International Law Office - Legal Newsletters, Law Firm Directory and Legal News

Arbitration

The Singapore International Arbitration Centre (SIAC) has amended its rules of arbitration to incorporate the latest best practices in international arbitration and reflect SIAC's new governance structure. With these recent changes, SIAC has addressed its increasing caseload and emphasised the promotion of time-efficient proceedings.

Under Singapore arbitration law, parties can opt to have their arbitration proceedings governed by either Singapore's domestic arbitration regime or the international arbitration regime. As a recent case illustrates, when drafting an arbitration clause, it may be prudent to explore the differences between the two regimes in respect of the powers of the court and arbitral tribunals to grant interlocutory orders.

Show archive >

Asset Finance

Overview
Including: Who Can Benefit?; Definition; Types of Asset Financing; General Legality; Regulatory Framework

In a recent case, the question was raised of when a loan is repayable where there is no express term for the time for repayment.

The Court of Appeal has held that lodging a caveat does not create a charge over real property because the law requires that a caveator must have a pre-existing interest in the asset before he lodges such a claim.

A recent Court of Appeal case is causing practitioners to reconsider the enforceability of guarantees and indemnities. The court considered the issue of whether a separate ground of unconscionability exists when deciding to grant an injunction to restrain the respondents from making a demand on a performance guarantee.

A recent case has important implications for receivers who are appointed by creditors to act as agents for insolvent companies.

In a recent case, a mortgage holder defaulted on repayments. However, when the bank attempted to repossess the property and impose default interest, the court refused to allow these penalties, and instead allowed the mortgage-holder to continue repaying the debt in installments.

Banking

Overview
Including: Market Overview; Commercial Bank Financial Requirements; Ownership Restrictions; Merchant Banks; Internet Banks; Foreign Bank Operations; Representative Offices; Internationalization of the Singapore Dollar; The Future

The Monetary Authority of Singapore (MAS) recently issued a revised MAS Notice 757, setting out further measures to liberalize its policy on the non-internationalization of the Singapore dollar. Two key changes were announced that directly affect banking activities.

The Monetary Authority of Singapore has announced changes to the capital adequacy ratio for Singapore-incorporated banks. The authority has stated that it is ready to allow banks further flexibility in managing their capital.

The Monetary Authority has announced its approach to the licensing, regulation and supervision of internet banking in Singapore. The authority feels that the risk considerations inherent in internet banking are neither new, nor fundamentally different from those found in other forms of banking. Therefore, the admission criteria for new licence applicants will apply across the board.

The Monetary Authority of Singapore has announced new regulations requiring the separation of financial and non-financial activities of Singapore banks, as part of an ongoing reform initiative to strengthen the domestic banking sector.

The Monetary Authority of Singapore has awarded various foreign banks an assortment of privileges and licences.

The monetary authority wants the country’s commercial banking industry to be internationally competitive. It has therefore begun a five-year programme to liberalize the market, improve corporate governance, and allow greater foreign shareholding.

Capital Markets

Overview
Including: Legislative and Institutional Framework; Securities Exchange; Derivatives Market; Securities, Futures and Fund Management Industry; Brokers and Value Added Services; Listing on the Stock Exchange; Bond Markets; Public Offerings; Continuing Listing Requirements

The Monetary Authority of Singapore has invited public comments on a proposal to require real estate investment trusts (REITs) in Singapore to hold annual general meetings once every calendar year. In light of the volatile market conditions, opponents of the proposal will be hard pressed to justify a rejection of the measures, which would benefit REITs, REIT managers and unitholders.

The financial meltdown has raised a new issue: should directors and controlling shareholders disclose that they have pledged their shares in the company as collateral for personal loans? Proponents for greater transparency assert that investors' interests are at risk if directors or controlling shareholders do not disclose that their shares in the company have been pledged.

Singapore Exchange Limited has introduced new and revised listing rules to meet varying market needs. The broadening of the range of listings and the strengthening of corporate governance and disclosure requirements are a welcome response to the global financial downturn.

In response to increased market volatility and difficult market conditions, Singapore Exchange Limited has introduced measures - in consultation with the Monetary Authority of Singapore - to give listed issuers greater flexibility in raising funds. The measures include an extension of the right to issue shares on a pro rata basis and an increase in the discount for placement exercises.

Singapore Exchange Ltd has invited comments on its proposed listing rules for non-commercialized life sciences companies on Catalist, its sponsor-supervised board for fast-growing companies. The proposed rules impose requirements in terms of a company's track record and the adequacy of its working capital, but these safeguards will foster public confidence and boost the life sciences industry.

