Speech by Senior Minister of State Dr Lam Pin Min for Second Reading of The Maritime and Port Authority of Singapore (Amendment) Bill

1.     Mr Speaker Sir, I beg to move, “That the Bill be now read a second time.”

Rationale for the Bill

2.     The port is a strategic national infrastructure. It is not just a facility where we import most of our daily necessities. More importantly, the port provides the global connectivity that drives our economy, helping to fuel the growth of sectors such as logistics, manufacturing and wholesale trade. Hence, the Government has made, and will continue to make, significant investments in developing port infrastructure; for instance, in the development of a new container terminal in Tuas with a capacity of up to 65 million TEUs.

3.     Our investments in the port over the years have paid off. Today, Singapore is the world's largest transhipment hub, recognised for our reliability and efficiency. We have won the Asian Freight, Logistics and Supply Chain Best Seaport (Asia) award for 29 years in a row.

4.     Given the strategic interests at stake, it is important for the Maritime and Port Authority of Singapore, or MPA, to have oversight on changes in substantive equity control in licensees that provide essential services at the port. The intent is not to control the day-to-day operations of these licensees, but rather to require MPA's approval to be sought for transactions in equity interest that would materially change the equity control of these licensees.

Key Provisions of the Bill 

5.     This Bill thus seeks to amend the Maritime and Port Authority of Singapore Act to give effect to this proposal. Let me highlight the key provisions of the Bill.

Enhance Oversight of Shareholders of PSAI and PSAC

6.     Clause 8 gives MPA the powers to reject an acquisition or disposal of equity interest in key designated entities if it deems the acquisition or disposal to be detrimental to the interests of the port. These designated entities include designated public licensees, designated business trusts and designated equity interest holders. 

7.     Under the Bill, designated entities will be subject to three key controls relating to changes in equity interest in the entities. First, any person acquiring interest that would result in the person holding 5% or more of the total interest in a designated entity will be required to notify MPA. 

8.     Second, any person intending to acquire 25% or more, or 50% or more of the total interest in a designated entity, will be required to obtain prior approval from MPA.

9.     Third, any person intending to dispose interest that would result in that person's shareholding falling below 75% or 50% of the total interest in a designated entity will be required to obtain prior approval from MPA.

Regulate the Safety of Vessels in Reservoirs and Inland Waterways

10.    The Bill will amend the MPA Act in two other areas.

11.    Today, vessels operating in the reservoirs of Singapore are licensed by PUB, taking into account MPA's technical inputs on safety requirements. As the authority for the safety standards of marine vessels, MPA should set the safety standards for vessels operating in reservoirs and other inland waterways. 

12.    Clauses 4 and 9 of the Bill grant MPA the power to set such safety standards. MPA will work with PUB to develop and implement these safety standards. This will enhance the overall safety in reservoirs and inland waterways for all.

Remove Cap on Number of MPA Board Members

13.    Finally, Clause 3 removes the cap on the number of MPA Board members. This will provide greater flexibility for the Minister to appoint more members as he deems appropriate to bring in the relevant experience and expertise as needed onto the MPA Board.

Conclusion

14.    Mr Speaker Sir, I beg to move.