jilid v hari khamis no. 15jilid v no. 15 hari khamis 9hb januari, 1969 perba h athan parli men dewan...

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Jilid V No. 15 Hari Khamis 9hb Januari, 1969 P E RB A H AT H AN P A R L I MEN DEWAN RA'AYAT YANG KEDUA PENGGAL KELIMA PENYATA RASMI KANDONGAN-NYA MENGANGKAT SUMPAH [ Ruangan 26811 PEMASHHORAN OLEH TUAN YANG DI-PERTUA: Perutusan Daripada Dewan Negara [ Ruangan 26811 Memperkenankan Rang UndangZ [Ruangan 26831 Kematian Allah Yarham Y.B. Tuan Abdul Rabman bin Haji Talib , dam Allah Yarham Y.B. Tuan Haji Abdullah bin Haji Mohd . Salleh [Ruangan 26831 Mengalu'kan Ahli2 Baharu [Ruangan 26841 Perletakan Jawatan Y . B. Tuan Lim Kean Siew ( Dato' Kramat ) [Ruangan 26841 JAWAPAN2 MULUT BAG! PERTANYAAN' [ Ruangan 26841 RANG UNDANGZ DI-BAWA KA-DALAM MESHUARAT [ Ruangan 27061 WAKTU MESHUARAT DAN URUSAN YANG DI-BEBASKAN DARIPADA PERATORAN MESHUARAT (USUL2) [ Ruangan 27091 ATORAN URUSAN MESHUARAT (USUL) [ Ruangan 27251 USUL2: Tambahan Hakim2 Mahkamah Tinggi Tanah Melayn--Perkara 122A ( 1) Dalam Perlembagaan Persekutuan [Ruangan 27101 UndangZ Kastam (Tarif Bersama Malaysia), 1966- Perentah Kastam (Tarif Bersama Malaysia) ( Pindaan) (No. 21) 1968 [ Ruangan 27261 Perentah Kastam (Tarif Bersama Malaysia) (Pindaan) (No. 22) 1968 [Ruangan 27271 Undang2 Kastam, 1967--- Perentah Chukai2 Kastam (Pindaan) (No. 11) 1968 [Ruangan 27281 Perentah Chukai2 Kastam ( Pindaan) (No. 12) 1968 [Ruangan 27291 RANG UNDANG2: The Widows ' and Orphans ' Pensions ( Sabah) ( Amendment) Bill [Ruangan 27171 The Widows' and Orphans ' Pensions ( Sarawak) (Amendment) Bill [Ruangan 27241 The Malay Regiment (Amendment) Bill [Ruangan 27241 Rang UndangZ Perbekalan ( 1969)--( Bachaan Kali Yang Kedua ) [Ruangan 27341 DI-CHETAK DI-JABATAN CHETAK KERAJAAN OLEH THOR BENG CHONG, A.M.N., PENCHETAK KERAIAAN KUALA LUMPUR 1969

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Page 1: Jilid V Hari Khamis No. 15Jilid V No. 15 Hari Khamis 9hb Januari, 1969 PERBA H ATHAN PARLI MEN DEWAN RA'AYAT YANG KEDUA PENGGAL KELIMA PENYATA RASMI KANDONGAN-NYA MENGANGKAT SUMPAH

Jilid VNo. 15

Hari Khamis9hb Januari, 1969

P E RB A H AT H ANPA R L I MEN

DEWAN RA'AYAT YANG KEDUA

PENGGAL KELIMA

PENYATA RASMI

KANDONGAN-NYAMENGANGKAT SUMPAH [Ruangan 26811

PEMASHHORAN OLEH TUAN YANG DI-PERTUA:Perutusan Daripada Dewan Negara [Ruangan 26811Memperkenankan Rang UndangZ [Ruangan 26831Kematian Allah Yarham Y.B. Tuan Abdul Rabman bin Haji Talib , dam Allah

Yarham Y.B. Tuan Haji Abdullah bin Haji Mohd . Salleh [Ruangan 26831Mengalu'kan Ahli2 Baharu [Ruangan 26841Perletakan Jawatan Y .B. Tuan Lim Kean Siew (Dato' Kramat) [Ruangan 26841

JAWAPAN2 MULUT BAG! PERTANYAAN' [ Ruangan 26841

RANG UNDANGZ DI-BAWA KA-DALAM MESHUARAT [Ruangan 27061

WAKTU MESHUARAT DAN URUSAN YANG DI-BEBASKAN DARIPADAPERATORAN MESHUARAT (USUL2) [Ruangan 27091

ATORAN URUSAN MESHUARAT (USUL) [ Ruangan 27251

USUL2:Tambahan Hakim2 Mahkamah Tinggi Tanah Melayn--Perkara 122A ( 1) Dalam

Perlembagaan Persekutuan [Ruangan 27101

UndangZ Kastam (Tarif Bersama Malaysia), 1966-Perentah Kastam (Tarif Bersama Malaysia) (Pindaan) (No. 21) 1968 [Ruangan27261

Perentah Kastam (Tarif Bersama Malaysia) (Pindaan) (No. 22) 1968 [Ruangan27271

Undang2 Kastam, 1967---Perentah Chukai2 Kastam (Pindaan) (No. 11) 1968 [Ruangan 27281

Perentah Chukai2 Kastam ( Pindaan) (No. 12) 1968 [Ruangan 27291

RANG UNDANG2:

The Widows ' and Orphans ' Pensions (Sabah) (Amendment) Bill [Ruangan 27171

The Widows' and Orphans ' Pensions (Sarawak) (Amendment) Bill [Ruangan 27241

The Malay Regiment (Amendment) Bill [Ruangan 27241

Rang UndangZ Perbekalan ( 1969)--(Bachaan Kali Yang Kedua) [Ruangan 27341

DI-CHETAK DI-JABATAN CHETAK KERAJAAN

OLEH THOR BENG CHONG, A.M.N., PENCHETAK KERAIAAN

KUALA LUMPUR

1969

Page 2: Jilid V Hari Khamis No. 15Jilid V No. 15 Hari Khamis 9hb Januari, 1969 PERBA H ATHAN PARLI MEN DEWAN RA'AYAT YANG KEDUA PENGGAL KELIMA PENYATA RASMI KANDONGAN-NYA MENGANGKAT SUMPAH

MALAYSIA

DEWAN RA'AYAT YANG KEDUA

PENGGAL YANG KELIMA

Penyata Rasmi

Hari Khamis, 9hb Januari, 1969

Persidangan hermula pada pukul 10 pagi

YANG HADHIR

Yang Berhormat Tuan Yang di- Pertua , DATO' GHIK MOHAMED YUSUF BIN

SHEIKH ABDUL RAHMAN , S.P .M.P., J:P:; Dato' Bendahara , Perak.„ Timbalan Perdana Menteri ; Menteri Pertahanan , Menteri Hal

Ehwal Dalam Negeri dan Menteri Pembangunan Negara danLuar Bandar, Y.A.B. TUN HAJI ABDUL RAZAK BIN DATO'HUSSAIN, S.M.N. (Pekan).

Menteri Kewangan , Y.A.B. TUN TAN SIEw SIN, S.S.M., J.P.(Melaka Tengah).Menteri Kerja Raya, Pos dan Talikom,Y.A.B. TUN V. T. SAMBANTHAN , S.S.M.', P .M.N. (Sungai Siput).

Menteri Pengangkutan, Yang Berbahagia TAN SRI HAJISARDON BIN HAJI JUBIR , P.M.N. (Pontlan Utara .

Menteri Ke`adilan, TUAN BAHAMAN BIN SAMSUDIN(Kuala Pilah).

Menteri Perdagangan dan Perusahaan, Yang BerbahagiaTAN SRI DR LIM SWEE AUN, P.M.N., J.P. (Larut Selatan).

,. Menteri Kerajaan Tempatan dan Perumahan,TUAN KHAW KAI-BOH, P .J.K. (Ulu Selangor).

„ Menteri Buroh , TUAN V. MANICKAVASAGAM , J.M.N., P.J.K.(Kelang).

Menteri Penerangan dan Penyiaran dan Menteri Kebudayaan,Belia dan Sokan , TUAN SENU BIN ABDUL RAHMAN(Kubang Pasu Barat).Menteri Pertanian dan Sharikat Kerjasama , TUAN HAJIMOHD . GHAZALI BIN HMI JAWI (Ulu Perak).

Menteri Hal Ehwal Tanah dan Galian,DATO' HAJI ABDUL -RAHMAN BIN YAKUB , P.D.K. (Sarawak).

Menteri Kebajikan `Am, DR NG KAM Poll, LP. (Teluk Anson).

Menteri Hal Ehwal Sabah,DATO' GANIE GILONG , P.D.K., J .P. (Sabah).

„ Menteri Muda Kebudayaan , Belia dan Sokan,ENGKU MUHSEIN BIN ABDUL KADIR , D.P.M.T ., J.M.N., P.J.K.(Trengganu Tengah).

„ Menteri Muda Pelajaran , TUAN LEE SIOK YEW, A .M.N., P.J.K.(Sepang).

Page 3: Jilid V Hari Khamis No. 15Jilid V No. 15 Hari Khamis 9hb Januari, 1969 PERBA H ATHAN PARLI MEN DEWAN RA'AYAT YANG KEDUA PENGGAL KELIMA PENYATA RASMI KANDONGAN-NYA MENGANGKAT SUMPAH

2675 9 JANUARI 1969 2676

Yang Berhormat Menteri Muda Perdagangan dan Perusahaan,TUAN ABDUL TAIB BIN MAHMUD (Sarawak).Setia-usaha Parlimen kapada Menteri Kesihatan,TUAN IBRAHIM BIN ABDUL RAHMAN, J.M.N. (Seberang Tengah).

Setia-usaha Parlimen kapada Menteri Buroh,TURN LEE SAN CHONN, K.M.N. (Segamat Selatan).

Setia-usaha Parlimen kapada Menteri Kewangan,TUAN ALl BIN HAJI AHMAD (Pontian Selatan).

Setia-usaha Parlimen kapada Timbalan Perdana Menteri,TUAN CHEN WING SUM (Damansara).

TUAN NIK ABDUL Azlz BIN NIK MAT (Kelantan Hilir).TUAN HAJI ABDUL GH ^Nl BIN ISHAK, A.M.N. (Melaka Utara).TUAN ABDUL KARIM BIN ABU, A.M.N. (Melaka Selatan).WAN ABDUL KADIR BIN ISMAIL , P.P.T.

(Kuala Trengganu Utara).WAN ABDUL RAHMAN BIN DATU TUANKU BUJANG, A.B.S.(Sarawak).

TUAN HMI ABDUL RASHID BIN HAJI JAIS (Sabah).

TUAN HAJI ABDUL RAZAK BIN HAJI HUSSIN (Lipis).

DAT O' ABDULLAH BIN ABDULRAHMAN, S.M.T.,Dato' Bijaya di-Raja (Kuala Trengganu Selatan).

Y.A.M. TUNKU ABDULLAH IBNI AL-MARHUM TUANKU ABDUL

RAHMAN , P.P.T. (Rawang).

„ TUAN HAJI ABU BAKAR BIN HAMZAH, J.P. (Bachok).

TUAN AHMAD BIN ARSHAD, A.M.N . (Muar Utara) .

TUAN HAJI AHMAD BIN SAAID, J.P . (Seberang Utara) .

PUAN AJIBAH BINTI ABOL (Sarawak) .

WAN ALWI BIN TUANKU IBRAHIM (Sarawak).

DR AWANG BIN HASSAN, S.M.J . (Muar Selatan) .

TUAN HAJI Azlz BIN ISHAK (Muar Dalam).TUAN CHAN CHONG WEN, A.M.N. (Kluang Selatan).

„ TUAN CHAN SEONG YOON (Setapak).

TUAN CHAN SIANG SUN, A.M.N., P.J.K. (Bentong).

'PUAN CHEW BIOW CHONN, J.P. (Bruas).

TUAN FRANCIS CHIA NYUK TONG (Sabah).

TUAN CHIN FooN (Ulu Kinta).

TUAN D., A. DAGO ANAK RANDAN alias DAGOK ANAK RANDEN,A.M.N. (Sarawak).

TUAN C. V. DEVAN NAIR (Bungsar).TUAN EDWIN ANAK TANGKUN (Sarawak).

DATO' SYED ESA BIN ALWEE, J.M.N., S P.M.J, P.I.S.(Bata Pahat Dalam).DATIN HAJJAH FATIMAH BINTI HAJI ABDUL MAJID(Johor Bahru Timor).

Yang Berbahagia TAN SRI HAJJAH FATIMAH BINTI HAJI HASHIM, P.M.N

(Jitra-Padang Terap).Yang Berhormat TUAN S. FAZUL RAHMAN, A.D.K. (Sabah).

Page 4: Jilid V Hari Khamis No. 15Jilid V No. 15 Hari Khamis 9hb Januari, 1969 PERBA H ATHAN PARLI MEN DEWAN RA'AYAT YANG KEDUA PENGGAL KELIMA PENYATA RASMI KANDONGAN-NYA MENGANGKAT SUMPAH

2677 9 JANUARI 1969

Yang Berhornat TUAN GAMING BIN JANGKAT, A.M.N. (Sabah).

2678

TUAN GEH CHONG KEAT, K.M.N. (Pulau Pinang Utara) .

„ TUAN HAJI HAMZAH BIN ALANG, A.M.N., P .J.K. (Kapar) .

„ TUAN HANAFI BIN MOHD. YUNUS, A.M.N., P.J.K. (Kulim Utara).

TUAN HANAFIAH BIN HUSSAIN , A.M.N. (Jerai).

TUAN HARUN BIN ABDULLAH , A.M.N., J .P. (Baling).

„ WAN HASSAN BIN WAN DAUD, J.P. (Tumpat).

.. TUAN STANLEY Ho NGUN KHIU, A.D.K. (Sabah).

DATO' HAM HUSSEIN BIN MOHD. NOORDIN, D.P.M.P., A.M.N.,

P.J.K. (Pant).

TUAN HUSSEIN BIN SULAIMAN, J.P. (Ulu Kelantan).

TUAN HAJI HUSSAIN RAHIMI BIN HAJI SAMAN, S.M.K.(Kota Bharu Hulu).

Yang Amat Berbahagia TUN DR ISMAIL BIN DATO' HAJI ABDUL RAHMAN, S.S.M.,

P.M.N., S.P.•M.J. (Johor Timor).s

Yang Berhormat TUAN ISMAIL BIN IDRIS , J.P. (Pulau Pinang Selatan).

Yang Berbahagia TAN SRI SPED JA`AFAR BIN HASAN ALBAR, P.M.N.

(Johor Tenggara).Yang BerhorlTlat PENGHULU JINGGUT ANaK ATTAN, K.M.N., Q.M.C., A.B.S.

(Sarawak).

TUAN KAM WOON WAH, J.P. (Sitiawan).TUAN THOMAS KANA, K.M.N. (Sarawak).TUAN KHOO PENG LOONG, O.B.E . (Sarawak).

TUAN LEE SECK FUN, K.M.N. (Tanjong Malim).TUAN AMADEUS MATHEW LEONE, A.D.K., J.P. (Sabah).

„ DR LIM CHONG EU (Tanjong).„ TUAN LIM PEE HUNG, P.J.K . (Alor Star) .

DR MAH ATHIR BIN MOHAMED (Kota Star Selatan^.

TUAN T. MAHIMA SINGH, J.M.N., J.P. (Port Dickson).

TUAN C. JOHN ONDU MAJAKIL (Sabah).

TUAN JOSEPH DAVID MANJAJI (Sabah).

„ DATO' DR HAJl MEGAT KHAS, D.P.M.P., J.P., I.J.K.(Kuala Kangsar).

DR MOHAMED BIN TAIB (Kuantan).

TUAN MOHD. ARIF SALLEH, A.D.K. (Sabah).

„ D'ATO' HAJI MOHAMED ASRI BIN HAJI MUDA, S.P.M.K.(Pasir Puteh).

ORANG TUA MOHAMMAD DARA BIN LANGPAD (Sabah).

TUAN MOHD. DAUD BIN ABDUL SAMAD (Besut).

„ TUAN MOHAMED IDRIS BIN MATSIL, J.M.N., P.J.K., J.P.(Jelebu•Jempol).

„ TUAN MOHD. TAHIR BIN ABDUL MAJID, S.M.S., P.J.K.(Kuala Langat).

TUAN HAJI MOHAMED YUSOF BIN MAHMUD, A.M.N. (Temerloh).

WAN MOKHTAR BIN AHMAD. P.J.K. (Kemaman).

,. TUAN HAJI MOKHTAR BIN HAJI ISMAIL (Perlis Selatan).

Page 5: Jilid V Hari Khamis No. 15Jilid V No. 15 Hari Khamis 9hb Januari, 1969 PERBA H ATHAN PARLI MEN DEWAN RA'AYAT YANG KEDUA PENGGAL KELIMA PENYATA RASMI KANDONGAN-NYA MENGANGKAT SUMPAH

2679 9 JANUARI 1969 2680

Yang Berhormat TUAN MUHAMMAD FAKHRUDDIN BIN HAJI ABDULLAH

(Pasir Mas Hilir).„ TUAN HAJI MUHAMMAD SU`AUT BIN HAJI MUHD . TAHIR,

A.B.S. (Sarawak).

„ TUAN MUSA BIN HITAM (Segamat Utara).

„ DATO' HAJI MUSTAPHA BIN HAJI ABDUL JABAR, D.P,M.S ., A.M.N.,J.P. (Sabak Bernam).

TUAN MUSTAPHA BIN AHMAD (Tanah Merah).

Yang Berbahagia TAN SRI HAJI NIK AHMAD KAMIL, D.K., S.P.M.K., S.J.M.K.,P.M.N., P.Y.G.P., Dato' Sri Setia Raja (Kota Baharu Hilir).

Yang Berhormat TUAN NG FAH YAM, J.P. (Batu Gajah).

„ TUAN ONG KEE Hui (Sarawak).TUAN HAM OTHMAN BIN ABDULLAH (Hilir Perak).

„ TUAN OTHMAN BIN ABDULLAH, A.M.N. (Perlis Utara).

TUAN QUEK KAI DONG, J.P. (Seremban Timor).

TUAN HAJI RAHMAT BIN HAJI DAUD, A.M.N.

ss

(Johor Bahru Barat).TUAN RAMLI BIN OMAR, K.M.N.. (Krian Darat).TUAN HAJI REDZA BIN HAJI MOHD. SAID, P.J.K., J.P.

(Rembau -Tampin).RAJA ROME BIN RAJA MA`AMOR, P.J.K., J.P. (Kuala Selangor).

TUAN SEAH TENT NGIAB, S.M.J., P.I.S. (Muar Pantai).

TUAN SIM BOON LIANG , A.B.S. (Sarawak).

TUAN SIOW LOONG HIN, P .J.K. (Seremban Barat).

TUAN SENAWI BIN ISMAIL , P.J.K. (Seberang Selatan).

TUAN SNG CHIN Joo (Sarawak).

TUAN. SOH , AH TECK (Batu Pahat).TUAN HAJI SULAIMAN BIN Au (Dungun).

TUAN SULAIMAN BIN BULON, P.J.K. (Bagan Datoh).

TUAN SULAIMAN BIN HAJI TAIB (Krian Laut).

PENGIRAN TAHIR PETRA (Sabah).

TUAN TAJUDIN BIN Au, P.J.K. (Larut Utara).

TUAN TAI KUAN YANG, A.M.N. (Kulim Bandar Bharu).

TUAN TAMA WENG TINGGANG WAN (Sarawak).

DR TAN CHEE KHOON (Batu).TUAN TAN CHENG BEE, A.M.N., J.P. (Bagan).

TUAN TAN KEE GAK (Bandar Melaka).

TUAN TAN TOH HONG (Bukit Bintang).TUAN TAN TSAK YU, P.B.S . (Sarawak).

TUAN TIAH ENG BEE (Kluang Utara).

TUAN TOH THERM HOCK (Kampar).

TUAN YEH PAO TLE, A.M .N . (Sabah).TENGKU ZAID BIN TENGKU AHMAD (Pasir Mas Hulu).

TUAN HAJI ZAKARIA BIN HAJI MOHD . TAIB , P.J.K. (Langat).

Page 6: Jilid V Hari Khamis No. 15Jilid V No. 15 Hari Khamis 9hb Januari, 1969 PERBA H ATHAN PARLI MEN DEWAN RA'AYAT YANG KEDUA PENGGAL KELIMA PENYATA RASMI KANDONGAN-NYA MENGANGKAT SUMPAH

2681 9 JANUARI 1969 2682

YANG TIADA HADHIR :

Yang Berhormat Perdana Menteri dan Menteri Hal Ehwal Luar Negeri,

Y.T.M. TUNKU ABDUL RAHMAN PUTRA AL-HAJ, K.O.M.(Kuala Kedah).

Menteri Pelajaran, TURN MOHAMED KHIR Joauu(Kedah Tengah).Menteri Kesihatan, Yang Berbahagia TAN SRI HAJI ABDUIHAMID KHAN BIN HAJI SAKHAWAT ALI KHAN, P.M.N., J.P.

(Batang Padang).

Menteri Hal Ehwal Sarawak, Yang Berbahagia TAN SRITTEMENGGONG JUGAH ANAK BARIENG, P.M.N., P.D.K. (Sarawak).

Menteri Muda Ta' Berjabatan, TUAN HAJI ABDUL KHALID BINAWANG OSMAN -(Kota Star Utara).Menteri Muda Hal Ehwal Dalam Negeri, TUAN HAMZAH BINDATO' ABU SAMAH, S.M.K. (Raub.

TURN RAFAEL ANCHETA, A.M.N. (Sabah).

TUAN JONATHAN BANGAU ANAK RENANG, A.B.S. (Sarawak).

PENGARAH BANYANG ANAK JANTING, P.B.S. (Sarawak).

TUAN CHIA CHIN SHIN, A.B.S. (Sarawak).

TUAN EDMUND LANGGU ANAK SAGA (Sarawak).

DATO' LING BENG STEW, P .N.B.S. (Sarawak).

TUAN PETER Lo Su YIN (Sabah).

TURN MOHD. ZAHIR BIN HAJI ISMAIL, J.M.N. (Sungai Patani).Yang Amat Berbahagia TUN DATU MUSTAPHA BIN DATU HARUN, S.M.N., P.D.K.

(Sabah).Yang Berhormat TUAN D. R• SEENIVASAGAM (Ipoh).

DATO' S. P. SEENIVASAGAM , D.P.M.P ., P.M.P., J .P. (Menglembu).TURN STEPHEN YONG KUET TZE (Sarawak).

DO`A(Tuan Yang di-Pertua mempengerusikan

Meshuarat)

MENGANGKAT SUMPAH

Ahli2 Yang Berhormat yang tersebut di-bawah ini telah mengangkat Sumpahsaperti yang di-sebutkan dalam Perlem-bagaan :

1. Tuan Musa bin Hitam.2. Dr Mohamed bin Taib.

PEMASHHORAN OLEH TURNYANG DI-PERTUA

PERUTUSAN DARIPADADEWAN NEGARA

Tuan Yang di-Pertua : Ahli2 Yang Ber-hormat , saya suka hendak mema`alumkan kapada Majlis ini bahawa saya adamenerima satu Perutusan daripadaDewan Negara bertarikh 23hb Oktober,1968 , berkenaan dengan perkara2 ter-tentu yang telah di-hantar oleh Majlis

ini pada Dewan Negara meminta persetujuan. Tuan Setia-usaha Dewan akanmembachakan Perutusan itu.

(Setia-usaha Dewan Ra`ayat memba-chakan Perutusan).

Yang di-Pertua Dewan Ra`ayat,

Dewan Negara telah bersetuju denganRang Undang' yang berikut tanpapindaan :

1. Suatu Act bagi membuat per-untokan untok menyemak danmenchetak sa-mula undang2 danperundangan kechil;

2. An Act to amend the Interpreta-tion Act, 1967;

3. An Act to amend the PensionsOrdinance, 1961;

4. Suatu Act bagi menggunakan sa-jumlah wang d+iripada Kumpu-lan Wang Yang di-Satukan untok

Page 7: Jilid V Hari Khamis No. 15Jilid V No. 15 Hari Khamis 9hb Januari, 1969 PERBA H ATHAN PARLI MEN DEWAN RA'AYAT YANG KEDUA PENGGAL KELIMA PENYATA RASMI KANDONGAN-NYA MENGANGKAT SUMPAH

2683 9 JANUARI 1969 2684

Perkhidmatan bagi tahun yangberakhir pada tiga puloh satuharibulan Disember, 1969;

5. Suatu Act bagi memperbadankanPersekutuan Budak2 PengakapMalaysia (atau dalam bahawaInggeris "Boy Scouts Associationof Malaysia");

dan bagi maksud2 yang berkenaandengan-nya.

Tt : DATO' HAJI ABDUL RAHMAN

BIN MOHAMED YASIN,

Yang di-Pertua,

Dewan Negara.