Parliament has passed a bill which will effect several substantial changes to the Securities and Futures Act. Among other things, it introduces a one-off licensing regime for the granting of capital markets services licences, alters the terms of the prospectus exemption and introduces compulsory acquisition provisions for real estate investment trusts and business trusts.

More updates >

Commercial Property

In a recent case, the question was raised of when a loan is repayable where there is no express term for the time for repayment.

A recent decision has important implications for the law governing commercial property and construction agreements. It provides purchasers of property with greater financial protection against developers. It also clarifies a party's right of set-off in an insolvency situation for pre-liquidation debts where the liquidator performs an existing contract.

An increasing number of property owners and employers have been charged under the Immigration Act (Cap 133) with the illegal harbouring or employing of immigration offenders. A recent Court of Appeal case expands on these situations for property owners.

Construction

In a further test of the scope of liability of architects and contractors, the Court of Appeal considered whether purchasers of housing development property could sue a developer for defects caused by a failure in design or construction. It suggested that a constituent proprietor which does not have a contract with the developer can sue if the original purchaser lends its name to an action as a co-plaintiff.

The Singapore High Court recently considered the need for multi-party arbitration in construction projects in the Ho Bee Case. The case further demonstrates a need in the construction industry for a holistic approach to arbitrating construction disputes on the one hand and, on the other, the need to support the wishes of parties to resolve disputes between them in a manner of their choosing.

In 2004 the Building and Construction Authority published the Quality-Fee Selection Method (QFM) for the procurement of public projects. Since its publication, the QFM has been the standard reference for many public sector building and construction projects; recent revisions emphasize the importance of the tendering firms' quality criteria over their fee proposals.

The Singapore Institute of Architects recently issued the seventh edition of its standard-form, lump-sum building contract. The amendments introduced in the latest edition of the contractual conditions change the procedure and timelines governing interim payments by employers to contractors, taking into account the security of payment provisions in the Building and Construction Industry Security of Payment Act.

The arbitration clauses in Singapore's most commonly used standard-form construction contracts make no provision for tripartite arbitration involving an employer, an architect and a contractor. An employer in dispute with the other two parties may have no choice but to sue, as separate arbitration hearings by different tribunals would open up the possibility of inconsistent findings on the same issue.

Developers are commonly involved in disputes with contractors over defective works. However, once construction is complete and the units are sold, the developer no longer has a proprietary interest in the property and is arguably not the party who has suffered loss through the appearance of latent defects. Should the developer be allowed to claim for substantial damages in such situations?

More updates >
Show archive >

Corporate Finance/M&A

Overview
Including: Revision of the Takeover Code; Company Legislation and Regulatory Framework Committee Recommendations; Key Deals.

In response to the increasing number of listed companies proposing to buy businesses or assets for a price based on or including profit guarantees, the Singapore Exchange Limited is considering amendments to its listing rules to provide additional guidance to company boards and their financial advisers.

The Monetary Authority of Singapore recently revised the Code of Takeovers and Mergers following a round of public consultation by the Securities Industry Council. The revised code applies to foreign entities (including business trusts) with a primary listing on the Singapore Stock Exchange and to Singapore-registered business trusts with over 50 unit holders and net tangible assets of at least S$5 million.

Recent amendments to the Singapore Exchange Listing Rules modify the regime governing reverse takeovers and other corporate activity. Meanwhile, the application of Rule 14 of the Singapore Takeover Code to the exercise of warrants or other convertibles presents an interesting scenario for further consideration.

A recent shipping deal is believed to be the largest transportation M&A transaction globally this year, and perhaps the biggest ever M&A transaction between Singaporean and Malaysian entities. Meanwhile, amendments to the Companies Act have relaxed the threshold for compulsory acquisition of outstanding shares.

The Company Legislation and Regulatory Framework Committee's proposal to introduce a more effective and efficient statutory process for effecting solvent mergers and amalgamations is timely. The government has accepted the proposal, but the amendments have not been included in the Companies Amendment Bill which is due to be enacted this year.

A recent amendment to the Stamp Duties Act imposes stamp duty on any disposal of shares carried out by cancelling existing shares and issuing new shares. Its potential impact on mergers is serious, as many recent mergers have proceeded by way of Section 210 schemes of arrangement incorporating a mechanism for the cancellation of existing shares and the reissue of new shares.

