S'pore gives nod to liberalization

S'pore gives nod to liberalization

SINGAPORE (DPA): Singapore's government has agreed to a series
of proposed liberalization moves aimed at making the city-state
more attractive as an international financial hub, officials said
Monday.

"There is less need for rules and regulations that set limits
on what can and cannot be done," as long as basic regulations are
in place, a report on the changes said.

The liberalizations were suggested by a "Corporate Finance
Committee", part of the government's Financial Sector Review
Group chaired by Deputy Prime Minister Lee Hsien Loong. Lee also
heads the Monetary Authority of Singapore, which functions as the
country's central bank.

The 38 proposed changes are mainly aimed at loosening
investment laws and creating more transparency in the financial
sector while having clear protective measures in place.

Global investment banks should be encouraged to make Singapore
their regional headquarters "sooner rather than later", said the
committee report, released Monday.

There should also "be a review of Singapore's tax environment
to make it more competitive", the committee said.

Tax laws should be changed to "remove any impediments to
innovation in the financial industry", and to "attracting
professionals to locate (in) Singapore", the committee added.

In addition, the committee suggested that the Stock Exchange
of Singapore's separate board for foreign trading be abolished,
and that "the listing criteria for foreign and local companies
should be identical".

The committee further proposed that the government create a
venture capital Internet site, with its use restricted to
"sophisticated investors and venture capitalists" who find an
exchange listing too expensive.

The panel suggested that an "independent securities regulator"
be appointed, with powers to enforce new, increased disclosure
regulations for corporations listed in Singapore.

Singapore, a tiny island republic with a high standard of
living and no natural resources, has been aggressively trying to
build its role as a regional hub for financial services.

The country has not been hit as badly as its neighbor
countries by Asia's current economic crisis, but its vital
electronics manufacturing sector has been battered by a drop in
demand and it faces rising unemployment and possible recession in
the next year.