PRESIDENT'S ADDRESS (Debate on the Address) (First Allotted Day)

2.45 p.m.

Dr Lau Teik Soon (Serangoon Gardens): Mr Speaker, Sir, I beg to move,

'That the following Address in reply to the Speech of the President be agreed to:-

"We, the Parliament of the Republic of Singapore, express our thanks to the President for the Speech which he delivered on behalf of the Government at the opening of the Second Session of this Parliament.".'.

Mr Speaker, Sir, may I say that it is a great honour for me to move this Motion.

Sir, I would like to take this opportunity to congratulate the President on his re-election for another term of office. He has indeed done Singapore proud during his years in office. I have no doubt that Singapore's prestige and status will further be enhanced by his invaluable contribution. We wish him good health and happiness in the years ahead.

The President in his speech indicated three major factors which would influence events in Singapore in the next year or so. These major factors are, firstly, the uncertain economic situation in the various industrial democracies; secondly, the conflict in Indochina, particularly that between Vietnam and Kampuchea; and, thirdly, the build-up of the political leadership and able administrators.

The President stated that barring a recession, Singapore should be able to maintain a 6-8% growth this year@ It is imperative that we maintain the momentum of growth because growth means more jobs, higher standards of living, better social, medical and educational facilities and overall well-being and security for our citizens. We need to provide an estimated 30,000 new jobs per year for the school leavers, college and university graduates. We need to provide a better quality of life for our citizens. The Addenda of certain Ministers mention that they will provide better housing, better health facilities, better environment, improve the quality of our defence and police personnel, raise the quality of technical education and improve road safety. The Prime Minister has stated in his New Year message that this year must be a year of progress and consolidation.

The Ministry of Finance Addendum states that the growth rate could be achieved only if international trade continues to grow and if our goods and services are kept competitive in world markets. As far as international trade is concerned, the President has expressed concern about the sluggish American economy, but he has also expressed hope in the performance of Japan and the EEC countries. This was also the view of Mr Charles Schultze, Chairman of President Carter's Council of Economic Advisors and Chairman of the OECD Economic Policy Committee. In November 1978, he was reported to have said that "with the exception of the U.S., domestic demand and output (of the OECD countries in 1978) had risen significantly faster than in 1977 and that stimulative actions already taken or about to be taken in Germany and Japan should help sustain growth." So we can be a little more cheerful about the prospect of international trade improving this year.

Mr Speaker, Sir, it is not just international trade that will sustain our economic growth but also foreign investment. The Ministry of Finance Addendum states that Singapore needs capital investment of approximately $450 million this year and that these investments should be in industries requiring higher skills and technology. But foreign investment is a highly competitive area. For example, we have an EDB office in New York but there are about 140 other investment and promotion agencies like the EDB representing other countries striving to attract American investment.

Fortunately, our EDB officials have been successful so far. But what we have to do is to maintain the conducive climate favourable for foreign investors so that this year's target can be reached. Singapore has the reputation of being a country which welcomes foreign investment. In fact, one businessman is reported to have said that Singapore is "heaven on earth for the multi-national." This is attributed to a number of factors: the political stability, good living conditions, efficient communication, able and incorruptible administrators, industrial peace and skilled labour force. We must consolidate these factors which have given us the edge over others in the field of foreign investment.

These factors include those which have made our goods and services competitive in world markets, namely, industrial peace and skilled labour force. The investors say that they have their "heaven on earth" in Singapore, but the workers too want their "heaven on earth" here. To achieve this, both management and workers must continue to cooperate so that our goods and services can compete in world markets. This means that our goods and services must be of high quality and minimum cost. Management and workers must strive to achieve these objectives. I am glad to note that the Ministry of Labour will ensure that management provides a work environment, which will be conducive for workers to give of their best.

Work environment means fair wages, good working conditions and personal safety and security. It is not just NWC adjustments, merit and demerit schemes but also safety measures. Yesterday we read that another shipyard worker was killed and four others injured in an explosion on board a barge in Jurong. This has come very soon after the Spyros tragedy. We know how hard the Labour Ministry has worked to ensure safety for workers, especially in the shipbuilding and repairing and the construction industry. But obviously workers and management have not learnt. Supervisory and preventive measures may, therefore, seem necessary. That is, the Ministry of Labour should provide constant check and supervision, and where necessary, impose heavy penalties on the management if they neglect their responsibilities. The Spyros tragedy must not be repeated.

Mr Speaker, Sir, international trade and foreign investment so essential to our continued economic growth have been threatened by the increasing pressure of protectionism. Singapore together with its ASEAN partners must continue to be vigilant against this threat to our economic well-being. Protectionism is often a bogey used by trade unions to make further demands for their selfish benefit, and by weak governments which have adopted soft options. Both groups call for tariff and non-tariff barriers against the imports from developing countries, and even favour a cut-back on the overseas investment of their nationals. In actual fact, foreign investment benefits the foreign country more than the host country in terms of employment. For example, an American executive in Singapore has stated that "for every job we create for the locals, we promote at least two or three back home." This is because the American company operating from Singapore has been able to generate markets in Southeast Asia and elsewhere. Also the Singapore company imports all components and materials from the United States.

An example of protectionism is the recent move by the Australian government to introduce cheap, no stopover fares to Europe for British Airways and Qantas. In this connection, it is timely that Singapore with its ASEAN neighbours has protested against this unfair move. Singapore and ASEAN have conveyed to the Australian government their strong opposition to the new policy. But if Canberra persists in ignoring the protest of ASEAN, then the Government together with the other ASEAN governments should consider retaliation in one form or another.

While we continue to invite foreign investors and with them skills, managers and other entrepreneurs, we should also expand our own corps of entrepreneurs. The Ministry of Finance Addendum states that they will encourage more Singaporeans to become industrial entrepreneurs. But I hope that the Local Entrepreneur Scheme organised by the Economic Development Board will do more for them by providing not just loans or credits but also assistance and expert guidance which will be necessary in the initial years.

With regard to the taxation policy, the Ministry of Finance states that it will broaden its tax base by getting more taxpayers such as the self-employed to pay income tax. However, some caution should be exercised in the implementation of such a move. This is because the self-employed, for example, shopkeepers, taxi-drivers and the hawkers, while belonging to the same category of workers, may not necessarily earn the same income. The Ministry of Finance must ensure that a clear and fair set of criteria is formulated to assess the earned income of the self-employed workers.

Mr Speaker, Sir, whether or not our national strategy will continue to succeed will depend on economic as well as political factors. Political stability is one of our main assets in our quest for economic growth. Hence, we have to be constantly aware of the internal threat to our political stability. The recent Far Eastern Economic Review, Asia Yearbook 1979, laments that in Singapore in 1978, "there were no great campaigns against 'Euro-communists' or fomenters of 'black operations' or other forces." We sympathise with the Review's unhappiness. But we know only too well the presence of such elements even though they have not been exposed. The Addendum of the Ministry of Home Affairs states that "the Malayan National Liberation Front (MNLF), an underground satellite organization of the CPM Central, is most active in Singapore." Thus, we have to be vigilant against the communists, as well as communalists and other anti-national elements. We cannot allow them to turn the clock back to the period of civil disorder and chaos of the mid-5O's and early 60's.

When the President spoke 15 days ago, he mentioned the conflict between Vietnam and Kampuchea. Today, a new regime has been installed in Phnom Penh. This is a regional development which will have far reaching consequences for our political stability.

It is regrettable that ever since colonial times, Southeast Asia as a whole has not known a period of peace and stability. After 1975, it was felt that perhaps after years of struggle for 'liberation', the governments in Indochina would concentrate on internal development and provide a better life for their peoples. In that kind of situation, the co-existence between the Indo-Chinese states and ASEAN would be mutually beneficial.

The fear of the conflict in Indo-China spilling into Thailand, a member of ASEAN, exists, and if such an event occurs it will be a real threat to Singapore's political stability. It is not just the extension of the liberation movement into Thailand that concerns us, but also the Sino-Soviet dispute which is the cause of much of the turmoil existing in Indo-China. Likewise, the Soviet-Vietnamese Treaty, the Sino-Japanese Treaty, the Sino-American decision to establish diplomatic relations and the SALT discussions are all part of the moves made by the two communist giants in their confrontation against each other. Singapore cannot ignore these events because they ultimately affect our national development.

The best course for Singapore is to remain non-aligned and to stay away from great power conflicts. However, this does not mean that we become passive. We have to play an active part in concert with like-minded states, especially ASEAN, to protect our national interests and those of the other ASEAN states. Here, it may be useful to reiterate the axiom, "united we stand, divided we fall."

