INSTITUTE OF ESTATE AGENTS (Waiver of agency commission)

[Mr Deputy Speaker in the Chair]

The following question stood in the name of Dr Teo Ho Pin -

Dr Teo Ho Pin: To ask the Minister for Trade and Industry whether his Ministry will take a stand on the recent move by the Institute of Estate Agents to restrict its members from waiving their agency commission.

Mrs Lim Hwee Hua (Marine Parade): Question No. 1.

The Minister for Trade and Industry (BG George Yong-Boon Yeo): Mr Deputy Speaker, Sir, although we do not have specific legislation against price fixing or cartels, the Government's policy is to discourage them. For markets to work well there must be free competition, not collusion or price fixing.

That is why the Government has been progressively liberalising sectors such as telecommunications, finance and power. In the areas where prices have traditionally been fixed, such as conveyancing fees, stockbroking commissions and interest rates for chequing accounts, we have now allowed the market to set prices. In other words, the Government strongly encourages price competition. For instance, we facilitate parallel imports of motorcars.

In promoting greater competition in our economy, Singapore has not taken the approach of implementing an umbrella competition law as in OECD countries because it is complicated and can reduce business flexibility. MTI has found moral suasion effective when the occasional case occurs. We will, however, review the need for legislation.