MEMPERKENANKAN RANGUNDANG2

Tuan Yang di-Pertua: Ahli2 YangBerhormat, saga hendak mema`alum-kan kapada Majlis ini bahawa DuliYang Maha Mulia Seri Paduka BagindaYang di-Pertuan Agong telah memper-kenankan Rang Undang2 berikut yangtelah di-luluskan oleh Parlimen baharu2ini:

1. Pensions (Amendment) Act, 1968.

2. Act (Perbadanan) PersekutuanBudak2 Pengakap Malaysia, 1968.

3. Act Kumpulan Wang Yang di-Satukan (Perbelanj aan MasokAkaun) 1968.

4. Interpretation (Amendment) Act,1968.

5. Act Penyemakan Undang2, 1968.

KEMATIAN ALLAH YARHAMY.B. TUAN ABDUL RAHMAN BINHAJI TALIB, DAN ALLAH YAR-HAM Y.B. TUAN HAJI ABDULLAH

BIN HAM MOHD. SALLEH

Tuan Yang di-Pertua : Sa-bagaimanaAhli2 Yang Berhormat sakalianma`alum, kita maseh lagi bersedeh olehkerana kematian baharu2 ini AllahYarham Yang Berhormat Tan AbdulRahman bin Haji Talib, Ahli bagiKuantan, dan Allah Yarham YangBerhormat Tuan Haji Abdullah binHaji Mohd. Salleh, Ahli bagi SegamatUtara.

Kita kehilangan dua orang Ahli yangtelah beberapa tahun menjadi AhliDewan Ra'ayat. Saya telah pun mengi-

rimkan uchapan ta`ziah kapada balu2mereka dan bermohon do`a mudah2anAllah chuchorkan rahmat ka-atas rohkedua2 orang Allah Yarham itu.

MENGALU2KAN AHLI2 BAHARU

Ahli'- Yang Berhormat, bagi pehakkesemua Ahli2 dan bagi diri saya sen-dini , saya suka hendak mengalu2kanYang Berhormat Tuan Musa bin Hitamdan Yang Berhormat Dr Mohamed binTaib yang baharu sahaja di-pileh men-jadi Ahli Dewan Ra`ayat mi.

PERLETAKAN JAWATAN Y.B.TUAN LIM KEAN SIEW, AHLI

BALI DATO KRAMATSaya suka juga hendak menyatakankapada Ahli2 Yang Berhormat bahawapada 2 haribulan Januari, 1969, sayatelah menerima sa-puchok surat dari-pada Yang Berhormat Tuan Lim KeanSiew, Ahli Dewan Ra`ayat bagi kawa-san Dato Kramat, menyatakan denganrasmi-nya bahawa is-nya meletakkanjawatan sa-bagai Ahli Dewan Ra`ayatmulai daripada 1 haribulan Januari,1969.

Sekian-lah di-ma`alumkan.

JAWAPAN2 MULUT BAGIPERTANYAAN2

PERUBATAN DAN PERAWATANDI-LONG SELA`AN, LONG MU

DAN LONG SEMIANG, SARAWAK

1. Tuan Tama Weng Tinggang Wanbertanya kapada Menteri Kesihatanada-kah Kementerian Kesihatan sedanhal orange rumah panjang di-LongSela`an, Long Mu dan Long Semiangyang dahulu-nya ada mempunyaI rumahperubatan dan jururawat di-LongSela`an kemudian di-pindah ka-LongMu dan akhir sekali di-pindah ka-LioMatu, dan jururawat di-Long Sela`anitu di-berhentikan yang mana menye-babkan kesusahan besar ka-atas orangekampong.

Menteri Hal Ehwal Sabah (Dato'Ganie Gilong): Tuan Yang di-Pertua,pertukaran sa-orang Dresser Ulu dari-pada Upper Baram ka-kawasan Bakongitu ada-lah tidak dapat di-elakkan olehkerana tiada kemudahan2 perubatanyang terdapat di-kawasan Bakong.

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Sunggoh pun demikian dua orangDresser Ulu maseh berada di-LongJehe dan Lio Matu di-Upper Baramdan sa-telah ranchangan jalan rayasampai ka-Beluru kelak ada kemung-kinan untok Dresser Ulu kawasanBakong bertukar balek ka-kawasanUpper Baram.

Dalam perkara ini Jabatan Perubatansedang menimbangkan untok mendiri-kan sa-buah sub-dispensary di-kawasanUpper Baram. Bangunan ini akan di-bena di-antara kawasan2 rumah panjangLong Sela`an, Long Mu dan LongSemiang.

Jabatan Perubatan tidak pernah me-nempatkan sa-barang jururawat ber-khidmat di-kawasan Upper Baram.

Tuan Tama Weng Tinggang Wan:Tuan Yang di-Pertua, soalan tambahan,saperti di-Long Sela`an masa Britishpegang dahulu memang tetap ada yangmenjaga perubatan di-kampong itu,kerana sungai di-tempat itu sangatj ahat, hilir pun mudek, kalau ayerbesar tidak dapat. Masa sekarang orangini maseh ada, tetapi dia minta tolong,ubat dalam rumah itu sahaja, dia ta'minta gaji sebab dia rasa susah pergihulu, kalau ayer besar tidak dapat,hilir pun pergi Long Jehe tidak dapat.Itu-Iah sebab kawasan itu sangat susah.Bukan sa-kali, sudah beberapa kali diasudah minta.

Saya sa-orang Ahli Dewan Ra`ayatsutra menyampaikan permintaan ra`ayatsupaya Dewan ini menimbangkan ke-sulitan mereka. Dahulu mereka merasasenang dalam pemerentahan British.sekarang sudah merdeka lagi susah.Itu-lah kemerdekaan ra`ayat bumipu-tera di-dalam jaminan Malaysia, rasa-nya lebeh susah lagi masa sekarang.Itu-lah permintaan ra`ayat bumiputera.

Dato ' Ganie Gilong: Tuan Yang di-Pertua, perkara ini Kementerian sayaakan menimbangkan dan jika perlusaya sendiri akan pergi melihat perkaralnl.

Than Tama Weng Tinggang Wan:Tuan Yang di-Pertua, terima kasehbawa saya juga. (Ketawa).

PEMBENAAN JALAN RAYADI-KAMPONG2 CHINA DAN

MELAYU, MARUDI2. Tuan Tama Weng Tinggang Wanbertanya kapada Menteri Kerja Raya,Pos dan Talikom ada-kah KementerianKerja Raya, Pos dan Talikom akanmenimbangkan pembinaan jalan rayadi-Kampong2 China dan Melayu,Marudi.

Menteri Kerja Raya, Pos danTalikom (Tun V. T. Sambanthan):Tuan Yang di-Pertua, Kementerian iniboleh menimbangkan pembenaan jalan2di-Kampong2 di-Marudi. Pembenaanjalan2 itu mengikut keutamaan dan jugawang2 yang telah di-untokkan keranapembenaan jalan2 itu.

Tuan Tama Weng Tinggang Wan:'Tuan Yang di-Pertua, soalan tambahan.Ra`ayat di-sana ada-lah di-harap selalumendengar menerusi Radio MalaysiaSarawak, wang itu banyak. Di-mana beriwang itu ? Patut-lah tolong tempatkandi-kawasan Baram. Jalan raya di-kam-pong Melayu tidak sampai di-sekolah,jangan bilang ini lagi jauh sampai ka-hilir2. Di-kampong China macham itujuga. Dari tepi nampak tempat jalankereta tidak dapat pergi lebeh deraslagi. Itu-lah sebab-nya kami berharapjangan merasa malu yang kami M.P.Ahli Dewan Ra`ayat, is berkata tidakminta. Tetapi wang sa-banyak $464juta ini ranchangan negeri Sarawak,sekarang siapa yang terima wang itu ?Itu-lah yang kami ini merasa hairan,maseh meminta lagi dalam Dewan mi.

Tuan Yang di-Pertua: Jadi apasoalan tambahan-nya?

Tuan Tama Weng Tinggang Wan:Itu-lah jalan raya--duit. Siapa jaga ituduit, saya minta Dewan ini merunding-kan-nya.

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Tuan Yang di-Pertua : Siapa jaga duititu? (Ketawa).

UNDANG2 UNTOKPERLINDONGAN BAG!

PEMEGANG2 POLISI INSURANDARIPADA KEMALANGAN2

JALAN RAYA

3. Tuan Haji Mokhtar bin Haji Ismailbertanya kapada Menteri Kewanganada-kah Kerajaan akan menimbangmengadakan undang2 bagi memberilindongan yang chukup kapada peme-gang2 polisi insuran dan si-penerima2lain yang di-wariskan daripada tipudan aniaya penipu2 dan Sharikat2 Insu-ran terhadap hake dan tuntutan merekayang sah dalam polisi itu; atau, denganchara lain, ada-kah dia akan melanteksa-buah Lembaga bagi menguruskanaduan2 atau tuntutan' yang terbit dari-pada kemalangan2 j alan raya daripadapemegang2 polisi.

Menteri Kewangan (Tun Tan SiewSin): Tuan Yang di-Pertua, Tuan, AhliYang Berhormat itu harus ingat bahawasaya telah membuat pengishtiharanumum dahulu is-itu sa-barang orangyang menganggap diri-nya di-lakukantidak `adil oleh sa-sabuah sharikatinsuran hendak-lah membuat aduan ka-pada Pesurohjaya Insuran yang akanmenyiasat aduan-nya itu.

Pesurohjaya Insuran ada-fah di-lantekdi-bawah Act Insuran 1963 dan is sa-orang Pegawai di-bawah kuat-kuasasaya. Bahagian insuran dalam Perben-daharaan menerima lebeh kurang 80aduan sa-tahun dan walau pun penyi-asatan terhadap tudohan2 tersebutmemang memakan masa, saya boleh-lah memberi jaminan kapada Ahli YangBerhormat itu bahawa tiap2 aduan ada-lah di-pereksa dengan chermat olehBahagian Insuran.

Undang2 memang sedia ada di-dalamAct Insuran untok mengatorkan perni-agaan insuran di-dalam negeri ini, tetapipatut-lah di-sedari juga bahawa polisiinsuran ada-lah suatu perjanjian(contract) yang di-buat dengan bebasoleh kedua2 belah pehak. Pada pering-kat muktamad-nya, kalau mana2 pehakberasa bahawa perjanjian itu tidak di-tunaikan dengan apa chara pun, makais boleh-lah membawakan perkara ter-

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sebut ka-mahkamah. Kalau Ahli YangBerhormat itu ada aduan tertentu, makasaya suka-lah menasihatkan-nya supayaberhubong dengan Pesurohjaya Insu-ran. Memang-lah tidak mungkin di-ambil tindakan kalau berdasarkankenyataan umum sahaja.

Tuan Haji Mokhtar bin Haji Ismail:Soalan tambahan. Lebeh kurang duatahun yang lalu satu kemalangan basdan keretapi telah berlaku di-PadangBesar. Sekarang ini saya telah menerimaaduan daripada warith2 yang berkenaanbelum mendapat apa2 penyelesaian.

Tun Tan Siew Sin (dengan izin):That is an incident about which Iclearly cannot give an answer withoutreferring to the file concerned. I wouldask the Honourable Member to write into the Insurance Commissioner in re-gard to this case.

PENJUALAN DARAH DI-RUMAH2SAKIT LANGKAH DI-AMBILUNTOK MEMBAIKI PENGURUSANTABONG2 DARAH Di-RUMAH2

SAKIT

4. Tuan Haji Mokhtar bin Haji Ismailbertanya kapada Menteri Kesihatan(a) ada-kah dia sedar ada beberapakumpulan yang terdiri daripada orangemiskin yang menjual darah denganharga $200 sa-pain di-rumah2 sakitbesar di-Malaysia, dan jika sedar, apa-kah tindakan yang hendak di-ambiloleh Kerajaan bagi menghindar ke-jadian2 sa-umpama itu daripada berlakulagi; (b) ada-kah sa-tiap langkah sedangdi-ambil untok membaiki pengurusanTabong2 Darah di-tiap2 rumah sakitdi-Malaysia dan mendapatkan ramailagi penderma2 darah.

Dato' Ganie Gilong : Tuan Yang di-Pertua (a) saya tidak sedan yang ada-nyakumpulan atau pun syndicate menjualdarah dengan harga $200 satu pint.

(b) Sa-tiap usaha sedang di-jalankanuntok memperbaiki pengurusan TabongDarah. Kementenian saya telah menu-bohkan Majlis Perkhidmatan Peminda-han Darah Kebangsaan untok menyatu-kan kerja2 dari pentubohan2 sukareladi-dalam pengambilan penderma2 darahdan juga menjaga kebajikan dan insentifpenderma2 tersebut.

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Dr Tan Chee Khoon (Batu): Soalantambahan. Ada-kah Menteri yang ber-kenaan sedar langkah2 yang di-ambiloleh Kemenetrian tersebut tidak men-chukupi, oleh sebab itu darahdi-rumah sakit masing2 di-selurohMalaysia ta' chukup, oleh sebab lang-kah yang di-ambit oleh KementerianKesihatan tidak chukup. Beliau telahsentoh tentang insentif2 dan langkah2;boleh-kah beliau menerangkan denganteliti apa Iangkah, atau apa insentifyang di-beri oleh Kementerian Ke-sihatan?

Dato' Ganie Gilong: Tuan Yang di-Pertua, sa-bagaimana yang saya sudahterangkan tadi, Kementerian saya telahmerubohkan Majlis Perkhidmatan Pe-mindahan Tabong Darah Kebangsaanuntok menyiasat perkara ini dan badanini akan bersidang pada 13hb Januariini untok menyiasat, apa-kah dia jalanuntok kita mengatasi masaalah2 yangdi-kemukakan oleh Ahli Yang Ber-hormat tali.

Dr Tan Chee Khoon : Tuan Yang di-Pertua, ada-kah Kementerian Kesihatanberhubong dengan Kesatuan PerubatanMalaya tentang perkara ini dan mintapertolongan atau kerjasama denganKesatuan tersebut tentang perkara ini?

Dato' Ganie Gilong: Tuan Yang di-Pertua, ada.

Dr Tan Chee Khoon : Tuan Yang di-Pertua, kata Menteri yang berkenaanitu "ada", tetapi pada pendapat sayasampai sa-takat ini Kementerian Kesi-hatan tidak berhubong dengan KesatuanPerubatan Malaysia tentang perkara mi.

Dato' Ganie Gilong: Tuan Yang di-Pertua, surat jemputan yang sa-benar-nya sudah di-hantar kapada PresidenKesatuan. (Ketawa).

Tuan Ahmad bin Arshad (MuarUtara): Soalan tambahan. Ada-kahKementerian ini dapat menimbangkansatu langkah pemberian darah patut di-buat dari suku kaum, saperti kalaukemalangan satu kaum, kaum itu akanmemberi derma darah, sebab kita dapattahu bahawa orange Tiong Hwa inisangat kurang memberikan kapadasuku kaum-nya yang kena kemalangan.

Tuan Yang di-Pertua: Itu ta' adakena-mengena dengan soalan mi.

RANCHANGAN MENGAWALBANJIR DI-PANTAI TIMOR,

MALAYSIA BARAT

5. Tuan Ahmad bin Arshad bertanyakapada Perdana Menteri sama adatinjauan chara dekat mengenai usahamengawal banjir di-Pantai Timor,Malaysia Barat, dalam musim tengkujohtelah di-jalankan oleh pakar2 dari luarnegeri; jika ya, pakar2 dari negeri manadan bila ranchangan itu akan di-jalan-kan.

Tun Haji Abdul Razak: Tuan Yangdi-Pertua, soalan mengawal banjir telahdi-timbangkan oleh pehak Kerajaandengan teliti-nya dan satu Jawatan-kuasa di-peringkat pegawai telah di-tubohkan. Jawatan-kuasa ini telah men-datangkan shore dalam jangka pendekdan satu daripada shor-nya is-lah su-paya peratoran2 membuka tanah di-tepi2 bukit berdekatan dengan sungaidi-kawal dan di-jaga supaya tanah2ta' runtoh masok ka-dalam sungai.Bagitu juga tebing2 sungai mustahak-talidi-jaga pada sa-tiap masa. Tanggongjawab tentang soal ini terletak bukansahaja kapada Kerajaan bahkan kapadaseluroh ra`ayat negeri ini terutamamereka2 yang dudok berdekatan dengansungai.

Tuan Yang di-Pertua, saya fikir mus-tahak di-ingati bahawa banjir di-Malay-sia ini datang-nya ta' dapat di-tentukanmasa-nya. Dengan sebab itu mustahak-lah bagi mereka yang dudok berdeka-tan dengan sungai sentiasa berjaga2supaya dapat mengurangkan benchanaatau pun kerosakan yang boleh di-datangkan oleh banjir itu.

Satu langkah lagi yang sedang di-jalankan oleh Kerajaan is-lah membaikialat2 kaji chuacha supaya dapat kitamengetahul terlebeh dahulu bila hujandan ribut kuat akan datang dan bagitujuga-lah kita sedang membaiki alat2berkenaan dengan storm warning radarequipment supaya dapat di-beri amaranterlebeh dahulu jika ribut dan hujandan angin yang kuat telah tiba. Sunggohpun bagitu Kerajaan telah mendapatpertolongan daripada sa-orang pakaryang di-hantarkan oleh Pertubohan

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Makanan Sa-dunia untok menimbang-kan perkara itu daripada segi jangkapanjang. Tujuan Kerajaan is-lah supayakuasa ayer yang pada masa yang lalutelah merosakkan harta benda dan juganyawa manusia dapat di-salor dan di-gunakan untok kemajuan negara kita,akan tetapi soalan ini tentu-lah meng-ambil masa dan Kerajaan akan men-chuba dengan sa-berapa boleh untokmengatasi masaalah yang Kerajaansendiri mengetahul ada-lah menjadisatu benchana besar kapada negarakita.

JAWATAN-KUASA GERAKANJIMAT CHERMAT--LANGKAH2DI-AMBIL BAGI MENGURANG-

KAN PERBELANJAAN2b. Tuan Ahmad bin Arshad memintakapada Menteri Kewangan bahawasa-buah Jawatan-kuasa Gerakan JimatChermat telah di-bentok, terangkan apaiangkah2 ketat yang di-ambil bagimengurangkan perbelanj aan2 yangmembazir, berapa Jabatan yang terlibatdan berapa jumlah Wang di-anggardapat di-jimatkan.

Tun Tan Siew Sin: Tuan Yang di-Pertua, berbagai2 langkah sedang di-ambil atau akan di-ambil untok mengu-rangkan belanja memberikan perkhid-matan2 `awam dan untok mengelakkanmembazir. Sa-tengah daripada langkah2ini ada-lah jangka pendek manakalayang lain-nya ada-lah jangka panjang.Mereka termasok-lah mengurangkankerj a lebeh waktu (overtime) denganmembataskan kerja2 tersebut kapadakerja2 dharurat dan kerja2 yang perludi-siapkan segera; membataskan per-jalanan kapal terbang Kelas Satu ka-pada pegawai pentadbiran dan Kera-jaan yang paling tertinggi sahaja;mengurangkan pertukaran2 sesuai de-ngan kechekapan; menukarkan bantuankewangan Kerajaan untok pelajarantinggi daripada pemberian sa-charalangsong (direct grants) kapada pinja-man; membeli perkakas dan bahan2sa-chara banyak2 dan sa-chara pusat;mengurangkan sa-berapa boleh peng-gunaan api, tengga letrik, ayer danalatulis2; mengawal dan menguruskandengan lebeh baik akan harta2 Kera-jaan; mengurangkan sa-berapa boleh"standard" bangunan2 `awam; dan

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umum-nya menggalakkan pegawai2 dankaki-tangan `awam menjalankan jaba-tan-nya dengan lebeh chekap danmenambahkan pengha silan mereka.

Semua Kementerian dan Jabatan ada-lah terlibat di-dalam usaha ini danmereka telah di-berikan arahan supayamembentok Jawatan-kuasa2 untok men-chapai ekonomi dalam perbelanjaanmereka. Tidak-lah mungkin di-anggar-kan jumlah yang akan di-selamatkansa-bagai hasil usaha ini, tetapi ada-lahdi-harap bahawa usaha ini dapat me-ngurangkan belanja memberikan per-khidmatan2 Kerajaan dan mengawalkenaikan tiap2 tahun perbelanjaanberulang2 dalam lingkongan yang me-nasabah yang Kerajaan boleh mampu.

Tuan Ahmad bin Arshad : Soalantambahan. Tidak-lah dengan langkahjimat chermat ini boleh melambatkanpro jek2 pembangunan kerana sa-tengah2pegawai itu tidak dapat bayaran over-time bagi melancharkan kerja itu?

Tun Tan Siew Sin: Tidak.

LANGKAH2 UNTOKPENYELESAIAN TUNTUTANFILIPINA KA-ATAS SABAH

7. Tuan Aziz bin Ishak bertanyakapada Menteri Luar Negeri :

(a) apa-kah langkah2 yang sedangatau akan di-jalankan oleh Kera-jaan untok menyelesaikan tuntu-tan Filipina ka-atas Sabah, dan

(b) ada-kah Kerajaan menerima sa-barang pelawaan dari negara2yang bersimpati untok menjadiorang tengah dalam pertikaian itu.

Tun Haji Abdul Razak: Tuan Yangdi-Pertua, Kerajaan telah berusahadengan sa-daya upaya untok mencharijalan bagi menyelesaikan tuntutanFilipina terhadap Sabah ini. Baharu2ini, saperti Ahli2 Yang Berhormatmengetahul, saya telah menyertai per-temuan Menteri2 Luar ASEAN di-Bangkok dan telah bersetuju bersama2dengan Setia-usaha Luar Negeri Filipinadan juga Menteri= Luar lain mencha-dangkan jalan2 untok memulehkanperhubongan diplomatik di-antaraMalaysia dengan Filipina yang berasas-kan kapada pengakuan Filipina ataskedaulatan Malaysia termasok Sabah.

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Kerajaan kita telah pun menerimachadangan ini, tetapi pehak KerajaanFilipina belum lagi-lah memberi apa2persetujuan, sa-balek-nya kita mendapattahu bahawa Kerajaan Filipina telahmenolak shore Menteri2 ASEAN itu.Sekarang terpulang-lah kapada Filipinasendiri untok menchari penyelesaianyang tertentu di-atas hal mi.

Soal yang kedua, Tuan Yang di-Pertua, Kerajaan tidak menerima apa2pelawaan dari negara2 yang bersimpatiuntok menjadi orang tengah dalampertikaian ini, akan tetapi di-fikirkanmasaalah ini ada-Iah masaalah di-antara dua negara di-antara Filipinadan Malaysia dan mustahak- lah masa-alah ini di-selesaikan di-antara kedua2negara mi.

Tuan Aziz bin Ishak: Soalantambahan. Memandangkan dolak-dalekyang di-buat oleh pehak Filipina sa-lama ini, ada-kah Kerajaan berchadangtidak akan melayan atas sa-barangusaha yang akan di-buat oleh Filipinakechuali pehak-nya menarek balektuntutan serta undang2 kawasan yangtelah di-buat-nya dahulu, atau punKerajaan meminta jasa baik Bangsa2Bersatu untok menyelesaikan soal ter-sebut.

Tun Haji Abdul Razak: TuanYang di-Pertua, kita telah menentukankedudokan kita atas hal ini, is-itu kitatidak dapat menerima tuntutan Filipinaterhadap Sabah kerana kita dapatituntutan itu tidak berasas sama adadari segi undang2 atau daripada segipolitik. Masaalah yang tinggal is-lahmasaalah memulehkan perhubongan di-antara dua negara dan mengadakanpersafahaman yang baik di-antara kitadengan Filipina. Soal tuntutan itu kitatelah terangkan dan kedudokan kitatelah kita terangkan kapada Filipinadan negeri Sabah.

USAHA UNTOK PEMULEHANPERSAHABATAN DI-ANTARAMALAYSIA DENGAN FILIPINA

8. Tengku Zaid bin Tengku Ahmad(Pasir Mas Hulu) '[di-bawah S.O. 24(2)] bertanya kapada Menteri LuarNegeri apa-kah usaha yang sudah dansedang di-buat oleh Kerajaan bagimemulehkan persahabatan di-antara

Malaysia dengan Filipina semenjakPresiden Marcos menandatangani RangUndang2 memasokkan Sabah ka-dalamta`alok negeri-nya tahun lalu,

Tun; Haji Abdul Razak: Tuan Yangdi-Pertua, soal ini pun sama dengan soalyang ke-7 tadi. Kita telah menyertaiperundingan, saperti yang di-terangkan,dengan Menteri2 Luar negara2 ASEANdan satu persetujuan telah terchapaiuntok memulehkan perhubongan diplo-matik antara kita dengan Filipinasupaya boleh-lah kedua2 negara ituberunding untok memulehkan per-hubongan baik di-antara dua negaraitu, akan tetapi pehak Filipina belum-lah menerima chadangan ini bahkansa-balek-nya telah menolak dan me-minda chadangan yang di-datangkanoleh Menteri2 Luar ASEAN. Sekarangperkara ini terpulang-lah kapada pehakFilipina.

PERBELA! JAAN OLEHMALAYSIA BALI MENJAGAKESELAMATAN DI-SABAH

9. Tengku Zaid bin Tengku Ahmad[di-bawah S.O. 24 (2)] bertanya kapadaMenteri Pertahanan sejak pertikaianMalaysia dengan Filipina atas masaalahSabah berapa banyak-kah Wang yangtelah di-belanjakan oleh Malaysia bagimenjaga keselamatan di-Sabah.

Tun Haji Abdul Razak: Tuan Yangdi-Pertua, bagi menjaga keselamatannegara saya tidak boleh memberi butir2keterangan yang di-kehendaki ini, akantetapi pehak Ahli Yang Berhormatdapat-lah menyemak sendiri dalamAnggaran2 Belanj awan yang di-bentangdi-hadapan Dewan ini dan jugaAnggaran Tambahan yang telah di-luluskan oleh Dewan ini pada satumasa ka-satu masa. Saya suka jugamenyebutkan di-sini bahawa KerajaanSabah telah juga memberi bantuanyang banyak untok menjaga pertahanannegeri Sabah.