In this regard, it is heartening to note that ASEAN has continued to show solidarity in the face of external crisis. Its cooperative efforts and cohesion have impressed extra-regional powers that ASEAN is a viable organization and that it cannot be manipulated to the advantage of foreign powers. More significantly, ASEAN has displayed the willingness to cooperate on economic matters. The ASEAN Economic Ministers have made some progress in economic cooperation, e.g. increase in the items under Preferential Tariff Arrangement and the impending implementation of certain joint industrial projects. ASEAN governments must know that economic growth is the basis for their continued progress and stability.

On matters which affect the ASEAN region, Singapore and other ASEAN governments should express their views clearly. I, therefore, hope that the forthcoming ASEAN Foreign Ministers' Meeting will decide on a definite stand vis-a-vis the recent developments in Indo-China, and the best way of dealing with any common threat to their peace and security. Thus, for example, we must voice strongly our concern with the refugee problem which has affected our ASEAN neighbours, viz. Malaysia and Thailand. It has been estimated that about 170,000 refugees from Indo-China have gone to Malaysia and Thailand. As a result of the changeover in the government of Phnom Penh, many more refugees may leave that country. ASEAN should press for international sanction against the states from where the refugees come. At the same time, ASEAN should persuade the liberal-minded states in the West to take in more refugees.

The Ministry of Foreign Affairs Addendum states that "what serves best the interests of ASEAN and of the. world is a peaceful and prosperous Asia - Communist and non-Communist alike." A stable Asia is mutually beneficial to all the states in the region but, of course, this is a difficult goal to achieve. The reality is that in the Indo-China region, warfare has been endemic while tension is high among the countries in North-east Asia. Until we see the dawn of a new era of peace - and stability in Asia, Singapore and the other ASEAN states must strive to improve their relations with the United States, Japan, the EEC, Australia and New Zealand. The western industrial states and Japan must recognize that it is in their interests to maintain the economic development and political stability of the ASEAN states. Any change of the status quo affecting the political situation in ASEAN will be a threat to their own interests. Thus, Singapore and the other ASEAN governments must pursue the dialogue between them and these states with vigour and determination. It is not enough that these dialogues are held and pious declarations made; concrete economic and trade agreements should be the outcome of these discussions.

Mr Speaker, Sir, in the ultimate analysis, it is up to Singaporeans to decide how we progress, how we protect our interests, and what kind of society we want. The President mentioned the problem of political succession and the need for quality leadership. The present leaders have gone through years of sacrifice and crisis and have built a prosperous and stable Singapore. But the young leaders have not yet faced a real crisis. How will they measure up in a real crisis? Here, I shall only quote the Prime Minister (Hansard Vol. 36, col. 448) who stated, on 23rd February 1977, "You would not know until the guns open fire." I, for one, am confident that they will not flinch from unpleasant policies, economic or political crises.

Mr Speaker, Sir, leaders must have the support of the people. And the majority will support a political party that delivers the economic, social and political goods to their satisfaction. That the PAP government has done so since 1959 is beyond question.

The Government achieved 10% growth per annum before the 1973 oil price hike, and an average growth rate of 6-8% in recent years. The official foreign reserves in 1977 was high; it was S$9,023 million. Our per capita indigenous GNP in 1977 was S$5,623 which is second only to that of Japan's, in Asia. Our people have jobs and only 4% or so are unemployed; public housing is provided for about 60% of our population and by next year another 10% will have such housing. We have good educational, medical and social services. Life expectancy averages 65 years for men and 70 for women.

These and other economic and social indicators are readily available from the Department of Statistics for all to see and then to conclude that Singapore under the PAP government has given much to the people. And yet, as I mentioned earlier, the various Ministers strive to achieve more to upgrade the quality of life for Singaporeans.

Singaporeans are justly proud of their economic status, their clean environment, the organized way of life, but they must not forget that they were achieved not without struggle. The threats prevalent in the mid-5O's and early 60's, coming from the communists, the communalists and from external events like confrontation and British withdrawal, are lessons that must be learnt and become part of our living memory. Singaporeans should ask: what would have happened if the communists had taken over Singapore, or if the communalists had succeeded in their efforts? What would have happened if Singaporeans had succumbed to confrontation and if we had looked for soft options in the face of British withdrawal? These are lessons that are part of our history. Our children and future generations must learn this as part of their course in citizenship. However, I note with regret that while the Ministry of Education Addendum states that one of its objectives is to inculcate national identity, it has not mentioned anything about such a course in its curriculum development.

The Ministry of Culture should be commended for their efforts to promote the quality of life in the Republic. The establishment of the Cultural Foundation is a right step in inculcating a love for the best of Asian and western values in the fine arts. The recent Festival of Arts has shown that there is an abundance of talent in the various forms of artistic expression. This can be nurtured through the Cultural Foundation. But a proper cultural complex must be provided and, in this regard, I hope that the Acting Minister for Culture will not just consider but decide to go ahead with the construction of such a complex as soon as possible.

Mr Speaker, Sir, I would like to conclude by mentioning a social phenomenon which will concern us more and more in the future. Urbanisation and industrialisation have brought with them dislocations in our various communities and also the various modern ills of a developing industrial society. The Acting Minister for Social Affairs mentions the social problems resulting from the changes in lifestyles, attitudes and expectations that come with rapid economic development. He mentions the helpless, the abandoned aged and destitutes, and women and children who have been iii-treated and exploited. The Minister for Health mentions the change in the pattern of diseases resulting from urbanisation and industrialisation and that the incidence of such diseases as lung cancer, coronary heart diseases and hypertension, and mental illness is steadily increasing. The Minister for Home Affairs mentions the drug problem, traffic accidents and the policing in public housing estates.

It is obvious that the cost of maintaining services to handle these problems, the preventive, curative and rehabilitative and enforcement measures required, must be increasing - this is inevitable. But unless we contain these problems, a point may be reached when the cost will be so great that it may equal or nearly equal the production of wealth of this country. Such a phenomenon in an industrial society has been termed by a sociologist, called Henderson, as the 'entropy state', that is, and I quote: "a society at the stage where the costs of mediating conflicts, controlling crime, protecting consumers, treating victims of industrial diseases, and caring for all the addicts, dropouts, alienated, unskilled, aged, infirm or those who simply can't cope, equal or exceed the society's productive capability." (Management Review, Vol. 67, No. 9, Sept. 78, p. 43). We are not anywhere near becoming an entropy state but we must heed the warning signs.

Mr Speaker, Sir, I beg to move.

Question proposed. 3.15 p.m.

Mr Hwang Soo Jin (Jalan Kayu): Mr Speaker, Sir, I rise in support of the Motion moved by the Member for Serangoon Gardens.

It is customary for one taking pan in this debate to attempt to be critical of Government policies, past, present and future; to scrutinize not only the substance but also the manner of implementation. Indeed, I have studied most carefully the President's Speech. I have also searched my memories for issues to speak on in order to play the traditional role expected. Yes, Sir, I did not think of voicing the unhappiness felt over the frequent and the recent changes in our education policy, the oft-repeated complaints against the not-so-civil Civil Servant, the PUB charges, the expensive rental of HDB shophouses or perhaps the environmental pollution. But, alas, I find it extremely difficult on this occasion to bring myself to speak on any of these topics.

This inability on my part, I can assure you, Sir, is not due to a reduced sense of responsibility to my constituents or a diminished sensitivity caused by partisan sentiments for the Front Bench, but rather in preparing for the debate I have been distracted and disturbed by both the number and the magnitude of international events taking place in quick succession in recent months. The increase in the price of oil, the continuing uncertain prospect of the world economy, the political upheavals in Iran and a number of other countries, the radically changed patterns in international relationships and nearer home the dramatic turn of events in Kampuchea and the plight of the so called "boat-people" - all these and many others have wakened me to the reality that in a world full of calamities, both man-made and natural, we are singularly fortunate in being blessed with peace and prosperity.

I am not here to praise the Front Bench. I believe, however, in giving credit where credit is due.

The opening of this Session of Parliament is, to my mind, of special historical significance. It ushers in the 20th anniversary of a PAP-dominated Legislature. It also marks 20 years of an excellent relationship between Government and the people. The success of Singapore is the success of a wonderful partnership between the two. It was in 1959 in this same august Chamber that the Prime Minister, speaking soon after assuming office, stated and I quote [Hansard, Vol. 11, col. 375, 21.7.59]:

'This is a Government consisting of people who put their ideas, their ideals and the welfare of their people above themselves. This is a Party which has the courage of its convictions, which is prepared to pursue what it believes to be right in the interest of the people without deviating for opportunist reasons.'

In another passage (col. 376) he went on to state:

'Judge our performance in the context of our objectives and the realities of our situation, and at the end of five years you will certainly not find us wanting in courage, in skill, and in sincerity.'

