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How many unfair treaties has the Singapore Govt signed?

Opinion: FTA exemptions allowing Americans and certain Europeans to avoid the 60% ABSD are inflating Singapore’s property market, benefitting businesses while disadvantaging Singaporeans and compromising national sovereignty.” – Foong Swee Fong

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by Foong Swee Fong

Not surprisingly, the Americans are outpacing the Chinese when it comes to buying properties in Singapore.

According to Ms Christine Sun, OrangeTee & Tie’s senior vice-president of research and analytics, “Mainland Chinese were the largest group of foreign buyers in Singapore from 2017 to 2022 and in the first quarter of 2023. However, this changed in the second quarter of 2023 as 56 condo units were bought by Americans, surpassing the 51 units purchased by mainland Chinese buyers.”

The reason it is “not surprising” is because Americans, along with citizens of Norway, Iceland, Switzerland and Liechtenstein are exempted from paying Additional Buyer’s Stamp Duty (ABSD) of 60% applicable to all other foreigners, due to the Free Trade Agreements (FTA) we have signed with them (US-Singapore FTA and the European FTA).

The Americans and these Europeans are thus enjoying a huge discount compared to other foreigners.

The ABSD is meant to prevent foreigners from chasing prices up and thereby making property unaffordable for Singaporeans. However, the exemption as stipulated in the two FTAs compromises our ability to manage our own affairs and thus our sovereignty.

As it is, despite the 60% ABSD, it will have no effect on the Americans and some Europeans. Of course, property developers, banks and other related businesses here, will be happy with the ABSD exemption as they are good for business, but for Singaporeans in general, it is a sell-out.

The state press is keenly aware and tries its best to gloss over the inconvenient fact.

Instead of stating “Americans and some Europeans are exempted from ABSD”, it states that they are “subjected to the same ABSD as Singaporeans” (Bear in mind Singaporeans are not subjected to ABSD for their first property).

I believe using the latter phrase is the standing order, from way up, because the same phrase was used in a previous Straits Times article by another reporter.

These treaties legally bind all Singaporeans and, once signed, are extremely difficult to extricate. Some segments will lose out, while others will gain.

In this case, homebuyers will lose out, but property developers, banks and other related businesses here will gain, as well as the Americans and the Europeans.

In the long run, the differences do stack up.

Given that they are legally binding and have long-term consequences, treaties have to be ratified by parliament, ie, studied, debated and voted on. Did they take place? Did any MP ask what has housing stamp duty got to do with Free Trade Agreements?

But alas, even if they did, it would have been moot; parliament would have to agree regardless, given that the ruling party controls more than two-thirds of the house.

I hope people still remember the India – Singapore Comprehensive Economic Cooperation Agreement (CECA), which let in hordes of Indian professionals to the delight of businesses and is still displacing many Singaporeans in white-collar jobs.

Given that our government is pro-business to a fault and that parliament is generally toothless in fighting for the interests of the people, I shudder to think how many treaties have been signed that benefit big business but disadvantage the people and are slowly but surely sucking their blood dry.

This was first published on Foong Swee Fong’s Facebook page and reproduced with permission.

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Opinion

CNA overlooks trend: Courts impose harsher sentences for establishment figures

Channel News Asia (CNA) recently published an article citing lawyers who framed the 12-month sentence for former Transport Minister S Iswaran as “unusual” for exceeding both prosecution and defence recommendations. However, CNA overlooked a broader trend of courts imposing harsher sentences in high-profile cases involving establishment figures.

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Karl Liew, S Iswaran, Gilbert Oh

Channel News Asia (CNA) recently published an article citing legal experts who framed the 12-month sentence handed to former Transport Minister S Iswaran as “unusual,” highlighting how rare it is for judges to impose sentences exceeding the recommendations of both the prosecution and defence.

While CNA accurately reflected the legal principle that judges have the discretion to apply their own sentencing decisions, the report downplays a clear emerging trend: harsher-than-requested sentences are becoming increasingly common in high-profile cases involving establishment figures.

In fact, two significant cases not mentioned by CNA—those of Gilbert Oh Hin Kwan and Karl Liew—further illustrate that this phenomenon is not an anomaly but part of a broader judicial pattern.

These rulings suggest that the courts are increasingly sending a strong message to public servants and influential figures, reinforcing the need for accountability and deterrence.