PENGHANTARAN ROMBONGAN2MALAYSIA KA-TIMOR TENGAHDAN AFRIKA MENGENAI SOAL

SABAH

10. Tengku Zaid bin Tengku Ahmad[di-bawah S.O. 24 (2)] bertanya kapadaMenteri Luar Negeri ada-kah Kerajaan

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sedan bahawa pehak Filipina telahmelancharkan kempen propagandadengan chara luas dan berkesanmengenai soal Sabah di-negeri2 TimorTengah dan Afrika; jika sedar, ada-kahMalaysia akan mengirim rombongansa-umpama itu ka-negeri2 TimorTengah khas-nya dan ka-negeri2 lain`am-nya.

Tun Haji Abdul Razak: Tuan Yangdi-Pertua, Kerajaan sedar akan ke-giatan Filipina dalam propaganda-nyamengenai tuntutan mereka itu terhadapSabah. Propaganda mereka itu padafikiran saya tidak-lah boleh di-katakanluas atau pun berkesan. KerajaanMalaysia telah pun mengambil langkah2yang sesuai melalui Kedutaan2 kita bagimenerangkan pendirian kita. Sa-takatini tidak-lah di-fikirkan perlu untokKerajaan menghantar rombongan2 khaska-Timor Tengah atau pun Afrika.Kerajaan2 negeri di-Afrika dan jugadi-Timor Tengah ada-lah mengakuikedaulatan Malaysia termasok Sabah.

HADIAH RASMI BALI TAHUN1964 HINGGA 1968-PERBELAN-

JAAN DAN PERATORAN

11. Datin Hajjah Fatimah binti HajiAbdul Majid (Johor Bahru Timor)bertanya kapada Perdana Menteri :

(a) berapa-kah jumlah perbelanjaanyang telah di-keluarkan keranahadiah2 rasmi semenjak tahun1964;

(b) di-mana-kah hadiah2 rasmiyang di-terima daripada Ketua2Negara asing itu di-simpan;

(c) ada-kah Kerajaan berchadanghendak mempamirkan hadiah2rasmi yang di-terima daripadaKetua2 Negara asing itu kapadaorang ramai;

(d) ada-kah satu peratoran yang di-buat untok menentukan apa jenishadiah yang akan di-beri kapadasa-saorang Ketua Negara asingyang melawat negeri ini, jikaada, apa-kah peratoran itu, danjika tidak ada, kenapa.

Tun Haji Abdul Razak: Tuan Yangdi-Pertua, jumlah Perbelanjaan yangtelah di-belanj akan kerana hadiahrasmi bagi tahun 1964 hingga 1968

2696

is-lah $320,918.57; tahun 1964$67,142.19; tahun 1965 $71,023.28,tahun 1966 $64,453 . 17; tahun 1967$61,403 . 68; tahun 1968 $56,680.75. Jadijumlah-nya $320,918.57.

Hadiah2 rasmi ini di-simpan di-tempat2 kediaman rasmi. Kerajaantidak berchadang hendak mempamir-kan hadiah2 ini kapada ramai . Sa-buahJawatan-kuasa telah pun di-tubohkanpada tahun 1959 bagi mengkaji masa-alah2 berkenaan dengan pemberian2hadiah2 rasmi dan Jawatan-kuasa itutelah menyediakan laporan-nya. Lapo-ran itu , antara lain2 , mengandongishore tentang tetamu2 yang patut di-berihadiah rasmi. Jenis2 hadiah yang sesuaidi-berikan dan juga hak perbelanjaanbagi hadiah itu . Laporan2 itu ataushore itu sekarang ini di -gunakan olehKerajaan bagi panduan apabila menim-bangkan masaalah memberi hadiah2rasmi . Walau bagaimana pun PerdanaMenteri berkuasa menentukan hadiah=yang patut di-berikan dari sa-masa ka-samasa.

KENAIKAN PANGKATPERATORAN2 LEMBAGAKENAIKAN PANGKATPENTADBIRAN `AWAM,

196712. Datin Hajjah Fatimah binti HajiAbdul Majid bertanya kapada PerdanaMenteri :

(a) berapa bilangan Pegawai2 Kera-jaan Bahagian I, II dan III yangtelah di-naikkan pangkat menurutPeratoran2 Lembaga KenaikanPangkat Pentadbiran `Awam,1967;

(b) berapa lama masa yang di-ambiiuntok menimbangkan tiap2 satukenaikan pangkat;

(c) pernah-kah berlaku pegawai2 yangtelah di-naikkan pangkat itu di-turunkan sa-mula pangkat-nyaoleh kerana aduan2 dari pegawai2lain, dan jika ya, berapa kaliperkara saperti itu telah berlaku..

Tun Haji Abdul Razak : Tuan Yangdi-Pertua, Peratoran Lembaga KenaikanPangkat Perkhidmatan `Awam, 1967telah di-kuat-kuasakan mulal lhb Julai,1967 dan semen j ak peratoran ini dikuat-kuasakan sa-banyak 337 orang

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pegawai2 dalam Bahagian I, 164 orangdalam Bahagian II dan 356 orang dalamBahagian III telah pun di-timbangkandan di-naikkan pangkat oleh LembagaKenaikan Pangkat Perkhidmatan`Awam yang berkenaan. Bilangan2 inichuma-lah bagi mereka yang telah ber-j aya sahaja, tidak-lah termasok bila-ngan2 yang telah di-timbangkan atauyang telah di-berikan kajian dan di-timbang tetapi telah tidak berjaya.

Selain daripada itu, Lembaga Ke-naikan Pangkat Perkhidmatan `Awamyang menimbangkan kenaikan Pang-kat pegawai2 dalam Bahagian I telahjuga menimbangkan dan meluluskanpemangkuan bagi j angka pendek danjuga pemangkuan yang memakantempoh beberapa bulan sahaja dengantujuan supaya pegawai2 ini akan di-timbangkan bagi di-naikkan pangkatdan bilangan pegawai ini is-lah 493orang.

Tidak ada dapat di-tentukan tempohmenimbangkan tiap2 satu urusan ke-naikan pangkat itu satu persatu keranatiap2 satu kes bergantong-fah kapadakeadaan yang tertentu, terutama sa-kali bilangan pegawai2 yang layakmemegang jawatan2 yang kosong itu.Bagaimana pun pada keselurohan-nyaperakuan2 bagi kenaikan pangkat itubiasa-nya. dapat di-selesaikan di-antarasatu hingga tiga bulan daripada tarikhperakuan itu di-terima oleh LembagaKenaikan Pangkat yang berkaitan dariKetua2 Jabatan yang berkenaan.

Di-bawah perakuan kenaikan pangkatini ada-lah di-masokkan sharat di-manakeputusan Lembaga Kenaikan Pangkatitu maseh belum jadi muktamad sa-hingga, jika ada rayuan terhadap ke-putusan Lembaga itu di-kelolal olehLembaga Rayuan dan jika tidak adarayuan sa-hingga luput tempoh rayuandi-benarkan is-itu 14 hari sa-lepaspegawai yang berkenaan itu di-ma-`alumkan atas keputusan yang tersebut.

Semenjak Peratoran Lembaga Ke-naikan Pangkat Perkhidmatan `Awamtahun 1967 di-kuat-kuasakan ada-lahterjadi satu sahaja kes di-mana sa-orangyang telah di-luluskan bagi di-naikkanpangkat oleh Lembaga Kenaikan Pang-kat tidak di-sahkan oleh LembagaRayuan yang berkenaan. Oleh itu

mengikut sharat Peratoran LembagaKenaikan Pangkat pegawai yang telahdi-mansohkan kenaikan pangkat-nyaitu, Lembaga Rayuan tidak-lah berjayadi-dalam urusan kenaikan pangkat.

KAMPONG TENGKU HOUSINGSCHEME, SUNGEI WAY,

SELANGOR

13. Dr Tan Chee Khoon (Batu) (denganizin): asks the Prime Minister to statethe extent of the damage done to thehouses at Kampong Tengku at SungeiWay, who is going to bear the lossincurred there as a result of vandalismand thefts, is the Attorney-Generalcontemplating taking action against thepeople connected with this scheme, ifnot why.

Tun Haji Abdul Razak (dengan izin):Sir, the Government appointed a Com-mittee of Officials in November, 1966,to undertake the completion of thehousing scheme at Kampong Tengkuwhich was started by the Federation ofMalaya Government Officers' Co-opera-tive Housing Society Limited. ThisCommittee is now charged with the taskof assessing the amount of money re-quired for this purpose, and this willtake into consideration the damagecaused by the stoppage of work on thescheme, including losses due to theftand vandalism. It is not possible at thisstage to 'state the amount involved asthis is a very complicated matter. TheCommittee will also have to make re-commendations as to how these lossesare to be borne, but the committee hasbeen informed that the principle to beobserved will be that the Governmentshould not in any way subsidise thisscheme.

The question of legal action againstthose concerned is another "matter and,as the Honourable Member is aware,there is a case pending in Court in con-nection with the affairs . of this Society,and it would not, in my view, be properin such circumstances to discuss thiscase in this House.

Dr Tan Chee Khoon (dengan izin):Mr Speaker, Sir, I entirely agree withthe Honourable Deputy Prime Ministerwhen he says that we should not dis-cuss the legal aspects of this case as

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there is a case pending before the Court.The thing that I wish to ask the Hon-ourable the Deputy Prime Minister isthis : is he aware, although the Govern-ment has instituted a Committee ofEnquiry in November, that this matterwas raised in this House more than oneand a half years ago, and thereforethere is no reasonable excuse on thepart of the Government to come andtell this House that this is a very bigmatter and it still has to look carefullyinto the matter. Is he aware that whilethe Government drags its feet, whilethe Government is still considering thiscase in air-conditioned rooms, every dayeither fittings are being removed or fit-tings are being deliberately broken andwires are being riped offis he awarethat such happenings are taking placealmost every day?

Tun Haji Abdul Razak: The Honour-able Member should be fully aware ofthis as answers had been given in thisHouse on this case before. The Govern-ment originally appointed a Committeeto go into this before taking any action.The Honourable Member should knowthat the Government cannot just go andtake action without proper investigation,and a Committee had been appointedand as a result of the recommendationsof that Committee, actions are nowbeing taken. As I said just now, theCommittee has been given the task oflooking into this. It is no longer a mat-ter for the Government, and I have nodoubt that this Committee will under-take this task as expeditiously aspossible.

Dr Tan Chee Khoon: Mr Speaker,Sir, just now the Honourable theDeputy Prime Minister enunciated avery important principle, that wherelosses are concerned in the case of thisproject, the principle is that the Govern-ment must not be expected to subsidisewhatever losses that may occur, and Isee that the Minister for Finance hasnodded his head in agreement. What Iwant to ask the Honourable DeputyPrime Minister is this : Will he alsoenunciate another principle, that wherethe losses are concerned, the owners ofthe houses that have not been com-pleted, who are completely innocentwhere these losses are concerned, will

not be made to bear whatever lossesthat may occur.

Tun Haji Abdul Razak : This is amatter for the Co-operative Society;this is not a Government concern. Thisis a Co-operative Housing Society andthose house owners are members of thisSociety and it is a matter for them toraise with the officials of the Society.

Dr Tan Chee Khoon : Mr Speaker,Sir, it is wellknown to the HonourableDeputy Prime Minister and it is alsowellknown to the Police that cases oftheft and vandalism had taken placeand are still taking place in that area.Can the Honourable Minister tell uswhat action has the Police taken toprevent such acts of thefts andvandalism? Secondly, have any of theseculprits been apprehended? If so, hasaction again been taken against suchculprits?

Tun Haji Abdul Razak : Sir, I haveexplained to the Honourable Memberthat this is a private Co-operativeSociety and if a private Co-operativeSociety such as this cannot run itselfproperly, you cannot put the blame onthe Government. If there are losses,then the Society must be responsible forthe losses and if there is theft andvandalism, and if the matter is reportedto the Police, then the Police will takeappropriate action. The Governmentcannot be responsible for every act ofprivate persons in this country.

Dr Tan Chee Khoon: Sir, unfortunately, whereas the Honourable DeputyPrime Minister wants to wash his handsoff this matter, it so happens that publicfunds are involved and since the publicfunds have been voted by this House tothe Co-operative Society concerned, theGovernment must, in the ultimateanalysis, bear the responsibility forwhatever losses that may occur, becauseit is the taxpayers' money that has goneinto building this housing project inKampong Tengku.

The other question that I wish to askthe Honourable Deputy Prime Ministeris this : Is he aware that adjacent to thisKampong Tengku, which has been.

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named by the people who have sub-scribed to it as "Kampong Tunggu"berapa lama mahu tunggu, mereka tidaktahu lagi there is a kampong knownas Kampong Jamil Rais ... .

Tuan Yang di-Pertua : I wish youwould keep to the first question. Yourfirst question has not been answered,but you are going on to the secondquestion.

Dr Tan Chee Khoon : I was merelymaking an observation regarding theaffinity between Kampong Tengkuand "Kampong Tunggu", and I did notpose a question, Mr Speaker, Sir. Imade a reference to the affinity betweenKampong Tengku and "KampongTunggu". The question that I wish toask the Honourable Deputy PrimeMinister is this : is he aware that, inaddition to this, there is another hous-ing project started by the same Co-operative Society named as "KampongJamil Rais" and where exactly the sameconditions prevail thefts, vandalismand the houses are rotting away owingto exposure to the sun and the rain?Can he tell us what steps the Govern-ment has taken to mount a resuscitationand a rescue project for this housingsociety?

Tun Haji Abdul Razak : Mr Speaker,Sir, I am only aware of this Govern-ment Officers' Co-operative HousingSociety because there has been theallegation of malpractices. That is whythe Government has come into it. I amnot aware of any other thing that isdone by private societies. As regardsGovernment funds, it will be the dutyof this Government to try as far aspossible to safeguard Government fundsand that is why we made it a conditionthat whatever losses may be incurred,the principle should be that the Govern-ment should not be made to subsidisethem.

MENGADAKAN SA-BUAHYAYASAN PERHUBONGAN

BANGSA

14. Dr Tan Chee Khoon bertanyakapada Perdana Menteri ada-kah diasedar bahawa ada sambutan hangatdari semua pehak terhadap chadangan

yang di-bust oleh Dr Tan Chee Khoonuntok mengadakan sa-buah YayasanPerhubongan Bangsa bagi mengkajimasaalah bangsa di-dalam negeri inidan menawarkan chara menyelesaikan-nya, jika sedar, ada-kah Kerajaan akanmenimbang mendirikan sa-buah Ya-yasan Perhubongan Bangsa saperti itu.

Tun Haji Abdul Razak: Tuan Yangdi-Pertua, Kerajaan tidak fikir mustahakhendak di-adakan Institute yang sa-macham ini kerana pada fikiran Ke-rajaan Perhubongan di-antara pen-dudok2 di-negara ini daripada berbilangbangsa ada-lah baik dan dari sa-harika-sahari ada bertambah baik.

Dr Tan Chee Khoon (dengan izin):Mr Speaker, Sir, far from what theHonourable Deputy Prime Ministerwants this House or this country tobelieve that sa-masa ka-samasa per-hubongan di-antara bangsa di-negeri inibaik, it can well be said, perhaps, thatone of the most difficult problemsfacing this country is communal har-mony in this country; and as such anindependent Institute of Race Relationsto study these matters and to makeproposals to the Government to improverace relations will go a long way towardsintegrating the various races in thiscountry.

Tun Haji Abdul Razak: Sir, I amglad to say that the relationship amongthe various races in this country hasbeen good and, under the guidance ofthe Alliance Government, it has beenstrengthened from time to time.(Applause. There has only been troublebecause the Members of the Oppositionare exploiting these issues, and I thinkif Members of the Opposition can stopmaking these communal issues as theirpolitical platform, then the relationshipamong the races will continue toimprove. In our view no amount ofInstitutes will do any good, if the Mem-bers of the Opposition continue toexploit these racial issues. (Applause).

Dr Tan Chee Khoon: Mr Speaker,Sir, the Honourable Deputy PrimeMinister wishes this House to believethat the Members of the AllianceGovernment are angels and that thevillains of the piece are us sitting on

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this side of the fence. If only we canplay in this House the racialisticspeeches made by Alliance Members invarious, areas, then it will make the hairof quite a number of us stand up tohear such inflammatory speeches madeby the Alliance Members at electionrallies. But, Mr Speaker, Sir, that is,beside the point.

. Tuan Yang di-Pertua : That was whatI was going to say it is quite besidethe point. (Laughter).

Dr Tan Chee Khoon : The Honour-able Deputy Prime Minister knows thatthe racial harmony that he sees in thiscountry which he is very proud of butwhich is a source of concern to quite anumber of people, not necessarily tothose of us on this side of the Housebut to a large number of people eithersitting opposite to me or outside thisHouse, that a small incident, thedevaluation, has caused riots and deaths.

AN HONOURABLE MEMBER : By theSocialist Front !

Dr Tan Chee Khoon: I deny that.(Laughter) On that matter we called fora Commission of Inquiry and that wasrefused by the Government. Theywished to bury their heads in theground and say, "All is well". Thething that I wish to ask is this : doesthe Honourable Deputy Prime Ministerof the Alliance Party or AllianceGovernment want to have another racialriot before they start thinking veryseriously to study the problems of racein this country?

Tun Haji Abdul Razak: Sir, theHonourable Member says he is con-cerned over this issue. We on theGovernment have always been con-cerned over this issue. The best thinghe can do is to try and persuade hiscolleagues his present colleagues andhis former colleagues not to make useof these issues (Laughter).

Dr Tan Chee Khoon: Sir, can theHonourable Deputy Prime Minister tellthis House who amongst my presentcolleagues have made inflammatoryspeeches on the matter of race? Can he

2704

please name them he has mentioned itjust now? (Laughter).

Tun Haji Abdul Razak: Sir, we haveevidence that the Honourable Member'spast colleagues, many of them(Laughter) had exploited these issues tothe detriment of this country (Laughter).

Dr Lim Chong Eu (Tanjong) (denganizin): Sir, may I ask the HonourableDeputy Prime Minister whether or nothe would accept the fact that if suchan Institute were established and theInstitute would just promulgate itsfindings as to exactly how much theAlliance has contributed towards racialharmony and how much the Oppositionhas not contributed to racial dishar-mony, the Institute would have done agreat service to this country. Sir, this isa problem not only confronting us; thisis actually becoming an academicproblem and other countries withmulti-racial . . .. .

Tuan Yang di-Pertua : You aremaking a speech.

Dr Lim Chong Eu : No, Sir, I am not.I am asking the Honourable DeputyPrime Minister . . .

Tuan Yang di-Pertua : Will you askquestion pertaining to this only?

Dr Lim Chong Eu : Sir, it is pertain-ing to this question, because theHonourable Deputy Prime Minister hasturned an academic question, a questionof social observation, into a politicalquestion. Sir, I feel that it might bevery interesting in this House for theHonourable Deputy Prime Minister justto brush this aside and make it into apolitical comment that the Alliance areabsolutely devoid of communal exploi-tation. However, Sir, will the Honoura-ble Deputy Prime Minister inform thisHouse categorically that the Govern-ment accepts the fact that the establish-ment of this Institute will be of benefit.

Tun Haji Abdul Razak: Sir, theHonourable Member for Tanjong hascome to the rescue of the HonourableMember for Batu and I hope theHonourable Member for Tanjong willhave some alleviating influence on the

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Member for Batu (Laughter). Sir, it isclear to all of us, at least to the majorityof the people in this country, that it isthe Alliance Government that hasbrought about the present racial har-mony in this country because we havealways declared this openly in ourpolicy and our action, and the Honour-able Member for Tanjong himself knewwhen he was in the Alliance how muchattention we paid to this importantissue. I feel that for the last fourteenyears, since the Alliance has been inpower, we have gone far in this direc-tion in bringing the various races closertogether and I think if we can continueto do this with the support of themajority of the people in this country,including the Opposition, I hope, I seeno difficulty in ultimately bringing realunity among our people of various races.

Tuan Ismail bin Idris (Palau PinangSelatan): Soalan tambahan, TuanYang di-Pertua. Oleh memandangkanbalk-nya perjalanan yang telah di-jalan-kan oleh Jawatan-kuasa Muhibbah di-bahagian2 dan di-kawasan2, ada-kahKerajaan memikirkan supaya Jawatan-kuasa Muhibbah itu dapat di-teruskan.

Tun. Haji Abdul Razak: Tidakdengar.

Tuan Ismail bin Idris: Soalan tam-bahan. Oleh kerana memandangkankapada baik-nya perjalanan Jawatan-kuasa Muhibbah di-kawasan2 di-selurohMalaysia ini ada-kah Kerajaan berfikirsupaya Jawatan-kuasa Muhibbah itu di-teruskan.

Tun Haji Abdul Razak : Kerajaansuka yang Jawatan-kuasa Muhibbah inidi-teruskan, kalau dapat di-adakan di-tiap2 tempat.

Dr Lim Chong Eu : Sir, I feel thatthe Honourable Deputy Prime Ministerhas batted all round the place verymuch like the Captain of the WestIndies team in Australia. Sir, thequestion is very simple. We have beenasking questions about whether Govern-ment will consider or not the setting upof such an Institute. It is either "yes" or"no", but instead of it, we have got

long, long replies and we do not knowstill whether the Government will say"yes" or "no". Will the Governmentsay "yes" or "no"?

Tun Haji Abdul Razak : Sir, the firstanswer that I gave was that the Govern-ment does not consider it necessary tohave this Institute the answer is "no"(Laughter).

RANG UNDANG2 DI-BAWAKA-DALAM MESHUARAT

THE ELECTION OFFENCES(AMENDMENT) BILL

Rang Undang2 an Act to amend theElection Offences Ordinance, 1954, asapplicable to the States of Malaya,Sabah and Sarawak di-bawa ka-dalamMeshuarat oleh Menteri Tanah danGalian di-bachakan kali yang pertama;akan di-bachakan kali yang kedua padapersidangan akan datang dalammeshuarat kali mi.

RANG UNDANG2 PERBEKALAN,1969

Rang Undang2 suatu Act bagi meng-gunakan sa-jumlah Wang daripadaKumpulan Wang Yang di-Satukanuntok perkhidmatan bagi tahun 1969dan bagi memperuntokkan wang itudan lain2 wang sa-bagaimana yang telahdi-benar di-keluarkan untok perkhid-matan bagi tahun itu di-bawa ka-dalamMeshuarat oleh Setia-usaha Parlimenkapada Menteri Kewangan di-bachakankali yang pertama; akan di-bachakankali yang kedua dalam meshuarat harimi.

RANG UNDANG2 PERBEKALANTAMBAHAN (1968) (BIL. 2)

Rang Undang2 suatu Act bagi meng-gunakan wang daripada KumpulanWang Yang di-Satukan untok per-belanjaan tambahan bagi perkhidmatantahun 1968 dan bagi memperuntokkanwang itu bagi maksud2 yang tertentudi-bawa ka-dalam Meshuarat olehSetia-usaha. Parlimen kapada MenteriKewangan di-bachakan kali yang per-tama akan di-bachakan kali yang keduapada persidangan akan datang dalammeshuarat kali mi.

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THE DEVELOPMENT FUNDS(AMENDMENT) BILL

Rang Undang2 an Act to amend theDevelopment Funds Act, 1966 di-bawaka-dalam Meshuarat oleh Setia-usahaParlimen kapada Menteri Kewangan di-bachakan kali yang pertama; akan di-bachakan kali yang kedua pada per-sidangan akan datang dalam meshuaratkali mi.

THE ACCOUNTANTS(AMENDMENT) BILL

Rang Undang2 an Act to amend theAccountants Act, 1967 di-bawa ka-dalam Meshuarat oleh Setia-usahaParlimen kapada Menteri Kewangandi-bachakan kali yang pertama; akandi-bachakan kali yang kedua pada per-sidangan akan datang dalam meshuaratkali mi.

THE LOAN (LOCAL)(AMENDMENT) BILL

Rang Undang2 an Act to amend theLoan (Local) Ordinance, 1959 di-bawaka-dalam Meshuarat oleh Setia-usahaParlimen kapada Menteri Kewangandi-bachakan kali yang pertama; akandi-bachakan kali yang kedua pada per-sidangan akan datang dalam meshuaratkali mi.

THE INTERNATIONAL MONE-TARY FUND (RATIFICATION OFAMENDMENTS TO ARTICLES OF

AGREEMENT) BILL

Rang Undang2 an Act to ratify theAmendments to the Articles of Agree-ment of the International MonetaryFund, pursuant to Resolution No. 20-8 of the Board of Governors of theInternational Monetary Fund at itsannual meeting in Rio de Janeiro inSeptember, 1967 di-bawa ka-dalamMeshuarat oleh Setia -usaha Parlimenkapada Menteri Kewangan di-bachakankali yang pertama ; akan di-bachakankali yang kedua pada persidangan akandatang dalam meshuarat kali mi.

THE CUSTOMS (AMENDMENT)BILL

Rang Undang2 an Act to amend theCustoms Act, 1967 di-bawa ka-dalamMeshuarat oleh Setia-usaha Parlimen

2708

kapada Menteri Kewangan di-bachakankali yang pertama; akan di-bachakankali yang kedua pada persidangan akandatang dalam meshuarat kali mi.

THE CRIMINAL PROCEDURECODE (AMENDMENT) BILL

Rang Undang2 an Act to amend theCriminal Procedure Code di-bawaka-dalam Meshuarat oleh MenteriKe`adilan di -bachakan kali yang per-tama; akan di-bachakan kali yangkedua pada persidangan akan datangdalam meshuarat kali mi.

