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SINGAPORE GOVERNMENT PRESS STATEMENT

MC. AP. 14/63 (PM)

MINISTERIAL STATEMENT BY THE PRIME MINISTER,

MR. , IN THE LEGISLATIVE ASSEMBLY

MEETING ON FRIDAY, APRIL 5, 1963.

Mr. Speaker, Sir, I have to report to the House on the progress that has been made in working out the form of words for the constitutional provisions for in the Federation of in accordance with the provisions contained in White Paper Command 33 of 1961, and as amplified or amended in formal exchanges of letters between the Federation Prime Minister and myself. I am making this statement before answering the several questions that have been tabled in order that when I come to answer these questions Members can see the issues against the wider perspective.

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Although the White Paper and the formal exchanges of letters were all finalised in November 1961, the working party of officials did not start meeting until the 5th of December last year. This was because the Federation officials were occupied with the Sabah and Sarawak negotiations and they wanted to complete the main framework of the Borneo side before tackling the details of the Singapore side.

Our team of officials (which consisted of the State Advocate-

General, Inche Ahmad bin Ibrahim, the Permanent Secretary to the Ministry of

Home Affairs, Mr. S.T. Stewart, the Permanent Secretary, Economic

Development Division, Ministry of Finance, Mr. Howe Yoon Chong, the Acting

Permanent Secretary, Ministry of National Development, Mr. Sim Kee Boon, and the Cabinet Secretary, Mr. Wong Chooi Sen) met the Federation team on 22 occasions from December 5, 1962, to February 14 this year. They reached agreement and submitted joint recommendations on most of the provisions to be incorporated in the new Constitution of the Federation of Malaysia and the State of Singapore. However, on a number of points, which included banking, insurance, shipping, navigation, broadcasting, television, constitutional guarantees and finance, the Federation and Singapore teams of officials were unable to reach agreement. These matters were therefore referred to the

Ministers. Plenary meetings of Ministers and officials took place on three

lky\1963\lky0405.doc 3 occasions February 28 and March 1 in Kuala Lumpur, March 21 and 22 in Kuala

Lumpur and April 2 in Singapore.

I am happy to report that except for finance, nearly all the points left unresolved by the official teams have now been agreed. There remain only a few points to be tidied up by the draftsmen. One of them is the question of

Singapore retaining day to day control of programmes and administration of broadcasting and television, whilst following overall Federal policy. A special constitutional agreement may have to be drawn up to spell out the rights and obligations of the State vis-a-vis the Federal

Government. Another point is the spelling out of State autonomy with the consequential provision that Malaysian citizens who are also Singapore citizens cannot have double enjoyment of both State autonomy, in matters like education and labour, and at the same time have full enjoyment of the education and labour rights in the other States. Last, but by no means least, remain the financial arrangements.

First, I would like to report to the House now, in brief and broad outline, the points that have been agreed.

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At our first plenary meeting of Ministers on the 28th of February and

the 1st of March, the important question of acquisition and deprivation of

citizenship was discussed.

Acquisition and Deprivation of Citizenship

All Singapore citizens will become citizens of Malaysia by operation of law. The Federal Government shall have the power over acquisition of Singapore citizenship by naturalisation after Malaysia. All such acquisition shall be with the agreement of the Singapore Government. There shall be a provision in the Second Schedule of the Federal Constitution to the effect that the

Singapore Government must be informed of all acquisitions of citizenship by naturalisation approved by the Federal Government.

The Singapore Government will however retain power over the acquisition of citizenship by registration. As these citizens will automatically become Malaysian citizens, it shall be the responsibility of the Singapore

Government to inform the Federal Government of all acquisition by registration.

Deprivations of citizenship are on national considerations and hence the Federal Government shall have power of deprivation on all grounds.

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The Singapore Government should have the right to deprive on grounds of fraud or mistake or under Article 25(1) ( c ) on a conviction.

There will also be a provision in Section 10 of the Second Schedule of the Federal Constitution to the effect that both the Federal and Singapore

Governments should keep each other informed of all grants and deprivations of

Singapore citizenship on all grounds.

Federal Constitution

The Federal Constitution should contain the following provisions:

(i) a citizen of Singapore shall, by virtue of such citizenship, be a

citizen of Malaysia;

(ii) a citizen of Singapore who renounces his citizenship of

Singapore (except on acquiring citizenship of Malaysia by

registration), shall cease to be a citizen of Malaysia and shall

not, except with the approval of the Federal Government, be

eligible for registration as a citizen of Malaysia or of Singapore;

(iii) birth or residence in Singapore will count for the purpose of

acquiring citizenship of Malaysia through citizenship of

Singapore;

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(iv) the Federal Government would have exclusive authority to grant

citizenship by naturalisation but, in the case of a person to be

naturalised as a citizen of Singapore, only with the concurrence

of the Singapore Government;

(v) the Federal Government would have authority to deprive persons

of Malaysian citizenship on all grounds;

(vi) deprivation or renunciation of Malaysian citizenship of a

citizenship of Singapore would involve loss of Singapore

citizenship; and

(vii) a person who has renounced or been deprived of his Malaysian

citizenship would not be eligible to be registered as a citizen of

Singapore except with the approval of the Federal Government.

