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With Singapore’s position as
a smart nation and runway
economy, innovation and
competition need to be
encouraged.
While policymakers may
mean well to seek protection
for consumers and workers in
disrupted industries, unduly
strict interventions may
hinder innovation.
With reference to the
regulatory sandbox, it is only
after a product has proceeded
from the incubation phase
should the regulatory process
begin.
Regulators need to monitor
the market and continuously
perform reviews, exercising
flexibility to be consistent
with market dynamics and
technological progress.
As much as
disruptive
technologies are
disrupting the way
business is done,
they should – and
are – proving to
also disrupt how
policymakers
ought to think
about regulations.
BENEFITS OF A REGULATORY SANDBOX
COMPETITION & DISRUPTIVE INNOVATION
Entrepreneurs can maximise
value creation without being
limited by existing rules.
Prepares innovators for
market entry.
Incumbents, regulators and
stakeholders can evaluate the
impact of the innovations.
Possibility of partnership
with disruptors.
Spur incumbents to adapt.
Regulators and disruptors
can assess the need for
regulations or determine
appropriate regulations should
the disruptive innovation be
introduced to the market.
Regulators can review existing
rules for incumbents, who may
also be disruptors.
CCS worked with the Land
Transport Authority to
facilitate the entry of third-
party taxi booking applications
while safeguarding taxi
commuters’ interests. In
the same vein, competition
authorities should work closely
with policymakers to manage
disruptive technologies.
The economic impact of
disruptive entrepreneurship
on competition needs to be
considered.
ANNUAL REPORT 2016
47