THE HIRE PURCHASE(AMENDMENT) BILL

Rang Undang2 an Act to amend theHire Purchase Act, 1967 di-bawa ka-dalam Meshuarat oleh Menteri Per-dagangan dan Perusahaan di-bachakankali yang pertama; akan di-bachakankali yang kedua pada persidangan akandatang dalam meshuarat kali mi.

RANG UNDANG2 HAKCHIPTA

Rang Undang2 suatu Act bagi me-nyemak dan menyatukan undang2 ber-kenaan dengan hakchipta di-bawa ka-dalam Meshuarat oleh Menteri Perda-gangan dan Perusahaan di-bachakankali yang pertama; akan di-bachakankali yang kedua pada persidangan akandatang dalam meshuarat kali mi.

THE NATIONAL LAND CODE(AMENDMENT) BILL

Rang Undang2 an Act to amend theNational Land Code di-bawa ka-dalamMeshuarat oleh Menteri Hal EhwalTanah dan Galian di-bachakan kaliyang pertama ; akan di-bachakan kaliyang kedua pada persidangan akandatang dalam meshuarat kali mi.

THE COMMONWEALTHFUGITIVE CRIMINALS

(AMENDMENT) BILL

Rang Undang2 an Act to amend theCommonwealth Fugitive Criminals Act,1967 di-bawa ka-dalam Meshuarat olehMenteri Ke`adilan di-bachakan kaliyang pertama; akan di-bachakan kaliyang kedua pada persidangan akandatang dalam meshuarat kali mi.

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THE SUMMONSES (SPECIALPROVISIONS) (SINGAPORE) BILL

Rang Undang2 an Act to provide formore expeditious service of magistrate'ssummonses between Malaysia and theRepublic of Singapore di-bawa ka-dalam Meshuarat oleh Menteri Ke-tadilan di-bachakan kali yang pertama;akan di-bachakan kali yang kedua padapersidangan akan datang dalammeshuarat kali mi.

WAKTU MESHUARAT DANURUSAN YANG DI-BEBASKAN

DARIPADA PERATORANMESHUARAT (USUL)

Menteri Pengangkutan (Tan Sri HajiSardon bin Haji Jubir): Tuan Yang di-Pertua, saya mohon menchadangkan :

Bahawa sunggoh pun telah ada sharat2yang di-tetapkan dalam Peratoran Meshuarat12 (1) Meshuarat Majlis hari ini hendak-lahdi-tempohkan pada pukul 12.30 tengah haridan akan di-sambong sa-mula pada pukul2.30 petang manakala usul bagi Bachaan KaliYang Kedua Rang Undang2 Perbekalan 1969akan di-chadangkan, dan lepas itu Meshuaratakan di-teruskan hingga usul tersebut di-sokong dan pada sa`at itu nanti Majlis akandi-tanggohkan hingga pukul 9.30 pagi esok,hari Juma`at lOhb Januari, 1969.

Menteri Perdagangan dan Perusahaan(Tan Sri Dr Lim Swee Aun): TuanYang di-Pertua, saya mohon me-nyokong.

Usul di-kemuka bagi di-putuskan,dan di-setujukan.

Di-putuskan,

Bahawa sunggoh pun telah ada sharat2yang di-tetapkan dalam Peratoran Meshuarat12 (1) Meshuarat Majlis hari ini hendak-lahdi-tempohkan pada pukul 12.30 tengah haridan akan di-sambong sa-mula pada pukul2.30 petang manakala usul bagi Bachaan KaliYang Kedua Rang Undang2 Perbekalan 1969akan di-chadangkan, dan lepas itu Meshuaratakan di-teruskan hingga usul tersebut di-sokong dan pada sa`at itu nanti Majlis akandi-tanggohkan hingga pukul 9.30 pagi esok,hari Juma`at lOhb Januari, 1969.

Tan Sri Haji Sardon bin Haji Jubir:Tuan Yang di-Pertua, saya mohon men-chadangkan satu usul lagi :

Bahawa menurut sharat2 perenggan (1)Peratoran Meshuarat 12 Majlis ini memeren-tahkan bahawa pada Meshuarat yang akandi-adakan sekarang sharat2-

(a) Perenggan-kechil (a) Perenggan (1) Per-atoran 12 hendak-lah di-ertikan sa-olah2

perkataan atau "Khamis" di-gantikandengan perkataan "Khamis atau Sabtu";

(b) Perenggan 3 Peratoran Meshuarat 12hendak-lah di-ertikan sa-olah2 perkataanhari "Juma`at" di-gantikan denganperkataan hari "Sabtu".

Tan Sri Dr Lhn Swee Aun: TuanYang di-Pertua, saya mohon me-nyokong.

Usul di-kemuka bagi di-putuskan,dan di-setujukan.

Di-putuskan,

Bahawa menurut sharat2 perenggan (1)Peratoran Meshuarat 12 Majlis ini memeren-tahkan bahawa pada Meshuarat yang akandi-adakan sekarang sharat2--

(a) Perenggan-kechil (a) Perengggan (1) Per-atoran 12 hendak-Iah di-ertikan sa-olah2perkataan atau "Khamis" di-gantikandengan perkataan "Khamis atau Sabtu";

(b) Perenggan 3 Peratoran Meshuarat 12hendak-lah di-ertikan sa-olah2 perkataanhari "Juma`at" di-gantikan denganperkataan hari "Sabtu".

USUL

TAMBAHAN HAKIM2MAHKAMAH TINGGI TANAHMELAYU PERKARA 122A (1)

DALAM PERLEMBAGAANPERSEKUTUAN

Menteri Ke`adilan (Tuan Bahaman binSamsudin): Tuan Yang di-Pertua, usulyang saya bawa dalam Dewan padahari ini ada-lah saperti berikut :

Menurut peruntokan Perkara 122A (1)dalam Perlembagaan Persekutuan, Dewan iniada-lah mengambil ketetapan bahawa bilanganHakim di-Mahkamah Tinggi di-Tanah Melayuhendak-lah jangan lebeh daripada lima belas(15).

Suka saya menarek perhatian Dewanini kapada Perkara 122A (1) dalamPerlembagaan Persekutuan yang ber-bunyi saperti berikut:

122A (1.)--Tiap2 sa-buah Mahkamah Tinggihendak-lah mengandongi sa-orang HakimBesar dan tidak kurang daripada 4 Hakimlain2. Akan tetapi bilangan Hakim2 lain itutidak boleh sa-hingga sa-lain-nya di-tetapkanoleh Parlimen lebeh daripada (a) 12 orangdi-Mahkamah Tinggi di-Tanah Melayu, (b) 8orang di-Mahkamah Tinggi di-Borneo.

Sunggoh pun Mahkamah Tinggi di-Malaysia Barat pada masa ini mem-punyal 12 orang Hakim is-itu telahgenap bilangan-nya, tetapi bilangan inidi-fikirkan tidak menchukupi untok

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menguruskan case2 yang di-bawa ka-hadapan mereka. mi telah menyebab-kan bilangan case yang tidak dapat di-uruskan bertambah banyak. Bukansahaja bilangan case jenayah dan civiltelah bertambah dengan berlipat gandasemenjak negara kita menchapai ke-merdekaan bahkan, sa-bagaimana Ahli2Yang Berhormat sedia ma`alum,beberapa orang Hakim telah juga di-lantek dari sa-masa ka-samasa untokmengetuai Surohanjaya2 Penyiasat yangdi-tubohkan oleh Kerajaan. Memandangkapada peranan-nya memang sewajar-nya-lah Surohanjaya2 Penyiasat2 inimengambil masa yang panjang untokmenyiapkan tugas2-nya dan menyampai-kan laporan2-nya kapada Kerajaan.Chontoh Surohanjaya itu is-lahSurohanjaya Penyemak Gaji danSurohanjaya Gaji Guru2.

Sa-lain daripada tanggongan2 tam-bahan ini kekurangan Hakim Mahka-mah Tinggi bertambah merunchingapabila sa-orang atau dua antaramereka mengambil kesempatan untokberchuti. Sa-bagaimana yang telah sayanyatakan awal2 tadi, bilangan case,khusus-nya case civil, telah bertambah2dan rekod menunjokkan bahawa dalamtempoh 5 tahun yang lalu sahaja ter-dapat tambahan sa-banyak hampir50%.

Memandang dari segi kemajuan yangpesat dalam negeri ini terutama sa-kalibidang perdagangan dan perusahaan,tidak shak lagi bilangan case2 civil akanterus bertambah2 lagi, sunggoh punbilangan case2 jenayah tidak berubahakan tetapi di-sababkan oleh keadaan-nya bukan saperti case2 civil tiap2satu-nya perlu di-selesaikan dengansegera.

Perbicharaan bagi tiap2 satu casejenayah biasa-nya berlangsong sa-kurang2-nya sa-minggu suntok. Olehkerana case2 perlu di-segerakan, Hakimdi-kehendaki membicharakan-nya di-Mahkamah walau pun di-beritahu da-lam masa yang sengkat mengakibatkancase2 civil di-ketepikan. Suka sayamenambah di-sini bahawa di-sampingitu Kementerian saya dengan kerja-sama Mahkamah Tinggi memberi per-hatian berat terhadap kemungkinanmenyusun beberapa langkah saperti

2712

mengkaji bidang kuasa Yang di-PertuaMahkamah Seshen dan Mejistret, me-lantek lebeh banyak lagi Yang di-Pertuadan Mejistret, merekodkan keterangandengan menggunakan trengkas untokmemperchepatkan lagi kerja MahkamahTinggi dan lain2 Mahkamah sertamerengankan lagi beban ker ja-nya.Dengan ada-nya langkah2 tersebut danterlantek-nya Hakim2 tambahan ada-lahdi-harapkan bukan sahaja dapat di-kurangkan bilangan case2 yang tidakdapat di-uruskan, tetapi juga case2baharu akan dapat di-uruskan dengansa-berapa chepat yang mungkin.

Tuan Yang di-Pertua, saya mohonmenchadangkan.

Menteri Tanah dan Galian (Kato'Haji Abdul-Rahman bin Ya`kub):Tuan Yang di-Pertua, saya mohonmenyokong.

Dr Tan Chee Khoon (Batu): TuanYang di-Pertua, usul ini patut di-buatatau di-bawa ka-Dewan ini bukansekarang sahaja tetapi lama dahuluoleh sebab kekurangan Hakim Besardi-Malaysia Barat dan di-Sarawak dandi-Sabah, di-ketahui bukan di-antaraMenteri Ke`adilan atau di-antaraHakim Besar bahkan di-antara peguam2yang bekerja sa-bagai hakim di-Mahkamah Besar. Oleh sebab itu ma-lang-nya. Kerajaan Pusat sa-takat inisahaja membawa usul ka-Dewan YangBerhormat mi.

Tuan Yang di-Pertua, saya sukahendak menyentoh beberapa perkaratentang usul ini supaya Menteri yangberkenaan boleh mengambil perhatiandan saya hendak berchakap dalambahasa Inggeris.

Mr Speaker, Sir, the first matter thatI wish to bring to the attention of theMinister is the question of the title ofLord President. I do not see why weshould continue with this relic ofcolonialism. It is not even British atthat; it is a Scottish institution. I doknow that the first incumbent of thatpost was a Scotsman, but that is noreason why we should even borrow thetitle from Scotland. I propose that thetitle should be changed. What is wrongwith naming that post as Ketua Hakim

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Besar, Malaysia , that is, Chief Justice,Malaysia? As for the Chief Justices ofWest Malaysia , Sarawak dan Sabah,they • can be called Hakim Besar,Malaysia Barat , Hakim Besar , Sarawak,Hakim Besar , Sabah respectively. TheJudges can remain as Hakim2 as theyare now . We in this country can dowell by learning from the Scots manyfeatures of their national life, forexample, their love for learning, theirthrift and their love of adventure, butwe can and should do away with theLord President.

The second point that I wish to bringto the notice of the Minister of Justiceis that more Judges should beappointed from the Bar. I think I amright in saying that in the UnitedKingdom all the Judges are recruitedfrom outstanding practitioners of theBar. The names of Isaac Rufus, laterthe Marquis of Reading; the name ofJohn Simon, later Lord Simon; ofF. E. Smith, later the Earl of Birken-head; or of Lord Birkett, etc., readilyspring to mind. These men excelledthemselves at the Bar, and when theyleft the Bar and were elevated to theBench, they ascended to greater heights.Hence I would make a plea that moremembers who have excelled themselvesat the Bar should be elevated to theBench.

The other point that I wish to makeis that there should be more specialisa-tion amongst the Judges. As it is now,the Judges are "Jacks of all Trade".They hear a divorce case, they hear acivil case, they hear a criminal case. Iwould like to have instituted a Courtfor Divorce and Probate work, a Com-mercial Court, a Criminal Court, anda Chancery Court. If these courts areestablished then the standard of legalpractice will improve not only amongstJudges but also amongst the membersof the Bar. In this country the medicalprofession tends to specialise innarrower and narrower fields, but thelegal profession is so far behind in thatthere is no specialisation at all eitheramongst members of the Bench or ofthe Bar. This is regrettable, and I hopethat the Minister of Justice would startthe trend by having specialised courts.

There is also no reason why theBench should be the prerogative of themale species only. What is so wrongwith appointing a woman to the Bench?I am sure if a woman is elevated tothe Bench she will not only addglamour and dignity to the Bench butshe will also keep her male colleagueson their toes. Off-hand I can think ofat least one practitioner at the Bar whocan fill such a post with distinction,and I think the Minister of Justiceknows whom I am referring to.

In most other countries the Attorney-General is picked from Members ofParliament and he comes and goes withthe life of each Parliament. There areobvious advantages in such a practice,and I commend this to the Minister ofJustice. Where the Opposition is con-cerned, if it does not like any particularAttorney-General, then it can hope tounseat him at the polls.

The Minister of Justice should alsotake immediate steps to relieve theJudges of having to record evidencethemselves. He has pointed out aboutSessions Courts, I believe, and Magis-trates, but what is more important isthat the Judges should be relieved ofsuch a chore. As far as I know, and Ihave consulted lawyers before I madethis point, they tell me that Judges stillhave to record the evidence given inlong-hand. Mr Speaker, Sir, the Judge'sjob properly should be to listen to theevidence given, to observe the demea-nour not only of the witnesses but alsoof the lawyers, to record points ofimportance and then come to a decisionafter reading verbatim reports of theshorthand writers or listening to therecord of the trial from a tape-recorder.If this is done, then the time taken atany trial can be cut down almost byhalf, and the backlog of cases can becleared up much faster. Presumablyone of the reasons of bringing thisamendment to increase the Judges upto 15 is to clear the backlog of cases.

I myself have given evidence in boththe lower courts and in the High Court.It is sometimes pitiful to see the Judgestrying to record the evidence and atthe same time follow what is being saidand done in court. The Gerakan calls

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on the Minister of Justice to take upthe provision of shorthand writers ortape-recording of trials as a matter ofpriority in the interests of justice in thiscountry.

Finally, Mr Speaker Sir, I wish tomake a plea to the Judges and Magis-trates in this country that they shouldpay greater attention to the allegationsof assault by the Police. Undoubtedlya number of these allegations of assaultare baseless, but I dare say that agreater number of such allegations aretrue. And what worries me is that suchcases of assault by the custodians ofthe law is on the increase. As a medicalpractitioner, practically every week Isee such victims of police assaultcoming to my dispensary to seek re-dress. Unfortunately there is in mostcases very little medical evidence insupport of such allegations. The reasonis a very simple one. The police havereduced such a practice of assault to afine art that there is very little medicalevidence to support allegations of suchassault.

Only yesterday, Mr Speaker Sir, ayoung man who works in the Churchof the Holy Rosary in Brickfields andwho was going back to the Churchfrom the Y.M.C.A. was stopped bythree members of the police force andassaulted by them. There was very littlemedical evidence to support his allega-tion, but I had no doubt that what hestated was true. Here you have a churchworker living in a church, walkingfrom the Y.M.C.A. to the church, hewas stopped by three policemen, he wasasked to produce his identity card, heproduced his identity card, andpromptly he was assaulted by the custo-dians of the law. Now, as I say, I haveno reasons to doubt the story of thechurch worker, and he was sent to meby the priest of that church. Again, intoday's Straits Times, on page 6, thereis a story of police assault resulting inthe death of a victim, and hardly a daygoes by without the Press carryingstories of assault by the police. All thesestories or allegations cannot be false.There cannot be smoke without afire. As I pointed out before, such casesunfortunately are on the increase and

2716

I hope that Magistrates and Judges inthis country will pay more attention tosuch allegations instead of dismissingthem out of hand. Mr Speaker, Sir, Ihope that the Minister will pay dueattention to the points I have made,because, as I said before, I have fullysupported the Motion and the pointsthat I have made are in the interests ofjustice in this country. Thank you.

Dr Lim Chong Eu (Tanjong) (denganizin): Mr Speaker, Sir, in rising tosupport the Motion, I have only onepoint to raise and I believe that theHonourable Minister of Justice himselfen passant in his speech has indicatedthat he is aware of the problem andthe matter has also been touched uponby my Honourable colleague fromBatu and that is the question that weagree to this increase in the number ofHigh Court Judges. As a matter of fact,from the figures that were quoted bythe Honourable Minister, the figurecould well be increased to a much largernumber than 15. However, the pro-cesses of choosing members to the HighCourt should be one that should behandled with great care so that not onlyjustice be meted out but the wholestructure of the Court and the dignityof the Court and justness of the Courtwill never be impeached, and will neverbe imputed. I think our Courts onthe whole have functioned very welland the traditions will be maintainedwhen the choices of the persons to fillthis larger High Court will be made.

However, Sir, the point I wish toparticularly refer to is that we believethat the Minister of Justice will, as soonas this matter is passed through thisHouse and the appointment of a largerHigh Court made, further take imme-diate actions also to try and increasethe number of Judges in this country.The number of cases that await notonly for a first hearing in Court butalso appeals are increasing. There are,without doubt, cases that have beenkept waiting for hearing sometimesthree years, sometimes even ten years.The allegation on this point is wellknown to the members of the Bar and,therefore, in supporting the Motion, wehope the Honourable Minister will take

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prompt action to increase the numberof Judges also so that cases will beheard as soon as possible and nothaving to wait for such a long periodas ten years before they ever reach theCourt at all.

Tuan Bahaman bin Samsudin(dengan izin): Mr Speaker, Sir, I amvery happy that my Motion has thesupport of the Honourable Member forBatu and the Honourable Member forTanjong.

The Honourable Member for Batustated that this should have been donelong ago. Well, Sir, I was not at thattime the Minister of Justice; I justbecame the Minister of Justice about8 months ago. I am quite aware of allthe shortcomings of the Courts, Judgesin the Courts and that I have visitedalmost all the Courts in East Malaysiaand West Malaysia and I have sugges-tions, as I said, on how to improvethem.

With regard to the suggestions of theHonourable Member for Batu, I willgive them my due attention. Withregard to the suggestion of the Honour-able Member for Tanjong that thereshould be more Judges, more than15 actually, we will make do with 15now since there is the question ofmoney to be paid and many otherthings. Afterwards perhaps, after wehave our 15 Judges, we may considerincreasing them to more than 15.

Usul di-kemuka bagi di-putuskan,dan di-setujukan.

Di-putuskan;

Menurut peruntokan Perkara 122A (1)dalam Perlembagaan Persekutuan, Dewan inimengambil ketetapan bahawa bilangan Hakimdi-Mahkamah Tinggi di-Tanah Melayuhendak-lah jangan lebeh daripada lima belas(15').

RANG UNDANG2THE WIDOWS' AND ORPHANS'

PENSIONS (SABAH)(AMENDMENT) BILL

Bachan Kali Yang Kedua dan KetigaMenteri Hal Ehwal Tanah dan Galian(Dato' Haji Abdul-Rahman binYa`kub): Tuan Yang di-Pertua, saya

memohon mengemukakan RangUndang2 bergelar `The Widows' andOrphans' Pensions Ordinance (Sabah)(Amendment) Bil di-bachakan bagi kaiiyang kedua.

Tuan Yang di-Pertua, semenjakMalaysia di-ujudkan perkara2 pen-chen, ranchangan penchen balu2 dananak2 yatin dan juga KumpulanSimpanan Pekerja Kerajaan di-Negeri2 Malaysia Timor telah menjaditanggong-jawab Kerajaan Persekutuan,atau pun Kerajaan Pusat. Sa-terus-nyadi-atas nasehat Peguam Negara,Undang2 Penchen yang sedia ada di-Negeri2 di-Malaysia Timor itu talitelah pun di-ubah atau pun di-modifiedsupaya menuruti kehendak Perlem-bagaan Persekutuan. Di-antara undang2yang telah di-ubah itu A a-lah Undang2Penchen Balu2 dan Anak2 Yatim Bab155 Negeri Sabah. Di-bawah kuat-kuasa Undang2 ini, maka telah puntertuboh sate kumpuan wang penchenbagi balu2 dan anak2 yatim. Sa-kum-pulan pegawai Kerajaan telah pun di-sharatkan membayar kumpulan wangitu. Kesemua wang penchen ada-lahdi-bayar daripada kumpulan wangitu mengikut perkiraan yang terdapatpada Jadual dan panduan2 yang ter-tera di-jadual kapada Undang2 Pen-chen Balu2 dan Anal{2 Yatim Bab155 tersebut di-atas. Wang dalamkumpulan ini ada-lah di-gunakanuntok menanam modal di-dalam apa2chagaran, atau pun di-gunakandengan jalan2 yang akan memberifaedah2 mengikut chara2 yang di-luluskan oleh Menteri yang berkenaan.

Kumpulan wang ini di-nilai dalamjarak waktu, tiada lebeh daripada 5tai un sa-kaii oleh sa-orang pakar ataupun sa-orang Actuary. Actuary itudalam laporan-nya kelak akan mene-rangkan kaedah bagaimana dalamkeadaan2 berlebehan wang atau punsurplus fund atau pun kekuranganwang atau pun deficit kumpulan wangltu harus di-tadbirkan dengan sa-wajar-nya sama ada melalui pelarasancharum2 atau pun faedah2 atau punsa-balek-nya.

Rang Undang2 saperti yang di-kemukakan kapada Dewan ini ada-lahakan memberi kuasa kapada Duli YangMaha Mulia Sri Paduka Baginda Yang

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di-Pertuan Agong bagi mengeluarkanperentah atau pun order dalam WartaKerajaan supaya dapat Jadual2 padaundang2 yang tersebut tadi is-itu Bab156 di-pinda untok melaksanakansegala perakuan2 actuary yang ber-kenaan.

Tuan Yang di-Pertua, pindaan yangdi-shorkan sekarang tidak ada menim-bulkan dasar2 baharu bahkan hanyauntok melichinkan pentadbiran terha-dap undang2 tersebut.

Tuan Yang di-Pertua, saya motionmenchadangkan.

Dato' Game Gilong: Saya sokong.

Dr Tan Chee Khoon (dexgan izin):Mr Speaker, Sir, it is typical of theAlliance Government that instead ofmaking a thorough study of an oldform of legislation it prefers to tinkerwith the problem and then bringpiece-meal bits of legislation to thisHouse. I submit that that is not apractice that is worthy of any Govern-ment. We know that in this countrythere are a large number of pieces oflegislation which are a carry-over ofthe colonial days, which will not bearinvestigation or which are, to say theleast, pieces of anachronism by presentday standards. One piece of legislationthat I can readily bring to mind is theEmployees Provident Fund Ordinance.The E.P.F. Ordinance has been amen-ded so many times and only when theMinister of Justice himself pointed outto the Manager of the E.P.F. that wherethe Muslims are concerned themanner of distribution of the assetsof the E.P.F. is illegal did the E.P.F.pay attention to such an illegal practicethat has been going on. Now, I submitthat the Widows' and. Orphans' Pen-sions Act is a case in point. At thetime that it was promulgated therewas a need for such a piece oflegislation in order to protect thewidows and orphans of that period.With the passage of time where thethinking, particularly after World WarII, is entirely different from thatbefore World War II, where the worldtoday is moving more towards awelfare State, more towards givingthe less fortunate members of societygreater aid, then I would say that theWidows' and Orphans' Pensions Fundis an anachronism and it should either

be scrapped or be replaced by a moreenlightened form of legislation.

Now, from time to time one hearsof the pensioners in this countryshouting their heads off, sendingtelegrams to Members of Parliament,sending memoranda to Members ofParliament, setting forth theirgrievances regarding the Widows' andOrphans' Pensions Act and how theyfeel that they have been cheated bythe Widows' and Orphans' PensionsAct, and they have even gone to theextent of seeking redress in thecourts unfortunately they lost there.Unfortunately, the widows andorphans in this country have beenunsung and unheard of, particularlyin this House. Now, the reason whysuch a piece of legislation is notequitable is this: a person usuallyjoins the Government Service as abachelor and in the course of yearsvery often he marries and he has awife and children but quite oftenthese people remain bachelors through-out their lives and all these years thatthey have been working in the Govern-ment Service they contribute to theWidows' and Orphans' Pensions Fund,they are compelled to contribute, andthen they pass away. They do notget any material benefit from thecontributions that they have made.The other thing is that although aperson may marry, his wife maypredecease him and his children bythe time he dies may well be nolonger orphans or minors, may wellbe over the age of 21 and thereforenone of his decendants, his beneficiariescan benefit from the contributionsthat he has made.

