11
Modes of Supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence
Sector or Subsector Limitations on Market Access Limitations on National Treatment Additional Commitments
MAS may impose conditions it considers necessary to prevent undue control, protect public interests, and ensure the integrity of the financial system. All finance companies, local and foreign-owned, can only conduct Singapore dollar business. With MAS' prior approval, eligible finance companies can also deal in foreign currencies, gold or other precious metals, and acquire foreign currency stocks, shares or debt/convertible securities.
12
Modes of Supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence
Sector or Subsector Limitations on Market Access Limitations on National Treatment Additional Commitments
(b) Lending of all types including consumer credit, mortgage credit, factoring and financing of commercial transaction (1) Unbound. Measures taken are also limitations on national treatment. (2) None (3) These measures are also limitations on national treatment. (i) Other than in-house credit cards, credit and charge cards may be issued by card issuers approved by MAS subject to MAS' guidelines. (ii) Financial institutions extending Singapore dollar (S$) credit (1) None (2) None (3) Each offshore bank's lending in Singapore dollars to residents shall not exceed S$200 million in aggregate. Offshore banks should not use their related merchant banks to circumvent the S$200 million lending limit. Unbound for establishment of off-premise cash dispensing machines for credit and charge cards issuers.
13
Modes of Supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence
Sector or Subsector Limitations on Market Access Limitations on National Treatment Additional Commitments
facilities exceeding S$5 million per entity to non-resident financial entities or arranging S$ equity or bond issues for non-residents, shall ensure that where the S$ proceeds are to be used outside Singapore, they are swapped or converted into foreign currency upon draw down or before remittance abroad. Financial entities shall not extend S$ credit facilities to non-resident financial entities if there is reason to believe that
14
Modes of Supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence
Sector or Subsector Limitations on Market Access Limitations on National Treatment Additional Commitments
the S$ proceeds may be used for S$ currency speculation. (iii) Establishment of credit companies which do not conduct activities requiring MAS' approval is allowed.
(c) Financial leasing (1) None (2) None (3) None except as indicated for activity B(b) above. (1) None (2) None (3) None except as indicated for activity B(b) above.
(d) Payment and money transmission services, including credit, charge and debit cards, travellers cheques and bankers' drafts (1) Unbound (2) None (3) These measures are also limitations on national treatment. (1) Unbound (2) None (3) None
15
Modes of Supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence
Sector or Subsector Limitations on Market Access Limitations on National Treatment Additional Commitments
Remittance shops, except where the remittance business is conducted by banks and merchant banks, are required to be majority owned by Singapore citizens. Bankers' drafts can only be issued by banks. Multi-purpose stored value cards can only be issued by a bank in Singapore licensed by MAS. The limitations indicated in B(b)(3) above also apply to the activities in B(d).
16
Modes of Supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence
Sector or Subsector Limitations on Market Access Limitations on National Treatment Additional Commitments
(e) Guarantees and commitments (1) None except for the limitations indicated in activity A(b) for insurance companies providing contracts of fidelity bonds, performance bonds or similar contracts of guarantee. (2) None (3) None except for the limitations indicated in activity A(b) for insurance companies providing contracts of fidelity bonds, performance bonds or similar contracts of guarantee, and B(b)(3)(ii) above. (1) None (2) None (3) None
(f) Trading for own account or for account of customers, whether on an exchange, in an (1) Unbound except for trading in products listed in B(f) for own account. Trading in (1) None
17
Modes of Supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence
Sector or Subsector Limitations on Market Access Limitations on National Treatment Additional Commitments
over-the-counter market or otherwise, the following: -money market instruments (including cheques, bills, certificates of deposit) -foreign exchange -derivative products, including financial futures and options -exchange rate and interest rate instruments, including swaps and forward rate agreements -transferable securities -other negotiable money market instruments, foreign exchange, as well as exchange rate and interest rate instruments can be conducted with financial institutions only. Measures taken are also limitations on national treatment. (2) None (3) These measures are also limitations on national treatment. Banks and merchant banks are required to set up separate subsidiaries to trade financial futures for customers. Financial futures brokers can (2) None (3) None except as indicated for activity B(b) above.