Show archive >

Corporate Tax

Overview
Including: Legal and Regulatory Framework; Tax Incentives; Corporate Income Tax; Annual Returns and Accounts; Deductions and Allowances; Treatment of Losses; Withholding Tax; Tax Changes for the Financial Sector; Tax Incentives for Specific Industries; Share Buybacks; Asset Securitization

In the 2013 Budget it was announced that from January 2014, housing provided by employers will be taxed on the annual value of the premises. The move marks a tightening of the existing practice, which allows the option of taxation at 10% of the employment income, if that is lower. The change will affect multinational companies that provide housing to their employees working in Singapore.

The Ministry of Finance has proposed to expand the scope of relief from stamp duty on the transfer of immovable property in Singapore or shares in Singapore companies. Although implementing legislation is still necessary, it will have retroactive effect from July 1 2000.

The Ministry of Finance and the Inland Revenue Authority have announced that employees in Singapore can now enjoy a 50% income tax exemption on gains from exercising their stock options. However, employees will be able to enjoy the tax concession only if the company, the employee and the scheme itself satisfy certain eligibility requirements.

Derivatives

Singapore’s futures market has recently seen regulatory amendments aimed at broadening the suite of asset classes that may be traded on Singapore’s securities platform. The Singapore Stock Exchange has announced amended rules that will facilitate the trading of listed structured products based on futures prices.

Singapore Exchange Limited (SGX) issued a consultation paper on proposed amendments to its business rules for the introduction of single stock derivatives in the first quarter of 2008. Single stock derivatives will be a new product class and the first margin-based, exchange-traded product on the SGX securities trading market.

Singapore Exchange Limited (SGX) has announced a proposal to dissolve the SGX Derivatives Trading Compensation Fund. Among the reasons for the proposal is the existence under the Securities and Futures Act of the Fidelity Fund, which is intended solely for the compensation of non-accredited investors in the event of a default by a member of Singapore Exchange Derivatives Clearing Ltd.

As the market moves towards a fully electronic trading environment, Singapore Exchange Limited has completed a timely major revision of its existing derivatives trading rulebook. The new version of the rulebook better caters for the industry's key regulatory and market developments and introduces deliverable commodity futures contracts on the newly launched Joint Asian Derivatives Exchange.

After a long restructuring exercise involving the ill-timed oil derivative trading that nearly brought down China Aviation Oil (Singapore) Corporation Ltd, the company has restructured its debt and its shares have been relisted. However, its former chief executive officer has been jailed for offences relating to breaches of a director's duties, non-disclosure of price-sensitive information and insider trading.

E-commerce

Overview
Including: Electronic Transactions Act; Evidence Act; Copyright Act; Computer Misuse Act

The attention of regulatory bodies in Singapore has been drawn to the increasing number of financial companies launching online services. Recent announcements set out the minimum system standards required and lay the groundwork for a new licensing regime.

Employment & Labour

Overview
Including: Background; Contract of Employment; Statutory Law; Termination of Employment; Transfer of Employment; Personal Income Tax; Fund Contributions

The entry into force of the new Workplace Safety and Health Act marks a move away from prescriptive standards, applicable to all industries and supported by subsidiary legislation, towards a culture of self-regulation in which responsibility is shared between industry stakeholders and confirmed in codes of practice.

A recent situation involving a judicial manager and the fate of the employees of a company under judicial management has come to light. The issue was whether to adopt the existing contracts of employment or to terminate them and execute fresh contracts. The judicial manager’s liability was also discussed.

A recent Court of Appeal decision is significant because it defines and restricts an employer's liability for wrongful dismissal, in a time when share-option schemes, bonuses and other non-traditional forms of remuneration are fast becoming the norm.

The Ministry of Finance and the Inland Revenue Authority have announced that employees in Singapore can now enjoy a 50% income tax exemption on gains from exercising their stock options. However, employees will be able to enjoy the tax concession only if the company, the employee and the scheme itself satisfy certain eligibility requirements.

A recent case discusses the jurisdictional requirements of the Industrial Arbitration Court. A broad legislative definition of 'trade dispute' does not protect the employee from first having to satisfy the jurisdictional requirements.

A recent case concerning the legality of severance payments to directors in the absence of shareholder approval illustrates Singapore legal principles that differ from other common law nations. Unapproved payments may still be legal if the director provides some form of consideration is in exchange.

More updates >

Insolvency & Restructuring

A recent situation involving a judicial manager and the fate of the employees of a company under judicial management has come to light. The issue was whether to adopt the existing contracts of employment or to terminate them and execute fresh contracts. The judicial manager's liability was also discussed.

