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MEDIA RELEASE
3 June 2004
TEMASEK'S VIEWS ON DRAFT COMPETITION BILL
Temasek Holdings ("Temasek") announced today that it had written to the Ministry of Trade and Industry ("MTI") in response to MTI's public consultation on the draft Competition Bill ("the Bill"). In its submission, Temasek highlighted the significance of the intent of the Bill and the need for certainty over what would be prohibited. Temasek also recommended focussing on certain critical sectors and businesses.
In Temasek's opinion, the competition policy must exist to protect and promote the competitiveness of the economy and ensure fair competition.
The Bill as presently worded is general and would leave much discretion to the Commission in determining what is prohibited under the proposed Competition Act ("the Act"). This creates for businesses unlimited uncertainty as to whether their business dealings would be classified or prohibited under the Act. The Bill should therefore provide as much certainty and clarity as possible so that all players are clear about what is prohibited under the Act and not leave the government or government agencies to act as the final arbiter.
Temasek also suggested that the Government focus only on certain critical sectors or classes of businesses where there are natural monopolies and where the businesses can have a large impact on the efficient or competitive functioning of the market. The scope of the competition regulation can be subsequently expanded to include other sectors, on the basis of a tested and limited framework.
Lastly, Temasek commented that there should be no ambiguity as to which written law or code of practice would apply over a particular matter, especially where there is existing legislation.
Temasek's full submission can be accessed on the Ministry of Trade and Industry's website
(www.mti.gov.sg).
