the difficulties I have mentioned.

Secondly, I also welcome the setting up of the Industrial Training Board. Together with its activities to encourage the formation and transmission of skills for our workers, enabling them to be more productive with a higher standard of living, Government should also look closely at the training of executive, managerial and marketing personnel, especially in the foreign firms. For without the development of skills and organisational know-how, we shall never achieve real development. Rapid development also makes skills obsolete fast; hence in the years ahead we would have to have a number of re-training programmes.

Thirdly, as we develop rapidly, we shall have to face problems of phasing out the cottage-type industries. As long as land is available, these industries can be, and are, re-sited. However, the process must end inevitably for we have limited space. Government would need to study the problems of these industries, balancing equity with the efficiency needs of our country. Perhaps a system of outright subsidy can be implemented to encourage change to more desirable trades before costs of production push them out. For the low technology industries, like textiles and electronic circuitry assembly, the safety valve against the shortage of labour and rising wage cost may be to employ more married women. Factories can be more suitably located in housing estates and more creches built to help working mothers.

Mr Speaker, Sir, with these observations, I give my full support to the Government's financial policy as outlined by the Minister for Finance.

3.08 p.m.

Mr Chin Harn Tong (Aljunied): (In Mandarin): Mr Speaker, Sir, I welcome the Budget Statement made by the Minister for Finance. According to the Minister, our economic growth rate in the past financial year was 13 per cent and our external trade growth rate was 11.7 per cent. Judged by international standards, it is very creditable. Sir, this fine economic performance reminds me of the time when we separated from Malaysia and of the time in 1971 when we were faced also with the problems of British military withdrawal. During those times, we were faced with economic difficulties. But with the co-operative effort, the diligence and patriotism of our workers coupled with the co-operation of the employer, we managed to overcome our economic problems and difficulties. Instead we were able to achieve economic progress and peaceful industrialisation. In spite of the low wages there were very few industrial disputes originating from the workers, resulting in a more stable economic situation. Our present economic progress and achievements have been due to the efforts and contributions of people of all walks of life, but the performance and attitude of our workers, in particular in the past, should merit particular mention.

Sir, in the Budget Statement, the Minister announced that there will be tax reliefs for taxpayers' dependent parents, grandparents, and handicapped children. This is very encouraging. The fact that the Government can do this is evident of our economic progress and the Government's understanding of our unique Asian family system. Here, I would like to advance a suggestion that since we may have a more rosy prospect for our future economy in view of our present favourable economic progress and national effort, the quantum of tax reliefs should also be increased in the coming financial year in respect of the taxpayer, his wife, and the first and second children. The present tax relief measures (for taxpayer: $2,000; earned income: $1,000 maximum; wife: $1,000; 1st child: $750; 2nd child: $500) were implemented in 1961. At the moment our economy and standard of living are much better than those of 1961. So comparing the present economic situation and per capita income with those of 1961, it is necessary that we increase the quantum of tax reliefs for personal income, earned income, wife, and for the first and second children. This is particularly necessary in view of the fact that in recent years the Government is encouraging the raising of quality of our citizens and promoting the small family system, which is a very correct policy. So, in order to match this policy, we must give the first and second children more tax reliefs as this will have a great promotive effect on Government's policy.

In the last few years, we have achieved economic progress and brought about prosperity and material enjoyment for our people. But, on the other hand, there is also a fact which we must pay attention to, that is, there is a trend for some people to pay more attention to money gains and material enjoyment. In addition to this, there is the intrusion of decadent Western culture. As a result, some people go for a life of pleasure, easy-going and living a more decadent way of life, heading towards hedonism. This is very dangerous and detrimental to our nation building and higher performance, because all the present achievements have been brought about by the good qualities of our people, their diligence, thriftiness, and through their patriotic efforts and so on. So we must not let all these deleterious effects to corrode the healthy spiritual condition of our people. Otherwise, we will be at a great loss and the country will also suffer. In order to avoid this, I hope the Government will, besides developing the economy, pay attention to the inculcation in our people of a healthy attitude of life. This can be achieved through cultural education and activities and by providing the people with the necessary healthy mental pabulum in order to enable them to create and enjoy a healthier and fuller life, both as an individual and as a group. In order to achieve the above objectives, the Government should systematically promote various healthy cultural and educational activities and further organize and liaise with community cultural organizations.

3.14 p.m.

The Parliamentary Secretary to the Minister for Labour (Mr Fong Sip Chee): Mr Speaker, Sir, I rise in support of the motion standing in the name of the Minister for Finance. In so doing, may I also be allowed to express my thanks to him for that portion of his Budget Statement delivered in this House On 26th February, 1973. We have the unique advantage this year of first reading a portion of the Financial Policy Statement in the local press, and later listen to the remaining instalment in this Chamber. Sir, the result of and the reaction to this unprecedented arrangement may not be quite the same as what the hon. Minister had expected, but I find this innovation rather refreshing, because the conventional procedure would have involved the hon. Minister in what would otherwise be a laborious exercise in this Chamber; hon. Members will then read about it in the local press the following day, I hope without distortion, and finally, dwell further into the verbatim report, yet another day later.

Sir, whatever uncomplimentary thoughts hon. Members might think aloud in this House over the new arrangement, I think their grouses ought to be more than submerged by the very tranquilising Statement, including that portion published in the press, of course. That no new tax was introduced is welcome, and the new tax reliefs are indeed consoling, in that it goes to prove that humane gestures are still possible when financial consideration permits.

Sir, may I now invite hon. Members' attention to the penultimate paragraph of that portion of the Minister's Statement in this Chamber-I think the distinction here is necessary for hon. Members might mistakenly refer to the other portion published in the press in advance. As one of the many people directly concerned with the climate of labour-management relationship in the Republic, albeit for only a short period of time in my case, I find it fitting that the Minister devoted his last comments to acknowledging the importance of co-operation and collaboration between management and labour, for, given all the other ingredients required to maintain and accelerate our economic growth, it is, in the final and crucial analysis, the understanding between management and labour that holds the path to success.

The Estimates for FY 1973-74 provide for 77 new posts as against the deletion of two in respect of the Ministry of Labour. These new appointments represent roughly 30 per cent increase to the overall staffing position in the Ministry, a fairly high figure percentage-wise, but unfortunately this percentage is derived from an already small base. Last year we had, from the Minister down to the peon, 267 posts. As the Minister for Education is so fond of quipping in the Members' Room, he said that one of his departments is larger than my Ministry. Unfortunately, we do not count on building an empire. We are more dependent on -

An hon. Member: Quality!

Mr Fong Sip Chee: - quality of work. I do not think I should burden the House further as to what transpired in the Members' Room. May I be permitted to proceed? Of the new posts, the net increase, really, is only 49. It is because 18 posts were transferred from the Public Health Division to form the new Industrial Health Unit which was also successful in securing another 10 of the new posts provided, thus making a total of 28 in this new Unit. The Industrial Health Unit is a new section performing duties, which hitherto, was the responsibility of the Ministry of Health. Hence, the net effective increase is, as I have mentioned, only 49 or about 20 per cent. Of these, 25 are assigned to the Ministry's headquarters, 15 for the expanded Statistics and Research Section, five for the Work Permit Office, two allotted to Industrial Relations Unit and the remaining two, both of whom are not field officers which we so badly need, to the Factory Inspectorate.

To begin with, the existing number of established posts in both the Factory and Labour Inspectorates are grossly inadequate. The situation is further aggravated as both the Inspectorates have been operating below the establishment strength for many years now. With a rapidly expanding industrial sector, and the many new commercial establishments, it has been extremely hard-pressed for the two short-handed sections in having to cope with the increasing workload. The officers have been stretched to the limit.

For the purpose of illustration, may I enlighten the House with some statistics as an indication of the workload that these two sections have to bear. The Factory Inspectorate, operating with a reduced capacity, conducted a total of 11,076 inspections during 1972, close to doubling the previous year's figure of 6,368. The Inspectorate had stepped up its enforcement action on industrial safety, resulting in a total of 234 prosecution cases in court as against only 52 in 1971.

The Labour Inspectorate is in no happier situation as far as personnel is concerned. Its present establishment strength of 20 has been stagnant for the last decade. Despite this, it carried out 6,425 inspections, an increase of 2,248 over 1971. Prosecutions in court trebled from 33 to 100 cases. It must be pointed out that with the very limited personnel, enforcement actions will have to be sufficiently stringent to serve as a deterrent not only to the defaulting party, but also as a reminder to others. The Ministry is conscious of the fact that legal action has always been our last resort, and in most cases unpopular.

The safety and health campaign organised by the Ministry last year was intended as a means of mass education and persuasion, but regrettably this method of persuasion has not proved sufficiently effective. The total number of accidents in both the industrial and other sectors rose to a new high figure of 10,675 in 1972, of which 186 were fatal.

Accidents do not happen, they are caused; as Members will agree. In some of the factories I visited, the working environment left much to be desired. In a night visit to one factory. I found no less than half a dozen accident traps, one of which is deadly. There are many causes for accidents - poor housekeeping in the production areas, inadequate safety precaution and equipment, tidak-apa attitude of the management, and most important, ignorance, negligence, carelessness and even defiance on the part of the workers themselves.

A glaring example of the combination of these factors can be seen in the building construction industry. Many of the accidents which occurred could have been prevented. It is a common sight to see workers precariously clinging on to the scaffolding, instead of using the safety belts provided. For these acts of sheer defiance, I hope the workers will realise that they may have to pay very dearly in the end, even with their lives.

Hon. Members will appreciate that the enforcement action in this particular respect is extremely difficult, in view of the environment at the construction sites. Compliance is only effective, for as long as the Ministry's enforcement officers are present. Further, due to the shortage of this category of workers, any discipline imposed by the more enlightened and the more conscientious contractors or site overseers are futile, as a worker can easily down tools in protest, then walk across to the adjacent site and find himself a job almost immediately. Perhaps, a solution might well be the formation of a co-ordinating body comprising those parties concerned, such as engineers, contractors and developers, to iron out a unified standard or code of practice to be adopted by all, so that it will prove to the defaulting workers that it does not pay to play merry-go-round or to shift around from site to site.