A recent decision has important implications for the law governing commercial property and construction agreements, as well as insolvency law. It provides purchasers of property with greater financial protection against developers. It also clarifies a party's right of set-off in an insolvency situation for pre-liquidation debts where the liquidator performs an existing contract.

There have been several recent significant decisions relating to bankruptcy law and practice rendered by the courts. They include discussion of when a statutory demand can be said to have been satisfactorily served on a debtor, and on whom the onus rests when proving a debtor's inability to pay.

The enactment of Section 99 of the Bankruptcy Act introduced a significant change to insolvency law, as it allows for the voiding of certain transactions entered into by a company before liquidation, if the transactions constitute an unfair preference given to some creditors over other creditors. A recent case follows the English approach.

The Bankruptcy (Amendment) Act 1999 makes changes to various areas of bankruptcy law, in-line with the encouragement of technopreneurial initiatives and ideas.

Insurance & Reinsurance

Overview
Including: Singapore and English Law; Litigation

The Contracts (Rights of Third Parties) Act 2001 has opened up a statutory avenue for third parties to enforce contracts directly, unless they are excluded from doing so by name, class or description. This update explains its potentially wide-ranging effects on insurance contracts affecting third parties.

A Singapore judge has awarded record damages after finding two doctors guilty of medical negligence in their diagnosis, advice and treatment of a patient. Before providing medical negligence insurance, insurers should make certain that prospective assureds have the requisite skill, experience and training in their areas of practice.

A recent case on appeal found the respondent not liable, as the occupier of a shipyard, for the safety of its workers. The case discusses the broader issues of safety and responsibility, and should be of interest to public-liability insurers.

The role of insurance intermediaries is considered, particularly as insurance transactions are becoming more complex. Determining whether an intermediary is the agent of the insured or the insurer, and the commensurate responsibilities, is a central issue.

A Singapore court recently considered the scope of an insurance policy and whether it covered the plaintiff's liability as the repairer of a vessel when the policy states that it covers the vessel's owner.

This article provides guidelines on how to spot evidence of fraud in fire claims cases. It suggests that a good claims person is one who knows how and when to work with adjusters, forensic scientists and lawyers.

More updates >

Intellectual Property

Negotiations on the Anti-counterfeiting Trade Agreement (ACTA) have resulted in a finalised draft, which reflects the changes made during the recent Tokyo round of negotiations. Singapore has already indicated its interest in acceding to ACTA. One of the most controversial aspects of the earlier drafts was the proposed introduction of a 'three strikes' approach to online infringement - an approach Singapore had previously rejected.

In a recent High Court case, the plaintiff sought to invalidate trademarks registered by the defendant comprised of the words 'Emperor Martin' (in equal size fonts) and a star device. The plaintiff sought to invalidate the defendant's mark on the grounds that it was registered in bad faith and/or tainted with fraud, arguing that the defendant never intended to use the mark in its registered form when it was filed under the Trademark Act.

In a recent case the judge rejected a claim by the proprietor of a pork noodle stall for trademark infringement. However, the plaintiff succeeded in a claim for passing off on the grounds that the defendant had reproduced the plaintiff's culinary awards in a newspaper advertisement.

The Intellectual Property Office of Singapore and the United States Patent and Trademark Office have agreed to extend the patent prosecution highway pilot programme for one more year. This extension will allow both offices to collect more information and to assess the programme's feasibility more fully.

The dispute between Nescafé and Master Beverage Industries centred on the latter's GOLDEN EAGLE trademark, particularly its motif of a red mug on a mound of coffee beans, which bore similarities to Nescafé's device mark. However, some trademark lawyers and brand owners may wonder what, if anything, the dispute acheived - as no likelihood of confusion was found to exist, Nescafé did not lose out.

A German company suffered an unexpected reverse when an action for patent infringement resulted in its registered patent being revoked following a successful counterclaim by the defendant. The High Court found the plaintiff's patent to be invalid, revoking it on the grounds of lack of novelty and inventive step.

More updates >
Show archive >

Litigation

Overview
Including: The Courts; Source of Laws; Jurisdiction, Registration and Enforcement; Timeframes; Changes to Court Procedures; Technology and the Courts.

A decision of the Singapore High Court, upheld by the Court of Appeal, highlights the requirements involved in obtaining and maintaining a Mareva injunction in relation to a foreign party and a foreign arbitration award where no separate cause of action exists within the jurisdiction. The decision confirms the view that the right to obtain an interlocutory injunction is not a cause of action.

