FOREIGN LORRY OPERATORS OR TRADERS (Transportation of products via Woodlands/Tuas Checkpoints)

Mr Tay Beng Chuan asked the Minister for Trade and Industry whether the Government should allow foreign lorry operators or traders to transport all kinds of products, including perishable items such as fruits and vegetables, via the Woodlands or Tuas checkpoints into Singapore for direct sale or distribution to customers and, if not, whether any action has been taken to prevent such practices from being increasingly adopted by foreigners.

The Senior Parliamentary Secretary to the Minister for Trade and Industry (Mr Tang Guan Seng) (for the Minister for Trade and Industry): Mr Speaker, Sir, Singapore is a small nation that is highly dependent on trade. Our trade is three times our GDP. Goods flow almost totally tariff free into Singapore. They are consumed in Singapore, or are further processed before being exported to the rest of the world. Our free trade policy therefore allows companies to source for inputs at competitive rates. Consumers also benefit from being able to buy a wide variety of goods, including fruits and vegetables, at competitive prices.

Our current laws do not prohibit foreign lorry operators or traders from transporting goods for direct sale to wholesalers or retailers in Singapore. These foreign operators must however abide by various rules. To illustrate, they must pay GST for the goods they sell; and for perishable items such as fruits and vegetables, they are subject to AVA rules.

Mr Ravindran: There have been cases where some of these businessmen, who are bringing these perishable products from across the border, are actually selling directly to customers. By doing this, (a) they are not registered as a business here; (b) they do not pay tax, although they are doing business here; and (c) they seem to be using labour from across the causeway as cheap labour to sell directly to customers. So I do not know whether the Ministry can look into how we can check on these businessmen to ensure that they are properly registered here, they are doing direct business here, and that they pay not only GST but also other business taxes that they are liable to pay.

Mr Tang Guan Seng: Mr Speaker, Sir, they are not allowed to sell directly to consumers, like you and me. But they are allowed to sell their goods to wholesalers and retailers.

Mr Ravindran: Apparently, there are instances where some of these businessmen are selling directly to consumers. Perhaps the Ministry could step up supervision over these businessmen who are doing this business by selling directly to consumers and also see whether they are in this process evading some of the laws of Singapore.

Mr Tang Guan Seng: If the Member has information of this nature, can he please give us the particulars and we will refer to the relevant agencies for action?