ENERGY CONSERVATION (Measures to introduce)

Haji Sha'ari bin Tadin asked the Minister for Trade and Industry whether he plans to introduce energy conservation measures to encourage the people to save energy.

The Minister for Finance and Acting Minister for Trade and Industry (Mr Hon Sui Sen): Mr Speaker, Sir, I am glad the Member has raised this question. It gives me the opportunity to inform the House of the Government's energy plans.

The second oil crisis last year has re-emphasized the fragile position of the world supply of oil and the importance of having a secure source of energy. The recession in the world economy and the current inflation are the direct effects of the disruption in oil supply and the doubling of oil prices. All forecasts indicate that global demand for oil will exceed supply if the world does not become more efficient in the use of energy and reduce its dependence on oil. If the world fails to moderate its oil consumption, the consequences will be increasing shortages and escalating prices. Any disruption of supply will be disastrous.

Singapore is especially vulnerable because all our energy requirements are met entirely from oil, all of which has to be imported. Energy is therefore one of the most important factors affecting our economic growth. In view of this, my Ministry has set up an Energy Unit which will be responsible for formulating policies to reduce our vulnerability to fluctuations in oil supply and to enable us to be more efficient in our use of energy. As the implementation of energy policies falls under more than one Ministry, we have also established an Energy Coordination Committee to ensure that consistent energy policies are vigorously pursued in all sectors of the economy.

The Unit and the Committee will study how we can diversify our sources of supply, reduce our dependence on oil, and encourage greater efficiency in energy usage in industry, commerce, transportation and in the homes.

My answer to the Member's question is therefore in the affirmative. In fact, the Government has already taken a number of measures to promote energy conservation. Last year, the PUB organised a nation-wide "Save Energy Campaign". Amendments to the Building Regulations have been made to incorporate energy conservation requirements for new buildings. Electricity tariffs were also revised to discourage excessive consumption. An inter-Ministry committee under the Ministry of National Development is now studying how to ensure the economic use of power and fuel for equipment, plant and vehicles and to encourage energy conservation in buildings within the public sector. The findings of this Committee will provide guidelines that can also be applied in the private sector.

For the future, the Energy Unit in the Ministry will consider further measures to promote economy in energy usage on a national scale. The Japanese have pursued energy conservation in a very serious and systematic manner. We are considering whether some of their ideas can be adapted for our use, for example, appointing energy managers in factories which are large users of energy, raising the minimum level of temperature by air-conditioning in buildings and systematically distributing information on standards and guidelines for reducing energy consumption in residences, offices, vehicles and factories.

In essence, we must instil a high level of consciousness of the need to conserve energy in our population. A sense of energy economy, like courtesy, should become our way of life. We must also build up the expertise on how conservation can be achieved in industry, commerce, transportation and households.