In a landmark decision, the Singapore Court of Appeal recently held that a developer is entitled to rely on the independent contractor defence to defeat a claim in tort by a management corporation. The court ruled that a developer who has exercised proper care in appointing an independent contractor is not vicariously liable for that contractor's negligence.

A recent Singapore High Court decision considers the duties of company directors, in particular the duty owed to creditors in the event of company insolvency. The court has adopted a flexible, pragmatic approach that recognizes the limits of adhering to strict tests and the realities of commercial business.

A recent case is the first reported judgment by the Singapore Court of Appeal concerning the scope of the statutory derivative action found in Section 216A of the Companies Act. It introduces a new barrier that could potentially defeat the successful invocation of a Section 216 action, even if the statutory conditions to obtain that remedy are satisfied.

A recent Supreme Court decision indicates that the courts have now adopted a more conservative definition of limits of tortious liability for negligently caused pure economic loss. This is a welcome clarification of the position regarding liability for negligently caused economic loss, the ambit of which was potentially very far-reaching under previous case law.

The Singapore Court of Appeal has clarified that leave to appeal against a domestic arbitration award will only be granted if there is a question of law as opposed to a mere error of law, and the question of law is not a one-off point. Even if the question is one-off, leave may be granted if a strong prima facie case can been made out that the arbitrator was wrong.

More updates >
Show archive >

Media & Entertainment

The Media Development Authority has warned Singapore's two main pay-television operators about exclusive arrangements - all pay-television licensees are required to cross-carry each other's content. StarHub and SingTel were suspected of having entered into last-minute exclusive deals before the requirement was introduced, but insufficient evidence was found to bring a formal action.

Product Liability

Overview
Including: Contract; Tort; Nuisance; Statute

The Ministry for Trade and Industry is consulting on its draft Consumer Protection (Fair Trading) Bill, which aims to protect ordinary consumers who lack the expertise or resources to protect themselves. Among other things, the bill will increase the information made available to consumers and give them swift access to civil remedies.

The similarities and differences between Western and traditional medicines have come into sharp focus in Singapore following a death caused by a Chinese-herbal pill. This update outlines the regulatory framework for food and medicine in Singapore, and discusses the impact that the incident will have on the regulation of traditional medicines.

The decision in the landmark Chubb Case provides clear practical reasons why a thing, although affixed onto a building or onto land, should nevertheless be regarded as a 'good' under the Sale of Goods Act, with all the attendant statutory rights and liabilities of the manufacturer that this involves.

The courts in Singapore have traditionally upheld the principle that compensation awarded to a victim must be "fair, reasonable and just". Now, the Court of Appeal has indicated that it may be ready to review the standards of compensation for personal injury to take account of the cost of living.

A judgment in the landmark Chubb Case relates to the concept of 'merchantable quality'. This update explains the concept's essential features as set out by the judge, and contrasts it with the operative concept of 'satisfactory quality' under the existing sale of goods regime in Singapore.

Following news that the UK government's food-health watchdog has warned consumers and restaurant owners in the United Kingdom to avoid 22 named soy products, Singapore's Ministry of Environment has announced that soy sauces and other Asian sauces sold in Singapore are safe to consume.

More updates >

Projects & Procurement

The Monetary Authority of Singapore and the government have indicated their wish to promote infrastructure financing and project bonds in Singapore's capital markets. Such financing solutions will meet the growing need for infrastructure financing and offer an alternative to pure bank lending, particularly for long-term projects.

Shipping & Transport

The High Court recently ruled on an appeal against a decision of the assistant registrar to refuse to stay an admiralty action between foreign parties arising from a collision between foreign vessels of different nationalities. The decision shows a willingness to apply the doctrine of international comity and dismisses the argument that being subject to a lower limitation fund constitutes a juridical or personal disadvantage.

The High Court has clarified the degree of disclosure required on an application for a warrant of arrest. An arresting party is not required to show that it is likely to win the case on the merits before invoking the Singapore court's admiralty jurisdiction. The duty to make full and frank disclosure is strictly meant to ensure that the Singapore court's power of arrest is not being abused or misused by the arresting party.

The Court of Appeal's recent decision in The Asia Star is significant to the shipping industry, as the courts have now made clear that it is important for a charterer to consult a defaulting owner on the measures that the former intends to take in order to mitigate the damage caused by the latter's contractual breach.

Singapore has been known as a leading centre of arbitration in Asia for many years. The development of the Singapore Chamber of Maritime Arbitration, in keeping with the less formal arbitration models often used in maritime disputes, and amendments to the International Arbitration Act exemplify Singapore's ability to keep pace with changes in international business needs.

