MILLENNIUM COMPUTER BUG (Steps taken to overcome)

Dr Tan Boon Wan asked the Minister for Trade and Industry, given the potential havoc of the millennium computer bug and that the new millennium is only a year and a half away, how prepared is the country for the Year 2000 problem; what steps have been taken to overcome it; and what is its likely impact on life in Singapore.

BG George Yong-Boon Yeo: Mr Speaker, Sir, the Year 2000 (Y2K) problem is likely to affect many areas of our lives, including the legal, financial and business areas. If left unattended to, it may lead to major disruptions. For example, non-Y2K compliant cash registers may not accept credit cards which expire in the year 2000 or after. To avoid such problems, NCB is working closely with other Government agencies, trade associations and professional bodies to highlight the Y2K problem and encounrage companies to take the necessary actions beforehand.

All Government agencies have been directed to complete the conversion of their affected systems by the end of this year to allow a clear one-year lead time for further testing before the turn of the century. To-date, about 40% of the conversion work has been completed. Most Government agencies will be able to meet the end-1998 deadline. . In general, our private sector is aware of the Y2K problem. However, survey results indicate that there are still many companies, and even specific sectors, which are uncertain of the impact of Y2K on their operations.

The National Computer Board (NCB) conducted an IT Manpower and Skills Inventory Survey in October last year. A total of 269 companies responded. About 122 companies (45% of respondents) stated that the Y2K problem was of concern to them. Of these 122 respondents, 54% were already in the planning, budgeting and impact analysis stages of tackling the problem.

In another survey conducted by the Singapore Federation of the Computer Industry (SFCI) in February 1998, 64% of the 347 respondent organisations indicated that they are affected by the Y2K problem. Another 25% indicated that they are unaffected, while the remaining 11% said that they are not sure. The survey also found that finance companies, public organisations and larger institutions are the most affected while construction companies and smaller companies appear to be the most unsure of the impact of this problem.

To help push for early resolution of the problem, NCB has requested all Government agencies to closely monitor the key infrastructure companies under their supervision. For example, the Telecommunication Authority of Singapore (TAS) has to ensure that all the telecommunications operators, like SingTel, M1, are Y2K-ready. Similarly, the Monetary Authority of Singapore (MAS) has issued guidelines to all financial institutions to review their computer systems and to complete their Y2K conversion by end of this year.

Since the launch of the Y2K Conversion Campaign in November 1996, NCB has been working with the various Government agencies, trade associations and professional bodies to organise seminars, conferences and exhibitions. These serve to promote awareness of the Y2K problem, especially among the small and medium-sized enterprises (SMEs). For example, there are bi-monthly IT Awareness Briefings for SMEs. Further awareness of the Y2K problem is also built up through press coverage on television, radio and in print, in particular, the Chinese-language media. The recent television series "Singapore at Work" contained a segment on this issue. NCB has also set up a Y2K web site to provide useful information, and to provide an avenue for the public to discuss issues, to share experiences and to seek help. . Apart from increasing awareness of the Y2K problem, the Government is also providing SMEs with financial assistance to tackle the problem. SMEs can tap on the Local Enterprise Computerisation Programme (LECP) grant to help them defray up to 70% of the cost of consultancy services to tackle the Y2K problem.

Dr Tan Boon Wan (Ang Mo Kio): Mr Speaker, Sir, I would like to ask the Minister whether our Public Utilities Board will ensure that the Y2000 problem does not impair the supply of power to Singapore. This is an area of concern which the American utilities authorities have recently surfaced and they have expressed concern in this particular area.

BG George Yong-Boon Yeo: The PUB is fully aware of this problem.