ADDENDUM TO PRESIDENTIAL ADDRESS AT THE OPENING OF THE FIRST SESSION OF THE FOURTH PARLIAMENT ON TUESDAY, 8TH FEBRUARY, 1977 MINISTRY OF FINANCE

Economic Policy

Over the next few years, our aim will still be to make Singapore grow fast again. Old and new curbs on trade by the richer countries in the world will limit such growth. But Singapore should grow by at least 6-8% every year. We can then provide enough jobs for workers And we can enjoy an increasingly higher standard of living because we can pay for our needs in food, housing, education and health and for more and better goods and services.

Monetary and Fiscal Policy

We shall maintain the Singapore dollar as a strong and stable currency. The money supply will be expanded moderately. The money, bond, capital and foreign exchange markets will be further developed in our financial centre. The intention is that there will always be finance at reasonably low interest rates to encourage sound projects.

There will, however, be no extravagance in public sector expenditures. These will be more efficiently controlled by a new style budget by 1979 This budget will enable the work programmes of each Ministry of Government to be examined against its targets and its performance Funds can then be allocated on their review

As Singapore grow, what we collect from our present taxes grows also. With good growth, we shall rarely have to put up tax rates or think of major new taxes to pay for our increased needs. But we may want, as one way of helping to encourage or discourage one kind of activity over another, to change a tax or add another to our tax system. We may wish to favour manufacturing, international finance and banking. reinsurance, warehousing of capital goods and equipment for sale to regional and international markets, and tourism and conventions. A Fiscal Policy Implementation Committee will suggest how best we can do this. Industrial Development

We want much more manufacturing in Singapore. We shall therefore continue, through the Economic Development Board, to offer special help, by lower taxes or otherwise, to investors who set up new industries or expand old ones.

We have ready now, in our industrial estates, land and factory buildings served with power, water, telephone and other services. If necessary, we shall build more, especially smaller, factory buildings. These will be sold at low prices to manufacturers who support bigger ones by supplying small parts or do other services for them

We need to keep down costs so that the goods we make will not be too dear to compete with those other countries produce. We shall watch carefully therefore against too high Government charges for industry such as for port services or rates for electricity and water. But we may have, from time to time, to meet higher prices such as for oil. We shall seek, through the National Wages Council, single annual wage increases which reward workers who produce more.

We shall spend more on Training Centres to give better training to our workers so that they have the highest manual skills for delicate, precision work. And we shall also persuade those who own or manage businesses to learn how to make better use of their workers and their machinery and to sell their products also in new and wider markets overseas.

Trade Development

We shall help in a number of ways to make trade flow more easily. We shall do more to improve regional markets by increasing ASEAN economic cooperation and making preferential trading arrangements. Finance for exports will be made more easily available. The Monetary Authority of Singapore will keep its rate for rediscounting export bills attractive. We shall arrange with the Development Bank of Singapore for long term loans to be given on easy terms to sell ships built in Singapore yards. The Export Credit Insurance Scheme will be extended to cover business and political risks for capital goods also. Small industries will get increased aid from the Small Industries Finance Scheme.

Tourism

We shall encourage more tourists to come to Singapore, especially from ASEAN countries. We shall promote more conventions for business and professional men. We shall try to increase the number of group tours by getting more chartered flights into Singapore.

HON SUI SEN Minister for Finance