It is a well-known fact that theGovernment, I won't say it is makingplenty of money but there are largereserves accruing from such accumu-lation of funds from people whohave contributed to the Widows' andOrphans' Pensions Fund but theirdescendants or their relatives, wifeand children, have not in any waybenefited from the contributions ofthe Government wage-earners and,therefore, there are large reserves inthis Fund. Unfortunately, thesebenefits are not passed over to thosewho stand to benefit; in other words,

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to the others who stand to benefit. Ido not see any reason why suchreserves should be allowed toaccumulate with the passage of time,why such reserves should not begiven to the others who are in greatneed for assistance from such aFund. It is a wellknown fact thatsome widows get about $20, maybe$15, maybe $30 a month from theWidows' and Orphans' Pensions Fund.I submit that in these days of infla-tion taking the example of childrengoing to school, for a Form IIIstudent I saw that the total of thecost of books came up to $52, if youcan think of a widow having, let ussay, three children in the secondaryschool, how on earth is she going tosupport the children, to feed andclothe them and to send them toschool with such a heavy bill to meetfor the payment of books and schoolfees.

I submit that the Minister • forLands and Mines, instead of tinkeringwith this problem, should cause acomplete re-examination of theWidows' and Orphans' PensionsFund to see whether that Fund shouldbe scrapped and merged with someother pieces of legislation, or that ifit is deemed necessary that the Fundshould continue to operate, then thelarge reserves that are in the Widows'and Orphans' Pensions Fund shouldbe distributed in a more equitablemanner to the widows and orphanswho are in dire need of aid fromsuch funds, instead of these reservesbeing kept to accumulate more andmore reserves. Thank you.

Dato ' Haji Abdul-Rahman binYa`kub: Tan Yang di-Pertua, sa-benar-nya hujjah2 yang di-kemukakanoleh Ahli Yang Berhormat itu ada-lahmengenai dasar2 yang terkandong di-dalam undang2 yang besar ya`ani "TheWidows' and Orphans' Pensions FundOrdinance", bukan di-dalam RangUndang2 yang sedang di-binchang di-dalam. Dewan mi. Bagaimana pun,Tuan Yang di-Pertua, saya inginmenerangkan is-itu bukan sahaja di-negara kita di-Malaysia ini mempunyaikeadaan saperti yang di-sebut oleh AhliYang Berhormat itu, ya`ani kita

mengemukakan beberapa pindaan2kapada beberapa undang2, pada halsepatut-nya kita patut mengkajikanMasaalah itu dari segi yang lebeh men-dalam Iagi dan jangan mengubahundang2 itu daripada satu masa ka-satumasa. Keadaan ini tidak dapat di-elakkan sunggoh pun kita lebeh suka,saya sendiri lebeh suka , supaya jikalausa-sabuah undang2 itu di -buatkan, biar-lah undang2 itu akan berjalan terussa-hingga pada bila2 masa pun dengantidak ada pindaan -nya, tetapi tidakaria sa-buah dunia, sa-buah negara punyang mempunyai keadaan2 saperti ini,sama ada di-England, di-New Zealand,atau pun di-Australia mesti akanberlaku daripada satu masa ka-satumasa yang lain pindaan2 kapadaundang2 yang asal tadi bergantongkapada pengalaman2 , atau punkeadaan2 di -sekeliling dalam negeri itu

dan kita jangan lupa penggubalundang2 ini atau legal draftsman. Ada-kah manusia saperti kita jikalau sa-orang doktor saperti Ahli YangBerhormat boleh salah diagnosis-nyabagitu juga penggubal undang2 bolehsalah dalam tulisan-nya apabila merekaitu menggubal undang2.

Berhubong dengan sama ada negaraatau pun dunia ini menuju kapadawelfare state , ini bergantong kapadafaham sa-saorang sedangkan manusiasendiri, ahli politik , ahli saintis ataupun lain2 belum lagi faham dalammasaalah ta`arif welfare state sama adawelfare ini berma`ana bahawa tiap2orang yang miskin itu patut di-bantuoleh Kerajaan dan lain2-nya tidaksemua ahli2 politik yang setuju.

Bagaimana pun, Tuan Yang di-Pertua , negara kita belum lagi sampaika-tingkat "welfare state" walau apapun erti "welfare state" yang di-ta`arif-kan oleh Ahli2 Yang Berhormat.

Berkenaan dengan dasar undang2 ini,saya sendiri berpendapat ada lagikegunaan -nya pada masa sekarangsunggoh pun saya mengaku bahawabeberapa peruntokan2 dalam RangUndang2 ini tidak memberi puas hati,mithal-nya saya sendiri , saya pun telahpernah memberi contribution kapadafund ini semasa saya bekerja di-Sarawak , sekarang saya telah berhenti,

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tetapi saya tidak dapat mengambilbalek fund2 yang telah saya berikankapada Kerajaan.

Jikalau withal-nya di-masa yangakan datang saya akan hidup lebehlama lagi daripada anak dan isterisaya, maka fund itu akan hilangsahaja kapada Kerajaan. Point ini adatetapi ini-lah sekarang Kerajaan sedangmengkaji sa-mula berkenaan denganundang2 yang berkenaan mi. Masaalahini tidak dapat di-selesaikan dalammasa sa-tahun atau dua tahun. Kitaterpaksa menchari pakar2 untokmengkaji dengan sa-dalam2-nya. Sa-lain daripada itu ..... .

Dr Tan Chee Khoon: Ada-kahMenteri Tanah dan Galian sedarKerajaan Perikatan telah memerentahbukan satu tahun atau dua tahun, sa-lama 13 tahun lebeh. Pindaan ataumemereksa undang2 saperti ini terpaksadi-kajikan beberapa lama dahulu.

Dato' Haji Abdul-Rahman binYa`kub: Tuan Yang di-Pertua, AhliYang Berhormat ini lupa bahawapindaan ini bukan kapada pindaanundang2 di-Malaysia Barat. Pindaan inidi-kemukakan kapada Undang2 Malay-sia Timor yang baharu sahaja masokdalam Malaysia lima tahun. Makapengkajian2 ini tidak boleh di-adakan13 tahun yang lalu. Walau pun mithal-nya andaikata Rang Undang2 inimengenal Malaysia Barat, 13 tahun itudalam tawarikh satu undang2, jikalauAhli Yang Berhormat mengetahui, satutawarikh yang pendek sahaja dalamsegi pengalaman manusia.

Usul di-kemuka baai di-putuskan,dan di-persetujukan.

Rang Undang2 di-bachakan kaliyang kedua dan di-serahkan kapadaDewan sa-bagai Jawatan-kuasa.

Dewan bersidang sa-bagai Jawatan-kuasa.

(Tuan Yang di-Pertua mempengerusikanJawatan-kuasa)

Fasal 1 d'an 2 di-perentahkan menjadisa-bahagian daripada Rang Undang2.

Rang Undang2 di-laporkan dengantidak ada pindaan : di-bachakan kaliyang ketiga dan di-luluskan.

2724

THE WIDOWS' AND ORPHANS'PENSIONS (SARAWAK)(AMENDMENT) BILL

Bachaan Kali Yang Kedua dan KetigaDato' Haji Abdul-Rahman binYa`kub: Tuan Yang di-Pertua, sayamohon menchadangkan supaya RangUndang2 yang bergelar the Widows'and Orphans' Pensions (Sarawak)(Amendment) Bill tahun 1968 di-bachakali yang kedua.

Tuan Yang di-Pertua, penjelasan2mengenaI Rang Undang2 ini ada-lah sa-rupa dengan penjelasan2 yang baharusahaja saya beri mengenal RangUndang2 yang telah di-luluskan.

Tuan Bahaman bin Samsudin: TuanYang di-Pertua, saya mohon menyo-kong usul mi.

Usul di-kemuka bagi di-putuskan,dan di-setujukan.

Rang undang2 di-bachakan kali yangkedua dan di-serahkan kapada Dewansa-bagai Jawatan-kuasa.

Dewan bersidang sa-bagai Jawatan-kuasa.

Range Undang2 di-timbangkan dalamJawatan-kuasa.

(Tuan Yang di-Pertua mempengerusikanJawatan-kuasa)

Fasal 1 dan 2 di-perentahkan menjadisa-bahagian daripada Rang Undang2.

Rang Undang2 di-laporkan dengantidak ada pindaan : di-bachakan kaliyang ketiga dan di-luluskan.

THE MALAY REGIMENT(AMENDMENT) BILL

Bachaan Kali Yang Kedua dan Ketiga

Setia-usaha Parlimen kapada TimbalanPerdana Menteri (Tuan Chen WingSum) (dengan izin): Mr Speaker, Sir,I beg to move that a Bill intituled "anAct to amend the Malay RegimentEnactment (F.M.S. Cap. 42)" be read asecond time.

Under the provision of existing lawonly officers of the rank of Brigadier-General and above are vested with thepowers to try summarily officers belowthe rank of Major and Warrant Officerswhere such officers have consented tobe so tried. Under existing practiceofficers below the rank of Major and

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Warrant Officers who consent to betried are brought before BrigadeCommanders of the rank of Brigadier-General to be summarily tried eventhough such officers may not directlycome under the command of the parti-cular Brigade Commander beforewhom they may appear. It is felt thatColonels, who exercise wide commandfunctions and who are normallyCommanders of garrisons should alsobe given the powers to deal summarilywith cases involving officers below therank of Major and Warrant Officers.If Colonels, who are senior officers inthe Army, are also vested with thepowers to hold summary trials inrespect of officers below the rank ofMajor and Warrant Officers, themanner of bringing officers below therank of Major and Warrant Officersfor summary trials can be achievedwith greater speed and efficiency. It iswith this in view that this Bill proposesto amend the existing law.

Sir, I beg to move.

Tuan All bin Haji Ahmad: TuanYang di-Pertua, saya menyokong usulin'.

Usul di-kemuka bagi di-putuskan,dan di-setujukan.

Rang Undang2 di-bachakan kaliyang kedua dan di-serahkan kapadaDewan sa-bagai Jawatan-kuasa.

Dewan bersidang sa-bagai Jawatan-kuasa.

Rang Undang2 di-timbangkan dalamJawatan-kuasa.

(Tuan Yang di-Pertua mem pengerusi kanJawatan-kuasa)

Fasal 1 hingga 3 di-perentahkanmenjadi sa-bahagian daripada RangUndang2.

Rang Undang2 di-Iaporkan dengantidak ada pindaan : di-bachakan kaliyang ketiga dan di-luluskan.

ATORAN URUSAN MESHUARAT(USUL)

Menteri Pengangkutan (Tan Sri HajiSardon bin Haji Jubir): Tuan Yang di-Pertua, saya mohon menchadangkan :

Bahawa menurut Peratoran Meshuarat 14(2) Majlis ini mengambil ketetapan is-itu sa-

baik2 sahaja lepas Malay Regiment (Amend-ment) Bill yang tertera sa-bagai perkara 4dalam Atoran Urusan Meshuarat hari iniselesai di-timbangkan , Majlis ini akanmenimbangkan perkara 6 dalam AtoranUrusan Meshuarat tersebut.

Tuan Ali bin Haji Ahmad: TuanYang di-Pertua, saya mohon men-yokong.

Usul di-kemuka bagi di-putuskan,dan di-setujukan,

Di-putuskan.

Bahawa menurut Peratoran Meshuarat 14(2) Majlis ini mengambil ketetapan is-itu sa-baik2 sahaja lepas Malay Regiment (Amend-ment) Bill yang tertera sa-bagai perkara 4dalam Atoran Urusan Meshuarat hari iniselesai di-timbangkan, Majlis ini akanmenimbangkan perkara 6 dalam AtoranUrusan Meshuarat tersebut.

UNDANG2 KASTAM (TARIFBERSAMA MALAYSIA), 1966

Perentah Kastam (Tarif Bersama Malaysia)(Pindaan) (No. 21) 1968

Setia-usaha Parlimen kapada MenteriKewangan (Tuan Ali bin Haji Ahmad):Tuan Yang di-Pertua, saya mohonmenchadangkan :

Bahawa Majlis ini mengambil ketetapanis-itu menurut kuasa2 yang di-berikan kapada-nya oleh sekshen-kechil (4) dalam sekshen 2,Undang2 Kastam (Tarif Bersama Malaysia),1966, Perentah Kastam (Tarif BersamaMalaysia) (Pindaan) (No. 21) 1968, yangtelah di-bentangkan di-hadapan Majlis ini sa-bagai Kertas Undang2 No. 1 tahun 1969,di-sahkan.

Perentah yang ada di-hadapanDewan ini bertujuan untok mengena-kan chukai impot sa-banyak $50 sa-tondi-atas semua besi mentah (pig iron),"ingots" dan "billets" yang di-perjeniskan di-bawah Kepala No.73.01 900, 73.06 200, 73.15 110, 73.15120, 73.07 900, 73.15 210 dan 73.15220. Sa-bagaimana Ahli2 Yang Berhor-mat sedia ma`alum, sekatan impottelah pun di-kenakan di-atas barang2yang tersebut tadi. Tetapi ada-labdi-dapati bahawa sekatan impot yangtelah di-kenakan itu tidak memberikanperlindongan yang chukup kapadaperusahaan2 tempatan. Ada-Iah di-jangka Perentah ini akan dapatmemberikan perlindongan yang di-perlukan bagi perusahaan2 tempatanitu.

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Tuan Yang di-Pertua, saya mohonmenchadangkan.

Dato' Ganie Gilong: Tuan Yang di-Pertua, saya mohon menyokong.

Usul di-kemuka bagi di-putuskan,dan di-setujukan.

Di-putuskan,Bahawa Majlis ini mengambil ketetapan

is-itu menurut kuasa2 yang di-berikan kapada.-nya oleh sekshen-kechil (4) dalam sekshen 2,Undang2 Kastam (Tarif Bersama Malaysia),1966, Perentah Kastam (Tarif BersamaMalaysia) (Pindaan) (No. 22) 1968, yangtelah di-bentangkan di-hadapan Majlis ini sa-bagai Kertas Undang2 No. 1 tahun 1969,di-sahkan.

UNDANG2 KASTAM (TARIFBFRSAMA MALAYSIA), 1966

Perentah Kastam (Tarif Bersama Malaysia)(Pindaan) (No. 22), 1968

Tuan All bin Haji Ahmad: Tuan Yangdi-Pertua, saya mohon menchadang-kan :

Bahawa Majlis ini mengambil ketetapanis-itu menurut kuasa2 yang di-berikan kapada-nya oleh sekshen-kechil (4) dalam sekshen 2,Undang2 Kastam (Tarif Bersama Malaysia),1966, Perentah Kastam (Tarif BersamaMalaysia) (Pindaan) (No. 22) 1968, yangtelah di-bentangkan di-hadapan Majlis inisa-bagai Kertas Undang2 No. 2 tahun 1969,di-sahkan.

Tali leher, bow dan kerevet yangtidak di-sulam yang di-perjeniskan di-bawah Kepala No. 61.07 100, 61.07200, 61.07 300, 61.07 900 sekarang inidi-kenakan chukai sa-banyak 25% advalorem di-seluroh Malaysia (tidaktermasok Pulau Pinang dan Labuan).Tetapi ada-lah di-dapati bahawachukai ad valorem sa-banyak 25% itutidak memberikan perlindongan yangsa-chukup-nya kapada perusahaan2tempatan yang menghadapi pertandin-gan daripada negeri2 asing. Oleh yangdemikian ada-lah di-fikirkan bahawatambahan perlindongan patut di-beri-kan kapada perusahaan2 tempatanyang mengeluarkan barang2 yangtersebut tadi. Perentah yang ada di-hadapan Majlis ini is-lah untok menu-karkan chukai impot di-atas barang2yang di-perjeniskan di-bawah KepalaNo. 61.07 100, 61.07 200, 61.07 300,61.07 900 daripada 25% ad valorenkapada "25% ad valorem atau $4.80sa-dozen bergantong kapada manysatu chukai yang lebeh tinggi."

2728

Tuan Yang di-Pertua, saya mohonmenchadangkan.

Dato ' Ganie Gilong: Tuan Yang di-Pertua, saya mohon menyokong.

Usul di-kemuka bagi di-putuskan,dan di-setujukan.

Di-putuskan,

Bahawa Majlis ini mengambil ketetapanis-itu menurut kuasa2 yang di-berikan kapada-nya oleh sekshen-kechil (4) dalam sekshen 2,Undang2 Kastam (Tarif Bersama Malaysia),1966, Perentah Kastam (Tarif BersamaMalaysia) (Pindaan) (No. 21) 1968, yangtelah di-bentangkan di-hadapan Majlis inisa-bagai Kertas Undang2 No. 2 tahun 1969,di-sahkan.

UNDANG2 KASTAM, 1967

Perentah Chukai2 Kastam (Pindaan) (No. 11)1968

Tuan Ali bin Haji Ahmad : Than Yangdi-Pertua, saya mohon menchadang-kan •

Bahawa Majlis ini mengambil ketetapanis-itu menurut kuasa2 yang di-berikan kapada-nya oleh sekshen-kechil (2) dalam sekshen 11,Undang2 Kastam 1967, Perentah Chukai2Kastam (Pindaan) (No. 11), 1968, yang telahdi-bentangkan di-hadapan Majlis ini sa-bagaiKertas Undang2 No. 3 tahun 1969, di-sahkan.

Perentah yang ada di-hadapanMajlis ini is-lah untok mengenakanchukai eksepot di-atas bijeh tembagadan tembaga berseh (Kepala No.26.01 130) dan bijeh uraniam danuranium berseh (Kepala No. 26.01 570)kapada Malaysia `Timor. Chukaieksepot di-atas galian2 yang tersebut di-atas, yang sekarang ini di-kenakan di-Malaysia Barat, is-lah 10% bagi tiap2satu tan. Perentah ini is-lah untokmenyamakan chukai eksepot di-selurohMalaysia.

Tuan Yang di-Pertua, saya mohonmenchadangkan.

Dato' Game Gilong: Tuan Yang di-Pertua, saya mohon menyokong.

Usul di-kemuka bagi di-putuskan,dan di-setujukan.

Di-putuskan,

Bahawa Majlis ini mengambil ketetapanis-itu menurut kuasa2 yang di-berikan kapada-nya oleh sekshen-kechil (2) dalam sekshen 11,Undang2 Kastam 1967, Perentah Chukai2Kastam (Pindaan) (No. 11), 1968, yang telahdi-bentangkan di-hadapan Majlis ini sa-bagaiKertas Undang2 No. 3 tahun 1969, di-sahkan.

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UNDANG2 KASTAM, 1967

Perentah Chuka2 Kastam (Pindaan) (No. 12)1968

Tuan All bin Haji Ahmad : Tuan Yangdi-Pertua, saya mohon menchadang-kan

Bahawa Majlis ini mengambil ketetapanis-itu menurut kuasa2 yang di-berikan kapada-nya oleh sekshen-kechil (2) dalam sekshen 11,Undang2 Kastam, 1967, Perentah Chukai2Kastam (Pindaan) (No. 12), 1968, yang telahdi-bentangkan di-hadapan Majlis ini sa-bagaiKertas Undang2 No. 4 tahun 1969, di-sahkan.

Perentah Chukai Kastam, 1968, yangdi-buat mengikut "Chara SusunanBrussels" (the Brussels Nomenclature)telah di-terbitkan pada lhb Ogos, 1968sa-bagai P.U. 337. mi telah di-bentangkan di-Parlimen sa-bagaiKertas Undang2 No. 130 tahun 1968.Sunggoh pun Perentah ini terbit padaIhb Ogos, 1968, is telah di-siapkanpada 30hb April, 1968 dan patut ber-jalan kuat kuasa-nya pada lhbJanuari, 1969. Perentah yang ada di-hadapan Majlis ini sekarang is-lahuntok meminda perentah utama (P.U.337/68) dengan chara menyatakan ka-semua pindaan2 yang telah di-buat di-antara 1 hb Mei, 1968 dan 31 hbDisember, 1968. Dengan chara inidapat-lah perentah utama yang di-sebutkan di-atas di-up-to-date-kan padalhb Januari, 1969.

Tuan Yang di-Pertua, saya mohonmenchadangkan.

Dato' Ganie Gilong : Tuan Yang di-Pertua, saya mohon menyokong.

Tuan Geh Chong Kiat (PenangUtara) (dengan izin): Mr Speaker, Sir, Iwould like to request the HonourableMinister of Finance again to considerthe case of the Island of Penang, inview of over two hundred items whichhad been roped into the PrincipalCustoms Area under the Customsharmonisation programme. Sir, thePenang Island problems are more ofeconomics, customs restrictions andprocedures rather than political. Myappeal to the Honourable Minister ofFinance is to ask him to consider andto re-assess the adverse effects of such

impositions which had resulted in thedecline of trade and increased un-employment on the Island and theState in general.

Sir, I remember clearly that we had aray of hope through the assurance ofthe Honourable Minister of Financeand the Honourable Minister ofCommerce and Industry, that theywould give Penang Island assistanceand financial aids to compensate forthe loss of trade and to solve othereconomic problems. Sir, in view of this,I would like to mention that we havea few hundred cottage industries andfactories on the Island, and our dailyproblems are with the Customs Depart-ment on the question of laboriousCustoms declarations and trade. Iwould request the Honourable Minis-ter to reconsider these following itemswhich I am bringing up : that wherethe finished products that are producedin Penang with raw materials on whichduties had been paid, or finished pro-ducts on which no duties are requiredon importation, be allowed to be im-ported freely into the Mainland. WhenI requested for relaxation, we hadreceived assurances from both theMinisters of their assistance. Therefore,I would like just to remind them ofour needs and our problems on theisland.

The items that I am thinking of are,for example, the bean-curd stick wherethere are no duties on the beans, andduties have been collected on thebean-curd stick because of the Codeand the general category of roping in ofthat generalised classification. There-f ore, I would like to request again thatwhere no duties are involved on theraw products, Government should giveconsideration to allowing them to gothrough the mainland without duty ordeclaration, and so to accept theprinciple that duties should not beimposed on labour, in view of the factthat we are encouraging Penang Islandto set up the factories and also tosolve the unemployment problems andto encourage the people on the Islandto diversify in view of the erosion ofthe free port status.

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Sir, speaking on the Customsrestrictions and the problem which thetraders in Penang are experiencing, Iunderstand that the new Customsbuilding at Butterworth is ready andthe Customs Department are proposingto move to the Mainland . Sir, the officeat Penang has been there for many,many years , and Penang Island ismainly an entrepot trade centre and acommercial area. If we accept the basisthat Penang Island , or the City ofGeorge Town, is a commercial areaand an entrepot trade centre, then Iwould request the Honourable Ministerto consider this ; that if you shift theCustoms Office over then there will bemore problems of making declarations,filling of declaration forms, and thepaying of duties , in respect of which wein Penang at this juncture , even thoughwe have a Customs Office in Penang,they are fully occupied . The business-men and the traders were quite luckyto have good officers there , but quiteunfortunately at times they came acrossnasty officers , who made things diffi-cult for the businessmen. Therefore, weunderstand the problems in Penang,and we request the Honourable Minis-ter of Finance not to shift this CustomsOffice to the Mainland , at Butterworth,or, if possible , to retain the machineryon the Island where the businessmen,the tradesmen and the merchants couldsubmit their declaration forms andmake payment of their duties at theIsland end. Besides , the main branchof the banks are also on Penang Island,and when it comes to paying duties,quite often businessmen have got torush to their bankers to send in theirguarantee forms and make bankguarantees to the Customs Officers;sometimes cheques are not acceptedfrom the small businessmen and theyhave got to pay cash , and so they havegot to rush to their banks; and some ofthe major decisions have to go throughthe Bank Manager who is usuallystationed in Penang , as some of theButterworth banks are only brancheswhere they do not have or possessauthorities which have been vested withthe Managers of branches of bankswhich usually are based on PenangIsland.

2732

Now, Sir , I would also like to makea request on a matter which quite oftenI have spoken in this House that isthe problem of the argument and themisunderstanding between officersbased at the various stations on theMainland and the Island with thepublic . Sir, in view of this and be-cause so many items have been ropedin and so many Code numbers havebeen introduced , I am sure confusionwill arise and misunderstanding willoccur , and if this is not properlyhandled or tackled , tempers would beraised . So, in view of this , I am re-questing the Honourable Minister ofFinance to consider "Operasi Perkhid-matan" there is a similar one whichthe Police called "Operasi Ber-khidmat". In this case , I am requestingfor "Operasi Perkhidmatan" where theCustoms Department could set up aCentral Advisory Unit on the Island atwhich questions or problems could besolved, or directed to by the juniorofficers at the various Customs stationswhere they have doubts . This willavoid tempers being raised and willavoid officers sometimes taking uponthemselves to interpret the law as theysee it rather than where there is adoubt the businessman or the publicshould be given the benefit of thedoubt ; in other words , they take itupon themselves to interpret the lawand carry out the law, which at timesmay have a doubt and which the publicis entitled or privileged to ask or toenquire. The danger point is that whenthe public enquire or when they con-test , quite often the officers start to benasty, and then trouble and misunder-standing start to arise , and that iswhere sometimes I have the displeasureof pointing out to the HonourableMinister and the Officers . I hope thatby carrying out such an operation a lotof problems could be solved and we inPenang would be able to carry on thebusiness , which we have been carryingon, and even though hardships may befelt, we will try to carry on as goodcitizens of the country.

Sir, we have other problems too. AsI said , Penang trade has declined andbusinessmen , quite a number of them,are forced to reduce their business, and

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I appreciate that even though theysuffered loss in business, instead ofretrenching their redundant staff, mostChinese firms have come to an arrange-ment with their staff that is becauseof the difficult years, instead of re-trenching, they have come to an agree-ment to reduce some facilities whichhave been provided, such as extra mealsor overtime.

