DEVELOPMENT BANK OF SINGAPORE (Administrative charge on POSBank accounts)

Dr S. Vasoo asked the Deputy Prime Minister if he will ask the Development Bank of Singapore to look into exempting all consumers holding less than $500 in their POSBank accounts to pay the administrative charge.

Mr Ong Ah Heng asked the Deputy Prime Minister whether he is aware that low-income earners will be penalised by the decision of the Development Bank of Singapore to charge a fee for POSBank accounts with balances below $500, and whether this decision is consistent with the Government's policy to move Singapore towards a cashless society.

Mr Tay Beng Chuan asked the Deputy Prime Minister if he will explain the rationale behind the move for the Development Bank of Singapore to impose, from 1st June 2000, bank charges on POSBank cheque services as well as on POSBank accounts which fail to maintain a minimum daily balance of $500.

Dr Lily Neo asked the Deputy Prime Minister whether he will strongly recommend the DBS-POSBank $2 per month "accounts fee" be waived for low-income earners.

Mr Chiam See Tong asked the Deputy Prime Minister whether he will advise the DBS Bank not to charge the proposed fee of $2 on a savings account with less than $500 in the account at the end of each month.

Mr Hawazi Daipi asked the Deputy Prime Minister how many account holders have less than $500 in their POSBank accounts, and whether POSBank was losing money when it had those accounts before it was sold to the Development Bank of Singapore.

Mr Seng Han Thong asked the Deputy Prime Minister whether the Government will introduce measures to allow and encourage low-cost banking facilities to be provided so that low-income workers will not be penalised by having bank charges imposed on their small bank accounts.

Mr Low Thia Khiang asked the Deputy Prime Minister what is the impact of all banks imposing charges on accounts not meeting their minimum sum on lower-income families and whether the Government regards the situation as a desirable outcome of free market economy at play.

Mr Tay Beng Chuan asked the Deputy Prime Minister whether further mergers of our local banks as encouraged by the Government will lead to more increases in bank charges as in the case of the Development Bank of Singapore; and what action the Government will take to address the concerns of the business community.

Mr Inderjit Singh asked the Deputy Prime Minister whether he will consider fully liberalizing banking in Singapore so that foreign banks can be given an opportunity to provide the full range of services that the POSBank provided in the past, with unlimited branches in Singapore.

Mr Inderjit Singh asked the Deputy Prime Minister if he will consider implementing an alternative to the previous POSBank, like a cooperative with a banking licence, to encourage savings.

Mr Low Thia Khiang asked the Deputy Prime Minister what is the total number of Singaporean bank account holders having at least one GIRO arrangement for transactions and what is the distribution of these accounts in respect of each local bank.

The Minister for Home Affairs and Leader of the House (Mr Wong Kan Seng): Sir, the Deputy Prime Minister would be making a Ministerial Statement afterwards. Among other things, he will also talk about the POSB and DBS issue. So I would suggest Members who asked Question Nos. 1 to 12 to await the DPM's statement, after which they can ask him questions.