Almost 20 years have passed since those words were spoken and it is evident that our political leadership has lost none of the realism and the deep sense of concern for the welfare of the people as reflected in the President's Speech and the various ministerial Addenda.

The years ahead will not be smooth-sailing. Fortunately, we can take comfort in the thought that the Ship of State will continue to be under the stewardship of steady and experienced hands. Internally, it is safe to say that most things will be within our control, perhaps even the problem of flooding. Any threats to our stability and progress will almost certainly be from external sources. An example in the economic sphere is the detestable Australian aviation policy. The incident illustrates only too clearly that we have to be constantly on guard against growing protectionism being practised by developed nations. However, I share the sentiments expressed by the Member for Serangoon Gardens that the united stand being taken by ASEAN nations in their negotiations with Australia is definitely a source of satisfaction and underscores the importance of ASEAN solidarity. In this regard, I am pleased to note in both the Finance and Foreign Ministries' Addenda, the emphasis on promoting closer cooperation with our ASEAN partners. The destiny of our nation is inseparably linked to that of the entire region. Let us, therefore, take ASEAN even more seriously than we have had hitherto.

Since the formation of ASEAN, much has been achieved at the political level. There exists today a meaningful dialogue and goodwill among ASEAN leaders. However, in the light of recent regional and international events, it is my view that there ought to be a much greater sense of urgency among all partners - the urgency to translate words into action, the urgency to achieve cooperation in real and practical terms. Although the extent of success in any one area of cooperation depends ultimately upon the degree of political will, the speed with which such cooperation can be achieved in practical terms will be determined by the ability and the willingness of civil servants in the different member countries to work closely and effectively together.

Sir, it is most reassuring to observe that the task of ensuring the continuity of a creditable political leadership is being given top priority and pursued in great earnest. For those younger colleagues who have over the past two years demonstrated the capacity to meet the intense demands of leadership, I wish them well, and I hope you will not think me immodest to suggest to them that the continued well-being of Singapore in the long term will to a very large extent depend upon their ability to emulate and to learn from their seniors - their sustained sense of commitment and self-sacrifice, their courage of convictions to do what they believe to be right, their pragmatism and their meticulous skill in managing the affairs of state developed over a period of two decades. As our young friends increasingly share in the responsibilities of government, they will do well to remember the following passage which I am again quoting from the 1959 speech of the Prime Minister [Vol. 11, col. 374]:

'if the power of the State which we now control is used not to enrich the lives of many of its people but to line the pockets of a few of the ruling hierarchy, then verily we shall all perish.'

Finally, Sir, I would like to join my colleagues in congratulating the President on his re-election. 3.25 p.m.

Mr Tan Cheng San (Paya Lebar): ( In Mandarin): Mr Speaker, Sir, I support the Motion thanking the President for delivering his speech in this House on 26th December 1978.

We are all aware that as we are lacking in natural resources our future and the future of our development are closely affected by world economic trends and the political and military situations in this region. Of course, how to meet such rapid changes in order to survive and prosper will depend on the farsighted policies formulated by our political leadership and how these policies are implemented by our able administrators. In view of the complexity of the world economic, political and military situations, particularly the rapid changes in this region in recent years coupled with the OPEC countries increasing oil prices by 14.5% over several stages, and of protectionism by Australia, the United States, and some other developed European countries, it is imperative for us to review our situation constantly. The repercussions out of these changes could not be accurately forecast by mere conjecture or imagination. Therefore, it is necessary to train more talented or knowledgeable personnel and to recruit more professionally qualified people to help the Government formulate various fitting policies and measures to meet such changing situations and to minimise such implications or even turn the table round.

Mr Speaker, Sir, in his speech the President has pointed out that at least one-third of the top talents of the younger generation must be absorbed into our Administrative service and the statutory boards. Our Police and Armed Forces, the trade union movement, civic organisations and quasi-Government enterprises must also strengthen the quality of their leadership in order to meet any future challenges and changing situations. Manpower is the only wealth and resource we have. Our continued development depends on several important factors, one of which is foreign investment in our industries. We all know that our industrialisation programme must succeed because it is only through industrialisation that we are able to further provide our people, especially our youths and school-leavers, with secure employment, thus helping to raise our living standard. To take positive measures to promote industries of higher technological content and to enhance the quality of our products or to improve the production procedures are all beneficial measures conducive to our economic growth. With increased productivity, all workers will be able to reasonably share in the fruits of their labour.

On our workers' future pay rise, in order to ensure our competitiveness in the international market, we will continue to adopt an orderly and regulated wage policy formulated by the National Wages Council, under which those hardworking workers will be appropriately rewarded while the lazy ones will be suitably penalised.

Since 1972, the National Wages Council, formed by the tripartite cooperation of the representatives from the workers, employers and the Government, has carried out its mission effectively. The NWC recommendations have enabled our workers to obtain fair and reasonable wage increases, suitably sharing the fruits of prosperity. The moderate increases in wages have not only strengthened the competitiveness of our industrial products in international markets but have also served to attract more foreign investment. The facts over these few years have proved that our National Wages Council has effectively demonstrated the concept of tripartite cooperation of workers, employers and Government, and this innovative concept has made many countries all over the world to look at our growth with wonder.

However, I must point out that although in the last two years the National Wages Council has proposed the practice of the merit and demerit systems, a small group of employers have still been indifferent and aloof. On the other hand, there are others who set down certain penal codes but without counter weighing stipulations for meritorious awards for workers. This is an aberration and should be corrected. If unchecked, it would make our workers lose confidence in their job, which is possibly one reason why our workers job-hop.

As a result of the rapid growth of our economy and commerce and industry, many factories need more workers. Therefore, we should encourage more housewives to join in the development of our national economy. The Government should consider building more creches for the female workforce, and also give more tax concessions to encourage civic organisations and commercial and industrial establishments to share in management. The Government should also consider raising the social status of our blue-collar workers so as to narrow down the difference in working conditions and remuneration between the blue-collar workers and the white-collar workers. This would further encourage our youths to take up blue-collar jobs.

The CPF insurance scheme is being contemplated should a worker die while on employment. This scheme will ensure that his family will have a better assurance of a livelihood; perhaps the unpaid balance of the flat would be covered under the scheme. This is undoubtedly good news to them. The Government is also going to amend the Workmen's Compensation Act so that should a worker die or is injured on duty, his family would get more equitable compensation. The Government is also continuing to attach importance to improving the safety measures taken by shipbuilding and construction industries. All this would undoubtedly benefit our workers and give them more confidence and a feeling of security which would make them apply themselves more conscientiously to their work with greater zest.

Mr Ho See Beng: Mr Speaker, Sir, I rise to congratulate the Government for its careful forward planning and for the prompt measures it has taken from time to time to meet changing situations so as to ensure Singapore's continuing economic and social progress.

During the past few years there have been many crises, some big, some small, some political and some economic, which have overwhelmed a few nations and have eroded the vitality of a number of others. Few nations have escaped the debilitating consequences of these crises, which have left on their national economies and political fabric, indelible scars, such as the dire consequences of extreme national self interest, territorial hegemony and man's inhumanity to man.

Our island Republic, although buffeted by the tremors of international crises, has managed to keep afloat on the sea of international turbulence, because our Government has charted our course with hard-headed, forward-looking policies, self-discipline and pragmatism. I am sure that all Singaporeans will join me in congratulating the Government for the leadership it has provided since 1959.

The projection of a 6 to 8% growth, barring massive world economic recession, is something we can be justifiably proud of, especially for a small country with no natural resources.

Overall development thus, Mr Speaker, Sir, is most encouraging and gratifying, but in the ultimate analysis of the role of Government, it is the individual, the common man, the citizen, that the Government should be concerned with and not only the problems at national level alone. Mr Speaker, Sir, I fear that in the past few years, in our efforts to overcome external crises, we have tended to overlook some of the minor issues which affect the common man and his problems merely because they pale into insignificance in the face of more pressing external national problems.

Mr Speaker, Sir, we, as a Government, must remember that it is our bounden duty to provide for the welfare of the ordinary citizens, not only the organs of Government and the giants of commerce and industry that turn the wheels of the economy of our Republic. We must remember the problems of those in the lower income group for whom several issues remain unresolved.

Mr Speaker, Sir, one of man's primary requirements is housing and it is true that our Housing and Development Board has already managed to provide public housing for about 60% of our population. But even in this major area of success, there are many irritations as a result of the rigid and closed minds of the officialdom in the Housing and Development Board.

I refer, for example, to the one-room flats of the Board, which in their time were a source of happiness for many a low-income family, who were then living in slums. Many, many years ago, in order to provide these persons with better living conditions only those families with incomes of less than $500 were eligible for these flats. They were gratefully taken up and at that point of time were adequate for the families with limited incomes that move in.

