EAST ASIAN CONSULTANCY (S) PTE LTD (Appointment of Directors)

Mr Low Thia Khiang asked the Minister for Finance whether it is appropriate for a Deputy Managing Director of the Monetary Authority of Singapore and the Commissioner of Inland Revenue to be directors of East Asian Consultancy (S) Pte Ltd.

Dr Richard Hu Tsu Tau: The East Asian Consultancy (S) Pte Ltd (EAC) was set up on 15th October 1992, as a wholly-owned subsidiary of the Institute of East Asian Political Economy (IEAPE). The IEAPE is a non-profit organisation, certified as an institution of public character and effectively operates as a charitable research institution.

EAC was set up to provide research and consultancy services on China to companies operating in Singapore intending to make investments or do business in the People's Republic of China.

The Commissioner of Inland Revenue and the Deputy Managing Director of MAS are non-executive directors of EAC. They receive no remuneration and will not be involved in the day-to-day business and the running of EAC, nor are they personally involved in providing consultancy and advisory services. They provide specialised advice to the Board of EAC.

Senior civil servants sit on the Boards of Government-linked companies (GLCs), many of which are publicly listed, and which transact business both in Singapore and outside Singapore. Whenever there is a potential conflict of interest because of the civil servant's official position and his membership on the Board, he declares his interest and disqualifies himself from taking part in the decision making on that matter. There are adequate checks and balances within the Civil Service system to ensure prior resolution of any potential conflict of interest.