Legislation

Money-changing and Remittance Businesses (Amendment) Bill (B15/2005)

On 18 July 2005, the Money-Changing and Remittance Businesses (Amendment) Bill 2005 was introduced in Parliament to amend the Money-Changing and Remittance Businesses Act so as to fine-tune and better reflect the supervisory approach of the Monetary Authority of Singapore (the ‘MAS’) towards remittance houses.

The Bill has been passed on 15 August 2005. However, the Bill has not been gazetted and has not come into 
force yet.

Subordinate Courts (Amendment) Bill 2005 (B16/2005)

The Subordinate Court (Amendment) Bill 2005, which was introduced in Parliament on 18 July 2005, has been passed on 15 August 2005. However, the Bill has not been gazetted and has not come into force yet.

Most notably, the Bill seeks to amend the Subordinate Courts Act to provide a new mechanism to transfer civil proceedings:

(i)  from the Magistrate’s Court to the High Court;

(ii) from the High Court to the Magistrate’s Court; and

(iii) from the District Court to the Magistrate’s Court;

Housing and Development (Amendment) Bill (B19/2005)

Parliament passed the Housing and Development (Amendment) Bill 2005 on 15 August 2005.

Among other things, this Bill seeks to amend the Housing and Development Act to enable private developers to design, build, price and sell public housing under a new Scheme called the Design-Build-and-Sell Scheme.

The Bill has not been gazetted and has not come into force.

Weights and Measures (Amendment) Bill (B20/2005)

The Weights and Measures (Amendment) Bill 2005 was passed by Parliament on 15 August 2005. However, the Bill has not been gazetted and has not come into force.

This Bill seeks to amend the Weights and Measures Act for the following main purposes:

(a) to establish the metric system of weights and measures as the system of measurement involving length, volume and mass for trade transactions in Singapore;

(b) to provide for the appointment of persons as Authorised Verifiers to undertake the inspection, testing and passing as fit for use for trade of weighing and measuring instruments;

(c) to require the affixing of an Accuracy Label, in addition to a stamp, on weighing and measuring instruments as evidence of the passing of such weighing and measuring instruments as fit for use for trade;

(d) to adopt the Average Quantity System which determines whether the average net quantity of pre-packed goods in a batch meets the stated nominal quantity; and

(e) to create various new offences.

Deposit Insurance Bill 2005 (B21/2005)

The Deposit Insurance Bill 2005 was read the first time in Parliament.

The Bill seeks to establish a Deposit Insurance Scheme in Singapore for the purpose of providing limited compensation to insured depositors under certain circumstances by:

(a) specifying that every full bank and finance company must be a member of the Deposit Insurance Scheme;

(b) empowering the Minister for Finance to designate a company to be the deposit insurance agency; and

(c) setting out what would be an insured deposit, who would be covered, and the amount of compensation that would be available under the Deposit Insurance Scheme.

Limited Liability Partnerships (Amendment) Regulations 2005 (S551/2005)

When the Limited Liability Partnerships (Amendment) Regulations 2005 come into operation on 22 August 2005, the Limited Liability Partnerships Regulations will be amended to allow additional documents (other than the electronic transaction forms prescribed at www.bizfile.gov.sg) prescribed for the purposes of the Limited Liability Act to be provided at a second URL, namely www.acra.gov.sg/IIp/prescribed.html.

The Limited Liability Partnerships Regulations will also be amended to provide that the report to be made by the Official Receiver or liquidator to the Minister for Finance in relation to unfitness of managers of insolvent limited liability partnerships will be prescribed at the second URL.

Limited Liability Partnerships (Winding Up) Rules 2005  (S532/2005)


The Limited Liability Partnerships (Winding Up) Rules 2005 were issued to set out the procedure for the winding up of Limited Liability Partnerships. The Rules came into effect on 10 August 2005.

Central Provident Fund (Residential Properties Scheme) (Amendment No 3) Regulations 2005 (S468/2005)

On 19 July 2005, the Minister for National Development, Mr Mah Bow Tan, delivered a ministerial statement on policy changes affecting the property market. Some of the changes have been implemented by subsidiary legislation.

Pursuant to the Central Provident Fund (Residential Properties Scheme) (Amendment No 3) Regulations 2005, CPF members will be allowed to use their CPF savings to purchase private residential properties with shorter leases. Previously, CPF members were allowed to use their CPF savings to purchase private residential properties only if these properties had remaining leases of at least 60 years. Following the change, CPF members may use their CPF savings to purchase private residential properties with an unexpired term of less than 60 years provided that the unexpired term is not less than 30 years. CPF withdrawal limits for the purchase of such properties will be pegged to the age of the purchaser and the remaining lease of the property.