In The Vasiliy Golovnin the Court of Appeal set aside the arrest of a vessel because the arresting party did not have a good arguable case and failed to make full and frank disclosure in the arrest application. The decision clarifies the standard for claimants in making a case for arrest and the duty of disclosure in an application. The court also considered when a defendant can claim damages for wrongful arrest.

In a recent case the High Court allowed the claimant to arrest a ship in Singapore in order to obtain security for a judgment in a foreign jurisdiction. The decision is unusual, given that the court had previously held that its jurisdiction to arrest a ship in an action in rem should not generally be exercised in order to provide security for an award or judgment in another jurisdiction.

Show archive >

Telecommunications

Overview
Including: The Telecommunications Authority; The Telecommunications Regulatory Framework; The Singapore Broadcasting Authority; Television and Audio Broadcasting; Cable Television; Satellite Broadcasters; Internet Services; The Broadcasting Regulatory Framework

The Info-Communication Development Authority of Singapore recently released the Code of Practice for Competition in the Provision of Telecommunication Services. The code seeks to define the boundaries for the conduct of competition in a fully liberalized telecommunications environment. Its objective is to establish an appropriate regulatory regime conducive to the development of a competitive market place.

The Singapore government has decided on the licensing framework for third-generation mobile services. It will award four licences by auction. This decision was reached after studying the method of spectrum allocation in various countries and taking into account industry opinion.

In June 1999, the Singapore government announced its intention to formulate the Infocomm 21 Masterplan. The masterplan aims to develop Singapore into a dynamic and vibrant infocommunication hub, with a thriving and prosperous e-economy. The Ministry for Communications and Information Technology recently announced some major strategies to be set out in the masterplan.

The Info-communications Development Authority has released a new licensing framework, in the spirit of liberalization, encouraging the entry of new market players and expanding the scope of existing operations.

The government recently announced that has lifted foreign equity limits for all public telecommunications services licences and that it will open the telecommunications sector to full market competition two years ahead of schedule.

On November 23 the Singapore government merged the Telecommunication Authority of Singapore with other related agencies in order to better deal with the convergence of the IT, telecommunication and multimedia sectors.

More updates >

Trade & Customs

Singapore and the Gulf Cooperation Council (GCC) have signed a free trade agreement – the council's first such agreement. Among other provisions, GCC countries will give duty-free access to 99% of tariff items applicable to Singaporean goods, widening Singapore's links with a key commercial market.

China's diplomatic objections have been the main barrier to Taiwan negotiating a free trade agreement with the Association of Southeast Asian Nations (ASEAN). If these difficulties could be overcome, what might a Taiwan-ASEAN free trade agreement look like? The ASEAN-China agreement and the recently signed China-Singapore agreement may offer some indications.

The China-Singapore Free Trade Agreement covers a broader scope of topics than China's agreement with the Association of Southeast Asian Nations, but has a more limited effect. This update considers the differences between the agreements and the likely implications for trade between the parties.

The Association of Southeast Asian Nations (ASEAN) and Singapore have both announced progress in free trade agreement negotiations. ASEAN has successfully concluded negotiations with India and New Zealand. Singapore's bilateral agreement with China will go beyond the existing ASEAN-China agreement on trade in goods and services to include investment, travel, customs procedures and other issues.

As the global downturn continues, members of the Association of Southeast Asian Nations (ASEAN) are likely to increase their use of trade remedy laws to protect their domestic industries. An analysis of World Trade Organization data on trade remedy investigations initiated by ASEAN members since 1996 shows, among other things, that such measures tend to increase during economic distress.

The Association of Southeast Asian Nations and Japan have announced the partial completion of the Agreement on Comprehensive Economic Partnership, which initially covers trade in goods and economic cooperation. Import duties for more than 90% of tariff lines will be eliminated during a transition period of up to 16 years. Tariffs on most machinery and electronic goods are reduced to zero immediately.

More updates >

White Collar Crime

In the 2000 Corruption Perceptions Index, Singapore was ranked fifth in a list of 90 countries. The Singapore authorities have always taken a stern view of corrupt practices and a recent case highlights these issues. A two-stage test is used to determine whether the participants of the crime have acted corruptly.

A recent case illustrates the principles that govern the duties of directors as they relate to disclosure of interests, as governed by the Companies Act.

Recent legislative amendments have given greater strength to regulators for controlling money laundering, and recovering the benefits of crimes.