SINGAPORE INSTITUTE OF STANDARDS AND INDUSTRIAL RESEARCH BILL

Order for Second Reading read.

4.53 p.m.

The Minister for Finance (Mr Hon Sui Sen): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

The Bill which is now before the House seeks to establish the Singapore Institute of Standards and Industrial Research (or SISIR in short) as a statutory body. The Institute will take over from the Economic Development Board the latter's responsibilities in regard to the promotion of standardisation and the operation of a Certification Marking Scheme.

The Bill will in addition give SISIR wider powers to establish and implement schemes that are necessary for the promotion of Singapore-made products. Presently, SISIR operates the Certification Marking Scheme for products and processes which conform to, the relevant Singapore standard or other international standards. This gives intending purchasers of a product an assurance by an independent body that the product conforms to the highest standards. Manufacturers join this scheme voluntarily. However, where Singapore's good name as a manufacturing nation may be affected because some manufacturers produce shoddy goods, SISIR is empowered, under the Bill, to make export inspection of certain types of goods compulsory. It is thus part of SISIR's function as a statutory body, to upgrade the technology in local industry and to ensure that the Made-in-Singapore label is synonymous with quality and reliability.

SISIR's main functions as provided in the Bill may, therefore, be summarised as follows:-

(a) To promote standardisation in industry and trade with a view to improving not only the quality of commodities, but also industrial efficiency and productivity;

(b) To operate a Certification Marking Scheme and other related schemes for locally made goods;

(c) To operate a scheme of quality control of specified commodities exported from Singapore for the purpose of developing and promoting our export trade; and

(d) To upgrade local skills and technology through the provision of technical consultancy services and through the application of industrial research.

The Bill contains various provisions relating to the establishment, constitution and administration of the Institute. The Institute is to consist of a Chairman and eight other members, all of whom are to be appointed by the Minister. The Bill also contains provisions dealing with the Institute's financial year, the financial procedure to be adopted by the Institute, and the preparation of financial statements and auditor's report for presentation to Parliament. Provision is also made under the Bill for the Minister to make grants to the Institute of such sums of money that may be provided by Parliament for the purpose of enabling the Institute to carry out its functions.

With the expanded powers conferred under the Bill, the Institute will be able to carry out its functions with greater efficiency and to play an increasing role in promoting the sustained growth of our local industry and of our export trade through its various quality schemes. The Institute will also play a crucial role in upgrading local skills and technology through its technical and engineering services and through its industrial research consultancy services. With autonomy, the Institute will be given a proper legal standing which will greatly facilitate the execution of contractual agreements with clients in the private sector. Ultimately the Institute should form part of the infrastructure provided by Government to stimulate economic and industrial growth and to enable us to take off to the next stage of our industrial development.

Sir, I beg to move.

Question proposed.

4.57 p.m.

Mr J. F. Conceicao (Katong): Mr Speaker, Sir, I rise to speak in support of the Bill.

If one looks at the functions and powers of the Institute, as stated in clause 15, one easily notices that nearly all the functions listed are those which the present SISIR already fulfils. Indeed SISIR has garnered extremely useful experience in the course of its operations, some of which are well worth listing:

(a) SISIR has already received and discharged several commissions to seek ways to overcome certain production problems in a number of local or locally-based concerns;

(b) SISIR has been in the forefront of the PQR movement, a side-benefit of which is SISIR's modest contribution to better labour/management relations;

(c) SISIR has set standards for scores of industrial items, not just for the sake of devising standards, but related practically to quality control. SISIR's certification has also covered more than 200 products;

(d) SISIR's work has been so successful that UNIDO (United Nations Industrial Development Organisation) has asked Singapore to host a seminar to show developing countries what can be done in the field of standardisation;

(e) SISIR has run several courses on quality control.

Now that our stage of industrialisation has reached a more sophisticated level, the services of SISIR will be more critical, and it is necessary for SISIR to be established as an independent authority.

However, Mr Speaker, Sir, there are two specific criticisms which I would like to make in relation to this Bill. One is that while there is, and rightly so, repeated mention of the need to ensure the viability of our export drive through quality assurance where our local products are concerned, there does not seem to be much concern over the possibility of shoddy goods being imported, now that our policy is to remove tariffs and quotas in the case of several import items. Let me make it clear, Mr Speaker, Sir, that I do not support protection of weak and inefficient local industries. The lesson of quality must be driven home in no uncertain way where local industries are concerned. But the same standards of safety, health requirements and quality which we insist on our local products must be imposed on imports. Otherwise, our local industries will face unfair competition from cheap but shoddy imports, and consumers will witness the dumping of inferior goods from abroad. I therefore hope that amongst SISIR's tasks one will be the surveillance for quality of imported goods, especially those affecting local industries.

Another point is the useful role that S1SIR can play in helping to tackle the problems of environmental control. Many factories are faced with the problem of seeing that adequate measures are taken in this direction. I am told that some commercial consultants in this field may be no more than salesmen of equipment. Industries, in trying to comply with environmental regulations, may be landed with equipment not necessarily suitable for local conditions. SISIR has a range of multi-disciplinary facilities that may be usefully directed towards tackling environmental problems. I hope that every encouragement will be given to seeking SISIR's consultancy services in this area of environmental control.

Mr Hon Sui Sen: Mr Speaker, Sir, I appreciate the Member for Katong's general welcome to the Bill and his well-deserved praise for SISIR and its activities.

I also welcome his suggestions, which I do not regard as criticisms, although he may term them as such. I will look into the matters which he has commented upon. However, it may well be that the question of shoddy and cheap imports is not so much a matter for SISIR as for some other body or some law governing imports and exports. But, nevertheless, I think his suggestions certainly have merit and deserve consideration.

As for his suggestion to consult SISIR when dealing with environmental problems, I believe that SISIR is already doing considerable work in this regard, and that the Singapore Manufacturers' Association has been accustomed to seeking its advice. In regard to highly specialised problems - this may be something on which, like other general practitioners, SISIR may have to call upon specialist services elsewhere. But, in the first instance, I think the services which SISIR can render would be most helpful to our industries.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into a Committee on the Bill. -[Mr Hon Sui Sen].

Bill considered in Committee; reported without amendment; read a Third time and passed.