• Abstract and Figures
• Public Full-text

Volume 94 Tuesday No 52 3 October 2017 PARLIAMENTARY DEBATES SINGAPORE OFFICIAL REPORT CONTENTS Written Answers to Questions Page 1. Use/Investment of Cryptocurrencies (Miss Cheng Li Hui) 1 2. Incidences of Freon Gas Leaks on MRT and LRT Rail Systems (Mr Leon Perera) 2 3. Singaporeans Employed by Majority Foreign-Owned Companies (Mr Gan Thiam Poh) 3 4. Terms for Extension of Formula One Singapore Grand Prix (Miss Cheng Li Hui) 3 USE/INVESTMENT OF CRYPTOCURRENCIES 1 Miss Cheng Li Hui asked the Prime Minister (a) whether the Government is keeping track of the use/investment of cryptocurrencies such as bitcoin in Singapore; (b) how do cryptocurrencies affect our finance industry; (c) whether studies are being conducted to assess the problems and risks of using/investing in cryptocurrencies; and (d) whether regulatory frameworks are necessary in the future. Mr Tharman Shanmugaratnam (for the Prime Minister): We are familiar with money, i.e. notes and coins, as a medium of exchange – an intermediary instrument use to facilitate transactions. I make a TV, sell it for money, and then use it to buy a pair of shoes. Money becomes a medium of exchange because all of us put our trust in its reliability. The Central Bank issues these notes and coins, and makes them legal tender. Legal tender means that the medium of exchange is recognised by law to be valid for meeting a financial obligation. With advancement in technology, new virtual means of payment have emerged, such as cryptocurrency, which is a form of digital token secured by cryptography. They are not legal tender. But some people put their trust in them and use them as a means of payment. Hence, Bitcoin and Ether have been adopted by people in some communities to pay one another or to pay for goods and services. The Monetary Authority of Singapore (MAS) has been monitoring the use of such virtual currencies. Their use is not prevalent in Singapore – about 20 Singapore retailers like restaurants and online shops currently accept Bitcoins1. This is unlike places like Japan, where the use is more popular. Likewise, in the Singapore financial industry, use of virtual currencies as a mode of payment is not significant. Trading is generally for speculative investment purposes, and the volume is low2 compared to other countries such as US, Japan and Hong Kong. Similar to most jurisdictions, MAS does not regulate such virtual currencies per se. However we regulate the activities that surround them if those activities fall within our more general ambit as financial regulator. Let me give two examples. 1 This is based on the directory maintained by Coin Republic of bitcoin-related businesses in Singapore (http://coinrepublic.com) 2 Based on virtual currency exchanges data. 2 First, virtual currencies, due to the anonymous nature of the transactions, can be exploited for money laundering and terrorism financing risks. MAS is working on a new payment services regulatory framework that will address these risks. A second example is fund-raising. Virtual currencies can go beyond being a means of payment, and evolve into "second generation" tokens representing benefits such as ownership in assets, like a share or bond certificate. The sale of such "second generation" tokens to raise funds is commonly known as an initial coin offering or ICO ("ICO"). A number of ICOs have been structured out of Singapore in recent months. These are financial activities that fall under MAS’ regulatory ambit. Hence, on 1 August 2017, MAS clarified that if a token is structured in the form of securities, the ICO must comply with existing securities laws aimed at safeguarding investors’ interest. So the requirements of having to register a prospectus, obtain intermediary or exchange operator licences, will apply. These intermediaries must also comply with existing rules on anti-money laundering and countering terrorism financing. MAS has not issued new legislation specifically for ICOs. We will continue to monitor the developments of such offers, and consider more targeted legislation if necessary. Some consumers may be attracted to invest in virtual currencies and digital tokens due to their recent exponential rise in value. However, as a financial regulator, our focus is securitised interests in assets – such as shares in a company. MAS does not and cannot regulate all products that people put their money in thinking that they will appreciate in value. But recognising that the risks of investing in virtual currencies are significant, MAS and the Commercial Affairs Department have published an advisory alerting consumers to these risks, and are working together to raise public awareness of potential scams. Back to Contents INCIDENCES OF FREON GAS LEAKS ON MRT AND LRT RAIL SYSTEMS 2 Mr Leon Perera asked the Minister for Transport (a) how many incidences of freon gas leaks on the MRT and LRT rail systems have occurred over the past 10 years; and (b) what is the risk posed to commuters by such gas leaks. Mr Khaw Boon Wan: Over the past 10 years, there have been 23 instances of Freon gas leaks on trains. Freon gas can interact with moisture in the air to form an odourless white smoke. 