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Business Times
01-07-2025
- Business
- Business Times
No compulsory financial advice needed for most retail investors under proposed MAS changes
[SINGAPORE] Retail investors may soon be able to invest in products that are deemed complex without seeking the now-mandatory financial advice, even where they may not have the relevant qualifications, experience or knowledge in investing. But safeguards would still be in place for those who need the protection. Under the proposals, information on the products will be put more clearly, and guidance will be offered when transacting in complex products. Most investors would need to take a product knowledge assessment (PKA) to test their understanding of such products. The targeted safeguards proposed for more vulnerable investors – the Monetary Authority of Singapore (MAS) calls them 'selected clients' – include, for example, a mandatory financial advisory process before they can purchase complex products. They could also have a trusted individual present during the financial advisory process, and a call-back to confirm the investment decision before proceeding. These are some of the changes that MAS has proposed in a consultation paper released on Jul 1, which attempts to strike a balance between giving retail investors autonomy and putting in place safeguards for those who need them. MAS also gathered feedback from the Equities Market Review Group and its regulatory workstream ahead of this consultation, a spokesperson told The Business Times. A NEWSLETTER FOR YOU Friday, 3 pm Thrive Money, career and life hacks to help young adults stay ahead of the curve. Sign Up Sign Up 'While this review is part of MAS' ongoing review efforts, it is also in line with the Equities Market Review Group's broad objective to improve the vibrancy of our equities market through streamlining regulations and empowering investors in their investment journey,' added the spokesperson. Feedback sought on proposals The central bank will be seeking feedback over the next two months on ways to improve the way information is presented in the product highlight sheet (PHS) and to streamline the framework for complex products. A PHS is a document outlining the key features and risks for investors for certain investment products. It complements the main offer document, and helps users understand key product information. Meanwhile, the existing complex-product framework classifies capital market products as 'complex' or 'non-complex', and requires distributors to assess an investor's knowledge and experience. Investors deemed lacking must now complete a learning module or receive mandatory advice. In a statement, MAS said the proposals aim to 'strengthen the effectiveness of a disclosure-based regime for investors to make informed choices on their own, while requiring an appropriate level of intervention for consumers who need more assistance'. The proposals come at a time when investors are becoming more self-directed when making investments with the digitalisation of financial services. However, some investors who are less technologically or financially savvy would still benefit from seeking professional advice. MAS invites views and suggestions from interested parties on the proposals. They may submit their comments through the FormSG link by Sep 1. After the consultation, MAS will refine the proposals as needed and issue a separate consultation on the draft amendments. A six-month transition period is planned once the changes take effect. PHS enhancements MAS is proposing revised PHS templates that present key product information more clearly. For instance, essential product features are to be highlighted on the first page to draw investors' attention upfront. A new 'question and answer' format is being proposed to better engage users on important considerations. Complex products will be clearly marked with a 'red' label to prompt investors to seek advice where necessary. Investment-linked policies (ILPs), previously exempt, will now require a PHS under the proposed enhancements. MAS is also seeking to standardise PHS requirements for various investment products. It plans to host mandatory PHS templates on its website, thus making future updates possible. It also proposes removing page limits for PHSes based on the use of diagrams. Under the proposed format incorporating diagrams where appropriate, PHSes for asset-backed securities, structured notes, collective investment schemes (excluding Reits), and ILP sub-funds are proposed to be capped at eight pages. Fit for purpose These proposed changes follow MAS' periodic review of the complex-product framework to ensure it remains fit for purpose amid evolving market conditions and the increasingly diverse investment needs of Singapore's retail investors. MAS said: 'With clearer complex product labelling and investor-friendly PHS disclosures, investors will be in a good position to make considered, informed investment decisions.' In its consultation paper, it cited an example of a 'non-selected' client, a 40-year-old software engineer with no trading experience, who would receive a risk warning before proceeding with an investment in a complex product. Such a client who acknowledges the risks may proceed without financial advice. A 'selected' client could be an 80-year-old retiree with limited proficiency in English, who would have to undergo a full advisory process with added safeguards before completing the transaction. 'Timely changes' Industry observers welcomed the proposals, with the Securities Investors Association (Singapore), or Sias, calling the changes 'timely and necessary, given the evolving investment habits of investors'. Sias also supports the proposal to introduce a clearer, more reader-friendly PHS, especially for complex investment products. President David Gerald lauded the use of a 'red' label to clearly flag a product as 'complex', and the reorganisation of content to present key risks upfront. Noting that investors today are increasingly savvy, he said that many do their own research, make independent investment decisions, and even trade complex products online, both in Singapore and overseas. 'The new streamlined framework for complex products strikes the right balance – introducing sufficient safeguards to help investors understand the risks, while preserving their autonomy to choose products that suit their investment goals.' However, he cautioned that investors active in overseas markets may not realise that they face the same product risks but are without the protection of Singapore's regulations or recourse through Sias if disputes arise.