Singapore Constitution

The Singapore Constitution would contain the following provisions which could not be amended or modified without the approval of the Federal

Parliament:

(i) citizenship of Singapore by birth;

(ii) citizenship of Singapore by descent;

(iii) citizenship of Singapore by registration of citizens of Malaysia

who are not citizens of Singapore;

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(iv) citizenship of Singapore by registration of persons resident in

Singapore on Merger Day with the agreement of the Federal

Government;

(v) citizenship of Singapore by registration on marriage;

(vi) citizenship of Singapore by registration of minors;

(vii) renunciation of citizenship of Singapore; and

(viii) deprivation of citizenship of Singapore on the grounds of

fraud, mistake or conviction.

At a subsequent meeting it was also agreed that the Singapore

Government shall for a period of two years after Malaysia Day have the power to

deprive anyone of Singapore citizenship on any grounds provided such grounds

arose before Malaysia Day.

The basis of acquisition and ground for deprivation of citizenship

should be common to the Federation and Singapore. Provision should be made

to ensure that the Federal and Singapore Governments would keep each other

informed of all grants and deprivations of citizenship on all grounds. It has been agreed that there should be no relaxation in the Federal or Singapore immigration laws before Merger Day.

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I have dwelt in some detail on the question of citizenship and I am

sure members of the House and people outside would be happy to know that all

their rights as citizens of Singapore, and later as citizens of Malaysia, would be

protected in the Constitution.

Conference of Rulers

Article 38 on the Conference of Rulers will be amended to refer to the Yang di-Pertuan Negara and the Prime Minister of Singapore in the same manner as the Governors and Chief Ministers of Malacca and respectively.

Power of Pardon

The Yang di-Pertuan Negara and the Prime Minister of Singapore will have the same powers of pardon etc. under Article 42 as the Governors and

Chief Ministers of Malacca and Penang.

Federal Legislature

There will be consequential amendments to Article 47 to provide that citizens of Singapore may stand for elections only in Singapore to the

Federal Parliament.

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Extent of Federal and State laws, and subject matter

of Federal and State laws - Articles 74 and 77

The provisions of the 9th Schedule will have to be amended in its application to Singapore in accordance with the Annexure, (as amended) to the

Heads of Agreement for a merger of Singapore and the , as contained in the White Paper.

Modification of Articles 83 to 87 - Article 88

There should be provision in Article 88 for modifications in the application of Articles 83 to 87 to Singapore in the same manner as Malacca and

Penang.

The National Land Council - Article 91

Article 91 should be amended in its application to Singapore so as to provide that any policy formulated should not apply to Singapore without the concurrence of the Singapore Government.

National Development Plan - Article 92

Article 92 should be amended in its application to Singapore so as to provide that the occurrence of the State Government will be required in

lky\1963\lky0405.doc 10 respect of any Development Plan which the Federal Government proposes should be put into operation in Singapore.

The National Council for Local Government - Article 95A

The last phrase of Article 95A(5) which reads “and the State

Government shall follow the policy so formulated” shall not apply to Singapore until such time as the Federal Government with the concurrence of the Singapore

Legislative Assembly otherwise provides. The representative of the Singapore

State will participate in the Council as a member without vote until such time as the State has accepted the obligation to follow the advice formulated in the

Council under Article 95A(5).

Article 95A(6) should apply to Singapore in that the Singapore

Government shall consult the National Council for Local Government on any proposed legislation dealing with local government.

Representation on certain Federal Councils

It is agreed that if and when Singapore agrees to be bound by the decisions of the National Land Council or the National Council for Local

Government and consequently becomes a voting member of the Council the

lky\1963\lky0405.doc 11 numbers of Federal representations may be increased to preserve the existing balance.

Reports of Auditor-General - Article 107

Article 107 should be amended to include reference to the Yang di-

Pertuan Negara relating to the accounts of the State, etc., in the same manner as the present States of the Federation.

Conduct of Elections - Article 113

Federal Elections

Article 113 should apply to Singapore in respect of Federal elections subject to necessary transitional arrangements for the first election of the 15 representatives of Singapore to the first Parliament of Malaysia.

Reviews of Constituencies

The period of review set out in Article 113(2) should continue to obtain after merger.