3 The smoke poses no health risk to the public. As soon as a leak is reported, affected commuters are de-trained at the next station, and the train withdrawn for repair. Back to Contents SINGAPOREANS EMPLOYED BY MAJORITY FOREIGN-OWNED COMPANIES 3 Mr Gan Thiam Poh asked the Minister for Manpower (a) how many Singaporeans are currently employed by companies in Singapore that are more than 50% owned by foreigners; and (b) what is breakdown of this number by (i) age group (ii) educational level and (iii) percentage of the total Singaporean workforce. Mr Lim Swee Say: The number of workers3 employed in majority foreign-owned enterprises4 is provided in Table 1. Breakdown by residential status, age group and educational level is not available. Back to Contents TERMS FOR EXTENSION OF FORMULA ONE SINGAPORE GRAND PRIX 4 Miss Cheng Li Hui asked the Minister for Trade and Industry (Industry) (a) what are the terms for the extension of the Formula One Singapore Grand Prix for another four years; and (b) whether there is any evaluation of the benefits of the extension as against the inconvenience caused to drivers and retailers. Mr S Iswaran: The exact terms of the agreement between the Singapore Tourism Board 3 Includes resident workers and foreign workers. 4 Majority foreign-owned enterprises refer to enterprises with more than 50% foreign equity. 4 (STB) and the race promoter, Singapore Grand Prix Pte Ltd (SGP), are subject to business confidentiality. Nevertheless, the decision to continue hosting the Formula One Singapore Grand Prix for another four years, from 2018 to 2021, was made after careful deliberation of the expected benefits and costs from a national perspective, taking into account the impact on various stakeholders. Including the 2017 race, Singapore would have hosted over 450,000 international visitors, contributing about $1.4 billion in incremental tourism receipts.5 The race has also generated business opportunities for local companies, with more than 90% of race-related works sub- contracted to Singapore-based companies. In addition, there are indirect benefits, as the Formula One Singapore Grand Prix has boosted Singapore’s image as a vibrant and innovative city due to the high global viewership and media coverage. Over the years, the Singapore race has built up a significant brand and following, successfully establishing itself as a signature race on the F1 calendar that has been referred to as the "crown jewel" of the sport. We expect to sustain such benefits in the new term, and to reduce the cost of organising the race to $135 million per year, with the Government’s share remaining at 60%. This cost reduction is due to factors such as operational efficiencies. The Formula One Singapore Grand Prix is iconic because it is a night race on a street circuit. However, we recognise that it may cause inconvenience to segments of the public, such as drivers and retailers. Over the years, the Government agencies have worked with the race promoter and affected stakeholders to find ways to better plan and coordinate the race execution, to minimise these inconveniences. To reduce the impact on road traffic and drivers, we have halved the number of days for road closures from 12 days in 2008, to 6 days in 2017. The introduction of the Circle Line and Downtown Line has also increased accessibility to the race vicinity during the F1 period and alleviated the traffic congestion. In addition, STB has worked with various stakeholders, including retailers, to capitalise on the buzz created by the race by launching the Grand Prix Season Singapore (GPSS) – a season of lifestyle events complementing the race experience. The extension of the Formula One Singapore Grand Prix for another four years was decided on terms that are beneficial to all parties. STB will continue to work closely with other Government agencies and stakeholders to enhance the event experience for Singaporeans and 5 This includes a projection for 2017. 5 visitors, while minimising inconveniences to the public. Back to Contents Office of the Clerk of Parliament Singapore, 3 October 2017 .

Load more

  6

Copy Link