The Ministry is, in the meanwhile, considering revising the existing regulations concerning the issue of licences for building operations, with a view to incorporating more stringent measures to compel compliance with the safety standards. But I must warn that the Ministry shall not hesitate to invoke punitive measures and actions against those recalcitrant defaulters. At least one licence for work at a construction site was immediately cancelled when found to have been lacking in safety standards. The licence was reinstated later only after a written assurance was made to the effect that there would be full compliance with the safety regulations.

Again, many of the accidents could have been prevented had there been proper planning and layout of the factory buildings concerned. I am given to understand that plans for factory buildings were only submitted to the relevant authorities since October last year, not earlier. Certain dangerous production processes, which can trigger off accidents, were not separated or isolated, and sufficient precautions were not taken to ensure safety. In some factories, the fire-fighting equipment provided were nothing more than ornaments merely for the purpose of satisfying certain regulations of the authorities. In an interview with a group of workers in a certain factory, I found that, to my dismay, none of them could operate the fire extinguisher which was, incidentally, strategically hung at its location. In some factories, the nozzles, which should have been attached to the hose-reel, were removed by the management and kept under lock and key for fear of theft.

I had a rather frustrating experience during a visit to a factory. I witnessed a number of workers flushing the floor with jets of water from a hose-reel which was installed solely for the purpose of fire-fighting. Shortly after, my attention was drawn to a thick and voluminous black smoke emitting some distance away. On enquiry, I was told that a fire broke out at that moment in a nearby factory. On rushing over to the fire-site, I was confronted by a rather hysterical plant chemist who complained that although the workers did try to operate a hose-reel, there was no water at all. Nobody knew where or how to turn on the water supply!

I must apologise to the House for having to burden hon. Members with these rather detailed accounts. I only hope to reiterate the point that had everybody taken a little more interest and concern, it would have been a very much happier situation.

With the new influx of foreign workers swelling the ranks of our industrial workers, we must be conscious of the fact that these foreign workers, inasmuch as they contribute positively to our economic well-being, are not properly inducted into our philosophy of life, or orientated to the new system of work. We will have to carry them along with us in the same pace and discipline in our march towards our goal.

Finally, may I say that our strife for a better living need not be accompanied by pain, sorrow, miseries and sufferings of those who pioneer the efforts.

3.29 p.m.

Mr Ivan Baptist (Potong Pasir): Mr Speaker, Sir, much has been said with regard to the Budget Statement by the Minister for Finance, and I appreciate the depth of feeling expressed on the many issues. To my mind, Sir, the Budget Statement was tolerable; tolerable because it was good for some but a vacuum for those who need most.

I do believe it was Oscar Wilde who said that "discontent is the first step in the progress of a mind or a nation". I can assure you, Sir, that after waiting for more than 15 years for an egalitarian society, the lower income strata of our Singapore society is becoming well and truly discontented. It would seem that from the moment of the original proposition of egality, so many years ago, men in power and authority have developed the fine art of paying lip-service to an ideal which they support in theory but rarely in practice.

A close scrutiny on price movements of all commodities shows a clear rising trend of between 15 to 20 per cent on the average. This most certainly will affect the lower income groups more than the others. It is disappointing to note that the Minister has taken no steps to relieve this situation. The rising trend continues, and action must be taken to ensure that, in fact, it will not continue and stifle any possibility of a reasonable living by these people. Mr Speaker, Sir, I view with concern that despite the efforts of the Consumers' Association of Singapore, pay-rises won over the past few years by the NTUC and its affiliates have been diminishing more and more in value because of the consistent rise in consumer items. CASE recognises the need for constructive action and calls upon the Government to alleviate the heavy burden on workers, especially in the lower income brackets.

Clearly, any policy which is designed to assist the lower-paid worker must attack the problem from a number of different directions, but of course always aiming towards one common objective; help for the lower-paid. But help for the lower-paid would mean that those who are more highly paid will need to pay more. I do not think it would be right to pretend that it is solely a question of being kind to the lower paid. There may be a price to be paid, and this should be borne by those who can afford to bear it. In these times of growing interdependence and complexity within our economy it is right, certainly in my view, that the Government should regard a fairer price system as part of the process of regulation and control, which is its responsibility. The Government must seek changes in the system which will favour the weakest among us. The basic principle of our Government must be to protect and promote the interests of the underprivileged in our society.

The Consumers' Association of Singapore is painfully aware of the increase in cost to the consumer of a wide variety of goods and services, a reduction in our living standards, and once again a burden on those less able to bear it. CASE is doing its utmost to make life bearable for the consumer, but Government is committed to assist. In assisting, the Government is fulfilling its responsibility to the citizens of our land.

There is no apparent solution as to how to beat the price hikes. Rigid control is not the answer, although in certain instances, it may be. Sir, the answer lies in education and subsidies: consumer education by organisations like CASE, and Government subsidies for essential commodities to cushion the pockets of the consumers.

Mr Speaker, Sir, again the Minister for Finance burdens the lower-income workers by ignoring them under the tax policy and changes in the Annual Budget Statement. What relief does a worker, who earns $3,000 or less a year, obtain if he supports dependent parents, grandparents and handicapped children? Why is the Government widening the disparity that at present exists in our society by not compensating these people? I urge the Government to rethink its policies with the objective of substantially narrowing the gap between the haves and have-nots.

In addition, Sir, the lower-paid workers are painfully disturbed by the rapidly deteriorating bus transport system. They are bounced around and harassed by vehicles that constantly break down, leaving them stranded on the streets, apprehensively watching full busloads pass by them while waiting for an empty bus. I do believe that the Minister for Finance should have considered this most urgent requirement of public transport in his Annual Budget Statement.

Sir, I suppose in his anxiety to mechanise and improve work methods for higher growth rates, the Minister for Finance in his Annual Budget Statement did not consider the still rising trend of accidents in industry. No realistic budget provisions have been made. Notice, Mr Speaker, Sir, that here again the lower-paid workers are penalised. Occupational health and safety must be stressed due to the constant increase in the number of industrial workers and the upward trend in industrial accidents. Government functions in this field should include:

(1) the education of the workers in occupational health and safety;

(2) constant vigilance to ensure that progressive techniques of guarding of machinery, etc, be employed to safeguard the workers;

(3) provision for better legislation and stricter enforcement; and

(4) the creation of enthusiasm among workers and employers alike in high standards of occupational health and safety as a direct contribution towards productivity and prosperity.

There should also be consideration for pre-employment medical examination of workers, testing their fitness for employment, as an essential feature of any form of preventive action designed to protect their physical and mental health. This medical examination should be conducted with a view to adapting the worker to his work and at the same time to preventing any deterioration in his health that might be connected with his job. Whether it is directed towards vocational selection or towards appropriate guidance, the aim of fitness testing should be to seek a balance between the man and his work in order to provide better protection with less strain on the worker.

As the fitness of a worker can correspond to only one phase in the relationship between his state of health and his work, both of which are highly subject to change, any assessment of fitness for employment is constantly subject to review; hence the need for periodic medical examination.

The question of rehabilitation of injured or sick workers should also be the business of the Government. The World Health Organisation in 1968 defines "rehabilitation" as "the combined and co-ordinated use of medical, social, educational and vocational measures for training or retraining the individual to the highest possible level of functional ability." Our sick and injured workers when well again need to be of use to the society they are living in, and the Government should make efforts to provide them with this need.

3.40 p.m.

Mr Ch'ng Jit Koon (Tiong Bahru): (In Mandarin): Mr Speaker, Sir, I am glad that the Minister for Finance has given us another painless Budget. In this new Budget, there are no new taxes or increased taxation. On the contrary, the Minister even announced seven items of tax reliefs. We all know that Singapore is a small country without natural resources and quite heavily populated. It is also in a turbulent region. In spite of all this, we have made achievements, and it is something that we should be proud of. Of course, all these achievements are attributable to the enlightened leadership, the co-operation between the Government and the people to ensure that these hard-earned achievements will continue to grow. We must also enhance our concerted efforts, work harder to ensure that we have a better future for Singapore.

Sir, economic development is a matter of great concern to every developing country. The formulation and implementation of economic policies determines the success or failure of a national economy, which in turn will affect the future and the destiny of a people.

In the Budget statement, an extensive and comprehensive review has been made of the economy of Singapore. The Minister for Finance pointed out that there was a growth rate of the GNP of 13 per cent last year against an annual growth rate target of 15 per cent. He pointed out that this shortfall of 2 per cent was the result of external events, the international monetary crisis, and the internal factor, i.e, the completion of the British military pullout. Although we can do nothing about the external factors, something can be done about the internal factors.

Sir, the Minister for Finance has also pointed out in his Budget statement that the contribution to total GDP by the manufacturing industries accounted for 23.5 per cent in 1972, an increase of 20.1 per cent compared with 25 per cent in 1971 and 27.5 per cent in 1970. The growth rate has, in fact, slowed down. The Minister also pointed out that this was because of stagnation in the investment of petroleum industries and shipbuilding. In spite of all this, he does not show any pessimism over these two industries. I would like to quote from the Budget Statement [Hansard, Vol 32, No. 10, col. 466]:

`For these two industries our locational advantage will continue to favour maximum development. The future of Singapore is correlated to its being considered an ideal offshore manufacturing base for multi-nationals and their subsidiaries. In our overseas investment promotion, the Economic Development Board (EDB) will not overlook the smaller but no less important manufacturing firms. To encourage them to diversify their activities to Singapore, my Ministry will be prepared to invest equity up to 50 per cent, with the option for them to buy back a substantial portion later. The EDB will identify these firms and the Development Bank of Singapore Limited (DBS) will manage our investments. A fund of $100 million will be provided for this purpose to serve as a catalyst to use to best advantage our vast expenditure on training.'