Next, Sir, I would request the Minis-ter to consider this : in view of theannouncement of the HonourableTimbalan Perdana Menteri, now theActing Perdana Menteri, Tun HajiAbdul Razak, on the setting up of twofree trade zones, one on the Mainlandand one on the Island of Penang, andsince these free trade zone areas are notready, may I request the HonourableMinister of Finance to reconsider theprocess of setting up of bonded ware-houses, and to have many licensedwarehouses on the Mainland along thePrai River and on the Island itself. Thepresent area that is intended to be setup as a free trade zone area may betoo small; therefore, if the Ministerwere to utilise these licensed ware-houses and place officers there tosupervise, like a bonded warehouse,then 1 am sure this would ease thebottleneck of the free flow of trade. Iam sure the Honourable Minister wouldbe able to do that; we understand theyhad been carrying this out in respect ofthe soap manufacturers, where they hadCustoms Officers there to supervise frommorning till evening, or each time theystarted making the soap or taking outthe raw materials which are dutiable;and now because of arrangements beingmade through the kind assistance of theHonourable Minister, these officers hadbeen relieved, and certain firms, orcertain manufacturers, have to providethe bonded areas for checking purposes.Therefore, Sir, I am sure such similararrangements could be arranged in res-pect of these licensed warehouseswhere the Revenue Officers could bebased to check the dutiable goods thatare under bond from time to time. Iunderstand that these facilities havebeen accorded to commercial houseswhich import dutiable goods in bulk

2734

for example, like beer and otheralcoholic items. So, I would requestthe Honourable Minister to considerall these problems, which I place beforehim. Thank you, Sir.

The Parliamentary Secretary to theMinister of Finance (Tuan Ali bin HajiAhmad): Mr Speaker, Sir, the questionbrought up by the Honourable Memberfor Penang Utara is actually irrelevant.This resolution is merely in respect ofmaking the rates of duty incorporatedin the new tariff based on the BrusselsNomenclature up to date, as on 1stJanuary, 1969. However, Sir, what hehad said are being and will be lookedinto by the Government.

Usul di-kemuka bagi di-putuskan,dan di-setujukan.

Di-putuskan,

Bahawa Majlis ini mengambil ketetapanis-itu menurut kuasa2 yang di-berikan kapada-nya oleh sekshen-kechil (2) dalam sekshen 11,Undang2 Kastam, 1967, Perentah Chukai2Kastam (Pindaan) (No. 12), 1968 , yang telahdi-bentangkan di-hadapan Majlis ini sa-bagaiKertas Undang2 No. 4 tahun 1969, di-sahkan.

Tuan Yang di-Pertua : Persidangandi-tempohkan pada pukul 2.30 petang.

Persidangan di-tanggohkan padapukul 12.30 tengah hari.

Persidan gun di-sam bong sa-mulapada pukul 2.30 tengah hari.

(Tuan Yang di-Pertua rnempengerusikanMeshuarat)

RANG UNDANG2

RANG UNDANG2 PERBEKALAN,1969

Bachaan Kali Yang Kedua

Menteri Kewangan (Tun Tan Siew Sin)(d engan izin): Mr Speaker, Sir, I beg tomove that a Bill intituled "An Act toapply a sum out of the ConsolidatedFund to the service of the year 1969and to appropriate that sum and suchother sums as have been authorised tobe issued for the service of that year"be read a second time.

At about this time last year, Iindicated to Honourable Members thatin 1967 Malaysia faced its most serious

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economic difficulties since independenceas a result of the severe decline in com-modity prices , particularly for rubber.Owing primarily to the adverse effectsof this sharp commodity price declineon incomes and employment, consumerspending was sluggish while the rate ofcapital formation in the private sectorappeared to have slowed down. Forthese reasons , last year's Budget was,therefore , intended to exert a moderatesustaining influence on the domesticeconomy . At the same time, I addedthat the slowdown in economic activitywould not last and would be overcomein 1968. This conclusion was based onmy firm belief in the inherent strengthand productive capacity of the Malay-sian economy . Events of the past yearindicated that it had, to a large degree,responded much as we expected. Soundeconomic policies , supported by a rapidexpansion in world trade and a rise ofeconomic activity in the industrialworld , have enabled the country to comeout of this difficult period in bettershape than it was a year ago . It wouldbe useful, at this stage , to review verybriefly our recent performance andassess in a nutshell our prospects in theyear ahead.

The year 1968 was one of stronggrowth , particularly in the latter halfof the year. The gross national productrose by about 5 %; in terms of volume,the growth rate was as much as 8 %.The main expansionary forces wereincreased public sector expenditure andexports. After a marked slowing downin 1967, expenditures by the publicsector picked up significantly last yearbut the rate of expansion was still con-siderably lower than growth during theearly 1960's. Nevertheless, they resultedin increasing strains on the overallbudgetary position of the FederalGovernment . Growth in private sectorexpenditure , however, recovered moregradually and it was not until afterthe early months of 1968 that privateinvestment began to show some signsof buoyancy . For the year as a whole,both private capital formation and con-sumer spending expanded in real terms,at a faster rate than in the previousyear. Externally, our exports performeddramatically. The volume of rubber

export rose by nearly 122 %, tin by19 %, saw logs by 13 % , sawn timberby 31 % and palm oil by 50%. Al-though the prices of most of thesecommodities continued to fall,especially in the first half year, totalreceipts from gross exports increasedsharply to reach a new record level.Imports also rose but at a slower rate,so that the merchandise balance wasin substantial surplus. There was animprovement in the external paymentsposition and total official externalreserves rose during the past year.

As in the past , growth in the amountof money in the hands of the publiccontinued to keep pace with the needsof the domestic economy. Deposits withcommercial banks as well as bank creditextended to the private sector rosesignificantly. Confidence in Malaysiancurrency was further enhanced by theGovernment 's move to Article VIIIstatus in the international MonetaryFund. There were, in general , no signi-ficant movements in interest rates.Retail prices , which rose in 1967, re-mained relatively stable. Available dataindicate that there has been somedeterioration in the unemploymentsituation last year.

Looking ahead , we can expect abetter year in 1969. The expansionaryeffects of this Budget should continueto set the pace and establish a founda-tion for greater economic growth. Inthe private sector , there are also groundsfor confidence . External demand for ourexports should continue at a high leveldespite the modest slowing down thatis presently forecast for growth in aggre-gate output in the industrialised coun-tries and in world trade. A steady risein gross export earnings above lastyear's record is in prospect . With in-comes increasing steadily , we can alsoexpect the rising trend in consumerspending to continue in the next twelvemonths, but the more crucial elementwould be the performance of privateinvestment . There are already indica-tions that private capital expendituresare gathering momentum . Increasedconsumer spending and growing importsubstitution can be expected to exertgreater demands for new investmentand larger plant capacity . And, given

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adequate encouragement by Govern-ment, private investment should risemore strongly in the next twelvemonths. On the whole, therefore, busi-nesses and entrepreneurs can confi-dently plan with the expectation thatthe economy will expand at a healthyrate in 1969.

Given the situation I have just des-cribed, Honourable Members will nodoubt appreciate that while it has beenthe Government's policy to tighten thereins on public expenditures, never-theless we have to be sure that there isa balanced expansion of public andprivate expenditures; whenever expendi-tures in the private sector have sloweddown, Government saw to it that therewas no letdown in public expendituresin order to ensure that the economyis firmly based for future expansion.Since the beginning of this decade, thepublic sector has been setting the pace,so much so that as a proportion ofaggregate domestic demand, publicexpenditures have risen from 21%in 1961 to 25% last year. Needlessto say, this has resulted in heavy de-mands on the Government's resources.It is, however, necessary to rememberthat in the last analysis it is the privatesector which not only sets the tempoof economic development, self-sustain-ing economic growth cannot be achievedwithout the private sector playing byfar the major role.

INTERNATIONAL DEVELOPMENTS

As we see it, the current internationalsituation is a source of potential dangerto Malaysia, since our economy dependsso heavily on growth in both worldtrade and the industrial countries. It isdifficult to recall any period in recenthistory when the international monetarysituation has been in such a chaoticstate. The devaluation of the poundsterling in November 1967 and theestablishment of the two-tier old pricesystem in the wake of the gold crisis ofmid-March 1968 have failed to calmwidespread uneasiness about the stabi-lity of the major international curren-cies. The Basle facility and the conclu-sion of sterling guarantee agreementsbetween the United Kingdom and theother Sterling Area countries in Sep-

tember last were designed to strengthenconfidence in sterling and contributetowards world monetary stability. Thereal strength of these arrangements,however, was called into question intheir first major test in November lastwhen heavy speculation led to a thirdmoney crisis in twelve months. Thisseries of monetary crises clearly indica-ted that what has been happening isnot merely a succession of isolatedcrises but that, basically, there is some-thing radically wrong somewhere. Thereis no point in blaming speculators fortheir actions in this field. To be fair,they had ample justification for them.

For some years now, too manycountries have had difficulty inbringing their government finances intoline with real resources and in curbinginflationary tendencies that havebecome so commonplace. As a conse-quence, their currencies have beensubject to a steady erosion of theirvalue in terms of purchasing power. Inbrief, inflation has been widespread.The best managed countries in thefinancial and economic sense haveundergone a continuous period ofcreeping inflation. The not so wellmanaged have seen galloping inflation,and the others are somewhere inbetween. What is worse, one cannotsee any sign that this dangerous trendwill be reversed, even gradually.Indeed, far too many are resigned tothe prospect that we would be for-tunate if the situation does notdeteriorate further. It is little wonderthen that so many are steadily losingfaith in paper currencies generally, butparticularly the reserve currencies.

The internal difficulties to which Ihave referred have, of course, led to afundamental disequilibrium in thepayments position of the reserve cur-rency countries. The obvious answer isto eliminate these chronic deficits inthe shortest time possible, but whathas given rise to so much disquiet is theapparent inability of such countries todemonstrate convincingly that theseimbalances will be corrected within areasonable period of time. Under thecircumstances, it is not surprising thatboth governments and individuals areturning increasingly to gold as the

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i

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safest form of investment of theirreserves and the day may yet comewhen governments would even feel thatalternative forms of investment, includ-ing industrial shares, would be saferthan any currency and the bulk ofofficial reserves could well be held ineither gold or such alternative formsof investment . If nothing else, the recentmonetary crisis was a patent demons-tration of the interdependence ofthe ma jor international currencies.Because of this, it has been suggestedthat a second international monetaryconference on the scale of the BrettonWoods Conference held in 1944 , shouldbe held again to sort out the graveproblems which face us. If it is tosucceed , the essential prerequisite ofsuch a conference must be that thosewho are likely to take the lead, i.e. thereserve currency countries , must firstgive a convincing demonstration thatthey can put their own houses in orderbefore attempting to put right the restof the world.

It may be claimed that the proposalof the International Monetary Fund tocreate what has been called specialdrawing rights will solve most of ourpressing problems by increasing inter-national liquidity. Even if this argu-ment is accepted, one cannot fail toobserve that such liquidity will beincreased at the expense of diluting thereserves of those countries which havea balance of payments surplus . Indeed,this result cannot be avoided . It, there-fore, cannot be denied that specialdrawing rights are , at best, only atemporary remedy and cannot providethe real answer to the basic and longterm problem.

Growth in the industrial countries asa whole expanded rapidly in 1968 afterslowing down perceptibly in theprevious year. Their gross nationalproduct as a whole rose by about 5%in real terms, compared with onlyabout 3% in 1967. Output growthwas particularly marked in the UnitedStates, West Germane, the UnitedKingdom and Canada, which togetheraccount for about two -thirds of thenon-Communist world's industrialproduction . The resumption of econo-mic expansion was brought about

primarily by strong consumer demandin most of these countries . Duringthe year , many of these countries intro-duced comprehensive measures todampen excessive domestic demand,and in the case of the reserve currencycountries , renewed efforts were madeto correct the persistent deficits intheir payments positions . Economicgrowth in Japan and Italy sloweddown after a period of marked growthin 1967 while economic activity inFrance slackened further. Unemploy-ment continued to be a matter ofconcern, especially in the UnitedKingdom and France . Economicrecovery in the industrial countrieslcd to a significant increase i n worldtrade, which is presently estimated tohave been about 10% in 1968 ortwice the rate of growth in theprevious year.

In the year ahead , latest studiesindicate that the world economywould become less buoyant, as aresult largely of the restrictivemeasures taken to hold down demandin most industrial countries. With theexception of Italy , where the economyshould expand in the wake of Govern-ment measures to stimulate demand,all major industrial countries areexpecting some reduction in economicactivity. On the whole, real nationaloutput in the industrial countries isnow forecast to expand at between3 2 % and 4% in the next twelvemonths. This implies a somewhat lessfavourable outlook for exporters ofprimary products . World trade, as aconsequence, will also slow down; onpresent trends , a 7% growth in thevalue of world trade is in prospectfor 1969.

ECONOMIC SITUATION

After a short lived slowdown ineconomic activity in 1967 , the Malay-sian economy recovered steadily parti-cularly in the second half of last year.The current tempo of economicexpansion appears likely to gatherincreasing momentum in the nexttwelve months. Preliminary estimatesindicate that the gross national pro-duct at market prices, or GNP forshort , in 1968 amounted to close on$10.2 billion , an increase of about

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5%, compared with nearly 4% in theprevious year. In terms of physicaloutput, that is, after adjusting fordomestic and export price movements,GNP rose by about 8% in 1968. Withpopulation rising at about 3%, percapita GNP rose from $965 in 1967 to$980 in 1968. (Applause),

With a steady rise in consumptionand investment expenditures in boththe public and private sectors, aggre-gate domestic demand continued toexpand in 1968. As in recent years,public expenditures led the way.Government expenditure on goods andservices rose by almost 8 %, or nearlydouble the rate in the previous year butmarkedly lower than the averagegrowth rate of 14% for the period 1963.to 1966. Most of the increase in theGovernment's consumption expenditurewas for social services. Public invest-ment outlay, which fell by nearly 4%in 1967, rose by about 2%. For thepublic sector as a whole, therefore,aggregate expenditures were 6 i %higher than in the previous year asagainst a growth rate of only 2% in1967.

Consumer spending, which normallycomprises more than three-fifths ofaggregate domestic demand , rose stea-dily during the past year. At currentprices, the expenditures of consumers,supported by higher incomes , rose byabout 4 % compared with 4 . 7% in theprevious year. Honourable Memberswill, however, recall that the price ofimported rice increased sharply in1967, so that a significant part of thegrowth in private consumption in thatyear was in fact absorbed by priceincreases. In real terms , therefore,private consumption in 1968 was agood deal higher than that implied bythe figures quoted. Compared with theprevious year, retail prices were on thewhole relatively stable in 1968. Privatecapital expenditures also rose duringthe past year. Preliminary estimatesindicate that private investment rose byabout 4% in 1968 compared with4.3 % in the previous year . Here again,the figures do not reflect the actualsituation since the growth rate in 1967included a substantial accumulation ofstocks in that year . In terms of fixed

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capital formation, that is, investment inplant, machinery and other fixed assets,private expenditure increased by about5 . % last year as against some 3% in1967.

The catastrophic rubber price declineexperienced in 1967 adversely affectedinvestment activity in the domesticeconomy, but its depressive effects soonwore off as the economic outlookbecame clearer and more reassuring.Government, for its part, offered newand more comprehensive investmentincentives to help stimulate the privatesector. Last year, investment in boththe private and public sectors rose byabout 3% compared with 12 % in1967. The improvement was moresignificant in terms of fixed capitalformation about 4 % increase in1968 as against a growth rate of lessthan 1 % in the previous year.Total investment accounted for 18%of GN P. a high proportion for adeveloping country by any standard.

Although the Malaysian economyexpanded in 1968, the indications arethat there was some deterioration inthe unemployment situation last year.Most of the unemployed are in westMalaysia. However, East Malaysia,particularly Sabah, continued to expe-rience a general shortage of labourdespite efforts by the Malaysian Migra-tion Fund Board to ease the situation.Provisional results from a samplesurvey conducted during the periodJune 1967/May 1968 suggested thatthe rate of unemployment in westMalaysia, expressed as a percentage ofthe labour force, was 6.8% comparedwith 6% in 1962 when the first nation-wide survey was carried out. Thehighest incidence was in the age groups15 to 19 and 20 to 24 where currentunemployment rates were as high as26% and 14% respectively. It is notsurprising that about two-thirds of theunemployed were "first-timers". Therate of unemployment in the rural areaswas 5.4% compared with 5% in 1962.In urban areas, the rate of unemploy-ment is particularly high. The recentsurvey of six major urban areas in WestMalaysia indicated that the unemploy-ment rate in such areas was 11.2% in1968 compared with 9.6% in 1962.

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After a brief period of rising foodprices towards the latter part of 1967,retail prices in West Malaysia stabilisedat this high level during the first fourmonths of 1968. Since then , there hasbeen a distinct decline, particularly inthe food index , in the third quarter oflast year . Trends in the prices of othercomponents of consumption were rela-tively stable. The retail price index,which records price changes for a fixedbasket of goods and services with1959 as the base year , averaged 109.7during the first half of 1968 comparedwith 109.2 in the second half of 1967and 107 in the first half of 1967. Theaverage index for the third quarter of1968 was 107 , or about the level pre-vailing in early 1967 . For the firstnine months of last year , the overallindex averaged 108.8, or just a shadehigher than the average of 108 for1967 . While no price statistics areavailable for East Malaysia, the avail-able evidence indicates that there havebeen no significant movements inconsumer prices in this part of Malaysiaduring the past year. On the whole,therefore, Malaysian consumers enjoyedanother year of relative price stability.This is particularly gratifying consi-dering that the industrial world ispresently preoccupied with serious pro-blems of inflation.

As I now see the prospects , economicgrowth should accelerate strongly inthe next twelve months. It is envisagedthat this Budget will strengthen theeconomy further and provide greaterscope for private expenditures, espe-cially on capital goods. It is difficult tomeasure the economic impact of thisBudget precisely . However, on the basisof the Budget estimates which will bediscussed in some detail at a later stage,it is possible to draw some broadconclusions on the pattern of publicsector spending in the next twelvemonths. In line with the Government'spolicy to hold down current expendi-ture , Government spending on goodsand services in 1969 is expected to growat a slightly slower rate than in theprevious year. However, public invest-ment will rise strongly, so that on thewhole, public sector expenditures will

2744

probably increase by about 8% in1969.

With the steady increase in incomes,we can certainly expect a continuingrise in the expenditures of consumers,probably at a somewhat higher ratethan last year . Retail prices shouldcontinue to remain stable. As regardsprivate capital expenditures , we wouldlike to see an acceleration of the rateof fixed capital formation. Indeed, it isgratifying to record that some importantprojects involving significant invest-ments associated with the chemical,rubber and oil palm, engineering, tim-ber, pulp and paper , textile and touristindustries are in the pipeline . Further-more , the impact of rising populationand consumer demand would increasethe need for more plant capacity.Expenditure on home construction aswell as commercial and industrialbuildings have been increasing steadilyand the year ahead could see furtherexpansion . At present , the bankingsystem is very liquid; unutilised bankoverdraft facilities are ample and bankresources should be adequate to financea substantial expansion in businessexpenditures . As we see it , privateinvestment could possibly rise duringthis year by as much as 8 to 9%.Aggregate domestic demand is thusexpected to expand more rapidly in thenext twelve months. Externally , receiptsfrom Malaysian exports should con-tinue to rise, though less rapidly thanin 1968 , but imports are expected toadvance at a slightly slower rate. Onthe whole , therefore , GNP is expectedto increase by about 6% in 1969.

PRODUCTION AND EXPORTS

I have so far painted only a broadpicture, though touching in some detailon the demand side of the economy.Trends in the production sector havealso improved. In 1968 , production inthe domestic economy expandedrapidly. Strong external demand forour primary commodities provided themuch needed stimulus to productionfor export, which rose much morerapidly than production for domesticuse during the past year. Latest esti-mates of the key primary commoditiesproduced indicate that rubber output

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rose by 9% in 1968, rice by 18%,tin by 2%, saw logs by 12%, sawntimber by 17%, palm oil by nearly25% and palm kernels by 26%. Theexport volume of our five major com-modities, namely, rubber, tin, timber,palm oil and kernels and iron ore,which together account for more thanthree-fourths of total exports, rose bynearly 16% in 1968. In terms of value,however, receipts from these exportsincreased by only 9.2% as a result oflower prices for all these commodities,except timber. Minor exports also rosesharply by 10%, mainly on account osubstantial increases in the export ofcoconut oil, canned pineapples, petro-leum and petroleum products andmanufactured goods. On the whole,therefore gross exports rose by nearly9% in 1968 to reach a record levelof $4.07 billion, compared with adecline of more than 3% in 1967.

The volume of rubber exportsincreased sharply by nearly 12 z % toreach an estimated 1.15 million tons in1968, due primarily to marked increasesin purchases by the major Westernindustrial countries, especially theUnited States, and unusually large off-takes by the Soviet Union and MainlandChina. This gratifying rise in externaldemand was met not only by asubstantial production of 1.07 milliontons but also by larger imports forre-export as well as by some drawdownin stocks. However, the value of theseexports, amounting to $1.34 million,rose by only about 5%, as a resultof a 5% drop in the unit value, whichaveraged 52 cents a pound in 1968compared with 55 cents a pound inthe previous year. The catastrophicrubber price decline experienced in thelatter part of 1967 persisted into theearly months of 1968. Prices wereparticularly low in February, and on7th February, a price of 43 2 cents apound for R.S.S. No. 1 rubber wasreached, the lowest since September1949. With the recovery of demand,prices picked up strongly towards theend of May and since mid-July, thedaily spot price has consistently beennot less than 54 cents a pound, exceptfor a brief period towards the end ofAugust. It even touched 60 cents on

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22nd November, for the first time since30th December, 1966. The averageprice for the last three quarters of 1968was nearly 55 cents a pound comparedwith an average of only 47.6 cents apound in the first quarter. For the yearas a whole, the R.S.S. No. 1 priceaveraged 53 cents a pound comparedwith 54 cents a pound in 1967.

While the rubber industry has gonethrough a difficult and perhaps its mostcritical period, the recent recovery inprices augurs well for the future. Sucha recovery reinforces the view thatrubber has a bright long term future solong as the industry keeps on its toesand maintains its research effort, if notintensify it. In particular, it is encou-raging to note that increasing amountsof Malaysian rubber exports can nowbe classified as Standard MalaysianRubber (S.M.R.). It is significant thatthis product has been favourablyreceived by consumers, especially inthe United States and Europe. In 1968,rubber production under the S.M.R.scheme amounted to about 85,000 tons,or more than 3- times that producedin 1967. This represented about 8% oftotal rubber production. This year,production will probably reach 150,000tons or approximately 13% of totalrubber production.

Production of tin-in-concentrates con-tinued to expand in 1968 with a totaloutput of 74,000 tons, or about 41%of world production. The volume of tinmetal exports, however, rose by 19 2 %to 89,000 tons, due chiefly to sub-stantial imports from Indonesia forsmelting and re-export. However, re-ceipts from these exports, amounting to$846 million, rose by only about 12%due mainly to a 6% decline in theunit value, from $604 a picul in 1967,to $565 a picul last year. The low priceof tin ruling since August 1967 con-tinued into the first three quarters of1968. During this period, the daily spotprice of tin averaged $558 a picul com-pared with an average of $600 a piculfor 1967 as a whole. The introductionof limited export controls on 19thSeptember last and the revival ofdemand since then, especially from theUnited States, coupled with speculative

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activity arising from the last inter-national monetary crisis, led to someimprovement in tin prices . For the lastquarter of the year , the tin priceaveraged $588 a picul . Tin export con-trols have, so far, had very little impacton Malaysian production and exports.

The timber industry is becomingincreasingly important to the Malay-sian economy and is at present thethird most important in terms offoreign exchange earnings . Malaysia isnow probably the world 's largest ex-porter of tropical hardwoods. As inprevious years, production of both sawlogs and sawn timber expanded rapidlyin 1968 . Although an increasing pro-portion of timber is being consumeddomestically , the amount available forexport continues to be substantial. Lastyear , exports of saw logs, amountingto 5.69 million tons, increased by l3%over the 1967 level. With prices re-maining relatively stable, recei pts fromthese exports rose by the same rate toreach $540 million in 1968. In the caseof sawn timber , export volume in-creased by an even faster rate of nearly31% to 775,004 tons in 1968. Sincesawn timber prices also rose , earningsfrom these exports, amounting to $147million, were 40% higher than in theprevious year. Receipts from timberexports , therefore , amounted to $687million in 1968 , or about 17% of totalexports compared with only 8% in1963. On the basis of present trends,earnings from timber exports this yearwould probably reach $760 million, or18% of total exports. Since receiptsfrom tin exports this year are expectedto be appreciably lower than in 1968,timber would become Malaysia' secondlargest foreign exchange earner in 1969,relegating tin to third place.

Production in the oil palm industryrose steeply in 1968. Exports of palmoil amounted to 280,000 tons ul 1968,an increase of 50% over 1967, butreceipts from these exports, amountingto $123 million , rose by only 6.2% duemainly to a sharp fall of 29°A in theunit value , from $624 a ton in 1967 to$440 a ton last year. There has beenan ominous and continuous decline inthe price of palm oil since the begin-

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fling of 1968 and by August, themonthly average price had dropped to$363 a ton, the lowest recorded in thepost-war years. This spectacular fall inpalm oil prices was due largely to anabundant supply of edible oils relativeto world demand. Earnings from palmkernel exports rose markedly from $9million in 1967 to $17 million in 1968.