Since then, the number of persons in many of these families has increased, the children have grown up and incomes have increased. So, quite logically they want better accommodation. Thus, from a one-room flat, they wish to move into a two-room flat. But the Housing and Development Board which has set income ceilings for all applications of HDB flats has ruled that, because the combined income of the family exceeds the ceiling set by the Housing and Development Board for eligibility for a two-room flat, they should move into a three-room flat which many can ill afford. I find this rigid adherence to an income ceiling, set as a guideline many years ago, difficult to understand. The logical step from a one-room flat, as income and the size of the families grow, is a two-room flat and after the two-room flat to a three-room flat. But the Housing and Development Board appears to have turned a deaf ear to this logic and has decreed that such families, living in one-room flats, with income of $500 are only eligible for three-room flats.

Mr Speaker, Sir, if the problem is looked at intelligently, this is not a common-sense approach. Since the era of one-room flats, incomes have increased with progress, and inflation has made its presence felt, as Singapore developed economically. Thus, although the actual incomes of one-room flat dwellers may have doubled, their real incomes have only risen marginally. In most cases they are only able to afford two-room flats, but they are denied such accommodation that is within their means by the Housing and Development Board which has refused to take into cognisance the need for financial prudence, inflation and the real value of money. It may well be that the Board does not have economists in their midst, but surely they must have heard about the National Wages Council and the annual wage supplement which our Government recommends annually to meet inflation during the previous year.

Mr Speaker, Sir, it is my hope that in raising their perspective to the international scene, the Housing and Development Board will not forget occasionally to lower their eyes and ears to the ground and consider the problems and needs of the very people for whom the Board exists. So much for the Housing and Development Board, Mr Speaker, Sir. I will now turn to another subject, but not education this time.

Mr Speaker, Sir, I would like to turn to a matter that is giving rise to concern among the people of Singapore. And that is the frequent contradictions that arise in actual implementation by different Ministries and quasi-Government organisations of declared governmental policy. In the past few years, arising out of the proliferation of organisations and authorities to provide for the complexities of life due to social and economic changes brought about by our Republic's progress, policies enunciated by the Government appear to be interpreted by the implementing authorities in different ways, and thus make a mockery of our Government's real intention.

Mr Speaker, Sir, I need only to make reference to one recent incident to highlight the contradiction in approach. Recently, the Singapore Airlines, a wholly-owned company of the Government, dismissed a former drug addict who was employed by them on the grounds that, at the time of applying for the job, he had concealed the fact that he had been previously convicted for a drub offence.

Mr Speaker, Sir, while on the one hand we have the Government's declaration of its intention to rehabilitate former drug addicts, to enable them to improve their lot and lead normal lives; on the other hand, we have a tragic case of a Government company terminating the service of an employee because it transpired that he was a former drug addict.

Singapore Airlines, Mr Speaker, Sir, has taken great pains to convince us that he was dismissed not because he was a former drug addict but because he had concealed the fact at the time of seeking employment that he had been a drug addict. But what would have been their response if he had declared that he was a former drug addict? Would he have been given the job? And how many applicants have the Airlines rejected because they were former drug addicts? Besides, how many permanent staff of SIA have been dismissed because of drug offences? How many permanent staff of SIA who became addicted to drugs are undergoing rehabilitation and will they still be employed? There are many questions yet left unanswered.

Sir, what is the position in regard to other Government departments? Do they give former drug addicts a chance to rehabilitate themselves? And when rehabilitated, do they continue to employ them? Or are they cast aside, rejected, unable to find employment, although it is the Government's declared intention that they should be provided with employment opportunities to enable them to regain their place in society and lead normal lives?

Mr Speaker, Sir, the Government has set up institutions and drawn up rehabilitation programmes at great cost with a view to saving these unfortunate persons and though the respective Ministries derive their authority from the same Government, the same Cabinet, the same Parliament, it would seem that there is a contradiction in their approach and in their practice of this declared policy.

Mr Speaker, Sir, there are matters which strike at the root of national welfare and individuals concerned and I would therefore urge that steps be taken to monitor the activities of different Ministries, the statutory Boards and Government-owned companies under their purview, so as to ensure that the intention of the Government is carried out unequivocally and implemented uniformly by the different authorities concerned. 3.45 p.m.

Mr Ho Kah Leong (Jurong): ( In Mandarin): Mr Speaker, Sir, on the 26th of December, the President delivered in this House the policy speech of the Government. From the speech as well as the various Addenda, we can see that our Government is full of verve and vitality. In spite of the fact that Singapore is a small island, that the world economy is recovering only very slowly, and the fact that we are faced with the dark prospect of increasing oil prices, our people are able to unite together to achieve our target in economic growth. Politically, we have also maintained a high degree of stability. With the successful implementation of the home ownership scheme, our people now do not have to face any housing problems. And because of our success in our industrialisation policy, we have achieved a state of full employment. Therefore, Singapore can be said to be one place in South-East Asia where the people can live in peace and work with satisfaction.

Singapore has been independent for 13 years. In the early years of our independence, we had to overcome various difficulties. Our economy today is a rosy picture of good prospect. However, there is a saying that "To set up an enterprise is difficult, but it is even more difficult to preserve it." We want Singapore to stand for ever, and to build it into a strong nation in South-east Asia. To do this requires generations of our people to be of good quality. They must not only have good physique but also alert mental capacity. Not only should they have profound knowledge but they should also learn how to conduct themselves. In order to achieve such objectives, we must start off with eugenics, culture and education.

We all know that there is freedom of marriage in Singapore, provided the couples register their marriage through the legal institutions. But, sometimes because of hereditary factors and others, there could be born abnormal babies, imbeciles, retarded ones and babies with unbalanced development. This not only causes the parents specially to spend much time and effort to look after such unfortunate children but also affect the quality of the society as a whole, besides constituting a burden to the country. To start off with eugenics, controlling the quality of our nationals should be a good way out. I feel that the only practical way is to compel all those people who want to get married to go for medical examination, as ours is a humanitarian and democratic country. Only those who have got the fitness certificate from the doctor could get a marriage certificate. I believe certain countries have implemented this requirement. Perhaps we in Singapore can also adopt this practice.

From the Addendum on Culture, we gather. that the Ministry of Culture will be conducting various activities to promote culture. This is good. Perhaps when we became independent we could not pay enough attention to this aspect. Now that we have consolidated ourselves economically and politically, the time is ripe for us to look after our spiritual development. So, we all must support it. I would appeal to all, particularly those big enterprises and companies and those civic organisations and able individuals, to contribute generously towards the Cultural Foundation Fund and to our National Symphony Endowment Fund. All ranks of our people must come forward to help in our cultural development. As we do not as yet have a culture unique to Singapore, it has to take a long time to preserve the cream of our various cultural traditions and to consolidate them into a culture characteristic of Singapore. The Ministry of Culture should set up a representative co-ordinating committee to plan and promote various cultures, so that all cultures will have an opportunity to develop and vie for mutual emulation in order to achieve a balanced development of our diverse cultures. At the same time, we must also be careful not to allow the development of culture to serve the interest of certain political aims, because this will curb its free development.

Sir, we have been implementing bilingual education. This is a farsighted policy. Although this policy has been implemented for several years, we have not seen any concrete results. Only this year onwards we have to start anew by changing and readjusting the teaching content and direction of our education to strengthen the teaching of English so as to enable the students to improve their proficiency in English in a very short time. All this merits the support of teachers and parents. As our country lacks natural resources, we must raise our technological and scientific levels in order to develop Singapore into a servicing centre in this region. English will enable us to have direct access to all the advanced technology and science in the world and all the latest business management methods without the need for translation. However, in view of the rapid development of modern scientific and technological knowledge, to advance ourselves in these fields or to develop ourselves into a pioneer in this region, we should set up centres both at home and abroad to systematically collect the latest materials from the developed countries, and to analyse and assimilate all these materials at home. Ours is a small country. We cannot afford to spend too much money on research. Therefore, we have to make use of what others have already achieved at very great expense. I feel that our embassies and trade liaison offices abroad could also play some part in this respect, in addition to their normal functions.

Sir, if we have good performances in the fields of eugenics, culture and education, we will be able to have continual emergence of people of good quality, so that with the general uplifting of the quality of our nationals the position of our country will be the more consolidated and strong.

Sir, I support the Motion moved by the Member for Serangoon Gardens thanking the President for his Address. 3.54 p.m.

Mr Ng Kah Ting: Mr Speaker, Sir, the President in his Address to this House on 26th December, 1978, stated the three factors that "will influence events and help shape the deliberations of this next session of Parliament", namely, Singapore's economic growth next year, the Vietnam and Kampuchea conflict, and the next political leadership of Singapore. And with it, the Addenda of the various Ministries.

