LAWS REGULATING TIMESHARES AND SOFT COMMODITY BROKERS

Dr Toh See Kiat asked the Minister for Finance what progress has been made on his proposals to pass laws regulating timeshares and soft commodity brokers.

Dr Richard Hu Tsu Tau: The proposal to regulate time share schemes is still being studied. This forms part of the review which is currently being undertaken to determine how best the law could be reformed to capture not only time share schemes but also other currently unregulated investment schemes.

The study to regulate soft commodity brokers is also under way. Again, this study will require in-depth examination, especially to ensure that any regulation to be introduced should not adversely affect the interests of legitimate commodity traders.

However, it should be recognised that no regulatory system can completely protect investors from making any losses. Singaporeans are advised to stay away from investment schemes which are dubious and claim to promise unrealistically high returns. Rubber and coffee are currently being traded on the Singapore Commodity Exchange, which is regulated by the Trade Development Board. Members of the public who are involved with companies dealing in commodities contracts, other than rubber and coffee, can take the following actions if they are suspicious of any company:

(a) Direct their queries or complaints to the Commercial Affairs Department or the Police, which will then conduct investigations under the Companies Act and the Penal Code; and

(b) Inform CASE, which is compiling a list of such errant companies. CASE is trying to get evidence and to make people aware of the illegal activities of these companies.