Residential Property (Exemption) Notification 2005 (S471/2005)

With effect from 19 July 2005, foreigners can purchase apartments in non-condominium developments of less than six levels without the need to obtain prior approval. This change is implemented by the Residential Property (Exemption) Notification 2005.

This development is among the policy changes affecting the property market announced by the Minister for National Development, Mr Mah Bow Tan, on 19 July 2005.

Stamp Duties (Aborted Sale and Purchase Agreements) (Remission) Rules 2005 (S445/2005)

The Stamp Duties (Aborted Sale and Purchase Agreements) (Remission) Rules 2005 implements a change which was first announced in the Budget Speech 2005.

There shall be remitted such amount of duty chargeable that is in excess of S$50 on every contract or agreement for the sale between a vendor and a purchaser of any estate or interest in any immovable property where:

(1) the contract or agreement is rescinded or annulled on or after 18 February 2005 on any ground not specified in section 22(6) of the Stamp Duties Act; and

(2) the purchaser has not procured the rescission or annulment of the contract or agreement for sale with a view to facilitating the disposition of the property by the vendor to another person.

The remission will be made if and only if the following conditions are satisfied:

(a) the application for remission is made by the person by whom the instrument was executed:

(i)  within 6 months from the date of the annulment or rescission of the contract or agreement; or

(ii) within such further time as the Commissioner may deem reasonable when, in unavoidable circumstances, the instrument cannot be produced within that period; and

(b) the instrument is given up to 
be cancelled.

Stamp Duties (Conveyance Directions) (Remission) Rules 2005 (S446/2005)

The Stamp Duties (Conveyance Directions) (Remission) Rules 2005 comes into operation on 8 July 2005.

Pursuant to the Stamp Duties (Conveyance Directions) (Remission) Rules 2005, there shall be remitted any duty chargeable on any conveyance direction where the Commissioner of Stamp Duties is satisfied that:

(a) (i)  the purchaser under the contract or agreement entered into the contract or agreement with the intention that the property be transferred to a company which the person intended to have incorporated or has incorporated;
 

(ii) no consideration passed between the purchaser and the company;

(iii) duty had been duly paid upon the contract or agreement;

(iv) the conveyance direction is made not more than 2 months after the date of the contract or agreement; and

(v)  in relation to the controlling interest of the purchaser in the company:
 

(A) where the Temporary Occupation Permit or Certificate of Statutory Completion in respect of the property (whichever was issued earlier) was issued after the date of purchase of the property, the purchaser:
 

(AA) has beneficial interest in
   more than 50% of the shares in the company; and

(AB)    holds more than 50% of the  votes attached to the voting shares in the company,

from the date of purchase to the date of issue of the Temporary Occupation Permit or Certificate of Statutory Completion (both dates inclusive);

or

(B) where the Temporary Occupation Permit or Certificate of Statutory Completion in respect of the property (whichever was issued earlier) was issued before the date of purchase of the property, the purchaser:

(BA)    has beneficial interest in more than 50% of the shares  in the company; and

(BB)    holds more than 50% of the votes attached to the voting shares in the company,

from the date of purchase to the date of the transfer (both dates inclusive); or
 

(b) (i) the purchaser is the spouse, parent, child or sibling of the person named in the conveyance direction (hereafter referred to as the transferee);

(ii) no consideration passed between the purchaser and the transferee;

(iii) duty had been duly paid upon the contract or agreement;

(iv) at least one of the original purchasers under the contract or agreement is also named in the conveyance direction as a transferee; and

(v) the conveyance direction is made not more than 2 months after the date of the contract or agreement.

The Stamp Duties (Conveyance Directions) Remission Order (O 4) 
is revoked.

Stamp Duties Act (Amendment of Fifth Schedule) Notification 2005 (S448/2005)

Pursuant to the Stamp Duties Act (Amendment of Fifth Schedule) Notification 2005, the Fifth Schedule to the Stamp Duties Act is amended to reflect a change in the valuation fees which the Chief Valuer may charge under s 37(4) for a certificate of the value of a property.

The new charges will apply to instruments executed on or after with effect from 8 July 2005 in relation to immovable property other than those sold under Part IV of the Housing and 
Development Act.

Skills Development Levy (Variation of Remuneration of Employees) Order 2005 (S442/2005)

The salary threshold for the Skills Development Levy scheme has been raised from S$1,800 to S$2,000.

Pursuant to the Skills Development Levy (Variation of Remuneration of Employees) Order 2005, no skills development levy shall be chargeable for any month in respect of any employee whose remuneration exceeds S$2,000 for that month. The change is effective from 
1 September 2005.

Elizabeth Wong

Allen & Gledhill