Quote by Mr Lam Chuan Leong, Chairman of CCS in Relation to Withdrawal of GOF by SMA

(Issued on 5 April 2007)

"Competition authorities around the world generally hold the same view as CCS that fee guidelines harm competition, and are ultimately detrimental to consumer welfare. Competitive markets are the best mechanism for determining the appropriate price level.

Guidelines set administratively stifle market forces and harm consumers by reducing choice. They can become a signal to market players and result in prices clustered around a narrow range even if it is not tantamount to hardcore price fixing. More efficient players have little incentive to offer lower prices.

CCS favours the adoption of independently set prices to reflect the costs of each business. We favour a transparent system of letting consumers know the prices charged for each service. This would enable consumers to make an informed choice as to where they can seek value for money for their payments.

In the present circumstances, a transparent and independently-set system of prices will benefit consumers. However, should there be cases of overcharging, the CCS will work with CASE to monitor the situation and act to correct any anti-competitive rise of fees."

Mr Lam Chuan Leong (蓝传亮)
Chairman (主席)
Competition Commission of Singapore