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.