May I submit my observations on the policy statements on the Ministries of Education, Labour, Defence and Foreign Affairs as well as the Vietnam and Kampuchea conflict and the next political leadership.

Whereas I fully agree that "education in schools will focus on three main areas" enunciated in the Addendum on the Education Ministry, I cannot help but submit that whilst it is all right to put this in cold print, it is another to implement. The House will recall that I took to task the Education Ministry during the Budget Debate last year on the implementation of the policy by the officials of the Ministry. I can only hope that they fully comprehend this declared policy and will carry it out accordingly.

One of the questions I would like to pose first concerns "inculcating Asian values and a sense of national identity through both the mother language and English." How is this to be carried out? What is the number of periods set aside in the school curricula to achieve this objective? In other words, has the Ministry prescribed any books written by local authors for the teachers to teach this subject? Or does the Ministry merely provide the guidelines on the content and leave it open to the schools to gather the material? I find this lacking in the schools and from my discussions with some school principals, even subjects like Education-for-Living in the primary schools and Civics in the secondary schools are vague. To my mind a proper programme should be drawn up and that the schools are supplied with it to teach.

On the question of national identity, similar questions can also be asked. This should be done not only through lessons in class but also in other activities in which a Singapore identity can be forged. Every child in school should be taught to identify himself as a Singaporean first and be proud to be one.

With bilingualism now implemented in the nine selected schools as well as classes to improve proficiency in English, the Ministry should closely monitor the results and where changes are necessary to achieve the objective, such changes should be made.

I am all for the full day schools. In fact, I would submit that more schools be opened for this instead of a few selected schools in 1980. Not to do this will give rise to serious problems, like allegations of unequal treatment. Full day schools will have more time for the school curricula and that the pupils will not be saddled with the problem of having to do their homework outside school.

Sir, I note with dismay silence on the part of the Labour Ministry on making use of CPF savings in relation to the Finance Ministry Addendum that it "will consider selling off parts of our earlier investments in some enterprises which have already fulfilled their pioneering roles." When the Singapore Bus Service shares were offered to the public, CPF contributors could make use of a portion of their savings to buy the shares. Why not allow the contributors to buy "parts of the investments?" I know there are many CPF contributors who do not qualify for HDB flats or for that matter HUDC flats because of their high income and therefore cannot make use of their CPF savings at all. I hasten to add that I am not championing the cause of such contributors.

From time to time, Government float loans and issue loan stocks, so I would like to suggest that these contributors and others be allowed to own them in the same manner of SBS shares. After all, it is a fact that incomes today have gone up much higher and the situation has changed very dramatically. I would therefore submit that this suggestion is in order and should be taken note of.

Next I would like to refer to the subject of political leadership. Although the President has stated that two or three have been found, it is hoped that in the next by-elections some more will be found. Continuity of political leadership is vital. The kind of material necessary has not, by and large, come to grips with crises and is therefore to my mind, an unknown quality. It can only be hoped that they will not let down those who hand-picked them and also not let Singapore down. That they are men of vision and substance, for they have been well-chosen and are supported or will be supported by the great majority of Singaporeans, and that they will think hard and make the right decisions, though some of them may be painful, will be to the betterment of Singapore.

In the final analysis, the people too have an important role. They should not adopt a passive attitude and merely let these bright guys do all the work whilst they are embroiled in a world of their own. This attitude should change. The people should also understand why certain things have to be done and that adjustments have to be made for their well-being.

In this respect, I read with confidence what the Defence Ministry sets out to do. While it is only right that improvements all round are being taken care of, it is also necessary that our national servicemen perform their duty to the nation. The Armed Forces need to be practical and realistic in shaping our national servicemen to answer the call of duty. Could we therefore not mould them after the Swiss fashion? Every able-bodied man is a useful man and he should certainly know his duty. I would venture to suggest an extension of National Service up to 50 years of age instead of at 40 or 45 years, and that every year intensive in-camp orientation exercises for one month be conducted to keep them in trim. This may cause a further burden on the State's coffers as well as disruption to work, but I think it is a price we have to pay if we are to ensure that they are fighting fit.

On top of this, though it may not be necessary to call up the young girls, I believe an exercise to recruit them for auxiliary services will be an advantage. For all you know, girls may prove to be as hardy as the boys. Suffice it to add that if the girls are trained, they will also understand and appreciate what the boys are doing for the Nation.

How do we then go about preparing ourselves for any eventuality? Firstly, Singaporeans, especially the so-called intelligentsia, should stand ready and not be oblivious to what is happening around them. They should be prepared to come forward and be counted upon to serve, when called. Secondly, our youths especially the males should take their stint of national service another step forward, that is, be prepared to respond positively to the call to defend the nation. This does not mean that Singapore has an enemy in mind, but I am merely stating my views on the possibility that this may come about. Because if we are not prepared for it, what would happen?

No Singaporean should seriously believe that he too can join in the "boat-people" to freedom. There is no place for refuge; let us not forget that the world does not owe us a living and that no country in the world is under any moral obligation to accept Singaporean refugees as such. It can be seen that, in spite of the clamour to the world to accept the so-called Vietnamese refugees, not many countries have agreed to accept the entire lot, and that not all of the refugees were accepted.

So, the question of survival in this part of the turbulent world becomes more urgent and important.

Look at what is happening in Kampuchea. Phnom Penh has fallen again after barely four years when the Khmer Rouge forces overran it. This time Kampuchean rebels and the Vietnamese have joined forces to topple the Pol Pot regime. Now Laos, Vietnam and Kampuchea have banded themselves together. If this is the case, a very serious crisis may befall not only Thailand but also Malaysia, as well as Singapore.

In this respect, Sir, the President's caution that "the danger is that these clashes may spread beyond Kampuchea into Thailand" is timely and we, in Singapore, must stay ale" and watch the situation closely. Thus the Foreign Ministry's Addendum that "we must constantly and realistically adjust to external events if we are not to be overwhelmed by them" should jolt every Singaporean to the harsh reality of the need to be ever ready "to make painful adjustments" so that we can remain in one piece.

It is noted that from time to time, when certain measures are introduced, some people gripe and grumble over them. But I would like to pose them this question: "Do you want to stay in one piece by accepting a little pain or the prospect of having to lose everything, including yourself?"

Sir, in conclusion, may I also congratulate the President on his re-election and wish him good health and happiness.

Sir, I fully support the Motion moved by the hon. Member for Serangoon Gardens. 4.08 p.m.

Dr Augustine H.H. Tan (Whampoa): Sir, I rise to join my colleagues in supporting the Motion standing in the name of the Member for Serangoon Gardens.

The President has given us a comprehensive review of Government policies in the next few years. As my colleagues have noted, the Ship of State is evidently in good hands. But I have a few points to offer which may be helpful in clarifying some of the policy issues involved.

The President was hopeful that, despite a downturn in the American economy and higher oil prices, and barring a recession, we should still be able to achieve 6-8% economic growth. Hon. Members may note that most economic observers expect a recession in America, but there is disagreement on the severity and duration of the recession. My own view is that a recession is definitely under way for a number of reasons. One factor is that the US economic expansion, while not sufficient to reduce unemployment, has been unduly long. Secondly, inflation has proven to be more serious and more difficult to contain. Thirdly, and not unrelated to the other factors, the US dollar has been falling dramatically on world currency markets. Hence not only will there be a US recession but it is likely to spread to other countries as well. What is in question is the severity and duration of the recession. If policy-makers are mindful of the lesson of the 1974-75 recession which surprised most observers in its depth and duration, they should be careful in not overly restricting monetary policy. Already interest rates in America have risen alarmingly. Policy-makers should also remember the misery produced by the Great Depression of the thirties when protectionism was rife, world trade was limited by cartels and nations engaged in competitive devaluation. We should be alert to the storm signals already evident now. Currency instability has defied the efforts of central bankers and the IMF. Protectionism has already cost the world economy between US$30 - $50 billion in world trade over the last three years. "Orderly marketing arrangements" already cover more than 10% of world trade, and more is on the horizon.

We should indeed be on guard against protectionism as the Ministry of Finance Addendum put it. More importantly, we should ensure that our industries will be efficient enough to overcome protective barriers. We should also support all efforts at Multi-lateral Trade Negotiations to bring down tariff and non-tariff barriers. It may be noted that general tariff reductions are more beneficial to us than the Generalised Scheme of Preferences (GSP) concessions since such concessions invariably are subject to quota limitations and are easily withdrawn or subject to reclassification.

We should indeed explore new markets. Here, perhaps the Minister for Finance could explain why there is not yet a full-fledged trade promotion body.