Right to Vote

At the plenary meeting on the 21st and the 22nd of March it was agreed Article 119 should be amended to provide that citizens of Singapore may

lky\1963\lky0405.doc 12 vote only in Singapore, with a reciprocal provision that citizens of Malaysia who are not Singapore citizens may vote only outside Singapore.

Other matters relating to the Judiciary, the Courts, and the State-

Advocate-General’s Chambers, were also agreed. They will all become

Singapore Branches of the Pan-Malaysian Federal Judicial and Legal Service.

It was also agreed:

Definition of “Malay” to include Singapore Malays

The definition of “Malay” in Article 160(2) of the Federal

Constitution be amended by deleting the word “Merdeka” in the present definition and substituting therefor the word “Merger”.

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National Language - Article 152

Until the Singapore Legislative Assembly otherwise provides,

English, Mandarin and Tamil languages may be used in the Singapore Legislative

Assembly only, in addition to the National language.

Other legal technical matters relating to succession of property,

Article 166, 167, 169 of the Constitution, were agreed. So too Article 162 regarding existing laws. So also Article 168 on legal proceedings and Article 173 on pending appeals to the Privy Council.

The last plenary meeting in Singapore on the 2nd of April settled the question of fundamental rights. It was agreed that:

Fundamental Liberties

The following fundamental liberties in the Federation Constitution shall be extended to Singapore:-

(a) Article 5 -- Liberty of the person.

(b) Article 6 -- Slavery and forced labour prohibited.

(c) Article 7 -- Protection against retrospective criminal laws

and repeated trials.

(d) Article 8(1) -- Equality before the law and protection of the

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law

Article 8(2) and 12 (1) should be modified in their application to

Singapore after merger to enable the Singapore

Government to provide for the advancement of

Malays in Singapore. Under the Federal

Constitution, it is unconstitutional in educational

policy discriminate between Malays and other

races. However, in Singapore we have a policy

which discriminates in favour of the Malays,

giving them free secondary and university

education. Therefore, Article 8(2) and 12 (1)

will have to be amended in order to continue this

privilege.

(e) Article 8(3) -- No discrimination in favour of subject of Ruler

of any State.

(f) Article 8(4) -- No discrimination by any public authority.

(g) Article 11 -- Freedom of religion.

(h) Article 13 -- Rights of property.

Article 9(1) which prohibits banishment of any citizen shall apply in

Singapore. The same applies to freedom of movement under Article 9(2) but

lky\1963\lky0405.doc 15 subject in respect of Singapore to the proviso that the Central Government may, if it so desires, by legislation in respect of labour or education or other matters in which Singapore citizens have got autonomy, prevent the double enjoyment of both rights of State autonomy in Singapore and again full enjoyment of equal rights with other Malaysian citizens in respect of labour and education again in the other States.

Other legal technical matters concerning navigation and shipping, banking , insurance have all now been agreed.

It has also been agreed on 2nd April that:

(a) the provisions of Article 153 relating to education would not

apply to Singapore after merger;

(b) in the application of Article 153 to Singapore after merger the

following conditions would apply:

(i) no proportion of posts in a Federal public service in

Singapore would be reserved for Malays;

(ii) recruitment in Singapore to Federal public services

would be open to all citizens of Malaysia; and

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(iii) no proportion of permits or licenses for the

operation of any trade or business in Singapore

would be reserved for Malays;

( c) the definition of “Malay” for the purposes of Article 153

would be amended to include Singapore Malays.

This means that Malays in Singapore will continue to enjoy their special rights as at present with particular reference to free education from primary school to University, and if they choose to go to the other States will enjoy special rights as for Malays there. In this way, we have been able to maintain the principle of free competition in Singapore for employment in the public service and for business like taxi licences, bus licences trade licences and so on.

Finance

However, there is one outstanding problem which is basic to the whole of the relationship between State and Central Government – the financial arrangements. It is the view of the Singapore Government that if Singapore is to have autonomy, not only in name, but in practice and in substance in the many subjects ranging from education, labour, social welfare, health and so on, then we must, in the words of the White Paper, “retain the present machinery for the

lky\1963\lky0405.doc 17 collection of taxes,” and make a “contribution” to the Central Government “for

Federal services”. It is our view that there is no equivocation that the collection of taxes must be done by Singapore. The revenues collected, whether they be

Federal or State taxes after Malaysia should be kept in Singapore. Singapore’s contribution for Federal services in Singapore like police and prisons and its share of pan-Malaysian services for the whole region, like defence and external affairs can be a first charge on revenues collected. I had hoped that by today to be in a position to report to the House on the agreement reached and to disclose the formula on which Singapore will pay for its share for Federal services in

Singapore and for its proportion of pan-Malaysian services for the whole region.

