Bill to extend regulatory control over key transport firms passed

It will not create major compliance costs or interfere in commercial decisions: Minister

- Kok Yufeng

Amendments to existing transport laws that will subject key Singapore companies to greater regulatory scrutiny will not have an adverse impact on the industry, said Transport Minister Chee Hong Tat.

This is because they will neither create significant compliance costs nor interfere with private commercial decisions and day-to-day operations, he told Parliament on May 8.

Allaying fears among lawmakers that the Transport Sector (Critical Firms) Bill could affect growth and innovation, Mr Chee said it sets the foundations for Singapore to guard against possible disruptions to a small number of companies that run key services here.

Questions had been raised over whether the Bill, which was passed by Parliament, would disadvantage foreign companies and discourage new investments.

Mr Chee said the Bill will prepare Singapore for extreme scenarios in the future, noting that it is not meant to address existing risks or current problems.

"For example, we cannot rule out the risk of malicious actors gaining control and adversely influencing our key transport entities, jeopardising the provision of essential transport services," he added.

Four existing laws will be amended: the Bus Services Industry Act, the Rapid Transit Systems Act, the Civil Aviation Authority of Singapore Act, and the Maritime and Port Authority of Singapore Act.

With this, the respective transport authorities will be able to classify key companies under their purview as designated entities and subject them to more stringent controls.

These firms could either be those that provide essential transport services directly in Singapore or those that hold an equity interest in a key transport company here.