Because of the short supply of trained personnel, there has been a slowdown in our high technology industries. On this matter, the Minister said [col. 467]:

`The Government will continue to allocate a large part of its resources to technical education. Since 1962, and more actively in recent years, the Government through the Economic Development Board has been engaged in a multiple-programme approach to develop industrial training in modern manufacturing skills. Besides the Industrial Development Scholarship Scheme, we now have the Overseas Training Programme, the Joint Training Programme, the Apprenticeship Training Scheme and the Training Subsidy Scheme for sophisticated industries. The Government on its part has earmarked $8.7 million for industrial training for the next financial year.' I endorse this approach of the Government as it aims to enhance and to diversify our industrial and technological skills, and at the same time to provide opportunities for our people to acquire skill and industrial training. Under this policy, the EDB will play a very important role although there was some blunder previously. Henceforth, the EDB must pay special attention and exercise great caution so that the people will not be let down.

The era of industrial revolution first began in Europe. It is therefore quite natural that there are technological and scientific advancements in Europe and America. It goes without saying that we have to learn from their experience and expertise. However, we should not overlook the existing industrialised countries in our region, because their technology is not entirely lacking in development for us to learn. We need not go too far away to learn when we have some good neighbours from whom we could learn. I hope that the EDB will be able to identify these industries and firms, instead of taking the wrong concept that "the moon shines brighter in foreign countries". There should not be any discrimination between local and foreign investors. I can quote a case. There was a visitor from Euro-America and he was well received at the airport and taken to the hotel by officials of the EDB. He was treated as a guest of honour. On the other hand, a prospective investor from this region, with an earning power in terms of $100 million, requested to see senior EDB officials, but he was turned down. When it was realised that this prospective investor, who was a man of high potential, was about to leave for a neighbouring country, the EDB then sent men out to get in touch with him. This idea of "foreign worship" should be discarded. We should give fair treatment to all genuine investors.

However, investors from advanced countries who come to Singapore with the intention of exploiting our facilities for their own selfish ends should not be welcomed. Some of these selfish investors had been given the best terms for their investment in exchange for the technological training that they could give to our technical personnel. But after several years, facts have shown that we have not reaped the expected benefits from such investors. As regards overseas training schemes, joint training schemes and so on, what are the criteria for such agreements, and what are the expenses involved? How many people have benefited from these training schemes, and what are the results of their training? What is the price that we have paid for all this? Is it justifiable? Although we are a developing country, and needing foreign aid, we must realise that such aid must be given on the basis of mutual benefit. We should not allow lop-sided co-operation. We must ensure that the money from our people are spent wisely on the development of our country.

In my view, Sir, we should also pay adequate attention to the existing industries in Singapore. We should give them whatever aid that is necessary, and also to the ancillary industries which are useful. It is only with such encouragement that there can be adequate co-operation, better division of work and full exploitation of resources between local industries and their ancillaries to make them the mainstays of our industries, and be competitive in international markets.

An enlightened leadership, political stability, and a progressive society with a hardworking people have already created great confidence among the industrialists of many countries. We must take full advantage of this climate of confidence to study the changes and trends prevailing in international markets. Although we have made mistakes in the past, we should not continue to make such mistakes. We must be extra cautious in our development planning and its effective implementation. It is only then that we can hope to be able to reap the desired objectives and benefits in the years to come.

3.52 p.m.

Mr Ho See Beng (Bras Basah): Mr Speaker, Sir, one of the magical ingredients that helped Singapore to make rapid economic progress is the vigorous promotion of wise economic, social and political policies, which have brought about political stability, racial harmony, industrial advancement and a secure livelihood for the people as we have witnessed today. Just over a decade ago, a turbulent political situation with racial animosity, industrial unrest and mass unemployment was the order of the day. However, under the dynamic leadership of the present Government and with the unanimous support of the people, our Republic has made significant improvements in the various fields. We should be proud of ourselves to belong to a nation with such great promise for the future.

As you know, Mr Speaker, Sir, the world is rapidly changing and it appears difficult to grasp with certainty the way the world changes and develops. But what one can predict is that peace will triumph over war. Peace and righteousness will be credibly extended.

Once China played the role of an extremist in world drama; now she approaches her foreign affairs with a moderate attitude. This trend in world affairs is favourable to our foreign policy of non-alignment. Our foreign policy is based on the principle of "making as few enemies but as many friends as possible." By this principle, we are able to befriend more and more countries and our national prestige is growing day by day.

We can forecast that there will be increased economic involvement by China in South-east Asian countries. Therefore, we should take this opportunity to increase trade between the two countries by organising more and more trade missions to China.

Mr Speaker, Sir, trade has become universally necessary for progress. It is a melting pot into which distance and differences, self-interest and even mutual dislike are being tossed and remoulded into mutual beneficial business arrangements. Evidence of this mutual beneficial arrangement is seen in the trading partnership which comes into being between erstwhile enemies and between capitalists and communists. Therefore, there should be even more beneficial business arrangements between Singapore and China, and I quote the Minister for Finance [col. 450]:

`With the better opening up of China to international trade, there is the possibility that Singapore can serve as a base for multi-national firms for manufacture and exports to China. Conversely, China may find Singapore a useful outlet for its products.'

I am in full agreement with the Minister that there will be greater economic, social and cultural involvement by China with South-east Asian countries, and we should take advantage of the geographical position of Singapore which is situated in the centre of the trade routes between the East and the West.

In the 70's trade and industries will become more competitive and complex, and there is a need to step up our exports and to improve the quality of our manufactured goods. We will not be in a position to meet this challenge to export our manufactured goods and other cargoes economically, unless we can reduce freight charges and in the meantime increase the number of our own ocean-going vessels. The need for increasing and strengthening our merchant fleet has become very evident and it is a step in the right direction for the Minister for Finance to have given a $50 million loan to the Neptune Orient Lines for the purchase of more ships.

Sir, with regard to the income tax relief, the rates of income tax and tax relief in our country are virtually the same as those of ten years ago. The personal reliefs for the tax-payer and his wife remains at $2,000 and $1,000 respectively, notwithstanding the well-known fact that commodity prices and the cost of living have all gone up over the past ten years. In these circumstances, there should be a corresponding increase in personal tax reliefs.

A new tax relief was announced by the Finance Minister in his Budget speech. Taxpayers who support their aged parents or grandparents can now claim a tax relief of $300 per person. In my opinion, this amount is inadequate. The people of our country bear the responsibility of maintaining their parents, irrespective of whether they are Chinese, Malays or Indians. This is their ethnical tradition.

Mr Speaker, Sir, our income tax system, though based on the principles of the British system, is quite different from it. The British Government allows a wide scope of tax relief for maintaining close relatives. It is not confined only to parents but is extended to cover other close relatives as well. The tax relief, however, is based on certain principles set out by the government. By these principles, tax relief is only allowed in respect of dependent relatives who are physically weak, in old age, widows or divorcees without their own income or the means to support themselves. This is a logical principle we must follow. I am, however, of the opinion that the amount of relief should he increased to $750 per dependent parent, making a total of $1,500 for two dependent parents. This increase is reasonable and will hardly affect the revenue. Not all taxpayers have dependent parents to support. Some of their parents might have already passed away while others may have means to support themselves, thus leaving a small number of taxpayers who qualify for this tax relief.

Finally, Mr Speaker, Sir, I would like to say something about government-private joint ventures in industrial development. I trust that all hon. Members are aware that it is mainly due to Singapore's excellent geographical location, the hard work of its people and the wise leadership of its government, that Singapore, as a country lacking in natural resources such as gold and silver, has been able to develop into an economically strong and prosperous country within a short period of a few years. On this basis, it is worthwhile for us to encourage government-private joint ventures in industrial development in order to further consolidate social construction and welfare services in the State. This is not only a proper way of nurturing the national capitalists through the business channel, but also serves to enrich the coffers of the State from the profits derived from the joint ventures which contribute immensely to social welfare projects. Although it will be too naive to speak of the doctrine "From each according to his ability, and to each according to his needs" at the present moment, nevertheless, as a democratic country it is fitting that Singapore should be developed into a welfare State, where the helpless aged and those born handicapped are taken care of. By investing in some major industries, the Government will be able to earn large sums of money annually for its various welfare projects as well as helping these industries to improve and succeed. It will contribute immensely towards revenue, social construction, the nurturing of national capitalists and the welfare of the people. Since this one single move will serve several useful purposes, why not do it?

Sir, while supporting the Government's financial policy as presented in the Budget, may I congratulate the Minister for Finance who has acquitted himself creditably, and may I also hope he will remain in the same Ministry for a long period to present us next year with another painless budget which will continue to reflect his ability to take the nation along the highway towards economic progress.

4.04 p.m.

Mr Yeo Toon Chia (Kampung Kapor): (In Mandarin): Mr Speaker, Sir, in his Budget Speech on the financial policy for 1973-74, the Minister for Finance mentioned that the Housing and Development Board will be spending around $349 million to achieve the target figure from 20,000 to 30,000 units per year. This is indeed good news, especially to our middle and lower income groups. Under urban renewal programmes, we can see high-rise buildings, offices, multi-storey shopping complexes, hotels, restaurants, coffee houses, everywhere. The political situation in our country is stable; the administration is efficient. With all the favourable conditions created for the foreign investors and due to the difficulties faced by other developing countries such as rising labour costs and inflation, these investors have come to Singapore to establish their factories. As a result, the Jurong industrial estate has become a great industrial centre. Sir, with the successful result of industrialisation and building industry, our growth rate over the last six years has reached more than 10 per cent every year. This is indeed praiseworthy and deserves our acclaim.