In the first meeting in Kuala Lumpur, 28th February and 1st of

March, it became quite clear that there was basic disagreement between the

views of the Finance Ministry in Kuala Lumpur and that of the Finance Ministry

in Singapore. The Finance Ministry, Kuala Lumpur, envisaged an arrangement

whereby they would take over the functions of the Singapore Finance Ministry in

respect of all taxes, and year by year make such payment to the State

Government as necessary for its discharge of its other duties. The Singapore

Finance Ministry’s view is the exact opposite. Having all these years efficiently

and effectively discharged its functions, it has not the slightest doubt that it can

continue to do so as envisaged in the White Paper, and make its yearly

lky\1963\lky0405.doc 18 contribution to the Central Government for Federal services. I need hardly say that strong views were held on both sides. However I am happy to say that this did not prevent discussions from being held to explore every possibility of a fair arrangement whereby the Federal Government will have complete guarantees on the efficiency and efficacy of tax collection by the Singapore Finance Ministry and a faithful and accurate audit of every item collected and expended.

At the second plenary meeting in Kuala Lumpur on the 21st and 22nd

March, we discussed a paper put up by the Federation Finance Ministry on the subject. I am sorry to say that the paper was not acceptable to us as in our view it was not in accord with the clear terms of the White Paper with regard to responsibility for collection by Singapore and then making a contribution to the

Central Government for Federal services.

We undertook to submit a paper for the meeting in Singapore scheduled for the 1st and 2nd of April. Our paper was submitted on Friday, 29th

March.

Instead of the plenary session originally scheduled for the 1st of

April, informal discussions were held between the two Finance Ministers in

Singapore and between myself and the Federation Deputy Prime Minister and

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Minister of Internal Security. We thought that on Monday evening, 1st of April, broad agreement in principle had been reached on responsibility for collection, and all that remained was an equitable method of working out our contribution to the Federal Government for Federal services, in other words, apportioning money from taxes like income tax and customs duties which will become Federal taxes and pan-Malaysia after Malaysia between the Federal Government, for our contribution, and the rest for our use.

The plenary session was held on 2nd April. Several of the

outstanding items regarding fundamental rights in the Constitution, establishment

matters and the continued application of principle of free competition in

Singapore without special preferences were agreed. There was a great deal of

understanding and a common desire for fair play. However, when discussions

were resumed on finance in the afternoon, we discovered that what we thought

had already been agreed in principle on April 1st regarding responsibility for

collection of Federal taxes was in fact not agreed and the meeting ended without

agreement. The respective positions of the two Finance Ministries remain as on

21st March.

Members are aware that the financial arrangements is the key to all

the other relations between State and centre. The amendments to the Federal

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Constitution and the State Constitution of Singapore cannot be finalised until this matter has been resolved.

The present time-table is that all these constitutional amendments should be ready by May or at the latest by early June, in order that they can be tabled before and approved by this Assembly and then incorporated in a treaty to be signed in London in June so that on 31st August, this year, all that remains will be the formal proclamation of independence.

We are thankful for the practical approach of the Federation Deputy

Prime Minister to these problems. But for his understanding that Singapore’s autonomy in labour, education, health and social services should be accompanied by the financial means to implement our policies, further discussions at Inter-

Governmental level would have been pointless. At our next meeting we hope to work out the basis of the formula to be spelt out to apportion funds collected by the Singapore Government from Federal taxes in Singapore between (a)

Singapore’s contribution for Federal services and (b) the balance to be used by the Singapore Government for State expenses and development.

Members will realise the urgent necessity of our finding a just formula for working out our contributions to the Federal Government. If this is

lky\1963\lky0405.doc 21 not done before the end of May then the London Treaty may be delayed till the end of June or even the beginning of July, since after agreement some time will be needed by the draughtsmen to frame these amendments to the Federal

Constitution, and some further time will be taken by this Assembly to debate and adopt them.

The Federation Deputy Prime Minister has informed me yesterday afternoon that he will be leaving shortly for Washington and he would like another plenary meeting of Ministers and officials in Kuala Lumpur before he leaves. We hope that these two meetings on the 10th and 11th April will produce the basis for such a formula.

Because of his heavy commitments these are the only two dates he has available before he leaves for Washington. In this circumstance our original intention to proceed with our Assembly meeting till 11th April, the eve of the

Easter holidays, has to be changed and the House will have to adjourn on the 9th

April. However, to make up extra time the Leader of the House, has already indicated to Opposition Members that we are willing to sit to-morrow, Saturday,

Monday and Tuesday, every day till midnight.

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On Tuesday evening the House will adjourn to the 7th June but I undertake to reconvene the House earlier, as soon as constitutional arrangements have been finalised and a complete report can be made to the House.

In view of the importance of the future constitutional provisions governing the relationship between the Singapore State Government and the

Federal Central Government I am prepared to answer any questions on this matter and if members so wish to have a debate on it.

5th April, 1963.

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