Second Reading Speech by Law Minister Prof S Jayakumar - The Sultan Hussain (Amendment) Bill 1999

Mr Speaker, Sir, I beg to move "That the Bill be read a second time".

Members will recall that the former Minister for Information and the Arts had announced in this House on 12 March 99 that the Government planned to develop a Malay Heritage Centre which would involve conserving and redeveloping the Istana Kampong Glam and adjoining Lot 53.

Members will also recall that on 15 Apr 99, I informed the House of the Government's proposed new payment scheme under the Sultan Hussain Ordinance. This Bill is to give effect to that proposed new scheme.

As I explained in this House on 15 Apr 99, there are some 79 beneficiaries who are receiving payments under the Ordinance, many of whom are not residing in Singapore. Of those who are resident in Singapore, only a handful (14) are actually living in the former Istana Kampong Glam. The former Minister for National Development, Mr S Dhanabalan, explained to this House on 12 March 1991 that the Kampong Glam Estate including the former Istana had reverted to the State as confirmed by the Court of Appeal in 1897.

The Sultan Hussain Ordinance was enacted to take care of the financial needs of the late Sultan Hussain's family at that time. Since then, the number of beneficiaries has steadily increased and the payments have been diminishing as the income from which the payments were made declined. The individual payments would become even smaller over time if the number of beneficiaries increases. The Government had therefore decided to implement a new scheme that would work to the advantage of the beneficiaries. Under this scheme, the Government will increase the amount of payment from the current level of $29,231 per annum in the last few years to $350,000 per annum, which is more than 10 times the current annual payment. This revised sum will be maintained for a fixed period of 30 years, starting from this year. In addition, the Government will offer any beneficiary the option of receiving a lump sum payment up-front instead. This lump sum would be equivalent to the present value of the 30-year payment stream. From the beneficiaries' point of view, this would work out to be more advantageous than the current system of receiving a dwindling annual sum indefinitely.

The Land Office has informed all the beneficiaries of the proposed new scheme. So far, an overwhelming majority of 64 beneficiaries or 81% have informed the Land Office that they wish to opt for lump sum payment. When the amendments to the Ordinance come into force, payments can be made to those beneficiaries who have opted for a lump sum payment under the new scheme.

Sir, turning to the actual provisions of the Bill, new section 4A enables the establishment of the proposed new payment scheme.

The proposed scheme will apply to members of the family of the late Sultan Hussain who, before 4 May 1999, were receiving an annuity under the Ordinance.

New section 4A provides that sections 3 and 4 of the main Ordinance shall cease to have effect on the day the new scheme is established. What this means is that the existing scheme of payments will cease upon the establishment of the new, improved scheme.

The existing Section 4 of the main Ordinance also contains the declaration that the lands in Kampong Glam were Crown lands. The amending Bill does not in any way derogate from the legislative effect of that declaration. That declaration had come into effect when the Ordinance was enacted in 1904. The lands remain as State lands.

The new section 4A also provides for regulations to be made for the detailed implementation of the new scheme.

Sir, I beg to move.

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6 July 1999