Sir, in the last few years the Government has acquired land for development purposes, causing the available land for residential use to decrease. We have built more and more housing estates, but the demand for Housing Board flats is ever-increasing. Sir, although our per capita income is $3,680 per annum, the rising cost of living, especially in the rising prices of property and land, has caused many more people in the middle income group to apply for Housing Board fiats. The Government is acquiring land for its urban renewal programmes, while owners of private properties are recovering their old buildings in order to demolish them and erect new high-rise buildings so as to get more profits. This has resulted in a greater number of the middle and lower income groups living in very congested areas. The houses are crowded and are small and dark with poor amenities. From the inside, you cannot tell the day from the night. You can hear the children playing and the groans and moans of old folks in these houses. Sir, these people who live in such horrid conditions are very uncertain about what sort of future their children will have, even though they can see all the beautiful buildings around them. We must build more low-cost housing to improve the living conditions of our people. It is only through living under reasonable conditions that we can cultivate the right concept of life and proper national consciousness on the part of our people. We should not, in striving for economic prosperity, neglect those who live in poverty.

Mr Speaker, Sir, under the home-ownership scheme, arrangements have been made for people to utilise their Central Provident Fund contributions as a deposit payment for Housing Board flats, which are now better designed. This is indeed a move in the right direction because, with this arrangement, people will feel more secure and happy that they can have a spot of their own on our little island. But one of the conditions of this arrangement is that the applicant must pay 20 per cent of the cost as a deposit. Unfortunately, people like hawkers, taxi drivers, odd job labourers, who do not have any regular employment, do not contribute towards the CPF and therefore they will not be in a position to pay their 20 per cent deposit for Housing Board fiats. The amount of deposit may only be $1,000 or $2,000, but it is simply beyond the reach of these people. They can only hope to rent the flats. As we all know, the waiting list for renting of flats is much longer than that for the purchase of flats. Mr Speaker, Sir, when they see their neighbours move into their newly purchased flats, they are filled with remorse and regret and a painful feeling. I hope the Government will consider their plight and rectify this situation by exempting them from paying the 20 per cent deposit, so that they may also apply for the purchase of Housing Board flats and they should be given longer terms of monthly repayment.

Sir, in the last few months, prices of land and property have been escalating. Many people in the middle class are in a tight spot. Terrace houses, which used to cost $30,000 to $40,000, now cost between $80,000 and $90,000. These people simply cannot afford such a high price. They cannot apply for Housing Board flats because the combined family income exceeds $1,500 per month. Mr Speaker, Sir, increasing the salaries of Government servants and for the people is a step in the right direction at the right time. However, it is over-simplifying the issue to assume that by doing this they will not go to the private sector. We know the Housing Board and the Port of Singapore Authority are providing housing accommodation for their staff, and I hope that other statutory bodies and all Government departments will do likewise to provide housing for their employees, as this is more necessary than a salary increase.

Sir, perhaps we have been devoting our full attention to industrialisation, urban renewal and economic growth, so much so that we have overlooked the development of our cultural and social values. We are becoming more and more capitalistic in our outlook and in our way of life. Many of us seem to spend all our waking moments either in making more money or indulging in various activities which are non-productive and decadent. All these will go to loosen our social and moral fabric and cause a lowering of our social discipline. As we can see, there are many restaurants, night-clubs, coffee houses, etc, which have many singers from overseas. All these are female gold diggers in disguise. They are here to earn our money and to weaken the will of our young people. Sir, in the last few years we have seen many talent-time contests over television, and in our various community centres we have singing contests. But it is very rare indeed to see winners of these contests appearing in these grand shows. What we see on the TV are merely gold diggers from abroad in the form of gorgeous females. This is an abnormal development of our society. We must strive to increase our productivity and economic growth. We encourage foreign capital and foreign investors to come in to set up factories. We also welcome specialists and technical personnel from abroad. But we do not welcome these merry-land females who cause an obstruction in our progress and a reduction in our foreign exchange. Sir, we must not allow an influx of these overseas female singers to monopolise our television. We should encourage more of our local singing talent to perform in the various television programmes and shows.

Besides extra-mural technical, industrial and trade courses conducted by our educational institutions, such as the Extra-mural Studies Department in the University of Singapore, the Nanyang University and the Adult Education Board, similar educational and instructional programmes can be shown on television so that our people in their hours of leisure may be able to learn something from these good and educative programmes.

Sir, the Minister for Finance has said that l972 was a year of high international monetary instability. In June 1972, the Pound Sterling was forced to float. The United States of America, as a result of its chronic balance of payments deficit, was forced to devalue its currency. Despite all these difficulties and uncertainties, we have managed to achieve a growth rate of 13 per cent. This is indeed a great achievement. In our new Budget, we have no new taxes. On the contrary, we have seven reliefs or exemptions of tax, and we are going to enjoy a surplus of $20 million. This is indeed a Budget which is welcomed by people from all walks of life. Unfortunately the income tax relief of $300 for those who have to support their parents is too low. It should at least be $750 per dependant. Moreover, children between the ages of 16 and 21 years are in an age of high school or university education, and therefore the economic burden on the parents is fairly heavy. I wonder whether it would be possible to give some allowance to tax-payers who have to support their children in the higher educational institutions.

Mr Speaker, Sir, in the wake of economic progress, we should also enhance the consciousness of our people so that they will be prepared to meet the demands of changing situations, new targets and needs and to strive for these objectives. On behalf of the people in my constituency, I support the financial policy of our Government.

4.17 p.m.

Mr Lai Tha Chai (Henderson): Mr Speaker, Sir, as we all know, owing to the total rundown of the British army and the world-wide monetary instability, we disappointingly fell short by 2 per cent in our targeted 15 per cent annual economic growth rate. This prompted the Finance Minister to explain at length the cause of this shortfall, when he presented his annual Budget in Parliament at the end of last month.

As a matter of fact, the Finance Minister knows much better than I that to sustain a 10 per cent economic growth rate is a tremendous goal that most countries find difficult to reach; and that a target of 15 per cent growth rate is a high ideal. During the 1960s, our average economic growth rate was 9.5 per cent. In 1971, it was 15 per cent. Our leaders hoped that we could sustain this rate for 1972, and that nothing should be less than this unusual figure. However, in spite of the fact that we had suffered a loss of earnings from the British military expenditure, which was roughly 3 per cent of the GNP, we can still manage to achieve an economic growth rate of 13 per cent. This indicates very clearly that what we Singaporeans have performed is an economic miracle. A month ago, when there was a storm of world-wide monetary crises, an English magazine pointed out that although the Singapore Government had not announced a revaluation of its currency, it was in fact revalued between 1 and 2 per cent.

At this juncture, I would like to point out that, in its painless Budget which handed out several tax reliefs instead of introducing any new taxes, the Government decided to appropriate the biggest amount of money to building more housing estates for the middle and lower income groups. Prior to the l960s, there were already those who repeatedly mentioned that with no natural resources Singapore would be faced with two fundamental difficulties which no one could overcome. The first is the problem of mass unemployment; the second is the question of accommodation for half a million of the poorer people. Now, under the able leadership of our present Government over the last 14 years, coupled with the efforts made by our hard-working people, unemployment is no longer a problem today and the problem of accommodation for half a million people is also nearly solved. At present, we are well on the way to a total accommodation of our people through our "Tenants' Ownership Scheme".

As far as I can see, the fact that the rate of building has been increased, from 45 minutes to 30 minutes per unit, may be commended in three ways:

First, the Housing and Development Board has built and planned to build more and more one-room and three-room flats to accommodate those middle-lower class people who have not been able to find a decent house to live in since the 1950s so that thousands of hawkers, workers, trishaw-riders, taxi-drivers and low paid shopkeepers may have the opportunity to quit the slums and move into HDB flats with provision for water and electricity, and to enjoy a relatively hygienic and modern way of life.

Secondly, the monthly rental for a one-room flat is $20; one only need to pay $30 for an improved type one-room flat. The rentals for two-room and three-room flats are slightly higher. This relatively low rental does not necessarily reflect the actual cost of the HDB flat. Jr, other words, the Government has to subsidise $20 for a one-room flat per month and $15 for a two-room flat. The lesser the number of rooms, the more the Government has to subsidise the cost of the building, and vice versa.

Thirdly, in encouraging the people to purchase HDB flats by using their contributions, which is a very rare practice in the other countries of the world, the Government is helping the people from the middle and lower income groups to purchase a three-room, four-room, or even a five-room flat. In comparison with the expensive private houses, the HDB flats seem to appeal more to the masses. That is why there is a long queue for the purchase of HDB flats.

The Finance Minister mentioned in his Budget Statement that the greater demand for accommodation from the people is being duly attended to. The Government also expresses the need to improve it further. One way of doing this is to raise the building target from 20,000 to 30,000 units per year. In point of fact, in this island Republic where the price of land is rocketing, people from the middle-lower income group would find it more difficult to buy a semi-detached bungalow from private developers. It may be compared to winning the $400,000 lottery. Nowadays, even a senior Government officer finds it difficult to own an ideal detached bungalow. I do not know about most of the Members of Parliament here! The outcome of this trend will be that only a minority of rich people are able to live in such bungalows built by private developers, while the majority of our people will have to settle for HDB fiats under the right policy of our "Tenants' Ownership Scheme". We can foresee that in the 1980s, modern HDB satellite towns will be erected everywhere. It can be anticipated that by then about 80 per cent of our total population will be housed in the HDB kits.

In this connection, I would like to stress the importance of improving the environment of the HDB flats. Mr Speaker, Sir, allow me to say a few words about my impressions of a recent visit to some tenants of these HDB flats. I remember that as soon as I walked up the stairs of a block of one-room flats, I immediately saw groups of innocent children playing poker on the staircase, or playing hide-and-seek along the verandah, or helping their parents to look after their younger brothers and sisters, and so forth. I hardly saw any primary school students, who live in these flats, spending their time reading books or magazines. Only occasionally did I find some secondary school students reading books. There was a young man from a family of nine. He was keen in studies, and he wanted me to make a suggestion to the Government that pavilions and arbours should be built in housing estates in order to provide students with a quiet and suitable place to work.

Owing to their innocence or under the influence of traditional and religious teachings, some parents have more children than they can afford to care for. As a result, the second generation suffers, despite the fact that their parents work hard during their whole life. There was a middle-aged woman with more than a dozen children, and she approached me for help. From her facial appearance and the way she tried hard to calm herself, I realised very deeply her grievances and sorrows.