New Straits Times
17-06-2025
- Business
- New Straits Times
FMM urges clarity, dialogue on port tariff hike
KUALA LUMPUR: The Federation of Malaysian Manufacturing (FMM) remains concerned that the scale and timing of the recent port tariff hikes without detailed cost disclosures or comprehensive stakeholder consultation may place an undue burden on industry. In response to the explanations provided by the Port Klang Authority (PKA) in its press statement dated June 16, 2025, FMM said given the wide-ranging implications for trade, investment and the cost of doing business, it believes the rationale for the revision warrants further scrutiny. "FMM fully respects the right of all stakeholders, including PKA, to present and defend their positions. Constructive dialogue is essential to national development. "However, given the wide-ranging implications of this tariff hike, especially amid broader cost escalations and global uncertainties, we believe it is time to move beyond justification and toward pragmatic resolution," said FMM president Tan Seri Datuk Soh Thian Lai. Soh said the federation disagrees on PKA points that Port Klang's tariff rates will remain among the most competitive in the region. While Port Klang's official handling tariff of RM390 (approximately US$92 per TEU) may appear lower on paper, he said this figure does not reflect the actual cost borne by Malaysian shippers. "Terminal Handling Charges (THC) are not billed directly by port operators to shippers; instead, they are imposed by shipping lines, often with significant mark-ups. "Current publicly available rates by shipping lines show that Malaysian shippers are already paying an average of RM480 per 20-foot container, well above the existing RM300 port handling charge. "Increasing the tariff to RM390 without structural reform will effectively give shipping lines the latitude to raise THC further, potentially reaching the real-world cost range of US$120 to 130 per TEU," he said. Meanwhile, Soh pointed out that port operators face cost pressures like other industries, but it questions whether the proposed tariff hike is truly warranted given current financial and regulatory contexts. Under existing concession agreements, the costs associated with port development and infrastructure are contractually required to be fully borne by port operators, he said. As for the PKA's claims that relative to other increases, port charges are a small fraction of the total cost that consumers will ultimately bear indirectly, FMM disagrees with the narrow framing of cost impact based solely on per-kilogram increments. While PKA's micro-level calculation may appear negligible, he said it overlooks the broader and more significant issue, such as the cumulative cost burden placed on Malaysian exporters, importers and manufacturers. "PKA's analysis fails to acknowledge that logistics costs are already among the highest contributors to the cost of doing business in Malaysia. "The impact of a 30 per percent increase in container handling charges and a 200–243 per cent hike in storage charges cannot be minimised by simplistic per-unit cost metrics. "FMM reiterates that the evaluation of port tariff adjustments must be done holistically, accounting for their multiplier effect across the supply chain and national economy," he said. In addition, Soh said FMM reiterates that claims of "modest" increases are not supported by the quantum of the adjustments, which are among the steepest seen in recent memory. Without detailed, he said, transparent cost justifications, these increases will be viewed as revenue maximisation at the expense of trade facilitation. "Maintaining investor confidence and trade momentum requires a holistic approach where competitiveness is grounded in predictable pricing, stakeholder consultation and a transparent cost-recovery framework. "FMM urges the authorities to defer the hike and engage the industry in reassessing a sustainable, accountable tariff structure aligned with national economic goals," he added.
