IMPORT OF RECONDITIONED CARS FROM JAPAN (Particulars)

Mr Ang Nam Piau asked the Minister for Communications and Acting Minister for Culture why approval has been given to certain local car dealers to import reconditioned second-hand cars from Japan; how many such cars have been imported to date; and whether the importation of such cars is contrary to the policy of keeping down the car population in Singapore.

The Minister for Communications and Acting Minister for Culture (Mr Ong Teng Cheong): Mr Speaker, Sir, restrictions on the import of used cars were lifted in May 1976 as it was thought then that, with import duty at 45% and Additional Registration Fee at 100% of the value of the car, not many such cars would be imported. Until this year, sales of imported used cars were small and did not give cause for concern.

However, with rising affluence and with new cars becoming more expensive, sales of imported used cars, especially of reconditioned cars from Japan, have increased substantially. The number sold in 1976 was 62, 65 in 1977, 173 in 1978 and 622 during the first 10 months of this year. If unchecked, the rising imports of used cars will undo all our efforts to restrain the growth in the car population.

We are closely monitoring the import of used cars and considering various measures to curb the growth in imports.

Dr Koh Lip Lin: Sir, can the Minister clarify whether the imported second-hand cars have to meet a certain requirement or test for roadworthiness before they can be sold in Singapore, and whether our requirement is less strict than the Japanese such that cars which are not accepted in Japan are now imported into Singapore?

Mr Ong Teng Cheong: Mr Speaker, Sir, any reconditioned or used cars imported into the Republic will have to be inspected at the ROV for roadworthiness before registration. We are not aware of the standards or criteria set by the Japanese inspection authorities for reconditioned cars for export purposes, and I am in no position to say whether they are more strict than we are at this stage. But, as I have said, these cars have to pass the inspection test for roadworthiness by the ROV before they can be put on the roads.

Dr Augustine Tan: Sir. does the Hon. Minister have any evidence of the export of second-hand cars from Singapore to other countries?

Mr Ong Teng Cheong: Sir, I do not have physical evidence, if that is what the Member is asking. But I know that our used cars have been exported to other countries. And I can say this from my personal knowledge that many of our friends inside and outside this House have had their used cars exported.

Dr Augustine Tan: Sir, would the Minister not consider that if the export of such second-hand vehicles from Singapore is on a substantial scale, say, in the order of at least 600 cars per year, it will be a counter-balancing factor to the import of similar second-hand vehicles from Japan?

Mr Ong Teng Cheong: Sir, I do not know the exact figures of second-hand cars exported from Singapore. Of course, the import of 622 reconditioned cars from Japan is a large figure compared to the previous year's figure of 65 or 62. But when we consider this in terms of the total number of new cars registered during the same period of 10 months this year, i.e. more than 18,000; then it is a very small figure. It is less than 3 1/2%. Nevertheless, we are keeping a close watch on the registration of these reconditioned cars.

Dr Augustine Tan: Sir, would the Hon. Minister not agree with me that, from the point of view of the economy, it is cheaper to import second-hand vehicles rather than brand new vehicles because it means a saving in terms of foreign exchange?

Mr Ong Teng Cheong: Sir, I think the Member's question is contrary to the argument put up by the Member for Thomson. It is our policy to discourage the rapid growth in car population. [n that respect the national economy and foreign exchange do not come into the argument.

Dr Augustine Tan: Sir, is the Hon. Minister not aware that there are other alternative measures which could achieve the same aim of keeping down the car population and yet, at the same time, permit Singapore to save on foreign exchange?

Mr Ong Teng Cheong: Sir, I am fully aware of that.

Mr Hwang Soo Jin (Jalan Kayu): Mr Speaker, Sir, I am just wondering whether the Hon. Minister has considered the effect of his statement to this House this afternoon, i.e. it is likely to cause a greater number of second-hand cars being imported within a short space of time.

Mr Ong Teng Cheong: Sir, I am aware of that. And if that actually happens, then the importers are forcing the Government to kill the goose earlier, the goose that lays the golden eggs. As I have mentioned, we are studying the various measures taken to curb the growth in imports of second-hand cars. This is being discussed actively between the officials of my Ministry and the Ministry of Trade and Industry.

Mr Sia Khoon Seong (Moulmein): Mr Speaker, Sir, will the Minister not consider imposing a quota on the import of second-hand cars to Singapore?

Mr Ong Teng Cheong: Sir, the officials do not exclude any possible measures that would lead to a curb in the importation of second-hand cars. It is premature for me to reveal or to go into details of these various measures at this stage.