However, when I crossed a crowded car park and paid a visit to the three-room and four-room flats, the situation changed entirely: both the adults and children were staying indoors; all the doors were fastened as if they lived in a separate world. On one occasion, only after knocking at the door rather loudly did an old woman answer. She explained smilingly that since only she and her grand-children were at home, she would not open the door to let anybody in, unless it was someone they recognise. She then went on further asking me to persuade the Government to remove the gas meter from the house so that the whole family could have more security and comfort. She repeatedly stressed that life had been better ever since they moved out from their atap dwelling to these HDB flats. However, she said that there were too many ears and too many people, and one single act of carelessness could cause an accident and might even lead to loss of life. Moreover, should any one be careless about leaving the door open, one would certainly invite thieves. She considered it wiser to keep the door shut and to stay in and to enjoy the TV. It is just like what the old Chinese proverb says, "A scholar has no need to go outdoors to know of the world".

I firmly believe that the present Government leaders, who have always devoted themselves to the nation and the people, would certainly agree with me that these busy, crowded, and noisy housing estates have to be improved upon a good deal.

I quite understand that in our new Budget, the reason for the Government to appropriate the largest amount of money to build more HDB flats is to meet the demand of the people which exceeds the supply. I can anticipate further that the new housing estates would certainly have a better environment than the present ones. I am pretty sure that the Government will continue to allot money for the improvement of living conditions of the people in housing estates. On this account may I suggest at least two steps in which the Government could improve the environmental conditions of the housing estates in future?

First, the creation of a caretaking system. For a housing unit of 500 to 600 families, we may appoint an elderly caretaker to deal with the general affairs of the estate. Only when this system materialises, will the elder tenants of the flats feel safe to use the lifts in their high-rise flats. Moreover, the tenants may be able to get someone to help in case of accident. Besides, the caretaker can also play the role of bringing the tenants together, promoting mutual understanding among the tenants, and encouraging them to love their way of life in the HDB flats, which will eventually help shape their social consciousness. All these point to the fact that a caretaker can play a very important role indeed.

To my mind, this is not a question of money, but a question of system. In the latest issue of the HDB's organ, Our Home, there is much discussion on the problem of security guards and their salaries. It seems to imply that because there is a lack of funds, the HDB authorities could only get a limited number of men to maintain security in the housing estates. However, if we compare the job of a caretaker with that of the security guard, the duty of the former tends to be positive, while that of the latter tends to be rather negative. If, in the words of an old Chinese saying, "One cannot have both the fish and the bear-palm at the same time", I would rather choose the caretaker, because his job is more practical and more applicable to the present situation in the housing estates. I would like to know what the authorities concerned think of my opinion.

Secondly, the HDB authorities should do what they can to develop the limited open grounds around the housing estates into parks or sports grounds, so as to enable the old and the young to have a bit of fresh air, or to engage in a game of basket-ball after a day's hard work. This is particularly important to the tenants of the crowded one-room flats. To tell you the truth, Sir, my constituency has not got even a full basket-ball court; it has only half a basket-ball court. That is why at the end of last month, twelve young citizens approached me on the matter of basket-ball practices, and I had to get permission from the Bukit Merah Community Centre for them to use its court. Other facilities, like sports centres, cultural centres, conference or meeting rooms, etc., are what I have in mind, and for the realisation of which we ought to make a yet greater effort.

If there is some truth in the proverb which says, "A fool will be wise on a thousand thoughts", then I hope that the suggestions I have put forward will be looked into by the authorities concerned, and that they will take positive steps to implement them.

Finally, I shall close my speech with two famous lines from a famous Chinese poet, from Tu Fu Selected Poems, translated by Rewi Alley:

`It would be possible to build an immense house with thousands of rooms,

Where all who needed could take welcome shelter.'

Sir, I fully support the Motion.

Mr Speaker: Order. I propose to take the Suspension now. I will take the Chair again at 5.05 p.m.

Sitting accordingly suspended at 4.33 p.m. until 5.05 p.m. Sitting resumed at 5.05 p.m.

[Mr Speaker in the Chair]

Debate resumed.

Mr Ho Kah Leong (Jurong): (In Mandarin): Mr Speaker, Sir, the Budget statement delivered by the Minister for Finance on the 26th February came as a relief to the people of Singapore in the midst of soaring prices. I would like to congratulate the Minister on one particular aspect and, that is, he has taken heed and accepted the views of Members of this House expressed last year and has made adjustments in regard to the collection of taxes. I hope that this year he will again listen to what Members have to say and to bear them in mind when drafting the next Budget statement.

Sir, you will remember that the topic of soaring prices was a favourite subject during the past two Budget debates. I believe that this time it will also be a hot topic for discussion. This is not because we enjoy harping on an old tune but because we come from constituencies in which the lower and middle income groups predominate, and also because prices are still soaring in recent months. In fact, prices have gone up by 10 to 20 per cent. Since wool must ultimately come from sheep, the brunt will have to be borne by the middle and lower income groups who are finding it more and more difficult to make ends meet. So I hope that the Minister for Finance will make efforts to check the soaring prices or at least to control the prices of some daily necessities to ensure that there is no profiteering by unscrupulous merchants.

Sir, with the economic boom and the influx of foreign capital, there has been an excess flow of currency in Singapore. Capital is increasing in Singapore, and this is not without its ill-effects. For example, our share market has become overheated, and I am therefore glad to note that the Government is taking remedial action to cool the overheated share market to ensure its proper functioning.

The next matter concerns the prices of land and houses. As a result of soaring prices in land and houses in recent years, wage earners in the income group of $1,003 a month find it impossible to own houses built by private developers.

The third ill-effect of this excess capital in Singapore is that factories are finding it more and more difficult to get workers, and domestic help is also difficult to obtain. Provision shops, barber shops, workshops and farms too find it difficult to get local labour, and they have to rely on labourers from other countries. Although these labourers and workers are welcome, they bring along with them their unwelcome bad habits, which have ill-effects on our own workers. As a result, the standards of morals and ethics in Singapore are put to a severe test in the light of rapid industrialization and urbanization. Thus the inevitable concept of money in command has become the value which has taken root in the minds of not only the older generation but also the younger generation. This is one aspect detrimental to our development which we must try to check and prevent it from becoming worse.

Sir, the Minister for Finance seems to have over-emphasised the importance of commerce and industry at the expense of agriculture. I certainly do not have the audacity to expect the Minister to raise the status of agriculture to the same footing as commerce and industry. But agriculture deserves due attention. Experts have expressed the view that countries which do not produce the food that they require will suffer dire consequences in the event of a cut-off of supply from foreign sources. Therefore, I would like to point out to the Minister that our farmers deserve some form of economic and financial aid from the Government which they are not getting. They often live in extreme difficulties. The pig farmers provide a good case in point. Firstly, they suffer a sharp drop in the price of pigs. Secondly, they were manipulated by middlemen, when there was an over-production of pigs. Yet under those circumstances, the Ministry of Finance did not extend a helping hand to the poor farmers. In many cases, the smalltime farmers had to "close shop and call it a day". In the case of the big-time farmers, although they managed to pull through the difficult period, they suffered heavy losses. Then, they were faced with the rising prices of animal feed, it was argued that that was due to the rise in the cost of raw materials. But now, prices of raw materials have come down but the prices of animal feed still remain almost the same. What has the Ministry of Finance done to help these poor farmers? The farmers work and toil the whole year round but they are still on the brink of semi-starvation. The world seems to be too harsh and unfair to them.

Sir, I would now like to turn to fishing. The Government is encouraging deep-sea fishing. It is regrettable that in spite of earlier talk on the development of deep-sea fishing, nothing further has developed beyond that. While the population is increasing, there is no increase in our catch of fish. We have to rely on foreign supply. We can produce at most only one quarter of the total consumption. This is an unfavourable trend which should not be allowed to continue if we are not to rely too much on foreign supply. Because over-reliance On foreign supply will not only cause a loss of foreign exchange but also expose its prices to foreign manipulation. The development of deep-sea fishing will make available to us the inexhaustible resources of the ocean and open up a new avenue of employment and an outlet for our surplus capital. Sir, I hope that positive steps will be taken to develop deep-sea fishing.

Sir, my speech will be incomplete without any reference to education and teachers. In his Budget statement, the Minister for Finance said that in order to provide some incentive to teachers and to raise their morale, the Government has decided to give them opportunities for promotion. This is all very good. But what is the actual position in regard to its implementation? The effect is just the opposite. According to my understanding, this is the first promotion exercise for teachers, and therefore many qualified teachers have put in their applications. Some 4,000 to 5,000 teachers are said to have applied. By right, the Ministry concerned should have set certain criteria for the short-listing of applications, instead of giving the important job of short-listing to the computer. What happens to this computered short-listing? We find that, as a result of this, in some schools not even a single teacher was called up for interview, whereas in other schools as many as 20 to 30 teachers were called up for interview. Again, some senior teachers with many years' service were not given the opportunity of an interview, while junior teachers in the same school have been called up. So, Mr Speaker, Sir, can you really say that in a school with a few tens of teachers not even one teacher is eligible for an interview? What will parents and students think of such a school? Again, in the same school, senior assistants were not called up for interview, whereas junior teachers were called up. This can only cause friction and suspicion among the teachers. Senior assistants can very well turn round and say, "Well, if you think that so-and-so, a junior, is better than I am, for an interview, you can ask him to take over the burdensome administrative work. Why should you let me remain as a senior assistant?" So how can the morale of teachers be enhanced? I am pointing out all these matters in order to draw the attention of the Minister to the fact that, instead of raising the morale and improving the relations among the teachers, there have been suspicion and low morale because of the poor recruitment and promotion exercise. Many teachers are changing their jobs. The Ministry of Finance should probably review the system of promotion exercise and make provision for a better and more reasonable exercise.

Notwithstanding my criticisms, I still support and endorse the Budget statement of the Minister for Finance.

5.19 p.m.

