AIR TRAVEL BETWEEN SINGAPORE AND MALAYSIA AND ACROSS ASEAN

AIR TRAVEL BETWEEN SINGAPORE AND MALAYSIA AND ACROSS ASEAN

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(Liberalisation): **

28.

Dr Fatimah Lateef asked the Minister for Transport if he will provide an update on the progress of discussions to liberalise air travel between Singapore and Malaysia and across ASEAN.

Mr Raymond Lim Siang Keat: Liberalisation of air services arrangements in ASEAN is integral to ASEAN's economic integration efforts. It will facilitate more air services to grow the flow of people, trade and services, and support our vision of a highly-connected and integrated ASEAN Community.

In 2004, ASEAN members agreed to a roadmap that aims to free up air freight services fully within ASEAN and passenger services between ASEAN capital cities by December 2008, paving the way for open skies in the longer term. When the ASEAN Transport Ministers met in January this year, it was agreed that our officials should step up consultations and target for the agreement to be signed by year-end, in time for the implementation of the roadmap's first major milestone of December 2008. I am pleased to inform the House that ASEAN transport officials are making good progress to finalise the agreement to implement the roadmap in time for the first milestone to be implemented.

With regard to the air links between Singapore and Malaysia, Singapore has always been prepared to review our Air Services Agreement (ASA) with Malaysia and to liberalise air travel between the two countries. However, any liberalisation would require the agreement of the Malaysians as well. Senior officials of both countries held an informal meeting on 8th May to have preliminary discussions on the matter. Both sides agreed in-principle to work towards expanding connectivity between the two countries and to meet for formal consultations soon.

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As we had mentioned before, a review is long overdue, as the ASA was last reviewed more than 25 years ago in 1980. I believe that there is tremendous potential for more air links between our two countries and offering travellers more destinations and carriers to choose from would generate wider economic benefits for both countries. I believe that Malaysia also recognises the potential benefits and desires to improve the air connectivity between our two countries. My Ministry will continue to engage our Malaysian counterparts to expand our ASA and hopes to work towards more liberalised arrangements for mutual benefit.

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