I also welcome the proposal by the Finance Ministry to sell off parts of public enterprises. There is a danger that an unduly active public sector may deter private investment efforts, especially when the Government-owned enterprises enjoy preferential treatment, openly or via hidden means. We should also develop controls over public enterprises that are monopolies or acquire monopolistic powers. Such monopolies can hide inefficiency by simply raising their prices at public expense. Not too long ago, the NTUC Welcome Cooperative tried to pressurize the Consumer Clubs and other retailing cooperatives to charge more for rice sold to the public. We, of course, resisted the pressure.

Coming back to the Ministry of Finance Addendum, I am pleased to see that there will be a review of estate duty. I hope the Ministry will be able to alleviate much hardship suffered by bereaved families as a result of undue delays in processing estates and of arbitrary valuations imposed on the estates.

The Addendum has also emphasized further upgrading of manufacturing industries. This is a right move. However, the service sector deserves attention too. Information about this sector is all too scanty.

The manufacturing bias of the Finance Ministry is also evident in its proposal to develop industrial entrepreneurship. Why not entrepreneurship generally? It would also be desirable to cast the entrepreneurial net wider than simply "local engineers, technicians or industrial managers." It may also be noted that it is not merely access to finance that is critical for entrepreneurial development but it is also important to consider appropriate tax incentives and develop procedures that facilitate local investment. Is there sufficient commitment to the idea? And, is the EDB the appropriate agency to handle the problem? The EDB was set up and is geared to promote foreign investments, which it has done very well.

The Finance Ministry Addendum also stated that it would continue the policy of orderly and moderate wage increases via the National Wages Council. This is a correct policy but I believe we should also look at wage structures and wage differentials and use them as means of developing the labour market. It has been my impression that all the adjustment has been forced on the supply side and not enough on the demand side. Complaints are made, for instance, about Singaporeans not wanting to do blue-collar jobs and preferring service-type occupations. Yet the immigration policy discriminates against foreigners in service or white-collar type jobs. In other words, a greater supply of blue-collar workers is made available so the wage differential goes against such workers. Little wonder, then, that Singaporean workers choose the higher-paying jobs after discounting the exposure to physical risks and relative unpleasantness of various occupations.

The Finance Ministry has also proposed the setting up of another industrial training centre. Perhaps this House could have some evaluation of the performance and cost- effectiveness of the present ones to ensure that they do not become white elephants which are costly to maintain.

Our tourists already exceed two million in number and the Finance Ministry is pushing for more. It would be interesting to know whether the Ministry has developed any idea of the optimal number of tourists we should have without straining our infrastructure and services or else there might come a time when there are more foreigners than natives here.

Turning to the Ministry of Labour, I welcome the proposal to include an insurance element in the Central Provident Fund. This will enhance the benefits to families who are bereaved. Perhaps the Ministry could inform us whether the CPF will undertake the insurance itself or farm out the policies to insurance companies. The latter appears preferable to me because the risks are spread. Besides, the funds are re-channelled into the private sector for productive use, I am not too comfortable with an overly large share in national savings by the public sector.

I also welcome the Addendum on the Ministry of National Development that the Housing and Development Board will build recreational and social facilities, like swimming pools, and install more and better lifts in old housing estates. St. Michael's Estate is sorely in need of these improvements. Perhaps the Minister in charge can inform us of his exact plans for the old estates.

I notice also that a centralised wholesale market for fruits and produce will be built at Pasir Panjang. There are obvious economies in centralization. However, I hope that the distribution and transportation elements have been sufficiently considered to minimise the amount of travelling necessary and the attendant costs because a lot of things seem to converge around Pasir Panjang.

The Ministry of Health has proposed to increase the Government's capacity for manufacture of pharmaceuticals. Perhaps the Minister could explain to us why it is desirable that Government should engage in such manufacture at all and whether it is economic to do so.

The Ministry of the Environment has reported that it considers the number of hawkers in Singapore to be adequate and wants to restrict the issue of new licences. There has already been a substantial drop in the number of hawkers of 2,352 over the last couple of years. Would the Minister inform us what ceiling he has in mind, and how he has arrived at the conclusion? On the matter of hygiene, we can take pride that everybody can safely eat out at hawker stalls and coffee shops. More, however, could be done to educate stallholders in food-handling. Hawkers invariably stick their thumbs in the soup or drink when serving their customers - a revolting sight indeed!

If I may now turn my attention to the Ministry of Social Affairs, it is encouraging to note the new initiatives being undertaken, particularly to help the aged and the chronic sick. It would be helpful, however, to have an idea of the quantitative needs for homes for the aged and chronic sick and how the Ministry intends to meet the demand. If filial values have indeed been eroded, then the Ministry will have an uphill task re-educating the younger generation. A contingency plan to meet the needs of the aged abandoned by the younger generation would appear to be desirable.

I welcome the provision of more library facilities from the Ministry of Culture. However, I do not like the new policy of the National Library to prevent students from studying in its libraries. Students from poor homes need a peaceful and quiet place to study. Besides, they need the reference books which they cannot afford to buy. Hence, referring them to the schools which are open at night for them to study is not an adequate substitute unless the library facilities are available and unless they are not disturbed in their study. I hope, therefore, that the policy will be reversed and perhaps also air-conditioned study rooms can be made available at libraries and community centres.

Finally, may I offer a comment on the data presentation. Both the Public Utilities Board and the Port of Singapore Authority could present more up-to-date information instead of relying on information in the first seven months of 1978. The Addenda were presented in December 1978. The Ministry of Health's mortality figures are rather alarming if they are indeed true. It reported that 22 out of 1,000 people died of cancer and 72 out of 1,000 died of heart disease in 1977. This works out to 22,770 deaths due to both causes in 1977. Yet only a total of 11,955 people died as recorded in the Bulletin of Statistics. 4.21 p.m.

Encik Sidek bin Saniff (Kolam Ayer): ( In Malay): Mr Speaker, Sir, I rise to fully support and thank the President for his succinct Address. The Address has highlighted the factual state of affairs facing us.

After a close scrutiny of the Addenda to the Presidential Address, on the whole a conclusion can be arrived at - that every Ministry has outlined its programmes as best as it possibly can for the comfort and well-being of the people and for the image of the nation in the international arena. For example, the expected 6 to 8% real growth can, with one stroke, act as an impetus to all the people of Singapore to be gainfully employed, particularly the youths, because we know that hard work is a very important ingredient not only for self-improvement but, in the final analysis, it results in the stability of the nation, besides depicting the character and quality of the society of the nation. It is consonant with one of the objectives of the Ministry of Labour to develop a good work ethos and increase productivity. We also await the matters to be raised when this Ministry re-examines or reviews the Employment Act. In this respect, I think we cannot erase the shadow of Spyros.

Every year, hopefully, the standard of living of the society will rise and with it the life-style will also change. The one-room flats are not so popular. With both parents, sons and brothers working, people have become choosy and they are not contented with just "so long as I have it". It is therefore welcome to note that the Ministry of National Development, which has a big role to play in the physical improvement of Singapore, has measures to improve the flats that are now under construction; for instance, the provision of "larger floor areas, higher ceilings, more lifts and better finish." As a flat dweller, I can say that a higher ceiling makes the flat look bigger. If the ceiling is low, the flat seems to be smaller than it is.

In addition to these observations, there are a few matters on maintenance which require to be looked into. For instance, (a) there is no need to wait for five years before repainting the flats, if it is apparent that a block of flats is loathsome dirty, like slums exposed to the elements. (b) Structural defects, through no fault of the occupier, have been discovered. Sewerage should be made the particular responsibility of the Ministry. No householder wishes to tarnish this vital aspect. (c) Then there are instances of broken window glass louvres. Although this is a small matter, I think it is very important. I feel that the Ministry can initiate a survey on this matter and try to undertake repair work simultaneously for one block and/or area, thereby reducing the cost of repairs to the occupier. Incidentally I hear that the cost of a single glass louvre is about $20 to $30.

Meanwhile, statistics show that by 1980 about 70% of the population of Singapore will live in flats. Although community centres have been built in constituencies, the Member of Parliament concerned is also provided with the additional facility of using the void deck as a community hall. I hope the allocation of only one unit for each constituency can be relaxed, and leaving its discretion to the MP. The number of units to be allocated should depend on the needs of each constituency. If this is considered too elastic, I wish to propose that it should not be less than three units for each constituency. This is very essential because the close proximity of community halls will further facilitate the work of bringing the people together, particularly the aged residents, in places where they can mingle freely, and not confine themselves in their flats minding their own affairs. We certainly wish to see our, senior citizens imparting their wealth of experience through the community centres and community halls nearest their homes. In this way, continuity of living at an advanced age and maintaining posterity can be well preserved.

