CCS Annual Report 2015-2016

In November 2015, the Infocomm

Development Authority of Singapore

(“IDA”) consulted CCS on the competition

impact of publishing a list of prices of

commonly used items/materials for the

installation of in-building infrastructure

(“price list”). The price list was prepared

by IDA based on historical pricing and

served as a guide for Building Owners

(“BOs”) and Management Corporations

to estimate the likely costs of works

to be carried out under the Fibre

Ready Scheme (“FRS”). The FRS is

an IDA programme to help owners

of non-residential buildings enhance

their buildings’ telecommunication

infrastructure, and thereby speed up

fibre broadband provisioning to all the

occupants in the buildings.

CCSadvisedthat, unlesscertainsafeguards

are put in place, the publication of the

price list may give rise to competition

concerns, including a risk that the price

list will create a focal point for pricing

of such installation and may give rise to

price convergence amongst contracting

companies (“contractors”) providing such

services. CCS worked closely with IDA

in order to address these concerns. IDA

implemented a number of safeguards

proposed by the CCS, including ensuring

that the price list is based on historical,

actual transacted pricing collected

confidentially and individually from BOs.

Theprice list alsoreports the50thand90th

percentile unit rate to address concerns

about price convergence around the

published rates in the price list.

CCS worked closely with various Ministries and statutory boards to gain a better

understanding of the markets they regulate, and to provide advice on competition

issues covering a wide range of activities within these markets. In FY 2015, CCS

issued a total of 28 competition advisories to other public sector agencies.

In 2015, the Monetary Authority of

Singapore (“MAS”) consulted CCS on

policy proposals in relation to several

operational aspects of the Balanced

Scorecard (“BSC”) Framework. The

BSC framework, which came into legal

effect on 1 January 2016, is an initiative

introduced by MAS under the Financial

Advisory Industry Review (“FAIR”) which

seeks to align the interests of financial

advisory representatives and supervisors

with those of their customers so as to

promote a culture of fair dealing. This is

also part of CCS’s continuous engagement

withMAS in relation to the FAIR initiatives

since April 2014. Taking into consideration

the characteristics of the Financial

Advisory industry and the objectives

of the BSC Framework, CCS undertook

a competition impact assessment that

considered how each proposal would

affect competition in the market. CCS

provided several recommendations to

MAS regarding the BSC Framework

to maintain and enhance competitive

conduct in the market.

Case Team Members:

Stephanie Panayi

Kong Weng Loong

Poh Lip Hang

Ng Ee Kia

Case Team Members:

Winnie Ching

Justina Sim

Jaime Pang

CCS COMPETITION ADVISORIES

GOVERNMENT ADVOCACY

| COMPETITION ADVICE

ADVICE TO MAS ON BALANCED SCORECARD FRAMEWORK

ADVICE TO IDA ON PUBLICATION OF PRICE LIST GUIDELINES FOR FIBRE

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CCS ANNUAL REPORT 2015-2016