Mrs Lina Chiam: To ask the Minister for Trade and Industry (a) apart from the additional buyer’s stamp duty, in what ways do foreigners, who are citizens of countries with which Singapore has signed free trade agreements (FTAs) with, enjoy the same treatment and benefits as Singapore citizens in the purchase of residential properties in Singapore, in particular citizens of USA, Switzerland, Norway, Liechtenstein and Iceland; and (b) whether the FTA currently being negotiated between Singapore and the EU will provide for the same benefits for EU citizens.

 

 

 

1. The concept of “national treatment” – where foreigners are given the same treatment as one’s own nationals – is one of the fundamental principles of the multilateral trading system. It is also enshrined in Singapore’s Free Trade Agreements (FTAs) and Investment Guarantee Agreements (IGAs), thus providing Singaporean investors equivalent rights and privileges in a host country as that accorded to those foreigners in Singapore. This concept of competitive equality is helpful in facilitating and promoting investment flows between countries. Naturally, countries do not grant “national treatment” without qualifications.

 

2. Under the “national treatment” obligation of the US-Singapore FTA (USSFTA) and the Singapore-European Free Trade Association FTA (ESFTA), Singapore is obliged to accord investors from the US, Switzerland, Norway, Liechtenstein and Iceland (the states participating in the EFTA) similar treatment as Singaporeans in the purchase of residential properties in Singapore, except where our legislation indicated otherwise at the time the relevant FTAs were signed.

 

3. These are the only two FTAs where “national treatment” has been accorded for the Additional Buyer’s Stamp Duty (ABSD). Nonetheless, the “national treatment” obligations under the USSFTA and ESFTA do not remove the restrictions imposed on foreign ownership of residential property in Singapore  stipulated under the Residential Property Act (Cap. 274), Housing and Development Act (Cap. 129) and Executive Condominium Housing Scheme Act (Cap. 99A). Only Singapore citizens – and Singapore Permanent Residents, subject to restrictions imposed by the Housing and Development Board (HDB) – are allowed to own HDB apartments and Executive Condominiums. Non-citizens are also restricted from purchasing private landed residential property.

 

4. Negotiations on an FTA with the EU are ongoing. Hence, it is premature for MTI to lay out the full range of benefits and concessions arising from this FTA at this point in time. However, as with all our FTAs, the EU-Singapore FTA (EUSFTA), when in force, will provide meaningful benefits to European and Singaporean companies and citizens.