18
Modes of Supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence
Sector or Subsector Limitations on Market Access Limitations on National Treatment Additional Commitments
instruments and financial assets, including bullion establish as branches or subsidiaries. The offer of derivative products by both local and foreign-owned financial institutions is allowed provided: -the product has been offered by the financial institution in other internationally reputable financial centres and the supervisory authorities of those centres agree to the offer of such products in their markets;
19
Modes of Supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence
Sector or Subsector Limitations on Market Access Limitations on National Treatment Additional Commitments
-the financial institution's parent supervisor and its head office must be aware and have no objection to the offer of such products in the Singapore branch / subsidiary; and -MAS is satisfied that the financial institution has and continues to have the financial strength and adequate internal controls and risk management systems to trade in these products.
20
Modes of Supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence
Sector or Subsector Limitations on Market Access Limitations on National Treatment Additional Commitments
The offer of derivative products involving the Singapore dollar is subject to the requirement indicated in B(b)(3)(ii) above. Moneychangers, except where the moneychanging business is conducted by banks and merchant banks, are required to be majority owned by Singapore citizens.
(g) Participation in issues of all kinds of securities, including underwriting and placement as agent and provision of service related to such issues (1) Unbound except for participation in issues of securities for own account, and underwriting and placement of securities through stockbroking (1) None
21
Modes of Supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence
Sector or Subsector Limitations on Market Access Limitations on National Treatment Additional Commitments
companies, banks or merchant banks in Singapore. Measures taken are also limitations on national treatment. (2) None (3) Measures taken are also limitations on national treatment. Singapore Exchange Securities Trading Ltd (SGX ST) will admit new trading members. New members will be able to trade directly in S$ denominated securities of Singapore incorporated companies with resident (2) None (3) None except as indicated for activity B(b) above.
22
Modes of Supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence
Sector or Subsector Limitations on Market Access Limitations on National Treatment Additional Commitments
investors for a minimum value of S$200,000. Representative offices cannot conduct business or act as agents. Unbound for foreign acquisition of new and existing equity interests in SGX-ST member companies. Banks' and merchant banks' membership on SGX-ST and Singapore Exchange Derivatives Trading Ltd (SGX-DT) must be held through subsidiaries. Unbound for new Primary and Registered dealers of
23
Modes of Supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence
Sector or Subsector Limitations on Market Access Limitations on National Treatment Additional Commitments
Singapore Government Securities.
(h) Money broking (1) Unbound (2) None (3) Unbound for new money brokers. Measures taken are also limitations on national treatment. (1) Unbound (2) None (3) None
(i) Asset management, such as cash or portfolio management, all forms of collective investment management, pension fund management, custodial, depository and trust services (1) Unbound (2) None (3) These measures are also limitations on national treatment. Asset management companies, custodial depositories, and trust services companies can establish as branches, or (1) Unbound (2) None (3) None
24
Modes of Supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence
Sector or Subsector Limitations on Market Access Limitations on National Treatment Additional Commitments
subsidiaries. Only the Central Depositary Pte Ltd is authorised to provide securities custodial depository services under the scripless trading system. Unbound for activities relating to the use, including via investment, of monies from any social security, public retirement, or statutory saving scheme.
(j) Settlement and clearing services for financial assets, including securities, derivative products and other negotiable instruments (1) Unbound, except for the provision of settlement and clearing services for financial assets which are listed on overseas exchanges only. (2) None (1) Unbound (2) None (3) Unbound
25
Modes of Supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence
Sector or Subsector Limitations on Market Access Limitations on National Treatment Additional Commitments
(3) These measures are also limitations on national treatment. Settlement and clearing services for exchange traded securities and financial futures can only be provided by Central Depository (Pte) Limited and SGX-DT respectively. Only one clearing house established under the Banking Act may provide clearing services for Singapore dollar cheques and interbank fund transfer.
