ECONOMIC DEVELOPMENT BOARD (AMENDMENT) BILL

Order for Second Reading read. 3.55 pm

The Minister of State for Trade and Industry (Mr Mah Bow Tan): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

The roles and responsibilities of the Economic Development Board (EDB) have broadened substantially since the Economic Development Board Act was last amended in April 1975. In 1986, the Economic Committee identified the services sector as an important and key growth sector for Singapore. The responsibility for promoting internationally tradeable ser- vices has been assigned to the EDB. In addition, EDB has also taken on the responsibility of promoting the development of local small and medium enterprises (SMEs).

To provide EDB with the additional mandate to promote the services sector as well as to develop SMEs, the Bill proposes to:

(a) amend section 17 of the Act to include a broader definition of "services" which is not covered under the existing Act; and

(b) to replace the term "industrial enterprise or enterprises" wherever it appears with "business enterprise or enterprises", as defined in the amended section 2.

The Bill also proposes a new section 5A to specify the Board's functions which were not defined previously.

The opportunity is also taken to make the following amendments to streamline the Board's operations and to provide administrative flexibility, as well as to bring them in line with the practices of other major statutory boards:

(a) Section 5 of the Act is amended:

(i) for the Board to comprise the Chairman and not less than 4 and not more than 11 other members instead of the present provisions for the Board to comprise the Chairman and Director and not less than 4 and not more than 10 other members; and

(ii) to allow the Board to meet at such times and places as it may determine instead of the present provision for monthly meetings;

(b) Sections 7 and 11 are amended to give the Board the discretion to determine the designation, duties and responsibilities of the Chief Executive Officer; and

(c) Sections 23, 24 and 25 are amended and a new Schedule inserted to incorporate model provisions on matters of audit laid down by the Auditor-General which all statutory boards are required to comply with.

Sir, I beg to move.

Question proposed.

Mr Chew Heng Ching (Eunos GRC): Sir, I have just two clarifications to seek from the Minister of State. I agree with him that the EDB has come a long way since it was set up in the early 60's. Its traditional role of promoting manufacturing investments in Singapore has taken on a new dimension in the last few years when it started to promote Singapore as a total business centre. Its functions described under a new section 5A are laudable. The Board is now asked to promote the services industry. I think there is nothing wrong. In fact, it is a step in the right direction by the Government to promote the services industry. My fear is: will the expanded role of the EDB impinge on the traditional role of the Trade Development Board, which is essentially to promote the export of our local products and services?

My concern, Sir, is of our scarce resources. I think we must try to avoid duplication of functions and resources by our statutory boards in promoting economic development. Perhaps the Minister may wish to clarify on this observation.

Another clarification pertains to the appointment or the creation of a CEO post in the EDB. I think the Minister of State did not quite explain this. I just want to know why is this move necessary, since the Board has been run sucessfully in the past by an Executive Director and now by an Executive Chairman and a General Manager.

Mr Mah Bow Tan: Mr Speaker, Sir, if I may respond to the first point made by the Member.

I agree with the Member that in view of our scarce resources it would not be a good idea for EDB and TDB to impinge upon each other's territory. I would like to reassure the Member that this is not going to be the intention. In fact, the EDB has made it very clear that it seeks to have a cooperative effort in all its promotion endeavours. In this particular case it is cooperating actively with the Trade Development Board in the promotion of exportable services. This is what I mentioned in my Second Reading speech that the EDB is primarily concerned with the tradable exportable services.

As far as the second clarification that was sought by the Member, the creation of a CEO post, this is actually a streamlining of the organizational structure within the EDB and it does not have any further repercussions.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into a Committee on the Bill. [Mr Mah Bow Tan].

Bill considered in Committee.

[Mr Speaker in the Chair]

Clause 1 ordered to stand part of the Bill.

Clause 2

Mr Mah Bow Tan: Sir, I beg to move,

In page 2, after line 5, to insert -

"(b) by deleting the words "an industrial" in the definition of "underwrite" and substituting the words "a business".

Sir, this paragraph has been erroneously omitted earlier.

Amendment agreed to.

The Chairman: Consequential amendments will have to be made:

(a) In page 2, line 2, after "amended", to insert "- (a)".

(b) In page 2, line 5, to leave out the fullstop and insert "; and".

These will be done.

Clause 2, as amended, ordered to stand part of the Bill.

Clauses 3 to 10 inclusive ordered to stand part of the Bill.

Clause 11 -

Mr Mah Bow Tan: Sir, I beg to move,

In page 8, line 2, after "sections", to insert "11(3)," as the word "industrial" in section 11(3) of the existing Act will have to be replaced by the word "business". Section 11(3) has been left out earlier.

Amendment agreed to.

Mr Mah Bow Tan: Mr Speaker, Sir, I beg to move, In page 8, lines 3 and 4, to leave out "(b), (c), (d) and (e)". as the word "industrial" in the main body of section 19 will also have to be replaced by "business". This was overlooked earlier.

Amendment agreed to.

Clause 11, as amended, ordered to stand part of the Bill.

Bill reported with amendments; read a Third time and passed.