Justice Vincent Hoong, who presided over Iswaran’s case, underscored this point by noting the broader harm caused by breaches of trust in high-level public office.

The rationale behind the sentencing in Iswaran’s case was centred on general deterrence and the need to maintain public trust.

Justice Hoong pointed out that public servants, especially those in high office, must uphold integrity due to the potential damage their actions can cause to the reputation of public institutions. By imposing a sentence that exceeded the prosecution’s recommendation, the court sent a clear message that any breach of trust in public office will be met with firm consequences.

A Pattern Hidden in Plain Sight

CNA’s emphasis on the “unusual” nature of Iswaran’s sentence draws attention to the exceptional use of judicial discretion.

Mr Chooi Jing Yen, a lawyer quoted in the article, acknowledged that while it’s uncommon for judges to go beyond what the prosecution requests, they have the legal right to do so when they deem it necessary based on the facts of the case. He also noted that judges are not bound by the recommendations presented in court and can choose a higher sentence if they believe it better serves justice.

However, what CNA and its quoted lawyers failed to consider are two additional cases involving establishment figures: Gilbert Oh and Karl Liew.

Both received sentences that exceeded prosecution and defence recommendations, showing that while such judicial decisions may be rare in the general sense, they are increasingly common in cases where the prosecution’s recommendations seem mild in comparison to the alleged offences.

In Gilbert Oh’s case, the court imposed a one-week jail term despite both the prosecution and defence agreeing on a fine. Oh, a former Director-General in the Ministry of Foreign Affairs (MFA), had misused his official position to illegally transport luxury items and lied about it.

District Judge Sharmila Sripathy-Shanaz noted that his role as a high-ranking public servant exacerbated the potential harm to public trust in the MFA, particularly since his actions could have disrupted the ministry’s internal investigations.

Similarly, Karl Liew, the son of former Changi Airport Group chairman Liew Mun Leong, received a custodial sentence of two weeks for providing false testimony during the infamous Parti Liyani case, despite both sides calling for a fine of S$5,000—essentially a slap on the wrist for an individual living in a mansion worth tens of millions.

Furthermore, just like Iswaran, Karl’s charge of s193 for intentionally giving false evidence was amended to a lesser charge of s182 during the hearing. No explanation was given for why the prosecution changed its charge against Karl.

District Judge Eugene Teo said he could not agree that Karl’s actions should be met with only a fine and pointed out that the prosecution’s submissions read like mitigation, which the Defence repeated wholesale in their own submissions.

These examples, not highlighted by CNA, clearly show a judicial pattern of imposing harsher sentences in cases where the prosecution has recommended relatively lenient penalties. The fact that these cases were not discussed in CNA’s article weakens its argument that such sentencing decisions are rare anomalies.

Justice Hoong’s Position in Iswaran’s Sentencing

It is also important to examine the stance taken by Justice Vincent Hoong in his sentencing of Iswaran.

Justice Hoong, in determining the appropriate punishment, carefully considered the positions presented by both the prosecution and the defence. However, he ultimately decided to deviate from their recommendations, citing the need for a more appropriate sentence given the circumstances of the case.

In his judgment, Justice Hoong referenced the High Court decision in Janardana Jayasankarr v Public Prosecutor [2016] 4 SLR 1288, which emphasised that sentencing is ultimately the responsibility of the court.

As noted in Janardana, while the prosecution and defence are expected to assist the court with their submissions, neither side’s recommendation should be viewed as binding.

Justice Hoong highlighted that “the Prosecution’s submissions on sentence is not, and should not be regarded as, the upper limit of the sentence that may be meted out.” Similarly, the defence’s proposal should not be seen as the minimum sentence.

Applying this principle to the case at hand, Justice Hoong determined that a sentence exceeding the proposals from both sides was necessary.

He argued that adopting either the prosecution’s or the defence’s recommendations would result in “a manifestly inadequate sentence.” By citing the gravity of the offence and its impact on public trust, he concluded that the 12-month jail term was more appropriate in ensuring justice was served.

What CNA’s Framing Misses

By presenting these harsher sentences as rare occurrences, CNA’s report misses an important point: when it comes to cases involving the establishment or public servants, the courts seem increasingly inclined to reject both the defence’s and prosecution’s recommendations in favour of harsher penalties. This approach may reflect a heightened awareness of public perception and a broader goal of protecting institutional integrity.