26
Modes of Supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence
Sector or Subsector Limitations on Market Access Limitations on National Treatment Additional Commitments
(k) Advisory and other auxiliary financial services, including credit reference and analysis, investment and portfolio research and advice, advice on acquisitions and on corporate restructuring and strategy (1) Commercial presence is required for provision of investment and portfolio research and advice to the public. (2) None (3) Financial advisers can establish as branches, subsidiaries or representative offices. Representative offices cannot conduct business or act as agents. (1) None (2) None (3) None
(l) Provision and transfer of financial information, and financial data processing and related software by providers of other financial services (1) Unbound except for the provision of financial information by providers such as Reuters and Bloomberg. Measures taken are also limitations on national treatment. The Singapore (1) None for the provision of financial information by providers such as Reuters and Bloomberg.
27
Modes of Supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence
Sector or Subsector Limitations on Market Access Limitations on National Treatment Additional Commitments
branches of foreign banks can transmit data to their head offices and sister branches for processing provided proper controls exist, the integrity and confidentiality of the data/ information are safeguarded, and MAS is allowed on-site access to the data / information at the place where the data / information is processed. (2) Only the provision of financial information by providers such as Reuters and Bloomberg is allowed. Measures taken are also limitations on national treatment. (2) None
28
Modes of Supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence
Sector or Subsector Limitations on Market Access Limitations on National Treatment Additional Commitments
(3) The provision of financial information by providers, such as Reuters and Bloomberg, is allowed. The provision of financial data processing services to banks and merchant banks is subject to domestic laws on protection of confidentiality of information of customers of banks and merchant banks. (3) None
29
Chapter 10. TRADE IN SERVICES
SECTION A
ARTICLE 10.1
Scope and coverage
1. This Chapter applies to measures by the State Parties affecting trade in services taken by central, regional or local governments and authorities as well as by non-governmental bodies in the exercise of powers delegated by central, regional or local governments or authorities.
2. Nothing in this Chapter shall be construed to impose any obligation on the State Parties regarding government procurement.
3. This Chapter applies to measures of the State Parties affecting trade in services, with the exception of:
(a) national maritime cabotage [1] ;
(b) air services, including domestic and international air transport services, whether scheduled or non-scheduled, and related services in support of air services, other than:
(i) aircraft repair and maintenance services during which an aircraft is withdrawn from service;
(ii) the selling and marketing of air transport services; and
(iii) computer reservation system (CRS) services;
(c) inland navigation.
4. The provisions of this Chapter shall not apply to subsidies granted or grants provided by a State Party, including government-supported loans, guarantees, and insurance [2].
5. This Chapter shall not apply to measures affecting natural persons seeking access to the employment market of a State Party, nor shall it apply to measures regarding nationality, citizenship, residence or employment on a permanent basis.
6. The State Parties shall negotiate an Annex on Telecommunications Services, in a period not exceeding 3 (three) years after the date of entry into force of this Agreement, or as otherwise agreed by the State Parties.
7. This chapter shall not apply to any taxation measures.
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[1] Without prejudice to the scope of activities which may be considered as cabotage under the relevant laws and regulations of a State Party , national maritime cabotage under this Chapter covers transportation of passengers or goods between a port or point located in a Signatory MERCOSUR State and another port or point located in the same Signatory MERCOSUR State, including on its continental shelf (as provided in UNCLOS) and traffic originating and terminating in the same port or point located in the Signatory MERCOSUR State.
[2] For greater certainty, this paragraph includes any conditions attached to the receipt or continued receipt of such subsidies or grants, whether or not such subsidies or grants are offered exclusively to domestic services, service consumers, or service suppliers.