With the gradual exhaustion of goodquality ore and reduced demand fromJapan, the production and export ofiron ore fell in 1968. Total exports,amounting to 5 million tons, were4.7% lower than in 1967. Moreover,the unit value also declined so thatexport receipts, at $105 million, werenearly 14% lower.

Manufacturing activity grew furtherin 1968, though the manufacturingsector continues to be small, account-ing for only about 12% of aggregatedomestic production. Latest data fromthe annual survey of manufacturingindustries, which covers about 80% ofproduction in the manufacturing sectorof West Malaysia, indicated that thenet value of output in 1967, amountingto $644 million, rose by nearly 11 %compared with 13% in the previousyear. Growth in "pioneer" companieswas somewhat better. Data for 1968are, however, not yet available, but onthe basis of monthly data on selectedindustries, the rate of expansionappears to have accelerated during thepast year. New enterprises which com-menced production in 1968 includedfive additional motor vehicle assemblyplants, a food flavouring plant, a glass-ware factory, assembly plants forbicycles, scooters and agricultural im-plements, a jute mill and factories forthe manufacture of plywood, galvanisediron pipes, textiles, cables, heavyvehicle tyres and electrical householdappliances.

Indications are that constructionactivity, largely stimulated by therecovery of aggregate domestic de-mand, particularly in the private sector,and by the continuing demand forresidential housing and commercial andindustrial structures, expanded steadilyin 1968. Service industries, too,continued to expand in keeping with

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growth in the other sectors of theeconomy . In the distribution industries,the main impetus to growth came fromthe rapid increase in consumptionexpenditures . There were also indi-cations of a general expansion in thetransport and communications indus-tries while output in public utilities andindustries providing social , financialand professional services increasedsteadily during the past year.

BALANCE OF PAYMENTS AND RESERVES

Now I turn to our external paymentsposition. Final balance of paymentsdata are not yet available, but it isalready clear that there has been asubstantial improvement in the tradesurplus for 1968. I mentioned earlierthat despite the continuing price declinefor most of our major exportcommodities, gross exports in 1968rose by nearly 9%. Translated intobalance of payments terms, merchan-dise exports amounted to just over $4billion, or about 9% higher than the1967 level. Merchandise imports, re-flecting mainly the welcome rise ineconomic activity, rose by nearly 6%to reach $3.35 billion last year, com-pared with an average annual growthrate of less than 2% during the period1963-67. Import growth was largelybrought about by significant increasesin the import of primary commodities,notably rubber, tin and crude petro-leum, for processing and re-export.With the recovery of private expen-ditures in particular, imports ofmachinery and equipment rose byabout 6% while imports ofmanufactured goods were about 3%higher than in 1967. Imports of foodand beverages declined slightly duringthe past year. On balance, therefore,the trade account showed a substantialsurplus of $653 million in 1968, fornearly 25% larger than that in theprevious year.

This gain in the trade surplus, how-ever, was more than offset by the sharpdeterioration in the deficit on invisiblesaccount so that, on the whole, thecurrent account showed a deficit of$62 million, compared with a deficit of$54 million in 1967. The distinct

worsening in the invisibles accountwas brought about by three mainfactors, namely, a sharp increase in theremittance of profits and dividendsabroad as a result of improved earningsin the export industries, a fall inforeign military expenditure followingthe rundown of British armed forces inMalaysia, and finally, increased servicepayments, particularly for freight andinsurance arising from higher imports.

Statistical information on privatecapital movements in particular arelacking and present data necessarilyhave a long time lag. Measures arebeing taken to re;meay the omissionbut more comprehensive and currentdata will not be available for sometime. On the basis of related indicators,it is likely that the net inflow offoreign private long term capital, in-cluding re-invested capital, had im-proved somewhat during the past year.This is clearly a healthy development,considering the uncertainty generatedby the intermittent internationalmonetary crises experienced in 1968.As regards official long term capital,which comprises in the main netforeign loan receipts, the net inflowwas lower than in 1967, in spite of theGovernment's increasing efforts to en-sure that adequate funds would beavailable to finance essential economicprojects. In addition to the projectloans, we successfully raised a DM 25million loan in the West Germanmarket last November. All told, there-fore, our balance an current and longterm capital account, which is normallyreferred to by economists as the"basic" balance of payments position,continued to show a strong surplus.

On the whole, the latest estimatesindicate that Malaysia's official externalreserves rose by about $70 millionlast year, bringing the official gold andforeign exchange reserves to $1,980million as at the end of 1968. Thislevel of reserves would be sufficient tofinance about 72 months of retainedimports at the current rate. Hon'bleMembers will recall that in my Budgetstatement at about this time last year,I outlined a new arrangement to en-sure that all foreign exchange proceeds

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from exports to non-Sterling Areacountries would, in fact, be received inMalaysia instead of by intermediariesoutside Malaysia as was the practice atthat time. This new arrangement cameinto force on 1st June, 1968 and I amhappy to report that the new pro-cedures have worked well. In fact,some of the accumulation of officialreserves to which I have just referredcame about through this new arrange-ment.

MONETARY SITUATION

The past year saw yet another periodof financial stability in Malaysia. Thisis particularly heartening in a worldwhere inflation is the order of the day.It is clear that our adherence to policiesdesigned to maintain the strength andstability of our dollar has continued toserve us well . After a brief period ofcontraction in the volume of moneyin 1967 and the early months of 1968,the money supply , that is , the amountof money or purchasing power in thehands of the private sector apart fromthe banking system , began to rise,particularly towards mid - 1968, aseconomic activity revived and graduallygathered momentum . The supply ofmoney, estimated at $1.6 billion at theend of November 1968 , rose by about5% during the first eleven months oflast year . This rate of growth was inline with the supply of goods andservices in the domestic economy.

As in previous years, one of the mainfactors which held down the rate ofadvance in the money supply was thesubstantial increase of 172 % in thefixed and savings deposits of the publicwith the banking system . Currentaccount deposits , which accounted forabout 51 % of the money supply, wasby far the more active expansionaryforce ; they rose by 8-% during thisperiod as against a rate of growth ofnearly 2 % in the case of currency notesand coin held by the public. It isworthy of note that the rapid andcontinuing growth of the banking habithas reduced the importance of thecurrency component from about 58 %of the money supply at the beginningof this decade to just below 50% to-wards the end of last year.

In line with the rapid increase inbank deposits , total credit extended bycommercial banks rose sharply duringthe past year , reflecting to a largerdegree the buoyant state of thedomestic economy. Bank credit rose by24% during the first eleven months of1968 to reach $ 1.78 billion comparedwith an average annual growth rate ofabout 12% for the period 1963-67.Although data on the classification ofbank credit are not yet available, theindications are that an increasing pro-portion of bank funds is beingchannelled into the manufacturingsector . However, the financing of tradeand professional and privateindividuals continue to account for amajor part of the increase in bankcredit . There were no significantchanges either in the rates of interestoffered for deposits or that charged forcredit during the past year.

Conditions in the Malaysian StockExchange were buoyant in 1968.Trading was very brisk , the turnoverbeing more than double that in theprevious year. Special interest centredon the five public share issues, totallingabout $28 million , floated during thepast year in Malaysia . In addition, 7rights issues , amounting to about $31million , were offered to shareholders.All the public issued were over-subscribed and in some cases heavilyover-subscribed . Such strong demandclearly indicates that ample financecan be raised through the sale ofequities to the public . However, asource of concern has been the spate ofspeculation that brought about exces-sive fluctuations in share prices whichwere out of line with the performanceand prospects of the companies con-cerned. Excessive speculation is nevergood for any market . In order tocontribute to the efficient functioningof the Stock Exchange and to preventunscrupulous company promoters fromexploiting the public , the Governmentset up the Capital Issues Committee,whose primary role is to ensure thatthe public is provided with adequateand accurate information on publiccompanies seeking capital.

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The issue of the new Malaysiandollar is progressing satisfactorily. Thenew currency notes and coin are nowwidely circulated and their readyacceptance not only in Malaysia butalso in Singapore and Brunei in parti-cular is a clear sign of general con-fidence in the new dollar. Malaysiannotes and coin in circulation amountedto $852 million at the end of 1968, anincrease of $105 million or 14% overthe level of a year ago. At the sametime, the gold and foreign exchangereserves backing this liability amount-ed to $1,294 million, so that the ex-ternal cover for our currency was wellabove the minimum statutory require-ment of 80.59%. I have stated onmany occasions in the past that theMalaysian dollar will enjoy a strongbacking and the figures I have justquoted prove that this policy has beenmaintained.

It has been particularly gratifyingthat the strength and stability of theMalaysian dollar were not in the leastaffected by the stresses and strainsgenerated in world exchange marketsby ;monetary upheavals during the past14 months. Our currency and economywithstood these shocks admirably, butwhat has been even more gratifying isthat some international capital chose totake refuge in the Malaysian dollar ata time when confidence in papercurrencies was sagging. Indeed, therehas been a large inflow of private fundsinto Malaysia since November 1967.That inflow was large enough to causeus some embarrassment and hence itwas decided to curtail it by reducing thediscount rate of 3-month Treasury billsby 14% per annum in two stages. Thissurely is a unique demonstration ofconfidence in the currency of a develop-ing country and in the basic strength ofour economy as a whole.

Commissioners of Currency, Malayaand British Borneo, will cease to belegal tender in the three participatingcountries as from 16th January thisyear. This means that such notes andcoin will no longer be legally accept-able as a means of payment for goodsand services or for the settlement ofdebts on or after that date.

However, for the convenience of thepublic, particularly the trading.community, arrangements have beenmade with commercial banks in Malay-sia for the exchange of old Boardcurrency into new Malaysian notes andcoin on and after 16th January, 1969.This would ;mean that members of thepublic who still have old Boardcurrency in their possession on or afterthis date will have to exchange theminto new Malaysian currency at theoffices of Bank Negara Malaysia orthe commercial banks before they canbe used for payments. My advice inthis connection is simple enough. Tothose who still possess old Malayancurrency, I suggest that they turn themin now and not wait until the lastmoment, because this period of gracewill not be indefinite and has to beterminated sooner or later.

1967 ACCOUNTS

Let us now compare the actual out-turn of the 1967 accounts with theestimates that I gave in my last Budgetspeech. Developments in the last fewmonths of 1967 made the actual out-turn somewhat different from thefigures that I gave. Revenue fell shortof estimates by $16 million, duealmost solely to poor rubber prices atthe end of 1967. On the other hand,ordinary expenditure which I envisagedwould be in the region of $1,900million, actually turned out at $1,897million. After adjusting for Govern-ment contributions to statutory funds,

The withdrawal of old Malayan notes the balanced position that I expectedand coin from circulation is now in its was transformed into a deficit of $30final stages. By the end of 1968, 954% million. Development expenditureof the total amount of old Board which was estimated to increase bycurrency had been withdrawn so that $30 million over the original Budgetonly an amount of about $69 million estimate of $650 million actuallywas left in circulation in Malaysia, turned out to be only $625 million.Singapore and Brunei. These old notes The result of this has been to reduceand coin issued by the Board of the overall deficit from the previous

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estimate of $634 million to $604million. Higher disbursements offoreign loans coupled with a reductionin development expenditure increasedthe realisable assets by $41 million,when they were estimated to be rundown by $17 million.

1968 ACCOUNTS

The 1968 accounts have not yetbeen finalised and the figures availablerelate to the latest estimates , and aretherefore subject to revision. Theordinary expenditure appropriation for1968 was originally fixed at $1,932million, including $50 million ear-marked as a contribution from revenueto the Development Fund . Apart fromthe first supplement of $10 millionapproved last June, and a second oneof $57 million , approval for which isbeing sought at the current session ofParliament , there will be a furthersupplement of about $25 million tocover further expenditure before the1968 accounts are closed . The totalappropriation for the year will thereforeamount to $2,024 million.

Actual ordinary budget expenditure,however, will not include the autho-rised contribution of $50 million to theDevelopment Fund as the transfer willnot now be made . After allowing for avery small shortfall, total ordinarybudget expenditure is now estimated tobe in the region of $1,957 million. Therevised expenditure will therefore be$75 million higher than the originalordinary budget estimate of $1,882million , excluding the provision of$50 million intended for transfer to theDevelopment Fund , or $25 million morethan the printed estimate of $1,932million which includes the $50 milliontransfer . Compared with the actualordinary expenditure of $1,897 millionfor 1967 the revised estimate for 1968is higher by $60 million . This is anincrease of only 3.2%.

Recurrent expenditure for 1968, thatis ordinary expenditure less transfers tocertain statutory funds , will amount to$1,950 million compared with a totalof $1,864 million for 1967. Thismanageable increase was due to theclose scrutiny to which they Treasury

2756

subjected all new proposals involvingincreased expenditure. However, withthe best will in the world, it has notbeen possible for Treasury officials toforesee special developments whichmade additional expenditure necessary.I would like to narrate briefly, for theinformation of Hon'ble Members,some of the items of new expenditurewhich could not be foreseen or thenature of which are such that theamounts could not be estimated withany degree of accuracy when thebudget estimates were originallyframed.

Firstly, a sum of $35.4 million wasrequired for discounting Treasury bills,for the payment of interest on domesticloans and for the repayment of foreignloans raised after the estimates hadbeen finalised. Secondly, a further sumof $7 million had to be appropriatedfor the Rubber Trading Trust Account.This additional support was necessaryin view of the behaviour of rubberprices at the beginning of 1968. Therecovery of such prices during the restof last year is proof that the decision toset up the Rubber Price StabilizationCommittee was right even though itappeared to be a risky venture at thattime. Indeed, it is likely that the rubberoperations of this Committee havebrought profit to the Government. Atthe moment, we have very little rubberleft and the indications are that weshould be able to liquidate ourremaining stocks with a profit of theorder of $900,000. (Applause}. Thesuccessful and, equally important,profitable conclusion of this intricateoperation is a tribute to the skill anddevotion with which the members ofthe Committee have discharged theirdifficult task. I would like, in particular,to express our gratitude to Yang Ber-hormat Tan Sri Gan Teck Yeow forhis contribution to the work of thisCommittee. (Applause). Without hisexperience and expertise, the resultsmight have been different. Thirdly, afurther sum of $21.3 million wasrequired for refunds and repaymentsof Customs duties and taxes. Fourthly,an additional sum of $4 million wasneeded to meet payments of gratuitiesand pensions. These major items

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together with others of varying amountscome to around $92 million, so that thetotal appropriation for ordinary expen-diture, excluding the amount of $50million approved for allocation to theDevelopment Fund, which was subse-quently not transferred, reached $1,974million although actual expenditure isnow estimated at around $1,957 million.

The revenue outturn for 1968 hasbeen revised downwards to $1,875million, compared with the budgetestimate of $1,882 million, despite thefact that the economy has generallyrevived with higher prices for rubber.This is due to the fact that theincreased workload of the Departmentof Inland Revenue has inevitablyslowed down the pace of collection ofincome and other related taxes. Withrevised 1968 revenue and recurrentexpenditure figures of $1,875 millionand $1,950 million respectively, thecurrent account for the year is thusexpected to show a deficit of $75million instead of the balanced positionenvisaged in my Budget speech lastyear.

Development expenditure in 1968 isnow expected to total $630 million, or$50 million less than estimated. This isto all intents and purposes identicalwith the actual outturn for 1967 whichstood at $625 million. The failure ofdevelopment expenditure in 1968 tocome up to the estimate has been duemainly to the non-availability of fundsfrom abroad for some of the projects.Many projects were therefore eitherslowed down or rephased.

SPECIAL RECEIPTS CREDITED TO THE

DEVELOPMENT FUND

Special receipts credited to the De-velopment Fund for 1968 amounted to$40 million . These included grants fromAustralia for defence equipment , Britishgrants for economic development inEast Malaysia, and part of the aidoffered by Britain to offset the economiceffects of the withdrawal of Britishforces. With development expenditureat $630 million , and the current accountdeficit standing at $75 million, thesespecial receipts of $40 million will leavethe overall deficit of $665 million to be

financed from loans and the drawdown_of reserves.

FOREIGN AND DOMESTIC BORROWING

Gross foreign borrowing again fellshort of expectations. Total receiptsamounted to $91 million as against theoriginal estimate of $200 million givenat the last Budget. The shortfall is duemainly to the difficulty of stepping upthe level of project borrowing, as apartfrom pure market loans, and as I havealready stated earlier, we have raised aloan of DM 25 million, equivalent toM$19 million, in the West Germancapital market, the greater part of ourforeign borrowing would, in the verynature of things, be in the form ofproject loans. Unfortunately, practicallyall the credit offered by countries whichare members of the Consultative Groupis tied to exports of the lender countries.This means that such credits can onlybe utilised through the purchase ofgoods and services from such countriesand there is a scarcity of projects whichrequire foreign goods and services ofany magnitude. Some of our moreimportant development projects, parti-cularly those in the field of agriculture,have relatively small foreign exchangecomponents. For 1968, therefore, wemanaged to utilise foreign loans chieflyin respect of projects previously com-mitted. These included the Muda irriga-tion project and the Teaching Hospitalof the University of Malaya. In thecourse of 1968 we also availed ourselvesof lines of credit from Sweden, Canadaand Japan.

During the past year the Governmentraised a total of $526 million fromdomestic sources. As usual, this includedsubscriptions to new loan issues by theEmployees Provident Fund, commercialbanks, insurance companies and variousGovernment funds, including sinkingfunds. Our foreign debt of $578 millionis still relatively small and is equivalentto about 5% of our gross nationalproduct, which is the criterion usuallyused for evaluating the size of acountry's foreign debt in relation to itseconomy. This compares with 0.1% forJapan, 2% for Thailand, 2% forCanada, 4% for the United States,6-% for Australia, 9% for New

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Zealand and 19% for India.I agree that our domestic debt is farlarger. With a total of $3,490 million,this is equivalent to 34% of GNP,which is again the criterion usually usedin assessing the quantum of debt inrelation to the size of the economy.Malaysia's figure compares with 7% forJapan. 14% for Thailand, 27% forPakistan, 34% for the United States,34% for Canada and 37% for Australia.The important point to remember inconnection with this matter, however,is the purpose for which these borrowedfunds have been utilised. If these fundsare used solely for economic develop-ment, which means that in course oftime they will generate correspondingincreases in public revenue and privateincomes, then we have no cause foralarm. In our case, the bulk of suchfunds have been spent on economicdevelopment though a much smallerproportion has been utilised for socialdevelopment and security. It may,therefore, be necessary in the near futureto change the format of our estimatesin order to ensure that borrowed moneyis spent on economic development andnothing else.

1969 ORDINARY EXPENDITURE PROPO-

SALS

The estimated ordinary expenditureof the Government for 1969 as set outin the Estimates tabled as CommandPaper No. 3 of 1969, amounts to $1,925million. This amount is $7 million lowerthan the original 1968 budget estimateof $1,932 million. It should, however,be mentioned that although a sum of$128.6 million has been entered in theEstimates for statutory grants to States,special grants to Sabah and Sarawak,which totalled $37.8 million in 1968,have been omitted for the time beingsince these special grants were subjectto review at the end of 1968 as requiredby the Inter-Governmental CommitteeReport and by Article 112D of theConstitution. At the time the estimateswere finalised, the review was still inprogress and the total of such grantswhich would be payable to the twoStates in 1969 had not yet been deter-mined. Let me now refer to some of themajor items of expenditure.

As has been a feature of the Budgetfor many years past , the largest vote isallocated to the Ministry of Education.The allocation of $433 .7 million foreducation represents 22.5% of totalordinary expenditure . This amountincludes a grant of $20 million to theUniversity of Malaya, and $9 million tothe new Teaching Hospital to meet theiradministrative costs . Discounting thegrant to the Teaching Hospital, whichwas previously included in the estimatesof the Ministry of Health , the allocationfor education in 1969 shows an increaseof $23.2 million, which is quite smallin comparison with the increase of $72million in 1966 and $36 million in 1967.The negligible increase of $4.5 millionprovided in the 1968 Estimates, how-ever, proved to be too small a marginso that a supplementary provision of atleast $ 10 million is unavoidable. Tolimit the 1969 expenditure to $433.7million as proposed will not be possibleunless certain measures for reducingcosts as recommended in the Teachers'Salary Commission's Report are imple-mented immediately, and these recom-mendations can, to my mind , be imple-mented without prejudice to theproposals relating to teachers ' salarieswhich are still being considered by theGovernment.

With $433.7 million for education,$149.6 million for public health, and$13.7 million for labour and welfare,the ordinary budget allocations forsocial services in 1969 together total$597.0 million or 31.0% of the ordinaryexpenditure appropriation . This, with-out any doubt, is an impressive contri-bution whether in absolute or percentageterms. If development expenditure onthese services is taken into account, thisperformance is even more significant.

The recurrent expenditure of theMinistry of Defence has been fixed at$257.5 million , giving an increase ofonly $5 .5 million on 2 .2% over the1968 allocation. The constraint imposedon defence expenditure has beendictated by the compelling need toensure that the cost of maintaining ourArmed Forces is within our means.Much as we appreciate that this limita-tion on expansion is straining theresources of the Armed Forces in

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meeting increasing commitmentsbrought about by the withdrawal ofBritish Forces, and the situation createdby the Filipino claim to Sabah, a choicehas to be made between restrainingexpenditure on defence or jeopardisingour effort to achieve a higher rate ofeconomic growth by spending enoughon economic development so that livingstandards can be raised. The choice isdifficult, but I believe that we havemade the right one.

While on the subject of defenceexpenditure, I wish to take this oppor-tunity to express publicly the apprecia-tion of the Federal Government to theGovernment and people of Sabah fortheir willingness to meet expenditure ontenant registration and the VigilanteCorps established in that State, as partof our joint effort to counter anyaggressive or subversive action on thepart of the Philippine Government inpursuit of their senseless claim. Thistimely gesture on the part of the SabahGovernment is a clear indication of thedetermination of the Government andpeople of the State to stand solidlybehind the Federal Government, inorder to defend our national sove-reignty and the territorial integrity ofMalaysia, of which Sabah is an in-separable part. (Applause).

Another major item of recurrentexpenditure is the cost of servicing thepublic debt. The amount of $256.6million required in 1969 for interestpayments, which are chargeable torevenue account, represents 13.3% ofthe Budget estimate.

ECONOMY DRIVE MEASURES

The difficult financial position of theFederal Government has made itimperative for us to keep on reviewingthe spending of Ministries and Depart-ments with the object of tighteningexpenditure control and reducing thecosts of providing Government servicesto the public, by generally cutting outnon-essential expenditure, reducingwaste and improving the revenue per-formance of Ministries and Depart-ments. Towards this end, the Govern-ment had appointed a top-level working

committee of officials to undertake thereview. The Committee met regularlysince October last year, examining indetail the expenditure of major Govern-ment Ministries and Departments. TheCommittee has not yet completed itswork but it has recommended certainmeasures which have now been imple-mented or are being implemented.

Among the measures recommendedare reduction in overtime, limiting itto emergency work or work whichrequires speedy completion, convertingscholarships and other financial assis-tance for higher studies from directgrants into loans, reducing to a mini-mum the transfer of officers from onearea to another consistent with ef-ciency, confining first class air passagesto only a few, improving the system ofvehicle control and maintenance, eco-nomising in the use of light, power,water and stationery, reviewing thesystems of revenue collection, revisingrates of fees which are outdated, andthe most important, encouraging Minis-tries/Departments to improve theirefficiency and performance so as toincrease their productivity and outputof work.

The Costs and Standards Committeeset up some time ago has laid downausterity standards for the constructionof public buildings and these are nowbeing rigidly enforced. It is not possibleto evaluate in terms of dollars thesavings effected by these measures butthere is no doubt that such savingsshould be substantial, particularly inthe long term. Further, these measuresshould certainly provide a more effi-cient public service at reduced costsand, on this account alone, the exercisewould have been worthwhile.

PROGRAMME AND PERFORMANCE BUDGET

I have already referred on one or twooccasions in this House and outside itto one of the measures taken by theTreasury to improve budgetary tech-niques and to make the budget a moreeffective instrument for financial man-agement, while at the same time itshould be more readily understood bytaxpayers and the public at large. This

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involves converting the traditional formof the budget estimates hitherto in useinto what is commonly known as a"Programme and Performance Budget".This system which was first tried in theUnited States in 1950 and subsequentlyadopted by other developed countries,has been recommended by the UnitedNations, through various seminars onbudgetary reforms, for gradual adop-tion by developing countries, takinginto account the circumstances andneeds of each particular country.

The system postulates three basicrequirements : firstly, there should be aclear definition and classification ofprogrammes or activities for eachfunction entrusted to a department oragency, so as to show precisely theobjectives it sets out to achieve with thefinancial allocations sought; secondlythe system of financial allocation,management and accounting should bebrought into line with the programmeclassification; and thirdly, a detailedanalysis should be undertaken of eachprogramme or activity in relation toexpenditure with a view to establishinga method of measuring output or eva-luating work performance. The systemis designed to help in the developmentof unit cost data and productivitymeasurements which will enable, over aperiod of time, the establishment of"norms" or standards of work per-formance and their costs for purposesof comparison, and through the use ofsuch "norms", economy and efficiencycan be achieved. In other words, aProgramme and Performance Budget isdesigned to present the purposes andobjectives for which funds are sought,the cost of the programmes proposedfor achieving the objectives, and thequantitative data for measuring workperformance under each programme.

