OECD launches reports with recommendations to enhance competition and efficiency for logistics sector in Singapore

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1. The Competition and Consumer Commission of Singapore (“CCCS”) and the Organisation for Economic Cooperation and Development (“OECD”) co-organised the launch of two reports on the competition assessment of the logistics sector in Singapore. The reports, OECD Competition Assessment Reviews: Logistics sector in Singapore and OECD Competitive Neutrality Reviews: Small-package delivery services in Singapore, provide independent analysis and recommendations by the OECD as part of the OECD’s project on Fostering Competition in ASEAN^[1] and are undertaken within the framework of the ASEAN Competition Action Plan^[2].

2. The OECD assessment was conducted with inputs from various government agencies and local stakeholders in Singapore, with the support of the CCCS and the ASEAN Secretariat, and was funded by the UK Prosperity Fund.

3. The logistics sector is a key pillar of the Singapore economy, contributing $6.8 billion or 1.4% of Singapore’s Gross Domestic Product in 2019. It employs over 86,000 workers across more than 5,300 enterprises. Importantly, the logistics sector is a critical enabler for sectors in Singapore’s economy, as it facilitates the domestic and international flow of goods. In the context of the Covid-19 pandemic, the role of the logistics sector has taken on an even more critical role, as the sector ensures that our supply chain network remains open and resilient so that the needs of businesses and citizens can be met.

4. Speaking at the opening of the virtual launch on 4 June, Ms. Sia Aik Kor, Chief Executive of the CCCS, noted that the ASEAN Experts Group on Competition (“AEGC”) decided to work with the OECD to undertake assessments on the logistics sector in ASEAN, in view of the direct and significant impact that the logistics sector has on economies of ASEAN by facilitating trade and enhancing connectivity in the region. With the rise of the digital economy, the logistics sector plays a critical role in fostering economic development and in serving consumers of each ASEAN Member State. To date, country reports on Thailand, Philippines, Brunei, and Indonesia have been completed.

5. Opening remarks were also delivered by H.E. Kara Owen, UK High Commissioner, Singapore, Mr. Antonio Gomes, Deputy Director for Financial and Enterprise Affairs, OECD and Mr. Looi Teck Kheong, Head of Competition, Consumer Protection, and IP Regulations Division, ASEAN Secretariat.

6. Over 100 representatives from both the public and private sectors in Singapore, as well as officials from other ASEAN competition authorities attended the virtual launch event, which saw notable speakers sharing their views on OECD’s findings and discussing pertinent issues in the logistics sector in Singapore. The speakers on the panel were Mr. Oh Bee Lock, Chief Executive Officer, Singapore Logistics Association, Mr. New Soon Tee, Chief Executive Officer, Pick Network Pte. Ltd. and Dr. Tan Hi Lin, Senior Director (Policy & Markets), CCCS.

7. The OECD Competition Assessment Reviews: Logistics sector in Singapore report assesses the impact of regulation on competition and presents key findings and recommendations in five main subsectors of the logistics market: freight transportation, including transport by road, inland waterway and maritime; freight forwarding; warehousing; small-package delivery services; and value-added services.

8. The OECD Competitive Neutrality Reviews: Small-package delivery services in Singapore report focuses on small-package delivery services, a fundamental part of the logistics sector due to their important role in the rapidly growing e-commerce sector.

9. The reports are accessible at oe.cd/asean-comp-singapore.

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About the Competition and Consumer Commission of Singapore

The Competition and Consumer Commission of Singapore (“CCCS”) is a statutory board of the Ministry of Trade and Industry. CCCS administers and enforces the Competition Act (Cap. 50B) which empowers CCCS to investigate and adjudicate anti-competitive activities, issue directions to stop and/or prevent anti-competitive activities and impose financial penalties. CCCS is also the administering agency of the Consumer Protection (Fair Trading) Act (Cap. 52A) or CPFTA which protects consumers against unfair trade practices in Singapore. Our mission is to make markets work well to create opportunities and choices for business and consumers in Singapore.

For more information, please visit www.cccs.gov.sg.

^[1] More information on the project can be found at www.oecd.org/daf/competition/fostering-competition-in-asean.htm.

^[2] The ASEAN Competition Action Plan 2016 - 2025 guides the work of the ASEAN Experts Group on Competition and contains strategic measures to support a more competitive and innovative ASEAN. More information can be found at https://www.asean-competition.org/about-aegc-asean-competition-action-plan-acap-2016-2025.