Talking about old people - we will all be amongst them - I would like to suggest to the Ministry of Finance to review the question of pensions, bearing in mind the ever-increasing cost of living. I am told that a survey was carried out in 1969 and ten years have now elapsed. Please give attention to this matter. The time has come for some sort of a scheme to be drawn up so that the rates of pensions are not fixed, in contrast to the ever-increasing cost of living. I am also of the view that it is immoral to ask pensioners to pay income tax on the monthly pensions they receive. They should be exempted from paying income tax, just as they are exempted from paying for treatment at Government clinics or hospitals on the strength of their medical benefit cards. The Ministry should at least consider extending such a concession to them.

Touching on hospitals, I am very happy with the statement of the Health Minister that "Health education must be made universal like literacy." A dictum which I feel is most appropriate at a time when people are very conscious of their health is that "even with a stomach complaint they go to the A & E." We hope that with health education we would be able to bring the society to better appreciate problems concerning life and death.

I am also interested in the Minister's statement that from 1973 to 1977 hospital admissions for mental illness increased by 56% and that psychiatric outpatient attendances increased by 121%. I feel that the Minister concerned also knows the details in respect of this matter, e.g., (a) the patients' age group; (b) their occupation; (c) the background - in detail if possible - to their present state of health.

A knowledge of details of the cases is very relevant to successful treatment. To prevent any further increase in the number of these cases at our hospitals, e.g., Tan Tock Seng, Toa Payoh, Alexandra, which will be undergoing a major programme to improve buildings and facilities, I hope this improvement will include a better environment, as this is very essential to good treatment, including pollution control.

With regard to pollution control, we are anxiously awaiting the pollution control work to be carried out at the Singapore River, the Kallang Basin and other catchment areas. For example, one day the Whampoa River will be improved to such an extent that small boats and canoes will be plying up and down the river amidst an attractive and beautiful environment for recreational activities and pleasure. This I will not deny. On the other hand, this is something which the Ministry can think of. I would, in fact, like to say something more than this. Apart from the place being planted with trees and shrubs, cultural and artistic activities can also be included, e.g., (1) engraved boats and sampans. (2) open spaces for sepak takraw, top-playing, kite-flying and other games, e.g., Chinese chess, chess, draught, etc. (3) bands and other musical shows.

The announcement by the Minister for Culture on the establishment of a Cultural Foundation is most welcome. The response to it is also most encouraging. This is more so with the proposed establishment of a cultural complex and plans to coordinate the activities of cultural bodies whether Government, quasi-Government or individuals. I suppose the Cultural Activities Section will have more work. I feel the time has now come for a Cultural Coordinating Council to be established and to be chaired by the Minister himself to co-ordinate cultural activities so that they can truly reflect the aspirations of a multicultural and a multilingual society.

Finally, I would like to touch on education. Every action has a reaction. What has to be borne in mind in proposing something is our approach. A good proposal but one which lacks a good approach does not end up well. On the other hand, a proposal that is less favourable but carried out with a good approach will bring forth good results. This instance is glaringly seen in the steps taken by the Education Ministry when it announced the streaming of the best 8% of our students to the nine selected schools. In the context of a reaction to every action, we find several anomalies in the proposal that is hotly being debated at present, for example, (a) the announcement that future leaders will come from these schools, and (b) stressing the label of "Super School" itself.

I feel that such words have distorted the situation and thus the atmosphere of uncertainty has been aggravated. Yet another instance is when the Ministry of Education appointed Vice-Principals at the eleventh hour followed by a press statement to the effect that the appointments were so designed that the teachers would not shirk their responsibilities in their old schools. This reflects a contradictory attitude. Whilst, on the one hand, there is a show of confidence in their new arduous assignments, on the other, there is, as if, a lack of faith in the teachers concerned to discharge their duties, and thereby the need to ensure that they dispose of their obligations first.

Coming back to the problem of these nine schools, I believe this course of action has been resorted to in the absence of other alternatives, because if there were, the Ministry would not have taken it. There are three important factors.

(1) Streaming is pernicious from the viewpoint of seeking knowledge particularly in the field of education at schools.

(2) Streaming also means that the Ministry has concluded that the zenith of mental development of man on the average occurs between the ages of 12 and 13 years. There must, of course, be relevant data in the Ministry from doctors concerned which have been examined by the Ministry. Yet, from the experience of successful pupils, there are two important classes in school - Primary 5 and Primary 6. A pupil, who has completed Primary 5 can be promoted to Primary 6 and finish his PSLE. For a secondary school pupil who has completed Secondary 3 and proceeding to Secondary 4, there is a possibility that he will complete his 'O' level.

(3) Immersion class held everyday for two hours at another school requires extra physical and mental alertness for these pupils. It should be reminded that they are poles apart when we compare the immersion class with a full day school. There is a big contrast.

These three matters which are of a serious nature are being confronted by the students who, we hope, would be "the future leaders" Physically and mentally, in addition to the stigma attached to the rest of the 92%, the parents, teachers and schools will be affected.

Full day schools will be introduced from 1980. I hope the Ministry will bear in mind yet another priority, in fact more important, and that is a smaller class.

In the meanwhile, it is odd that no mention has been made in the Addenda with regard to the problem of two-year courses and three-year courses for pre-university students.

For all the schools in our State, the inculcation of Asian values is of vital importance. In line with this policy, I feel it is important for the Ministry in charge to examine the following possibilities:-

(1) That the teaching of literature and its elements be included in the Malay Language papers to the extent of, say, 20 to 30%.

(2) That Secondary 4 students be permitted to take Malay Literature by providing Literature classes in Secondary 3 and Secondary 4. This means that they have two options, either English Literature or Malay Literature. So, this means that our students in addition to knowing Shakespeare, Chaucer, Milton and Pope, would also know about the works of authors in this part of the world.

(3) There are several non-Malay schools which provide religious instruction. I think the Ministry of Education should consider giving religious instruction once a week for one period from 12.15 pm to 1.00 pm for afternoon session pupils, and 1.00 pm to 1.45 pm for students attending morning session. In full day schools, they can be held at the end of the day's lessons or at the commencement. 4.40 p.m.

Mr Teong Eng Siong (Sembawang): ( In Mandarin): Mr Speaker, Sir, the President in his Address on the 26th December, 1978, highlighted three important aspects. Firstly, the international economic order and its repercussions on Singapore. He said that, barring an economic recession, we should be able to maintain a 6-8% economic growth. This is indeed encouraging news to the people in Singapore. Secondly, the conflict between Vietnam and Kampuchea and its serious implications on the security of Thailand and other Southeast Asian countries. Thirdly, the nurturing of a young political leadership. The President pointed out that what is decisive is the quality of the political leadership. It goes without saying that this remains an important task for the Government over the next few years.

The President in his speech made a very accurate analysis of the new situation we are facing. This speech should be studied by all the people in Singapore in order to understand what we will be confronted with. In the Addendum, the Acting Minister for Culture said that the Ministry of Culture would follow a policy of allowing the rich cultural heritage of the various cultures in Singapore to interact and blend into a distinctive Singaporean culture and that the Cultural Activities Section would be enlarged and formed into a Cultural Division thereby broadening the scale of activities. This shows that the Ministry of Culture will take positive steps to develop the traditional cultures and arts of the various communities so that further encouragement will be given to help them develop cultural and artistic pursuits under the aegis of the Ministry of Culture. However, this takes time and it is not easy to achieve such objectives. There are two prerequisites for the achievement of these objectives. Firstly, there must be adequate funds so that we can do whatever we have planned to do. On this point, the Acting Minister for Culture's announcement on the setting up of a Cultural Foundation is worthy of praise as this is a timely measure. Secondly, there must be a comprehensive scheme or programme and that bold steps must be taken to nurture artistes. The Ministry of Culture should recruit experienced artistes to fill up the permanent posts so that they could formulate long-term policies and programmes. The recruitment of artistes and those with talent should not be on an ad hoc basis. Since the Ministry of Culture has taken very energetic steps in the promotion of our cultural and artistic activities, it should regard the task of setting up a cultural centre as a pressing need. With the establishment of this cultural centre, we will be in a better position to promote the various kinds of cultural and artistic performances, such as dramas, dancing and musical concerts, etc. so that the flowers of culture and art may bloom abundantly and so enrich the spiritual lives of our people.

