DUTY-FREE LIQUOR, CIGARETTES AND TOBACCO AT CHANGI AIRPORT (Tenders for sale for Singaporean operators)

Mr Teo Chong Tee asked the Minister for Communications and Information whether the sales of duty-free liquor, cigarettes and tobacco at Changi Airport can be tendered out only to Singaporean operators instead of to a foreign company in future.

The Minister for Communications and Information (Dr Yeo Ning Hong): Mr Deputy Speaker, Sir, the success of Singapore depends on our ability to compete internationally in all products and services that we sell. With our open economy and our heavy dependence on international trade, it would be regressive and counter-productive to indulge in protectionism to support a few companies that are not sufficiently competitive.

Open tender for airport shops and duty-free shops is widely practised in most major airports in the United States, the United Kingdom, Canada, Australia and other countries. By having efficient and competitive shops at our airport providing goods and services at prices that are among the lowest in the whole of Southeast Asia, we encourage passengers to fly to and transit through Singapore with resultant benefits for our economy.

Mr Ng Kah Ting (Punggol): May I ask the Hon. Minister for Communications and Information that, in view of the Government's policy to encourage local enterprise, how can they be helped when a foreign company is allowed to operate such concessionaire, particularly when I see no transfer of technology involved?

Dr Yeo Ning Hong: Mr Deputy Speaker, Sir, the objective of encouraging local companies is to help them become more competitive, not to make it possible for them to continue to be uncompetitive.

Mr Ng Kah Ting: In that case, Sir, is the Hon. Minister suggesting that our national carrier, the Singapore Airlines, does not have the necessary expertise nor the skills to operate such a concessionaire?

Dr Yeo Ning Hong: Mr Deputy Speaker, Sir, the previous operator of the duty-free shop was able to turn a profit but unfortunately they were not sufficiently competitive. I have the figures for the performance of the previous operator and I have the figures also for the present operator and there is a very large difference between the two sets of figures.

Mr Deputy Speaker: Order. End of Question time.