CNA’s article also fails to address why the prosecution in such cases tends to propose comparatively lenient sentences.

In Iswaran’s case, for instance, the prosecution sought a jail term of six to seven months, which, given the nature of the offence, some might argue was on the lower end of the sentencing spectrum.

The same can be said for the prosecution’s stance in the cases of Oh and Karl, where they initially recommended a fine.

This raises questions about whether the prosecution’s recommendations are, at times, shaped by the status of the accused, thereby creating an environment where the court feels compelled to impose a harsher sentence to correct for perceived leniency.

To be clear, this is not to allege prosecutorial bias or intent to shield establishment figures. However, the pattern of harsher sentences in these cases cannot be ignored, especially when viewed alongside the relatively modest proposals from both the defence and prosecution.

Growing Scrutiny on Sentencing Practices

The emergence of this trend also aligns with a broader public demand for transparency and fairness in sentencing, especially for individuals in positions of power.

Cases involving public officials are closely watched by the public, and any leniency shown in sentencing could be perceived as a double standard for those in high office compared to ordinary citizens. This is particularly important in a society like Singapore, where trust in public institutions is a cornerstone of governance.

By consistently imposing sentences beyond what is recommended, the courts appear to be responding to this societal demand for accountability. The message is clear: breaches of public trust, especially by those in the highest echelons, will not be tolerated.

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Opinion

Iswaran unlikely to serve full 12-month sentence under conditional remission and possibly home detention

Former Transport Minister S Iswaran is unlikely to serve the full 12 months of his sentence. Under Singapore’s Conditional Remission System, he could leave prison after serving less than eight months, with the remainder of his sentence served under strict supervision, including home detention. While Iswaran is scheduled to surrender on 7 October 2024, there is a possibility of an appeal.

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Former Transport Minister Iswaran was sentenced to 12 months in prison on 3 October 2024 for accepting valuable gifts while in public office and obstructing the course of justice.

The court granted Iswaran’s request to surrender himself at 4 p.m. on 7 October 2024 to begin his sentence. However, his lead lawyer, Davinder Singh, indicated that the start of the sentence could be delayed depending on “instructions,” hinting at the possibility of an appeal.

However, despite the 12-month sentence, it is highly likely that Iswaran will serve less time in prison due to Singapore’s Conditional Remission System (CRS) and potentially the Home Detention Scheme (HDS).

Under the CRS, prisoners in Singapore may be released early if they demonstrate good behaviour.

Typically, under the CRS, inmates are eligible for release after serving two-thirds of their sentence. In Iswaran’s case, this means he could be released after serving eight months in prison, with the remaining four months of his sentence subject to a Conditional Remission Order (CRO).

The CRO, a legal mechanism that enforces strict conditions post-release, requires compliance with several terms, such as reporting to authorities and avoiding any criminal activity. If Iswaran violates these conditions, he could face penalties, including being sent back to prison to serve the remainder of his sentence.

Alongside CRS, there is also the possibility that Iswaran could serve part of his sentence under the Home Detention Scheme (HDS), which allows prisoners to serve their final months under strict supervision at home.

Take the case of former Singapore Civil Defence Force (SCDF) Chief Peter Lim Sin Pang, for example.

Lim was sentenced to six months in prison in 2013 for corruption.

After serving three months in Changi Prison, he was supposedly placed on home detention for one month — if we consider how CRO grants him two months of remission — allowing him to complete his sentence under supervision.

Home detention meant that Lim would spend his remaining sentence at home under electronic monitoring, fitted with an electronic monitoring device, typically worn as an ankle bracelet, which allows authorities to track his location at all times.

Like other inmates under the HDS, his movements were tightly controlled, and he was allowed out only for specific activities, such as attending work, medical appointments, or rehabilitation programmes, during limited hours.

Any deviation from the permitted activities or failure to return home on time could lead to immediate consequences, including being returned to prison to complete the sentence.

Eligibility for home detention depends on various factors, such as the inmate’s behaviour during incarceration and the level of risk they pose to society.

This scheme aims to reintegrate prisoners into society while maintaining strict oversight.

If HDS is applicable, Iswaran might spend even less time behind bars, as he could transition to home detention before completing the full period under the CRS.

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