In the Addendum on the Ministry of Finance, the Minister has mentioned about how to attract foreign investments, how to develop industries, trade and tourism which are all constructive measures. These measures show their unique characteristics, namely, the continuance of a policy of diversified economy. In fact, this viable economic policy is an important factor which will preserve our economic growth and stability in the coming years. The Minister points out that in the coming years our target is to achieve a 6-8% actual economic growth rate per year. This will enable us to employ all those young people who enter our labour market every year, and to raise our living standards. Only when world trade is increased and only when our goods and services can compete on the world market, will we be able to achieve such objectives and, provided we are competitive enough we may not achieve them. I agree with what the Minister has said that at present our world is a very competitive one. For self-interest, many countries have imposed protectionism and heavy tariffs against importing goods from developing countries. This causes a blow to developing countries with their incipient industries. Therefore, in order to remain competitive and for our survival and development under this stark reality, we must raise our skill and productivity with diligence and correct work ethos as well as provide good services and expand our market. Only then can we overcome our problems and achieve our targets.

The Minister in his Addendum has said that our target in the coming year is to get a total investment of $450 million from abroad. His ambition is worthy of praise. However, I feel that in addition to seeking investments from abroad, we should also encourage domestic investments and try to get our capital from domestic sources. In fact, we are not short of domestic capital. This could be seen from the over-subscriptions of Government bonds raised. How are we going to encourage investment from domestic capital? I feel that the wise Minister will be able to formulate good measures to attract our entrepreneurs, commercial and industrial capitalist to contribute their best towards our economic prosperity.

Other new measures are mentioned in the other Addenda, such as the Defence Addendum which mentioned the recruitment of women into the regular service in future. This will give the women a better opportunity to serve the country. The Labour Addendum mentioned the intended changes to the Workmen's Compensation Act to give families of the workers a fairer and speedier compensation. This is, of course, a good measure. However, the Public Utilities Board Addendum has mentioned about the intention to readjust tariffs for gas, electricity and water. This causes worry to many people. I hope this measure will not be implemented in the immediate future so as not to increase the burden of the consumers.

Sir, I support the Motion. 4.49 p.m.

Mr Teo Chong Tee (Changi): Mr Speaker, Sir, I fully support the Motion moved by the Member for Serangoon Gardens to thank the President for his speech in which three major issues that will influence events and help shape the deliberations of this Session of Parliament were singled out.

Sir, the President has predicted that we will be able to achieve 6 to 8% economic growth this year. This figure was derived at after the OPEC had announced an oil price increase of 14.5% spread over the year. A growth rate of 6 to 8% this year may seem quite improbable because the economies of Japan, the EEC countries and the United States are expected to face a downturn in view of the hike in oil price. Nevertheless, I am quite confident that our economy will continue to grow if we channel all our economic resources into the production of goods and services. However, our young workers should not be complacent nor should they be despondent. They should continue to acquire greater skills and diligence. They should be self-disciplined, thrifty and enterprising and should always place national interests above all personal interests.

As for the conflict between Vietnam and Kampuchea, let us hope that this will not spread to Thailand and the rest of Southeast Asian countries. The conflict is clearly a conflict between the two communist giants who are trying to extend their influence to Southeast Asia. To avoid being drawn into the conflict, we must always be on guard against any attempt by the big powers to draw us into their sphere of influence. Singapore as a nation may be too vulnerable to the big powers, but as a member of ASEAN, we are quite safe. Therefore, we must strengthen the ties among the ASEAN countries. As for our communist neighbours, we should try to foster goodwill with them but not at the expense of our independence. To ensure that we continue to progress, our next generation of political leaders should be capable of facing the challenge of more complex and diverse responsibilities of government. To this end, new blood is continually being injected into Parliament. It is encouraging to note that more capable administrators will be attracted into the Administrative Service and the Statutory Boards through a total revamping of the rewards and salaries of senior officers. However, in realising this objective, we must not create an elite class which is totally alienated from the rest of the civil service.

Sir, I share the Ministry of Labour's concern over industrial safety and health. To date, the Ministry's efforts in improving industrial safety and health are concentrated on taking safety measures, penalising those responsible for such accidents, and educating workers on industrial safety. Unfortunately, there seems to be no improvement in the standard of industrial safety, if the number of accidents and casualties is to be taken as a measure of the seriousness of this problem.

Ship-repairing, ship-building and high-rise building construction have the highest rates of industrial accidents involving serious bodily injuries and even death as happened in several cases. The Spyros incident can be cited as an example of the ineffectiveness of the measures taken by the relevant authorities. Now, when the sufferings caused by the Spyros incident are still fresh in everybody's mind, management and workers are aware of the importance of industrial safety. However, with the passage of time, when memories of the sufferings fade away, safety consciousness of both management and workers will again be lacking unless the Ministry of Labour takes the initiative to see that safety measures are strictly followed by the responsible parties at all times. Employers should show more interest in implementing safe working methods and in providing adequate safety apparel and a safe working environment, with equipment, machines, tools, etc., regularly serviced, maintained and guarded. They should not only be interested in making huge profits as quickly as possible at the expense of the workers.

The Government has repeatedly given warnings about giving proper industrial safety and health protection to their workers but these have often fallen on deaf ears. As a consequence of their negligence, severe bodily injuries and loss of precious lives among workers are frequently caused.

Such acts of negligence should not be tolerated and enhanced penalties should be meted out accordingly. Workers should continue to be educated on safety consciousness. For those who refuse to use the safety equipment supplied to them, disciplinary action should also be taken against them, particularly the recalcitrants. The Ministry of Labour should intensify its supervision on worksites and punish both management and workers who fail to observe safety rules and regulations. Therefore, I hope the Ministry of Labour would put in more efforts in supervision rather than concentrating on formulating rules and procedures which are not seriously observed by management and workers.

Sir, may I now turn to the Addendum on the Ministry of Home Affairs. In its Addendum, the Ministry states that foot patrols will be introduced in Housing Board estates from January this year and that Police national service reservists will be used to supplement the regular police officers in patrolling duties. By July this year, 122 reservists will be available to perform patrol duties each day. This figure will be further increased and it is to be welcomed. As foot patrolling of housing estates is labour-intensive and more housing estates will be built, the number of reservists available for patrol duties may not be adequate to achieve results unless there are sufficient regular police officers. Nowadays, it is becoming more and more difficult to recruit male police officers because the Police Force has to compete with the industrial sector which is rapidly expanding. However, in order to overcome the shortage of manpower, the police should consider recruiting more women so that they can take over all the administrative work, leaving the men to do patrol duties.

To serve the people more effectively, the police should be based at heavily populated areas. Since our population is concentrated in housing estates, the Ministry should consider building police stations in every housing estate. Preferably, the police stations should be located at town centres which are at the heart of these estates. By setting up police stations in these estates, the services of the police could be readily available to the public. Perhaps it is a good idea to have police officers serving in their own housing estates as they would know the surroundings and the people better. Moreover, to tackle crimes more successfully, police officers should be at the scene of the crime immediately or within a short time when they are called upon. If they are in the midst of the people, they will definitely be more available to the people. Regular patrols at the rural areas should also be intensified.

In dealing with crimes, Police should adopt a more exacting and effective method of work, mode of organisation and strategy for security in order to ensure that our people continue to live in peace without unnecessary harassment from any sort of undesirable elements. With proper deployment and marshalling of Police manpower to be augmented with the Police national service reservists, we will be able to achieve quantitative expansion in addition to qualitative improvement, and this will put our future task of security on a better vantage ground.

At this juncture, I would like to commend the Ministry for the efforts put up to attract more brain power into the Police Force. Without a strong leadership, the Police Force would degenerate due to short-sightedness and poor planning. However, in our enthusiasm to build up top leadership, we should not forget the base, that is the junior Police Officers. Whether they are serving in the army, police or VC, promising young men who have keen interest in the job should be encouraged to join the Police Force. Opportunities for advancement should be made more attractive to encourage them to take up Police as a career.

The Addendum of the Ministry of National Development states that having housed 60% of the population, the Housing and Development Board will now concentrate on improving the design and quality of flats to be built. Providing bigger and better-designed flats for would-be flat dwellers and present flat dwellers who can afford to give up their flats and acquire bigger flats is welcomed. However, the HDB must bear in mind that more than half of the population in Singapore has already been housed in flats. Improving the environment of the present housing estates is equally, if not more important than providing better and bigger flats in future. Thus, the HDB should continue to plan and work towards better housing with improved social and recreational facilities, better infrastructure and public amenities in pleasant and gracious environment in the coming years.

In fact, during the past years, the Housing and Development Board had already made vast improvements in the design and quality of flats. This is evident when one compares the old housing estates like Toa Payoh and Queenstown with the new housing estates like Bedok, Ang Mo Kio and Clementi. Unfortunately, the same cannot be said of workmanship. In fact, when one compares an old flat with a new one, one can see clearly the deterioration of the workmanship. Therefore, I suggest that the HDB also concentrates on improving the workmanship of flats. The officials from the HDB should also be more vigilant to ensure that contractors adhere closely to specifications.

Mr Speaker: Mr Teo, it is 5.00 p.m.

Mr Teo Chong Tee resumed his seat.