ARTICLE 10.2
Definitions
For the purposes of this Chapter:
(a) "trade in services" means the supply of a service:
(i) from the territory of a State Party into the territory of another State Party;
(ii) in the territory of a State Party to the service consumer of another State Party;
(iii) by a service supplier of a State Party, through commercial presence in the territory of another State Party;
(iv) by a service supplier of a State Party, through presence of natural persons of a State Party in the territory of another State Party;
(b) "services" means any service in any sector, except services supplied in the exercise of governmental authority;
(c) "a service supplied in the exercise of governmental authority" means any service which is supplied neither on a commercial basis nor in competition with one or more service suppliers;
(d) "service supplier" means any person that supplies, or seeks to supply, a service [3];
(e) "natural person of a State Party" means a person having the nationality of one of the State Parties according to their respective laws and regulations;
(f) "juridical person of a State Party" means a juridical person which is either:
(i) constituted or otherwise organised under the law of that State Party, and is engaged in substantive business operations in the territory of a State Party; or
(ii) in the case of the supply of a service through commercial presence, owned or controlled by:
(A) natural persons of that State Party; or
(B) juridical persons of that State Party identified under subparagraph (f)(i);
(g) "measure" means a law, regulation, rule, procedure, decision, administrative action or any other form of a measure by a State Party;
(h) "supply of a service" includes the production, distribution, marketing, sale and delivery of a service;
(i) "measures by a State Party affecting trade in services" include measures with respect to:
(i) the purchase, payment or use of a service;
(ii) the access to and use of, in connection with the supply of a service, services which are required by that State Party to be offered to the public generally;
(iii) the presence, including commercial presence, of persons of a State Party for the supply of a service in the territory of another State Party;
(j) "commercial presence" means any type of business or professional establishment, including through:
(i) the constitution, acquisition or maintenance of a juridical person; or
(ii) the creation or maintenance of a branch or a representative office;
within the territory of a State Party for the purpose of supplying a service;
(k) "sector" of a service means:
(i) with reference to a commitment, one or more subsectors of that service, as specified in a State Party's Schedule in Annex II (Schedules of Specific Commitments for Services) or Schedule in Annex III (Schedules of Reservations and Non-Conforming Measures for Services and Investment); or
(ii) the whole of that service sector, including all of its subsectors;
(l) "service of another State Party" means a service which is supplied,
(i) from or in the territory of that other State Party, or in the case of maritime transport, by a vessel registered under the laws and regulations of that other State Party, or by a person of that other State Party which supplies the service through the operation of a vessel or its use in whole or in part; or
(ii) in the case of the supply of a service through commercial presence or through the presence of natural persons, by service supplier of that other State Party;
(m) "monopoly supplier of a service" means any person, public or private, which in the relevant market of the territory of a State Party is authorised or established formally or in effect by that State Party as the sole supplier of that service;
(n) "service consumer" means any person that receives or uses a service;
(o) "person" means either a natural person or a juridical person;
(p) "juridical person" means any legal entity duly constituted or otherwise organised under applicable law, whether for profit or otherwise, and whether privately-owned or governmentally-owned, including any corporation, trust, partnership, joint venture, sole proprietorship or association;
(q) a juridical person is:
(i) "owned" by persons of a State Party if more than 50 % of the equity interest in it is beneficially owned by persons of that State Party;
(ii) "controlled" by persons of a State Party if such persons have the power to name a majority of its directors or otherwise to legally direct its actions;
(iii) "affiliated" with another person if it controls, or is controlled by, that other person; or if it and the other person are both controlled by the same person.
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[3] Where the service is not supplied or sought to be supplied directly by a juridical person but through other forms of commercial presence such as a branch or a representative office, the service supplier shall, nonetheless, through such commercial presence be accorded the treatment provided for service suppliers under this Chapter. Such treatment shall be extended to the commercial presence through which the service is supplied or sought to be supplied and need not be extended to any other parts of the service supplier located outside the territory where the service is supplied or sought to be supplied.
ARTICLE 10.3
Market Access
1. With respect to market access through the modes of supply identified in subparagraph (a) of Article 10.2 (Definitions), a State Party making commitments in accordance with Article 10.7 (Schedules of Specific Commitments) shall accord services and service suppliers of another State Party treatment no less favourable than that provided for under the terms, limitations and conditions agreed and specified in its Schedule of Specific Commitments for Services [4].
2. The measures which a State Party shall not maintain or adopt either on the basis of a regional subdivision or on the basis of its entire territory, either in sectors where market access commitments are undertaken and in accordance with its specific commitments, as provided in Article 10.7 (Schedules of Specific Commitments), or subject to its non-conforming measures, as provided in Article 10.8 (Schedules of Non-Conforming Measures) are defined as:
(a) limitations on the number of service suppliers whether in the form of numerical quotas, monopolies, exclusive service suppliers or the requirement of an economic needs test;
(b) limitations on the total value of service transactions or assets in the form of numerical quotas or the requirement of an economic needs test;