BATAM PROJECT (Position)

Mr Ng Kah Ting asked the Minister for Trade and Industry what the position is with regard to the proposed agreement between Indonesia and Singapore under the Batam Project.

Mr Goh Chok Tong: Mr Speaker, Sir, the question has been overtaken by events, and I am pleased to inform the House that I have this morning signed the Agreement between Indonesia and Singapore for Economic Cooperation in the Development of Batam Island.

The Agreement focuses on the cooperative effort to promote the development of the Industrial Region of the Batam Island, which consists not only of Batam Island proper but also the group of islands of Janda Berias and Islands of Tanjung Sau, Ngenang and Kasem. The Agreement covers areas of mutual interest in trade, industry, banking, communication, taxation, customs and immigration.

The Agreement will come into force immediately after the respective governments have fulfilled the constitutional requirements and notified each other. The Agreement will remain in force for five years from the date of implementation, after which it can be extended with the consent of the two governments.

The full text of the Agreement will be published when the necessary formalities to bring it into force have been completed by the two parties.

Mr Ng Kah Ting: Mr Speaker, Sir, could the Hon. Minister inform this House when ratification of this Agreement would take place?

Mr Goh Chok Tong: Mr Speaker, Sir, I would not be able to speak for the Indonesian government at this stage. They would have to ratify the Agreement on their side. On our side, I have been authorised by the Government to sign the Agreement and in accordance with our own constitutional requirements, that will be sufficient for the Agreement to take effect. So it is more a question of waiting for ratification from the Indonesians.