Mr P. Govindaswamy (Anson): (In Tamil): Mr Speaker, Sir, while congratulating the Minister for Finance for his painless and considerate Budget statement, I wish to draw the attention of this House to some rather pressing issues affecting the livelihood of our people. I have no doubt that the Minister is aware of these issues and, with his usual skill and application, will try to work out a solution to these issues.

What I wish to point out is the urgency of a solution to these issues, for there seems to be the beginning of a series of inflationary spiral resulting in widespread misery and general discontent. The recent rise in the cost of living has caused some measure of anxiety among the lower income group. To say the least, the cost of food is about 20 per cent higher than it was six months ago. For the rich, this rise means nothing. For the middle class workers, this may mean a reduction in their monthly savings. For the poor or lower income workers, this means tightening their belts. It is no exaggeration to say that a worker, earning $10 a day or $300 a month, with a wife and three children and living in a Housing and Development Board flat, is left with about $4 a day for food for the whole family after deducting other standard expenditure such as rent, water and electricity, bus fare, school fees, children's pocket money, books, etc. The answer seems to be either to raise their income or to lower the cost of living, or perhaps to both. How can this situation be improved? I do not know. But I do know that it is a situation that is becoming more and more difficult for the lower income group.

Another issue is that recently the cost of an ice-water drink has gone up from 5 cents to 10 cents. What the reason is, one cannot understand. Whether it was the payment of the 13th month pay, or whether it was the decrease in the value of the American dollar, or the decrease in the value of money, one does not know. Singapore seems to have been affected as a result of the crisis in the international monetary world. If the Minister assures that the external situation does not affect us, it should be reassuring.

Another issue is the conservation of water. The campaign to save water has been on for some time. Disincentives to water wastage, such as increasing the charges in PUB bills, have been introduced. From the reports of daily consumption, it would appear that the campaign is not producing the desired effect. I hope the Minister will review his campaign and adopt more effective measures to cut down our water consumption. Whatever the new measures may be, it appears that very much depends on the success of motivating the public to save water.

One thing that puzzles the public is that while the Government asks for the co-operation of the people to save water, its workers turn on hydrants at full blast to clean drains and markets. Whilst admitting that drains and markets need to be washed, one wonders whether ii is necessary to use so much water. If the water used is not potable water but effluent water then it should be made known to the public.

As water conservation is an urgent matter, I am sure the Minister will review his campaign periodically until success is achieved. Also, the facilities for the storage and supply of water must be enhanced. We must not always depend on foreign supplies. In that respect, the Minister should devise ways and means to improve the situation.

5.25 p.m.

Mr Teong Eng Siong (Sembawang): (In Mandarin): Mr Speaker, Sir, may I, on behalf of the constituents in Sembawang, express our support for the Budget statement given by the Minister for Finance on the 26th February, 1973.

It is gratifying to note that, as was the case last year, there are no new taxes. Furthermore, there is a surplus of $20 million. This is evident that our country has continued to enjoy prosperity and stability. We managed to achieve a growth rate of 13 per cent, despite the complete rundown of British armed forces and the consequent reduction of military expenditure. What are the reasons for this? To my mind, there are several reasons. Firstly, we have a capable and dynamic Government, actively pursuing and implementing wise and effective economic policies, such as a full-scale industrialisation programme. Secondly, the political stability and social peace that prevail in our country have done a great deal to strengthen the faith of foreign investors in our country. Thirdly, the diligence of our people. Fourthly, the sincere co-operation between labour and management, resulting in industrial peace, has raised our industrial production.

As regards external trade, a record level of $15,680 million was achieved last year, representing an increase of $1,645 million, which is a very substantial amount. This reflects the important role that our country plays in international trade. Although many countries are attempting at direct trading, this is obviously not an easy task because they lack good docks, godowns and other harbour facilities required for international trade. More important, they lack efficient administration and workers with a high degree of social discipline. It can be expected that in the next 10 years we will become a great centre for international trade. I recall that towards the end of last year the Prime Minister, during a visit to the European countries, called upon those countries to regard Singapore as a great centre for international trade. Obviously, the prospects are excellent.

Sir, one thing that deserves mention here is the new tax relief for the support of aged parents. It is an extremely wise measure. Although the relief of $300 per annum per dependant is not much, it is a symbolic gesture. I do hope that the amount will be increased from year to year. The significance of this concession is very important. It goes to show that the Government has given heed to the views and opinions of the people of our country. When this news was announced, it won the wide acclaim of people from all walks of life.

Moreover, there are several other measures for tax concession. For example, for those with handicapped children above the age of 16 years, the relief will allow these unfortunate ones to enjoy more warmth in the family. The relaxation of the limit on premiums for life insurance policies will benefit many people in the middle income groups. The reduction of stamp duties on marine insurance is another example of these wise measures.

As a representative of the people in a rural constituency, I am naturally concerned about their welfare. I notice that the provision for urban and rural services this year amounts to $3,250,000, which is exactly the same as that for last year. There is no increase. I think this amount is not sufficient. There are many rural areas which have yet to be improved in respect of roads, drains, street lighting, water and electricity supplies. All this requires a great deal of money. I hope that the Minister concerned will consider allocating a greater amount for public works in the rural areas.

Last year, during the debate on the President's Speech and also on the Budget, I had made similar requests. I am afraid that my requests had not obtained any results. I shall therefore again call upon the Minister to reconsider these requests.

Mr Speaker, Sir, in the Budget Estimates, we note that although the Ministry of the Environment is a relatively new Ministry, it has been allocated $36 million. This shows the importance of the Ministry, whose main task is to prevent water and environmental pollution. Singapore is an industrialised country. We must not make the same mistake which other industrialised countries have made by polluting the environment. It is therefore absolutely necessary that the Government allocate a large sum of money for anti-pollution measures.

Sir, the Government intends to raise the building target from 20,000 to 30,000 housing units per year. There is a crying need for more houses and fiats. We know that there are 60,000 to 70,000 people on the waiting list for Housing Board flats. If we continue to build Housing Board fiats at the rate of 20,000 per year, then these unfortunate people will have to wait for at least two or more years. The fact that the Government is going to build more flats per year will mean a reduction in the waiting time between the application and the allocation of flats. This is indeed a measure most welcome by our people.

Mr Speaker, Sir, it cannot be denied that our Government has looked after the interests and welfare of the lower income groups. We have built many hawker centres. All these hawker centres are suitably situated and are provided with modern sanitation. No doubt the land provided for these hawker centres fetches a very high price, but for the sake of improving the welfare and livelihood of these hawkers, it is worthwhile to pay this price. The Government is also going to spend $5 million for the construction of hawker centres and markets in the next financial year. This is indeed good news. I am sure the hawkers will be able to carry on their trade in better and healthier surroundings.

Sir, the Government is also going to spend $37 million for the development of education. This is absolutely necessary. As a result of rapid development, industries have sprung up resulting in a shortage of skilled and semi-skilled workers. At the moment, the main concern of foreign investors is not whether the labour force is stable but with the availability of skilled and semi-skilled labour. In order to solve this problem, the Government should allocate this amount to carry out a full-scale technical education development programme to train a large number of artisans and unskilled people so that they will be equipped with the necessary skills. The Minister has mentioned various schemes, such as overseas training schemes, joint training schemes and apprentice schemes. Naturally all these are very good measures. But in order to obtain optimum results, emphasis must be given to the practical aspects, i.e, on-the-job training, by sending apprentices to work in factory sites so that when they eventually take up a job, they will be fully trained.

Mr Speaker, Sir, the Minister for Finance also mentioned that for last year there is a reduction in the investment figure for the shipbuilding industry. This is something which we should take note of. As a result of rapid development in the shipbuilding and ship-repairing industry over the last few years, we have become a centre for this industry in South-east Asia. We must try our best to maintain this superiority. But why is there a reduction of investments in the shipbuilding industry? We must try our best to find remedial measures. As far as I know, one of the reasons for the reduction of investments in the shipbuilding industry is the scarcity of suitable sites for shipyards. If that is the case, we should open up more tracts of land for the construction of shipyards. I know that in Naval Base in the Sembawang constituency, there is a big tract of land suitable for building shipyards. We must immediately open up this piece of land and other suitable pieces of land so that more people will come and invest in our shipbuilding industry.

Last year, we have also satisfactorily developed tourism. 780,000 tourists visited Singapore last year, enabling us to earn foreign exchange amounting to $400 million. In order to attract more tourists to come to our country, we should spend more money on developing tourist resorts. We must encourage more cultural and art activities among our multi-racial society, because all these are attractions to the tourist. The Tourist Promotion Board should lay out better plans so that we can become a great tourist centre in South-east Asia.

All in all, the new Budget is a healthy and progressive one. Owing to its many good measures, it will certainly ensure that the rate of economic development will be maintained and will progress further. As long as our people march forward together and co-operate with the Government, hard work with a high degree of discipline, I am convinced that 1973 will prove to be a prosperous year, and we will be able to raise the standard of living of our people in all fields.

Mr Speaker, Sir, I beg to support wholeheartedly this Motion.

5.40 p.m.

The Parliamentary Secretary to the Minister for Culture (Encik Sha'ari Bin Tadin): Mr Speaker, Sir, I rise to join other hon. Members in congratulating the Minister for Finance for his popularly known painless Budget statement which outlined the Government's financial policy. I do not intend to speak on the economic aspects of the Budget, which have already been dealt with by many Members who have spoken in support of the Motion.

In his Budget speech, the Minister for Finance revealed that the average per capita income in Singapore is now $3,687. With a growth rate of 15 per cent in our Gross Domestic Product for 1972 over 1971, the economic indicators show that our Republic is now in a better position to devote more attention to the subject of leisure and the development of culture as an integral part of the social and economic development of our nation.

