Competition is a key tenet of Singapore's economic strategy. Market competition spurs firms to be more efficient, innovative and responsive to consumer needs. Consumers would enjoy more choices, lower prices, and better products and services. The economy as a whole benefits from greater productivity gains and more efficient resource allocation. Therefore, wherever appropriate, Singapore has opened up sectors of the economy to market competition; and introduced sectoral regulation to manage competition issues that arise in these sectors.

Competition policies pertaining to market structure and access, nature and pace of liberalisation and deregulation for each sector of the economy will continue to be policies and decisions of the respective ministries and sectoral agencies.

Enacting a generic competition law will help to reinforce Singapore's pro-enterprise and pro-competition policies, enhance the efficient functioning of our markets, and hence enhance the competitiveness of our economy.


Objective of Competition Act (Chapter 50B) 

The Act seeks to prohibit anti-competitive activities that unduly prevent, restrict or distort competition. There are three main prohibited activities under the Act:

• anti-competitive agreements, decisions and practices ("the section 34 prohibition");
  
• abuse of a dominant position ("the section 47 prohibition"); and
  
• mergers and acquisitions that substantially lessen competition ("the section 54 prohibition").

In its administration and enforcement of the Act, the Commission will bear in mind that any regulatory intervention in the market may impose costs. Therefore, the Commission will balance regulatory and business compliance costs against the benefits from effective competition.

Instead of attempting to catch all forms of anti-competitive activities, the Commission's principal focus will be on those that have an appreciable adverse effect on competition in Singapore or those that do not have any net economic benefit. In assessing whether an activity is anti-competitive, the Commission will give due consideration to whether it promotes innovation, productivity or longer-term economic efficiency. This approach will ensure that we do not inadvertently constrain innovative and enterprising endeavours.

Click here to access the Competition Act (Chapter 50B) via the Singapore Statutes Online.


Implementation