ADJOURNMENT

Resolved,

"That Parliament do now adjourn to 3.00 pm on Friday, 25th February 2000." - [Mr Wong Kan Seng].

Adjourned accordingly at Five minutes past Five o'clock pm to 3.00 pm on Friday, 25th February 2000.

Mr Chiam See Tong asked the Minister for Trade and Industry whether the Government intends to pass laws giving protection to consumers such as the Fair Trading Act 1986 and the Consumer Guarantees Act 1993 of New Zealand, and, if so, when.

BG George Yong-Boon Yeo: The Government's approach to consumer protection is to educate consumers while enabling the market to operate as efficiently as possible, regulating only where necessary. Encouraging competition and increasing access to a range of goods and services enable consumers to make their own decisions from a menu of choices. This is the best way to increase consumer welfare. The policy has served us well. In areas where protection is necessary, for example, to safeguard health, safety or public morals, there are already existing legislation. Specific offences of cheating and certain forms of fraudulent trades are also covered in the Penal Code and other legislation.

We must avoid over-regulating. First, legislative and regulatory requirements on businesses carry with them compliance costs. This will increase business costs that would ultimately be passed on to consumers. Second, we must also avoid excessive dependence by consumers on Government regulation. Otherwise, legislation would have to keep expanding in scope and coverage to cover all possible cases of cheating and unfair trade practices. In the end, let the buyer beware - this is the caveat emptor principle.

We believe that a better approach is to educate consumers and make more information available, so that they can make good choices. The Government will continue to work with CASE on such efforts.

CASE has also informed that it will be putting up a proposal for a Fair Trading Act for Singapore. They are studying, among others, the two Acts cited by Mr Chiam See Tong and will be incorporating the elements which they deem appropriate for Singapore. MTI will study CASE's proposal when it is ready, but our preference is for a minimalist Fair Trading Act, should one be deemed necessary.