SINGAPORE - Parliament heard more about Singapore’s largest money laundering case on Tuesday, a month after MPs filed some 60 questions about the matter. The MPs also discussed the recent public transport fare hikes.
The key takeaways:
1. Assets seized in money laundering case rise to over $2.8b
The amount of cash and assets seized in Singapore’s largest money laundering case has grown to $2.8 billion, making it potentially one of the largest anti-money laundering operations in the world.
Second Minister for Home Affairs Josephine Teo said the authorities had noticed signs of trouble as early as 2021, with forged documents being used to substantiate sources of funds in bank accounts.
This sparked a coordinated intelligence probe by the police in early 2022, which uncovered a web of individuals, some believed to be connected by familial ties.
In 2023, the police consulted the Attorney-General’s Chambers, which assessed there was sufficient reason to suspect criminal offences had been committed here. The police then conducted a massive islandwide blitz on Aug 15, eventually arresting 10 individuals.
Why it matters
Since the arrests were announced in August, many questions have been asked about how the police in Singapore found out about the illicit activities, and why investigations began.
The disclosures by Mrs Teo have shed more light on what happened behind the scenes. She said the police had to go about their probe quietly to avoid alerting the suspects, and revealed that work was kept to a very small group of officers at the start.
A decision was made to hold off any enforcement or overt investigative actions, so as to develop as full a picture as possible before moving against the suspects, she added.
Had the police acted right away to arrest the suspects, they might not have uncovered the scale of the illicit activities, said Mrs Teo, stressing that the Government will not hesitate to take strong enforcement action against those who launder proceeds of crime in Singapore.
2. New ministerial committee to review money laundering controls
With criminals getting more sophisticated and trying new ways to launder money in Singapore, a new inter-ministerial committee will be set up to review and strengthen Singapore’s anti-money laundering regime.
Chaired by Second Minister for Finance Indranee Rajah, the committee will comprise office-holders from the Monetary Authority of Singapore, Ministry of Home Affairs, Ministry of Law, Ministry of Manpower and Ministry of Trade and Industry.
It will focus on how to prevent corporate structures from being abused; how financial institutions can enhance controls and collaborate more effectively to flag suspicious transactions; how other players in the system can perform a better gatekeeping role; and how to centralise and strengthen capabilities across government agencies to better detect suspicious activity.
Ms Indranee said the committee will release information on its progress and findings “in due time”.
Why it matters
The committee comes amid investigations into one of Singapore’s biggest money laundering cases involving more than $2.8 billion in assets, including properties, luxury cars and cash.
While Singapore has a robust system in place to deter money laundering and other illicit financial flows, and the authorities have worked to identify areas to tighten, the case has shown that criminals will inevitably find new loopholes to exploit, Ms Indranee noted.
To better combat such illicit activities, government agencies and relevant industry players must become more coordinated in their efforts, she added. To this end, the committee will look at strengthening Singapore’s information-gathering and intelligence-sharing capabilities.
3. Public transport fare hikes
Suggestions by MPs to freeze future public transport fare hikes, or to wipe out a deferred 15.6 per cent increase entirely, could result in a larger burden on taxpayers, said Acting Transport Minister Chee Hong Tat.
Without the fare hikes, the Government will need to permanently provide more subsidies, and this will be borne by current and future generations of taxpayers, he added, noting that the cost of running Singapore’s public transport system will not “simply disappear into thin air”.
If public transport operators absorb the higher costs, it will affect the reliability and financial sustainability of bus and rail services, Mr Chee said, adding that it is important that commuters bear their fair share of cost increases.
Why it matters
The suggestions to freeze or expunge future fare hikes comes on the heels of a planned 7 per cent increase in bus and train fares. For adults who pay by card, fares are set to go up by 10 to 11 cents from Dec 23, the steepest hike on record.
The increase coincides with an overall rise in the cost of living and record-high certificate of entitlement prices for vehicles. As Workers’ Party MP Gerald Giam (Aljunied GRC) put it: “Singaporeans cannot help but feel squeezed.”
Mr Chee said the Public Transport Council was mindful of these concerns and made the call to keep the coming fare hike to 7 per cent – less than a third of the maximum 22.6 per cent allowed.
However, this means the Government will cough up an extra $300 million in 2024, on top of the more than $2 billion it already shells out for public transport each year.
The authorities have for years now tried to balance fare affordability with financial sustainability, as significant investments are made to improve service quality and expand the rail network. According to Mr Chee, this juggling act will continue.
READ MORE HERE: Calls by MPs to expunge or freeze future fare hikes ‘not sound’: Chee Hong Tat
If you have a few more minutes:
ComCare scheme reviewed as basic needs evolve
The ComCare scheme for lower-income families now covers mobile data plans, in recognition that digital connectivity, which enables human connection, is a basic need in modern society, said Senior Parliamentary Secretary for Social and Family Development Eric Chua. He said the public assistance scheme is regularly reviewed to ensure it remains adequate and relevant to basic needs.
Committee probes 32 cases of profiteering amid rising costs
A committee that looks into unjust price increases of essential products and services – such as hawker meals – has investigated 32 complaints involving allegations of goods and services tax (GST) misrepresentation since March 2022. During the period, the Committee Against Profiteering (CAP) received a total of 350 feedback submissions.
Minister of State for Trade and Industry Alvin Tan, citing these numbers, said the volume of feedback received by the CAP in early 2023 has gone up, owing to the GST hike.
He added that the businesses investigated “were cooperative” and have stopped using GST as a pretext to increase prices.
Some 300 civil servants interdicted since 2013
Over the last 10 years, about 300 civil servants were interdicted from duty, said Education Minister Chan Chun Sing, who is Minister-in-charge of the Public Service.
Responding to a parliamentary question from Non-Constituency MP Hazel Poa, he said 10 per cent of these civil servants who were prohibited from working were suspended on no pay from the start as it had been established that there was wrongdoing.
Another 30 per cent were given half their pay initially, and subsequently no pay, while the remaining 60 per cent were interdicted only on half-pay due to various reasons such as pending court cases or no wrongdoing being established. Mr Chan said the half-pay is subject to a floor of $1,200 and a ceiling of $8,500 per month.