By culture, I do not mean only the fine arts, such as music, drama and dance. Rather, I am referring to all that are concerned with the quality of life. This is where effort should be made in ensuring that, among Singaporeans, the art of living should be one which is Singaporean in character and recognised by others to be such. The way towards this may be one involving a long process but the end result, when recognised to be successful, would be a most satisfying one; that is, when we Shave Singaporeans who are well-mannered; always civic-minded; always courteous; friendly in disposition; well-disciplined; imbued with the values and ideals which are positive in character; endowed with a healthy body and an alert mind; possessing a well-rounded personality and endowed with creative sensibilities which can be further developed through an exposure to the fine arts, such as music, drama and the dance.

Cultural activities must, therefore, be channelled towards producing Singaporeans, especially Singaporeans of the future who are able to retain their national identity regardless of (or rather in addition, able to withstand) the onslaught of unknown influences which must surely come in the 21st century of urbanised living.

Problems there will be and must be successfully surmounted, especially in areas which concern the mass media (which are powerful instruments and can be used either for good or for evil), science and technology or what may be called technical civilisation, and, of course, youth, in many ways the key to the future.

Hence, the environment we live in, both in physical and social terms, should be one which contributes to the building of a stable, creative and all round personality in our citizens.

Therefore, a policy of cultural development should be on the basis that culture is an inseparable part of daily life and go side by side with life-long education. Hence, all manner of cultural activities, which would include all manner of activities where there is social inter-action, should be made accessible to all. In this sense, Sir, the fine arts (music, drama and dance) should not be confined to only the elite. It is only with individual participation at all levels that cultural activities can be of benefit and help in the task and the process of nation building. Our leaders have stressed the importance of the development of culture in nation-building, and now is the moment to give serious attention to the implementation of a cultural policy towards this end.

As a means of the democratization of culture, if I may use this term, the mass media has a crucial role to play in the diffusion of culture and constitutes an invaluable instrument for communication between the policy-makers and the general public, so that there will be understanding of the common objectives which are national in character.

In my view, Sir, what is needed for the coming decade is that more attention should be paid to the building and strengthening of the infrastructure for the development of culture, which we already have either to a greater or a lesser degree.

The need for attention to be paid to cultural development on a global scale is realised today, as it is, for example, by UNESCO which has begun during the last few years to concentrate on the problems of culture, as it did on the problems of education and science during the last 25 years of its existence.

With the tempo of urbanisation increasing day by day in our Republic, we owe it to our citizens and to posterity not only to create material wealth for them, but also to provide them with the means and with every opportunity to live a happy and meaningful life, and as proud citizens of our Republic, in dignity and in friendship with our neighbours and friends abroad.

Mr Speaker, Sir, I have pleasure in supporting the Motion.

5.45 p.m.

Mr Seah Mui Kok (Bukit Ho Swee): Mr Speaker, Sir, the Government and the Minister for Finance should be congratulated again for presenting a third painless Budget to this House on 26th February, 1973. I am sure all the workers, employers and the people of Singapore are happy that there is no new taxation.

Sir, in spite of the fact that there is no new taxation, prices of food and commodities have increased from 25 per cent to 100 per cent! Even the hawkers are doing the same thing. For example, a small glass of ice-water was five cents, and we now have to pay 10 cents. A sarabat hawker has also increased the price of a glass of coffee or tea by another five cents, like the coffee-shops, even though he is not paying any stall rental, light and water. A bowl of kway-teow was 30 cents, now it is 50 cents; a stick of satay was 10 cents, now it is 15 cents; a plate of mutton briyani was 80 cents, now it is $1.20. With all this, you will still find that the quantity and quality of the food have gone down.

Sir, we are not objecting to a reasonable increase of prices of food and commodities, but at the rates they have increased from 25 per cent to 100 per cent, it is indeed very painful to all the workers, especially those earning less than $200 a month. The wage increase recommended by the National Wages Council was 8 per cent, of which 4 per cent had to be deducted for CPF contribution. For those earning less than $200 a month they could get 6 per cent wage increase and 4 per cent to CPF.

Mr Speaker, Sir, you will appreciate that the wage increase a worker could get was from 8 per cent to 10 per cent, and 4 per cent was deducted for CPF. Yet the increase in the prices of food and commodities went up from 25 per cent to 100 per cent. There is a National Wages Council to recommend to the Government on annual wage increases, but there is no Council to guide the reasonable increase in the prices of food and commodities. Unless the Government is able to enforce and control reasonable increases in prices of food and commodities comparable to the annual wage increase recommended by the National Wages Council, it is quite definite that the workers will demand higher wages or high cost-of-living allowances to meet the increases in prices of food and commodities. How can you expect the workers to accept 8 per cent to 10 per cent annual wage increase when prices of food and commodities went up from 25 per cent to 100 per cent.

Sir, the Budget statement is indeed painless, but the prices of food and commodities which the workers have to pay daily are really very painful and quite unbearable, especially those in the lower income bracket. The Government must do something about it and the sooner the better and as soon as possible, because we do not want to be faced with a labour situation like in the United Kingdom where the workers have to resort to strike action.

Sir, it is a well-known fact that a good number of hawkers are making a good monthly income. Some popular stalls like chicken rice, satay, fried hokien mee and turtle soup can easily make a monthly profit of $1,000 or even more. Some are earning more than Members of Parliament! I am wondering how many hawkers are paying income tax. I understand that some well-to-do hawkers own cars, houses, and are partners of some finance companies. If hawkers keep on increasing the prices of their food, workers and their unions may have to find ways and means to live within their monthly income. Perhaps the time has come for workers to request their employers to enter into a joint venture in co-operative canteens to supply food and drinks at reasonable prices at various offices and factory worksites. The Government and the NTUC can play an important role in these co-operative canteens for the workers in the private and public sectors. It is unfair to request the workers to refrain from demanding higher wages for the sake of industrial peace and national interest, whereas hawkers, sundry shops, provision stores and other food suppliers can increase their prices at any time they like without any concern for national interest.

Sir, it is time the Government considered forming a National Council to give guidance on the increasing prices of food and commodities, including non-edible items, if we want to achieve industrial peace with justice.

Mr Speaker, Sir, I would like to speak on the fantastic increase in the prices of flats, terrace houses and semi-detached houses. Prices are still rocketing. Perhaps this is due to the manipulation of big financial investors. Also, rich foreigners from Hong Kong, Taiwan, Indonesia and other countries are buying these flats and houses without hesitating to pay the high prices. They know very well that prices of flats, houses and land in Singapore will never come down and will always go up.

Sir, I would like to quote a few advertisements from the New Nation's "Houses & Land For Sale" column:

New Nation 3-3-1973

(1) "Tanglin Area, luxurious maisonette flat facing swimming pool. Due completion July 1973. $250,000".

(2) "Cairnhill Court Apartment. First Floor nearing completion. Price: $180,000".

(3) "New Luxurious 1st Floor Flat at Jalan Datok. G. Block $83,000".

New Nation 5-3-73

(4) "TWO SEMI-DETACHED HOUSES at Katong Sea View Palace. Price: $220,000 each".

Sir, the Government must do something to stop the fantastic increase in prices of flats, terrace houses and semi-detached houses. I believe some of the big financial investors deliberately jack up the prices to make big profits. I would suggest to the Government to limit the number of construction projects by the private sector in building multi-storey flats, terrace houses, semi-detached houses and office/shopping complexes, and to further increase the building target of HDB multi-storey units to, if possible, 40,000 units a year so that the long waiting list for HDB flats could be eliminated. All HDB flats are meant for the workers and the people of Singapore so that they can have decent accommodation, whereas private sector flats, houses and office/shopping complexes are meant for big profit by the financial investors. The HDB flats are built for national interest, whereas private building projects are meant for individual and sectional interest. Sir, in view of the fantastic increase in the prices of flats and houses in the private sector, may I request the Government to increase the family combined salary limit from $1,500 to $2,500 to enable more workers to purchase or rent the Housing Board flats?

The Minister of State for Labour (Mr Sia Kah Hui): There will be more parking of Mercedes cars!

Mr Seah Mui Kok: Sir, I am glad the Government approves tax relief for taxpayers who take care of their aged parents, grandparents and handicapped children. I must congratulate the Government for taking the right step to encourage the younger people to love and care for their aged parents and handicapped children. It is our social responsibility to do so and to make them happy. The tax relief of $300 a year for each dependant will take effect from 1-1-74. I would appeal to the Minister for Finance to give further consideration to increase the tax relief to $750 a year. The amount of $300 a year for each dependant is inadequate. The tax relief for a first child is $750 a year. Surely, to care for an aged father or mother could be costly and definitely cost more than a child, especially when an older person requires more nourishing food and medical care. Also, an older person falls sick more easily and more frequently because of old age and weak health.

If one calls a doctor to attend his aged father or mother at home in case of emergency, the medical bill will be from $15 to $25. Therefore, the tax relief of $25 for that particular month will be just enough to pay for the doctor's bill. If the aged parent has to be admitted into a hospital for further medical treatment, then the $25 will not be enough.

Sir, I fully agree with the Minister for Finance that our success and progress is due to the effective tripartite co-operation between labour, management and Government. I am sure we can maintain our present healthy climate in our industrial relations and to work harder for more success and progress. Sir, employers are well protected by the labour legislation and they have the managerial rights to reorganise, transfer, promote and dismiss employees. It is most regrettable that there are still some unenlightened employers who are abusing these rights and use them in a subtle way to victimise their employees who are actively interested or participated in union activities.

Sir, a small American oil company in Singapore is doing such a silly thing. The Management of this company recently gave promotion to a foreign executive from a neighbouring country and deliberately preferred not to give it to its Singaporean executives who have the experience, qualification and seniority of service. I understand this same Management has decided to give another promotion post to another foreigner from a neighbouring country rather than promoting its local executives who are capable and qualified for this promotion. Sir, the local executives of this small American oil company have decided to form a union after a general meeting among themselves. They have submitted their application and Union Constitution to the Registrar of Trade Unions for approval and registration. I believe because of this move to form a union, the Management is deliberately depriving the local executives from promotion and preferred to give them to non-Singaporean executives.

I am not objecting to the Management prerogatives to promote the right person for the job. What I am strongly objecting to is that the Management did not give consideration to local executives and using promotion as a weapon to victimise employees who want to form a union.

