Edward Chia on Free Trade Zones (Amendment) Bill

Singapore’s free trade zones (FTZs) are the “lifeblood” of its entreport trade and the Bill’s primary goal is to enhance the security, transparency and efficiency of its FTZs by remaining up to date with international best practices and increasing the level of oversight, said MP Edward Chia. Speaking in Parliament on Wednesday (Oct 4), he said it reflects Singapore's “unwavering commitment” to trade with integrity and enhance global cooperation, and proactively addresses potential vulnerabilities. He raised concerns about the potential economic implications of the enhanced regulations. He said the immediate implication is a possible rise in costs. The need to construct and maintain dedicated structures, ensure heightened security measures and provide a steady stream of data can be daunting both logistically and financially, he said. Mr Chia said there is a potential risk that businesses must grapple with not just costs, but also operational delays. This could result in significant opportunity costs. Mr Chia also said it is crucial for businesses to have a clear understanding of the repercussions of the penalties to operate with certainty. The clarity, fairness and consistency of the penalties framework will be paramount in securing the trust and cooperation of businesses, he said. Mr Chia also asked if the proposed revisions, which are a “commendable step in bolstering the security and efficiency” of FTZs, are comprehensive and robust enough.