Written reply to PQ on competition in the point-to-point transport sector

Question

Mr Ang Hin Kee: To ask the Minister for Trade and Industry in view of the new regulatory licensing of the point-to-point transport sector, whether the Competition and Consumer Commission of Singapore assesses whether the current taxi and ride hail operators are of the right market size and that there exists a robust competition between operators within the ride hail business and street hail business as well as between the two businesses

Written reply (to be attributed to Minister for Trade & Industry Mr Chan Chun Sing)

1. The Land Transport Authority’s (“LTA”) regulatory framework for the point-to-point (“P2P”) transport sector will take effect from June 2020.  The framework contains provisions to keep the market open to new providers of P2P services.  For example, licensed operators will not be allowed to offer exclusive arrangements to “lock in” drivers that in effect prevent them from driving for other operators.

2. The new P2P framework does not restrict the ability of the Competition and Consumer Commission of Singapore (“CCCS”) to monitor for anti-competitive behaviour in the P2P sector, and initiate investigations where it has reasonable grounds to suspect that the Competition Act prohibitions have been infringed.  We will also work with LTA to ensure businesses compete on a level playing field and that consumers’ interests are protected.