Sir, unless the Management of this company stops this kind of unfair labour practice by subtly victimising the local executives, just because they want to form a union, this issue will be brought to the Ministry of Labour and made known to the public through the press in due course. This type of foolish and unenlightened employers should be punished by law if it is proven true that they are victimising their employees for trade union activities. The Government must put an immediate stop to this kind of subtle way of victimisation. Such foolish employers are provoking employees into industrial action and should not be tolerated in Singapore.

Mr Speaker, Sir, I would like to join my colleagues in this House in giving full support to the Budget statement presented by the Minister for Finance to Parliament on 26th February, 1973.

5.59 p.m.

The Minister for Finance (Mr Hon Sui Sen): Mr Speaker, Sir, I am very appreciative of the very generous support which has been given to the Budget statement which I made, although there were one or two Members who did not perhaps give it quite the same welcome as the others. One Member suggested that the Budget statement was tolerable. Another Member apparently took exception to the manner in which I presented my Budget statement. Perhaps he may have been unfortunate in not receiving the first portion of the statement, which was given to the Clerk of Parliament on Friday afternoon and should have been in the post for delivery on Saturday morning. Nevertheless, if there had been any delay, I would like to extend my apology to the Member.

I would like to say that I would not be doing justice to all the various speakers today if I were to reply in a very cursory manner to the many valuable suggestions which they have made. I have taken copious notes but I am afraid that I may have lost some of the finer nuances of the comments of those speeches which were translated from Mandarin. I propose therefore to give their recorded statements my very close attention when they appear in Hansard. The remarks which I make now are only in very general terms.

Of all the matters which were brought up, the one which had the most popular reaction was the tax relief for parents, deductible from assessable income. The comments of some Members extended to requests for tax relief not only to children but also to the taxpayers themselves. On this particular matter, all I need say at this moment is that, in giving tax relief for parents, a principle has been established which, I think, is probably the most difficult part in giving the tax relief, and that if the amounts are required to be revised, they will be given consideration in subsequent reviews of tax reliefs for taxpayers.

However, there is one comment I should make, and that is in respect of parents being required to stay with the taxpayers. The Asian concept of the extended family is of a family living together. It really does not help in establishing the kind of conditions that we want to have the taxpayer living in a Housing Board flat and his parent living perhaps in a Social Welfare Home for the Aged. This is certainly not the intention of giving the tax deduction. If the Housing Board flats are too small for the extended family, then perhaps our planners in the Housing Board should try and plan bigger flats. In fact, they are already doing this. The one-room flats are now giving way to the two-room, three-room and even four-room fiats. I suppose, if necessary, it can be even further increased to five-room flats. I am sure the cost of such replanning would be very much more than if I just agreed to increase the tax relief from $300 to a higher figure. I think it is very desirable that this extended family concept should be encouraged. The reason is that the parents are required to be taken care of not by some social welfare workers but by their immediate and affectionate relatives.

The next comment which was rather general was on the cost of living and the effects of inflation. Many Members were eloquent on this particular topic, and I do not need to single out any particular Member. I am very conscious of the effect upon our citizens of inflation in Singapore, and I thought I had devoted quite a lot of my time in my Budget statement to the measures which we intend to take to bring down the inflationary spiral. The most effective economic measure would be to reduce the money supply of the economy from a level of 24-30 per cent last year to something which would be more in keeping with our economic growth. I would say round about 15 per cent or less. This is, of course, a method of approach which would be somewhat different from perhaps the approach of Members of this House.

The Member for Potong Pasir took it from the point of view of the Consumers' Association of Singapore which looks at the prices of commodities and tries to establish some control or regulation to bring down the prices. This kind of approach is valuable to some extent and, in fact, the Government has tried and had succeeded in keeping down the prices of certain commodities, like sugar until very recently, and some other essential foodstuffs. The Government is still keeping a very close eye on the costs of all these commodities in relation to the prices which are being charged by manufacturers or by importers. But this is only effective to the extent that the costs are not imported costs. If inflation is rampant in some other countries and we have to buy from that country, then there is no way in which we can bring the inflation down to within the limits which are considered desirable. In the case of rice, where there is a shortage, particularly because of weather conditions, as I have mentioned in my Budget statement, there is no way in which we can bring down the price to a level at which it was, say, two years ago. To that extent, the cost of living must increase if we use the cost of living index which was designed previously for low income families. The effect of the increase in the price of rice and basic commodities must result in an escalation of the cost of living, in the same way as when the price of rice was very low there was a reduction in the cost of living for the low income groups.

I think the view of the economist, which is not necessarily always the kind of view that is accepted by the person who suffers from the effects of inflation, is that it is not possible to control or regulate prices in the way that has been tried and found unsuccessful. This is by price control which merely means, as has been evidenced in the recent sugar crisis, that the commodity disappears from the shops and the housewife has to beg a favour from the shop-keeper in order to get her usual supply.

Another theme which Members played upon has been the need to offset the effects of industrialisation and avoid copying the methods or the fashion and the way of life of the West, and to spend more on cultural and other projects. There is a lot to be said for turning away from the capitalistic, materialistic and unspiritual attitudes, which the modern urban industrialised society normally cultivates, into more cultural projects and in scientific and other worthwhile activities. This has been recognised already in the Budget to the extent that 50 per cent of the Expenditure is allotted for social development. The distribution of the SO per cent between culture and other activities, like education, medical services and so on, is a matter of judgment. I hope that perhaps we have achieved some balance. Of course, this is a matter on which the views of every ordinary citizen of Singapore would be valuable. In fact, to the Economic Division of my Ministry, the amount which has been spent for social development has given rise to some concern because we want to be able to devote to economic development sufficient funds to generate a surplus which will make it possible for us to spend money on the social side of our society.

Another comment which is related to this is about foreign workers and importation of foreign singers. There were more luxuriant descriptions given to these people. The fact is that we do have quite a number of foreign workers. But the plan, which my Ministry is trying to set up or develop, will call for a reduction of these workers and it should by 1975 result in a very much less dependence on foreign workers.

There were comments also on the effects of foreign industrialists as against local industrialists. I would like to assure Members that there is no question of favouring one against the other. The allocation of resources to industry is sufficient to take care of both the foreign industrialists whom we welcome as well as local industrialists whom we want to promote, and whose interest, in fact, is the reason why we have begun industrialisation. The intention of industrialisation is that finally our industry and commerce shall largely be in the hands of our own entrepreneurs and workers.

There were also comments on the increase in salaries for top civil servants, and there were suggestions that this revision should be extended to technicians and other categories of workers. I would like to say that the principle which we have accepted is that of being able to recruit and to maintain the standard of the civil service. In the case of technicians, we recognise that they have certain values, and in the scheme for daily rated workers and so on we have given special consideration to the pay which should be given to craftsmen as well as technicians. On the higher scale, of course, it is very much more difficult to develop a technician than even a professional engineer. We would certainly spend very much more money on developing as many technicians as possible. In order to attract the young worker to become a more highly skilled worker, it is essential that technicians be adequately paid. Therefore, there is no question that wherever necessary the salary scales will be so revised as to enable us to recruit and maintain technicians.

These were the kind of general comments which were made. In the case of many Members, I think they got down to rather more specific instances related to particular Ministries. I do not propose, in my reply to the Budget statement debate, to touch on all these matters because they are matters which Members will be debating again when the Estimates under various heads of expenditure come up for consideration in Committee of Supply. On a fairly general kind of question, e.g, the idea of improving the housing programme which I have also mentioned in my Budget statement, most Members welcome the Plan for Government to increase the number of housing units to 30,000 per year. Whether the target should be extended beyond this to 40,000 is also a matter of the constructional capacity of the industry and the availability of supplies of materials, cement, steel, sand and so on, sufficient enough for 40,000 units per year construction. If it is possible to increase this rate, the Government will need no urging to increase the level of construction.

As to private housing and the very escalated prices, the comment was that some consideration be given to stimulating and perhaps making more easily available private housing to our own citizens. I think Members should be aware that if too restrictive conditions are imposed, the effect may be that there would be a lesser supply of such private housing, even of the terrace and semi-detached type of housing.

One or two comments were made on why I did not touch on buses in my Budget statement. In a general way, the question of transportation in Singapore is of interest, but the plans for a mass rapid transit system have not yet developed in any positive sense to enable me to give any statement on an alternative to the buses. I think the bus services have been working somewhat better perhaps than under the old system before they were rationalised. But I recognise that there have been quite a lot of deficiencies in the way of breakdowns and other unsatisfactory practices.

There were also comments on my omitting agriculture and fisheries. I am not unsympathetic to the need to give assistance to agriculture and fisheries, but the problem really is in what way can this be done in an island as small as Singapore. Nevertheless, I think sufficient has been done by the Ministry of Law and National Development to increase the production of both these industries by 10 per cent over last year which is very creditable, and we ought to recognise the contribution which our farmers and fishermen, whether deep-sea or off-shore, have made to Singapore.

I do not propose to make any detailed comment on Education, which has been dealt with in some detail as far as the training of workers is concerned. On water conservation, which the Member for Anson has raised, and on environmental pollution, hawker centres, tourism and labour, these are problems which can be raised and answered by the Ministers responsible for those subjects.

I think I have generally covered most of the comments, but I would like to end this debate by saying, as I have said in my Budget statement, that the need for collaboration between workers and management requires to be emphasised if we are to maintain the progress we have made over the last few years. It is somewhat easy for us to forget that only ten years ago we have a large scale unemployment problem and that the effect of the jobs which have been created since then has raised the standard of living of the family unit, if not of the individual worker. But this is better than if we continued to have large scale unemployment and to have had some workers paid much better while others arc totally unemployed. I hope that the National Wages Council will find a satisfactory solution to the problem of dividing the benefits which have been obtained from our rapid growth rate of 13 per cent for last year.

Question put, and agreed to.

Resolved,

That Parliament approves the financial policy of the Government for the financial year 1st April, 1973 to 31st March, 1974.