PRICE FIXING AND RESALE PRICE MAINTENANCE

Dr Toh See Kiat asked the Minister for Trade and Industry whether there are plans to ensure that the practice of price fixing by monopolies and cartels and the practice of resale price maintenance by distributors and manufacturers are abolished.

Mr Lee Yock Suan: The Singapore economy is among the most open in the world and the Government is committed to a free market economy. The Government does not condone price-fixing behaviour among cartels or suppliers. The best way to prevent this is to promote open competition in the market place, so that customers benefit from paying the most competitive prices for any product or service. My Ministry administers a Price Control Act, which provides for the control of prices, including the setting of maximum prices. It gives the controller wide powers to curb profiteering. Currently, it has 2 items as controlled articles - rice and pigs. However, MTI has not found it necessary to use the Act, as keen competition in the retail sector has made any direct government intervention unnecessary.