The Sun
17-06-2025
- Business
- The Sun
Port Klang tariffs remain competitive, says PKA
KUALA LUMPUR: The Port Klang Authority (PKA) today clarified that its tariff rates will remain among the most competitive in the region. Its general manager, K Subramaniam, said that even after the staggered increases are fully implemented in 2027, Port Klang's tariffs will still be between 5.0 per cent and 185 per cent lower than those of other ASEAN ports. Refuting claims by several parties regarding the recent tariff revision, Subramaniam said Port Klang's overall cost competitiveness reinforces its strategic role as the preferred logistics and transshipment hub for global logistics and distribution centres. 'In Port Klang's latest tariff revision, a comprehensive benchmarking exercise was conducted against neighbouring and regional ports. Despite the revision, Port Klang's tariff rates will remain among the most competitive in the region. 'The overall cost competitiveness reinforces Port Klang's strategic positioning as the preferred logistics and transshipment hub for global logistics and distribution centres,' said Subramaniam in a statement on Monday (June 16). He clarified that it was incorrect to assume all container volumes in Port Klang would be subject to the full increase, as this ignores key factors such as phased implementation, free storage periods, and the fact that a significant portion of cargo is transshipment, which is priced differently. He added that the last tariff review was conducted a decade ago, and storage rates have remained unchanged for nearly six decades. Subramaniam said that at just RM4 per twenty-foot equivalent unit (TEU), the storage rate has remained unchanged since 1966. This has been a major contributor to yard congestion, as the port has been used as a low-cost, long-term storage option, leading to inefficient use of terminal facilities. He said the revised charges are aimed at improving cargo turnaround by discouraging long-term storage and easing yard congestion, thereby enhancing operational efficiency. To this end, Subramaniam noted that port users who move containers within the free storage period would not be affected by the targeted increases. 'The revised rates consider contemporary logistics solutions within the supply chain and support responsible storage usage in the ports, thereby facilitating more productive and efficient operations,' he added. Far from undermining Malaysia's competitiveness, he said the tariff revision is designed to strengthen Port Klang's position as a regional logistics hub by enabling continued investment in capacity, technology and sustainability. This will ultimately benefit manufacturers, exporters and importers, and advance Malaysia's trade ecosystem. 'The Port Klang tariff revision is a measured and necessary step to ensure long-term service quality, operational efficiency and infrastructure readiness. 'Before the tariff was approved, a comprehensive and detailed study was undertaken. As a result, the quantum of the rate increase was reduced and implemented through a staggered three-year plan,' he said. In response to concerns that the revision would significantly raise consumer goods prices, PKA clarified that port charges represent only a small fraction of the total cost to consumers. 'Typically, a 20-foot container carrying 20 tonnes of cargo will see an increase in handling charges of just 0.45 sen per kilogram,' he added.
The Sun
17-06-2025
- Business
- The Sun
Port Klang tariff remains competitive in region, says PKA chief
KUALA LUMPUR: The Port Klang Authority (PKA) today clarified that its tariff rates will remain among the most competitive in the region. Its general manager, K Subramaniam, said that even after the staggered increases are fully implemented in 2027, Port Klang's tariffs will still be between 5.0 per cent and 185 per cent lower than those of other ASEAN ports. Refuting claims by several parties regarding the recent tariff revision, Subramaniam said Port Klang's overall cost competitiveness reinforces its strategic role as the preferred logistics and transshipment hub for global logistics and distribution centres. 'In Port Klang's latest tariff revision, a comprehensive benchmarking exercise was conducted against neighbouring and regional ports. Despite the revision, Port Klang's tariff rates will remain among the most competitive in the region. 'The overall cost competitiveness reinforces Port Klang's strategic positioning as the preferred logistics and transshipment hub for global logistics and distribution centres,' said Subramaniam in a statement on Monday (June 16). He clarified that it was incorrect to assume all container volumes in Port Klang would be subject to the full increase, as this ignores key factors such as phased implementation, free storage periods, and the fact that a significant portion of cargo is transshipment, which is priced differently. He added that the last tariff review was conducted a decade ago, and storage rates have remained unchanged for nearly six decades. Subramaniam said that at just RM4 per twenty-foot equivalent unit (TEU), the storage rate has remained unchanged since 1966. This has been a major contributor to yard congestion, as the port has been used as a low-cost, long-term storage option, leading to inefficient use of terminal facilities. He said the revised charges are aimed at improving cargo turnaround by discouraging long-term storage and easing yard congestion, thereby enhancing operational efficiency. To this end, Subramaniam noted that port users who move containers within the free storage period would not be affected by the targeted increases. 