TIMBER INDUSTRY (REPEAL) BILL

[Mr Speaker in the Chair]

Order for Second Reading read.

The Acting Minister for Trade and Industry (Mr Peter Chen): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

Sir, this Bill seeks to repeal the Timber Industry Act. The Timber Industry Act, originally known as the Timber Industry Board (Incorporation) Act, was introduced in 1974. At that time, Singapore was one of the leading saw-milling centres in the region. The main objective of the Act was to ensure the quality of timber processed and exported from Singapore, so as to maintain Singapore's status as a reliable timber trading centre. The Act stipulated, among other things, the licensing of manufacturers, exporters and graders of sawn timber.

The situation has since changed. Singapore's economic landscape has evolved over the years and our trade today largely comprises high-value manufactured goods. Timber processing and timber trading are largely carried out offshore, where the cost is lower. Last year, timber trade accounted for only 0.3% of our total trade compared to 2% in 1980. The number of sawmills has gone down from about 50 in 1980 to 4 last year.

Our timber trade now mainly consists of import and re-export of timber. Those who continue to maintain their activities in Singapore have also reached a certain level of maturity. Our traders have adopted market practices that are in line with international standards and requirements. In addition, the industry has introduced the Singapore Timber Trade Procedures since 1996 to foster good practices for timber trading. To them, market competition, and not Government regulations, provides the best discipline to maintain high product quality.

With greater industry self-regulation by the Singapore Timber Exporters' Association (STEA) and Singapore Timber Manufacturers' Association (STMA), the Trade Development Board (TDB) has over the years progressively deregulated the timber industry by removing export licences and registration of manufacturers for timber items such as fibreboards, ground wood and mouldings.

Because of these considerations, the Trade Development Board decided to review the regulations on the timber industry. The Trade Development Board consulted the Singapore Timber Exporters' Association and the Singapore Timber Manufacturers' Association, who confirmed that the Timber Industry Act no longer serves much purpose.

Sir, I beg to move.

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 Peter Chen].

Bill considered in Committee; reported without amendment; read a Third time and passed.