Finally, the new budget format willbe more useful to Hon'ble Memberssince its major emphasis will be onactivities, objectives to be accomplished,and their costs. It will give Hon'bleMembers information with which theycan judge the effectiveness of themanagement of each Ministry or De-partment. One of the main defects ofthe tra - 'al budget estimates is that

2764

the emphasis is placed on "things webuy" rather than on "things we do".

It is clear from what I have saidalready that the process of conversionmust be gradual and will take possiblyfour or five years to complete. As aninitial step in the process, the 1969estimates of eight Government Depart-ments are presented in "Programme andPerformance Budget" form while theestimates of other Ministries andDepartments are also given a summa-rised version called "Budget Summary".The Budget Summary should enable aMinistry or Department to prepare thegroundwork for subsequent conversionto the Programme and PerformanceBudget. The Programme and Perform-ance Budget and the Budget Summaryare presented to the House in a singlevolume covering both operating anddevelopment expenditures, as an ad-junct to the traditional Estimates.

The adoption of Programme andPerformance Budgetting and what itinvolves, is placing a new workload onthe Treasury, particularly its BudgetDivision, and for this reason it hasbeen necessary to increase the esta-blishment of the Treasury by about5%. However, the additional expendi-ture necessary on this account shouldmore than pay for itself in the longrun.

1969 REVENUERevenue for 1969 at existing tax

rates is estimated to reach $1,948million. This represents an increase of$73 million or 3.9% over the revisedestimate for 1968. The anticipatedincrease arises largely from the re-covery in rubber prices since 1968.The revival of the economy resultingfrom higher rubber prices is expectedto have a salutary effect on direct taxcollections in 1969. In fact, a growth ofabout 10% in revenue collection hasbeen projected for the Department ofInland Revenue.

Comparing further the 1969 estimateswith the revised estimates for 1968, itwill be noted that export duty on rubberis expected to yield $7.1 million more.1969 should see a reversal of thedeclining trend in rubber prices during

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the last few years, and it should not beunduly optimistic to expect an averageprice of 55 cents a pound for R.S.S.No. 1, compared with the 1968 budgetfigure of 50 cents and the revisedfigure of 53 cents. Gross exports ofrubber are expected to reach the1.2 million ton mark. As regards tin,the collection of export duty is expectedto reach $104.6 million in 1969. Thisis a fall of $7.7 million from the revisedestimate for 1968. This decrease is dueto a lower average price, estimated at$550 per picul, compared with $580per picul estimated for the 1968 Budget,au' the revised figure of $565. Grossexpos of tin should total 76,000 tonsin 1969 ,ompared with the estimate of65,000 tons 's for 1968 and the revisedfigure of 89,OuO tons. Other exportduties are expected to yield a marginalincrease of only $1.7 million over therevised 1968 estimates. Price move-ments within this miscellaneous grouptend to cancel one another out in thesense that what is lost on the swingsis made on the roundabouts. Totalimport duties and excise are expectedto increase by $29.4 million, spreadover all major items. The 2% surtaxon imports is estimated to produce asmall increase of $2.5 million, reachinga total of $51.6 million.

As 1969 ordinary expenditure hasbeen fixed at $1,925 million, andrevenue at existing tax levels at $1,948million, the Ordinary Budget will endup with a surplus of $23 million. Thisis, however, not the complete picture ascognisance must be taken of the factthat special grants, which have beenprovided for in our Constitution, willhave to be made to the States in EastMalaysia. Although the quantum ofsuch grants cannot be determined now,as the matter is still under negotiation,provision has to be made for suchgrants. In the printed Estimates thesegrants have been dealt with by $10token vote against each item. However,for the purpose of assessing our pro-bable financial outturn, we have to bemore realistic, and again without pre-judice to the negotiations, I havedecided to use a figure of $32 million.On the basis of this figure, the currentaccount will incur a deficit of $9million.

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1969 DEVELOPMENT BUDGET

The Development Estimates whichhave been tabled and which will bedebated on a separate motion show aproposed appropriation of $889 millionincluding a sum of $40 milliion for theContingencies Reserve. This amount ismore or less the same as that for 1968.Actual expenditure for 1968 is expectedto be in the region of $630 million, ashortfall of some 29 % largely becauseof the delay in finalising arrangementswhere foreign financing was involved.Expenditure in 1969 is howeverexpected to be higher in view of thefact that many of the projects werestarted in 1968 and arrangements forforeign financing have in most casesbeen completed . Actual expenditure isexpected to be of the order of $720million . In percentage terms , economicand directly productive projects accountfor 60% of total Federal developmentexpenditure while 24% has been allo-cated for the social and Governmentsectors and 16 % for defence andinternal security.

Special receipts credited to theDevelopment Fund are expected toamount to $23 million this year. Thiswill be $ 17 million less than receipts in1968. The receipts this year includedefence and development grants , mainlyfrom Australia and Britain. AsHon'ble Members already know, theBritish Government has also agreed toprovide us with £25 million of aid tooffset the economic consequences of thewithdrawal of their forces from Malay-sia. A quarter of this amount will bein the form of grants and the rest willbe in the form of interest free loanswhich are repayable within a period of25 years.

FINANCING OF ORDINARY AND DEVELOP-

MENT EXPENDITURE

It is proposed to finance the estimatedlevel of ordinary and developmentexpenditure by borrowing, both foreignand domestic, and some use of ouraccumulated assets. Gross foreignborrowing is expected to total $298million while gross domestic borrowingis expected to reach $350 million. Inview of the fact that domestic borrow-ing this year will be on a smaller scale

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than that for the last few years, effortswill be made to step up foreign borrow-ing, in particular market borrowing.The balance of the expenditure will befinanced by a small rundown of ourreserve assets, and by revenue measures.

REVENUE PROPOSALS FOR 1969

I now come to the core of my speech,i.e. the revenue proposals for 1969.

EXCESS PROFIT TAX ON TIMBER

Hon'ble Members will recall thatthere was some opposition to that partof the Finance Act, 1967 whichprovided for the disallowance of one-half of the amount of any royalty paidor payable to a State Government forthe extraction of timber from forestland, or where no such royalty is pay-able, one -half of the amount of anyduty paid or payable on the export ofthe timber so extracted . The timberindustry has continued to ask for theremoval of the disallowance. In myspeech on the 1967 Budget in thisHouse and in my closing speech aswell, I explained in detail the reasonsfor the disallowance and I , therefore,do not propose to repeat them here. Ihave since , however, given considerablethought to these representations andI now propose to remove the dis-allowance since a suitable alternativehas been devised. An amending In-come Tax Bill will be introduced forthis purpose at a subsequent meetingof this House and this measure will alsoprovide for a form of excess profitstax to skim off the very large profitsmade in certain sections of the industry.The proposed tax will apply only toprofits from logging operations.For this purpose an excess profit willbe defined as the amount of profit inexcess of 10% of gross receipts fromthe sale of timber logged. For anamount in excess of 10 % but less than20% of gross receipts , the rate of taxwill be 10% and for the remainder ofsuch profit , the rate of tax will be 20%.The new tax is estimated to yieldapproximately the same amount ofrevenue as did the disallowance ofroyalty which is now to be replaced.

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DEVELOPMENT TAX

The Finance Act, 1967 also intro-duced a supplementary income taxcalled development tax with, amongother things, provisions to subject anindividual who is a partner in apartnership business to a minimumdevelopment tax of $100 per annumeven if very little or no income isderived from that business. It is con-sidered that this minimum tax has theeffect of penalising; the very smallenterpreneurs who may find it neces-sary to pool their meagre resources to,embark on a business venture. In ordrto lessen the financial hardship to_ . `;whichsuch very small traders ap 'subjectbecause of this minimal f tax, it isproposed to abolish the minimum taxpresently payable by an individual whois a partner in a partnership business,and to impose in its place a 5% chargeto development tax on his developmentincome in excess of $1,000 per annum.This means that an individual who is apartner in a partnership business willbe exempted from the payment ofdevelopment tax if his development in-come is less than $1,000 a year. If,however, his development incomeexceeds $1,000 by a small margin,his development tax will be thedifference between the amount of hisdevelopment income and $1,000. Thischange will cost the Revenue $2million in a full year, but it is felt thatsuch a change is appropriate in view ofthe undue hardship it has brought tothose for whom, in fact, this tax wasnot designed.

AMENDMENTS TO INCOME TAX ACT,1967

It is also proposed to amend theIncome Tax Act, 1967, chiefly tocorrect certain anomalies, to removeambiguities, to facilitate the operationand management of the tax under theAct and to give effect to certain re-presentations since received. Forexample, the definition of employmentwith the same employer or withcompanies in the same group, for thepurpose of determining whether or nota sum received by way of gratuity onretirement from an employmentqualifies for tax exemption, or of

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quantifying the amount of paymentmade by an employer to an employeeof his as compensation for loss ofemployment, for exemption from tax,will be enlarged to include employ-ment with different employers whosebusinesses are conducted by or throughsome central agency, or where the con-trol and management of the businessesof those different employers remainsubstantially with the same person orpersons. There is also a proposal toamend that section of the Act dealingwith basis periods to remove a possibleanomaly arising from the overlap ofbasis periods in circumstances beyondthe control of the taxpayer.

AMENDMENTS TO INVESTMENTS INCEN-TIVES ACT, 1968

As a result of representationsreceived, it is also proposed to amendthe Investment Incentives Act, 1968,principally to remove an anomaly inthe ascertainment of the income of apioneer company for the first andsecond years of assessment immediatelyafter the end of its tax relief period,and to extend the double deduction ofexpenses for the promotion of exportsto advertisements over radio andtelevision operated outside Malaysiaand Singapore.

STAMP DUTY

At present contract notes coveringthe sale of shares of companies in-corporated domestically are liable tostamp duty at the rate of 25 cents whenthe value of the shares does not exceed$1,000, and 50 cents if it exceeds thisamount. For foreign companies, thecorresponding rates are $1.00 and $2.00respectively. These rates have remainedunchanged for many years. It is nowproposed to revise these rates asfollows : where the value of theshares does not exceed $1,000, the newrates will be 50 cents for domesticcompanies and $1.50 for foreign com-panies; where the value exceeds $1,000,the new rates will be $1.00 and $ 3.00for domestic and foreign companiesrespectively. We expect to get about$200,000 of additional revenue perannum from these changes.

IMPORT DUTIES

I wish first to turn to the agreementreached in the Inter-GovernmentalCommittee that the level of Federaltaxation in the Borneo States shouldbe brought up to West Malaysianlevels in graduated stages over aperiod of years. As Hon'ble Membersare fully aware, efforts in this directionhave been undertaken at every Budgetsince 1965. In the area of import dutiesthere are still 359 items whose rates ofduty are yet to be fully harmonised. Itis now proposed to reduce this numberfurther by harmonising the rates ofduty on 211 items. Lest Hon'ble Mem-bers from Sarawak and Sabah getdisturbed by the number of itemsaffected by this exercise, let me say atonce that the duty changes proposed ona considerable number of these itemsare not expected to yield any signi-ficant revenue simply because therehave been negligible imports. To beexact, there are 122 of such items.

It is not necessary for me to touchon every item involved in this exerciseas the Orders implementing these dutychanges are being circulated to Hon'bleMembers. I propose, therefore, tomention some of the important onesonly. The West Malaysian duty of $3per 100 on brids' eggs including hens'and ducks' eggs will be extended toEast Malaysia. Import duty at the rateof 20% will be levied on prepared orpreserved meat other than infant foodin Sarawak in order to bring it in linewith rates in West Malaysia and Sabah.Macaroni, spaghetti and similar pro-ducts will now attract $6 per cwt. inEast Malaysia. The duties on preparedor preserved vegetables and fruits inEast Malaysia will be equalised to theWest Malaysian level of 20% or 25%,as the case may be. Similarly, the dutieson glass and glassware in East Malay-sia will be harmonised at the WestMalaysian levels of 20% or 25%, asthe case may be. Sign plates, nameplates, etc. will now attract a duty of15% in West Malaysia which is thecurrent full rate in East Malaysia. Theduty rates on air-conditioning machineswill be increased by 12%, both full

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and preferential , in Sabah , thus bring-ing up its full rate to the West Malay-sian rate of 20 %. The full rate forSarawak remains at 25 %. The duty inSarawak on typewriters and other officemachines such as calculating machines,dictating machines, etc. and their spareparts will be raised by 5% to 15%which is the current full rate in Sabah.It might be noted that all these officemachines are liable to 20 % import dutyin West Malaysia. Duties on certainelectrical machinery and equipment arealso revised upward so as to be in linegenerally with rates in West Malaysiawhich range from 15 % to 25%. Theseand other duty changes proposed in theOrders are expected to generate about$3.7 million of additional revenue perannum . From now on , it is to be under-stood that yield figures of new tax pro-posals given by me are yields expectedin a full year of operation , even thoughthe words "a year" or "per annum" areleft out.

In additional to this harmonisationexercise , it is also proposed to effectduty increases on other items . The maingroup involved is fruits . Apart fromrevenue considerations , it is felt thatMalaysia's fruit industry has conside-rable scope for development , given thenecessary protection and incentives.While more Government and privateefforts should be devoted to develop-ing the industry , it is considered timely,particularly in view of the Governmentsponsored "EAT MORE LOCALFRUITS" campaign , for the duty onimported fruits to be raised by 5 centsper lb.

At present the rates of import dutyon most items of fresh and dried fruitsuch as oranges , tangerines , apples,grapes , pears and other citrus fruits andtropical fruits are 15 cents per lb., or$336 per ton. These rates are to beraised to 20 cents per lb . or $448 perton. The rates of import duty on mostpreserved fruits and fruit preparations,including jams, fruit peels, fruit pastesand fruit juices are generally 25 centsper lb . or 20 % ad valorem . These areto be raised to 30 cents per lb. or 25%ad valorem . Although the rate ofimport duty on fresh pineapples hasbeen harmonised throughout Malaysia

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at 20 cents per lb. that on pineapplejuice in airtight containers was left at100% in West Malaysia and 10% inEast Malaysia. It is now proposed toharmonise the rate on canned pineapplejuice at 100% ad valorem. Variousnuts are grouped together with fruits inthe Customs classification. These in-clude Brazil nuts and cashew nuts.The rate of duty on them is to be thesame as that on fresh fruits, i.e. 20cents per lb. The rates of import dutyon groundnuts are to changed asfollows : roasted, from 20 cents to 30cents; unshelled, from 10 cents to 20cents, and shelled, from 12 cents to 5cents per lb. The proposed rates ofduty are to be applied throughoutMalaysia, including Penang but exclu-ding Labuan. The expected yield isaround $6 million.

Commercial vehicles are at presentliable to 20 % import duty in WestMalaysia, including Penang. Trailersfor road motor vehicles imported underHeading 87.14 100 in the CustomsTrade Classification are however non-dutiable. It is now proposed to subjectthis item to import duty at the samerate of 20% in West Malaysia, inclu-ding Penang.

Petroleum gases which are non-dutiable at present will be made duti-able at 2 cents per lb. Refrigerators andrefrigerating equipment will be subjectto 25 % instead of 20% duty. The dutyrate on electric bulbs will be increasedby 5 cents . The increased duty, bothfull and preferential on flourescentlamps under Heading 85.20 211 willonly apply to West Malaysia , excludingPenang. All the other changes willapply throughtout Malaysia , excludingPenang and Labuan. The additionalrevenue expected from these changesis about $500 ,000. It should be notedthat the proposed duty increases inrespect of petroleum gases andelectric bulbs are not principally forrevenue purposes but are designed toprovide an adequate protective marginfor the reasons which will be givenlater when I touch on excise duties.With regard to refrigerators andrefrigerating equipment , it is hopedthat the proposed increases in import

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duties on these items will induce ourdomestic manufacturers to expandtheir capacity to meet the requirementsof not only West but also East Malay-sia. It is estimated that all these changesin import duties including the harmoni-sation exercise will yield additionalrevenue of about $10.2 million.

SURTAX

As Honourable Members willremember , when surtax was introducedin 1967 , items of imports whose dutylevels had been bound as a result oftrade agreements with Australia andNew Zealand were exempted from thetax. For administrative reasons, similaritems from other countries were alsoexempt. It was not the intention thatthese exemptions should become per-manent . This intention was clearlystated in my Budget speech when 1revealed that consultations would beheld with the Australian and NewZealand Governments on this matter.Such consultations have been held andit is now proposed to remove theseexemptions . These changes are esti-mated to yield about $2.6 million ofadditional revenue.

EXCISE

I am sure Honourable Members willagree with me that as we progress inthe field of import substitution, it willbe necessary to expand our excise basein order to compensate for the declinein the revenue from import duties. Inthe last Budget we introduced exciseduties on a number of domestic pro-ducts. In this Budget a few more itemswill be added to the list of productsliable to excise duty. The new pro-ducts include petroleum gases at therate of 2 cents per lb; inner tubes formotor cars and commercial vehicles atthe rate of 20 cents each, and for motorcycles and scooters at the rate of 5cents each; veneer sheets, plywood,blackboard and the like at the rateof 1 cent per square foot; primary cellsand primary batteries at the rate of 1cent per cell; and electric bulbs at 5cents each. The additional revenueexpected to be raised from this groupis about $1.8 million.

All these items are at presentto import duty at relatively

rates than the proposed excise rates.In order to enable East Malaysianconsumers to benefit from the domesticproduction of these items, we proposeto include them in the Goods ofMalaysian Origin Order, whereby suchgoods when moved to East Malaysiafrom West Malaysia or vice versa, willbe subject to import duty at the samelevel of excise duties imposed.

TAX INCENTIVES FOR DOMESTICALLY

ASSEMBLED COMMERCIAL VEHICLES

Honourable Members will recall thatin each of the last two Budgets, certaintax changes were introduced in orderto encourage the growth of the motorassembly industry. So far, theseassembly plants have been able tosupply the requirements of WestMalaysia only; they have not been ina position to extend their sales to EastMalaysia. While this is still so inregard to passenger cars, the positionhas since improved in respect ofcommercial vehicles. The plants whichassemble commercial vehicles nowhave the capacity to meet the require-ments of East Malaysia. The time hastherefore come for us to provide furtherencouragement to the industry toenlarge its present market.

Existing import duties on commer-cial vehicles are 30% in Sabah and25% in Sarawak. Under the presentlegislation, these rates apply equally tovehicles assembled in West Malaysiawhen consigned to East Malaysia. It isconsequently proposed that commercialvehicles assembled in West Malaysiawill be given a partial exemption of15% duty when moved to East Malay-sia. In addition, it is proposed toincrease the import duty in Sarawak tothe level of Sabah, i.e. 30%

In West Malaysia these vehicles areat present subject to 20% import dutyand 15% ad valorem registration fee.In East Malaysia no such registrationfee is payable. Thus under the presentproposal, the tax burden on homeassembled vehicles will be 15%throughout Malaysia whereas the taxburden on imported vehicles will be

subject 35% in West Malaysia and 30% inhigher East Malaysia.

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I need hardly emphasize that anytax concession given involves a loss ofrevenue to the Government, in this ease,$800,000. Nevertheless, Governmentis prepared to accept this in the interestof industrialization. It is to be hoped,however, that the industry will notexploit the situation, and that whatis given up by the Government willbenefit not only the industry but alsoconsumers. In other words, it is to behoped that the industry will respondsuitably to the concession justannounced and will henceforth beable to compete with vehicles impor-ted into East Malaysia from outsideMalaysia, while benefiting consumersthere at the same time. Indeed, someof the models assembled in WestMalaysia should be available in EastMalaysia at lower prices than thatprevailing now.

TAX EXEMPT STATUTORY BODIES

A number of statutory bodieswhich are primarily engaged in com-mercial activities are at present exemptfrom income tax under the law. It isthe intention of the Government toremove this exemption, because it isfelt that it is only fair that statutorybodies which are basically businessmonopolies should pay income tax.In the very nature of things, a mono-poly is inclined to be less efficient thana business undertaking which has tocompete with similar undertakings in afree market. When, on top of this,that monopoly does not have to payincome tax, the odds in favour ofinefficiency are much greater. Fromevery point of view, therefore, it isappropriate that bodies of this natureshould not be exempt from tax eventhough they may be practically orentirely owned by the Government.The relevant income tax laws will beamended later in the year to giveeffect to this intention.

EXPECTED FINANCIAL OUTTURN FOR1969

The tax changes proposed shouldresult in a net revenue increase of$14 million in a full year. This shouldenable the current account for 1969to show a surplus of $37 million,without taking into account the special

grants of $32 million provisionallyestimated for Sarawak and Sabah.Thus the overall deficit, i.e. the deficitwhich would occur after providingfor development expenditure, willstand at $660 million. This shortfallwill largely be financed by loans andby some rundown in reserves.

CONCLUSION

When I spoke on the last Budgetwhich I presented to this House atabout this time last year, I stated thatit was "possible to foresee a consi-derable slowing down of the growth inexpenditure on education and a declinein the expenditure on defence andinternal security, as our programmespass their peak in expenditure andcontinue at existing levels or even costless". Education and security will thisyear absorb approximately the sameproportion of total expenditure as. theydid last year. In so far as education isconcerned, the downturn in expendituremay be delayed for a little while longerbecause it is clear that there has to bea reappraisal of basic policies. It islikely that we are now turning out fartoo many white collar workers as manyof them are unlikely to find jobs whenthey leave school. We obviously do notJike to have a large and growing poolof educated unemployed because thatwould adversely affect our political,and eventually our financial and econo-mic stability as well.

In so far as security is concerned, thepicture has changed dramaticallywithin the last twelve months, thanksto the existing confrontation with thePhilippines on the question of Sabahand the British announcement towithdraw their forces from this areaafter 1971. The withdrawal has begunand is already gathering steam. Thesetwo occurences between them havechanged the entire defence picture.Defence wise, not only will we be onour own in the very near future, if notnow, we face the possibility, eventhough we hope that such a possibilityis remote, of an armed clash with thePhilippines. While hoping for the bestwe must prepare for the worst. Thismeans that more will have to be spenton defence and internal security in the

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coming years, though we shall natu-rally try our best to strike the rightbalance between expenditure on secu-rity and expenditure on economic andsocial development. We cannot, how-ever, afford to forget that withoutsecurity there can be no development,either economic or social. Security isall important, but it costs money, infact, plenty of it. That is the problemwe have to face squarely.

The real basic problem however,which we face in the coming years isthe problem of growing unemployment.It is not only an economic problem, itcould well become an explosive socialand political problem unless we tackleit in time and overcome it, and theonly realistic way of dealing with thisproblem is to achieve an adequate rateof economic growth. I say this becauseI still believe, as I stated last year, thatwe have reached, generally speaking,our optimum level of taxation,although it will be desirable or evennecessary from time to time to makeminor revisions and adjustments on thegrounds of equity, policy changes, andharmonization as between West andEast Malaysian levels of taxation. Itwould, however, be unwise for a varietyof reasons on which I need not dwellhere, to increase the overall level oftaxation. In so far as reducingGovernment expenditure is concerned,we shall try our best but there isclearly a limit to what can be achievedin this direction without impairingefficiency.

The only hope therefore lies in morerapid economic growth. The Govern-ment can provide the infrastructure, itcan initiate, it can act as a spark plug,and it can some-times even act as acataclyst, but, in the last analysis, theprivate sector must play by far themajor role if we are to reach the stageof self-sustaining economic growth ingood time. Only when this stage isreached will it be possible for us todeclare with any degree of confidencethat we have the means to overcomeour growing unemployment problem.

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In order to reach this stage , it will benecessary to have hundreds of thou-sands of acres more under cultivation,it will be necessary to have many morefactories than what we have now, itwill be helpful to have hundreds ofthousands of tourists coming hereevery year instead of the trickle we seenow. It is plain that a massive effortof this magnitude in the fields ofagriculture , industrialization and tou-rism cannot be made by the Govern-ment alone as the Government hasneither the expertise nor the resourceson the scale required . In other words,private enterprise must play the leadingrole.

The indications, fortunately, arethat the private sector is prepared toplay this role because we do know thatthe banking system is very liquid, wedo know that large business enterprisesin this country have ample liquid fundsavailable for investment, indeed thepublic as a whole has plenty of sparecash available for sound investments,but it is not so easy to find avenues fornew investment, because in this countrywe suffer the paradox of land hungerin the midst of plenty. It is difficult toget land in East Malaysia even thoughthere are only 19 persons to the squaremile there, i.e. even though it is prac-tically empty. In West Malaysia aboutthree-fourths of the land area is stillunder virgin jungle, but land is stilldifficult to come by in so far as theprivate sector is concerned. In WestMalaysia some 16 million acres aresuitable for cultivation but only 9million acres have been alienated forthis purpose. Without land, you clearlycannot plant any crops. Without land,you clearly cannot put up any factories.

There must, therefore, be a supremeeffort on the part of those Ministriesand Departments of the FederalGovernment responsible for greateragricultural and industrial growth, incollaboration with State Governments,and the quasi-Government and statu-tory bodies concerned, to speed up theprocess of land alienation for

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agricultural and industrial purposes, togive quick answers to industrialists whowish to invest in this country, andgenerally to see that the Governmentplays its part effectively and with asense of urgency in this national effort.This is the hope for the future and wemust not fail if we really wish to en-sure that future. (Applause).

Sir, I beg to move.

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Timbalan Perdana Menteri (Tun I3ajiAbdul Razak): Sir, I beg to second themotion.

Dewan di-tanggohkan pada pukul4.20 petang hingga pukul 9.30 pagiIOhb Januari, 1969.