'The revised rates consider contemporary logistics solutions within the supply chain and support responsible storage usage in the ports, thereby facilitating more productive and efficient operations,' he added. Far from undermining Malaysia's competitiveness, he said the tariff revision is designed to strengthen Port Klang's position as a regional logistics hub by enabling continued investment in capacity, technology and sustainability. This will ultimately benefit manufacturers, exporters and importers, and advance Malaysia's trade ecosystem. 'The Port Klang tariff revision is a measured and necessary step to ensure long-term service quality, operational efficiency and infrastructure readiness. 'Before the tariff was approved, a comprehensive and detailed study was undertaken. As a result, the quantum of the rate increase was reduced and implemented through a staggered three-year plan,' he said. In response to concerns that the revision would significantly raise consumer goods prices, PKA clarified that port charges represent only a small fraction of the total cost to consumers. 'Typically, a 20-foot container carrying 20 tonnes of cargo will see an increase in handling charges of just 0.45 sen per kilogram,' he added.
The Star
16-06-2025
- Business
- The Star
Port Klang tariffs remain competitive regionally, says PKA chief
KUALA LUMPUR: The Port Klang Authority (PKA) on Monday (June 16) clarified that its tariff rates will remain among the most competitive in the region. General manager K. Subramaniam said that even after the staggered increases are fully implemented in 2027, Port Klang's tariffs will still be between 5.0% and 185% lower than those of other Asean ports. Refuting claims by several parties regarding the recent tariff revision, Subramaniam said Port Klang's overall cost competitiveness reinforces its strategic role as the preferred logistics and transshipment hub for global logistics and distribution centres. "In Port Klang's latest tariff revision, a comprehensive benchmarking exercise was conducted against neighbouring and regional ports. Despite the revision, Port Klang's tariff rates will remain among the most competitive in the region. "The overall cost competitiveness reinforces Port Klang's strategic positioning as the preferred logistics and transshipment hub for global logistics and distribution centres," said Subramaniam in a statement Monday. He clarified that it was incorrect to assume all container volumes in Port Klang would be subject to the full increase, as this ignores key factors such as phased implementation, free storage periods, and the fact that a significant portion of cargo is transshipment, which is priced differently. He added that the last tariff review was conducted a decade ago, and storage rates have remained unchanged for nearly six decades. Subramaniam said that at just RM4 per twenty-foot equivalent unit (TEU), the storage rate has remained unchanged since 1966. This has been a major contributor to yard congestion, as the port has been used as a low-cost, long-term storage option, leading to inefficient use of terminal facilities. He said the revised charges are aimed at improving cargo turnaround by discouraging long-term storage and easing yard congestion, thereby enhancing operational efficiency. To this end, Subramaniam noted that port users who move containers within the free storage period would not be affected by the targeted increases. "The revised rates consider contemporary logistics solutions within the supply chain and support responsible storage usage in the ports, thereby facilitating more productive and efficient operations," he added. Far from undermining Malaysia's competitiveness, he said the tariff revision is designed to strengthen Port Klang's position as a regional logistics hub by enabling continued investment in capacity, technology and sustainability. This will ultimately benefit manufacturers, exporters and importers, and advance Malaysia's trade ecosystem. "The Port Klang tariff revision is a measured and necessary step to ensure long-term service quality, operational efficiency and infrastructure readiness. "Before the tariff was approved, a comprehensive and detailed study was undertaken. As a result, the quantum of the rate increase was reduced and implemented through a staggered three-year plan," he said. In response to concerns that the revision would significantly raise consumer goods prices, PKA clarified that port charges represent only a small fraction of the total cost to consumers. "Typically, a 20-foot container carrying 20 tonnes of cargo will see an increase in handling charges of just 0.45 sen per kilogramme," he added. - Bernama
