Singapore Law Blog

The Monetary Authority of Singapore (MAS) released on 10 December 2003 a consultation paper on the regulation of business trusts (BTs). The paper and draft bill can be found here.
Introducing BTs as an alternative business structure in Singapore will create a new asset class for investors and add depth and vibrancy to Singapore's capital markets.

BTs are businesses structured in the form of trusts instead of corporations. BTs actively undertake business operations, unlike collective investment schemes, which engage in passive investments. Investors may take a stake in the underlying business by purchasing units in a BT.

The consultation paper sets out legislative policy proposals on the following areas:
- the governance of BTs;
- public offers of units in BTs; and
- treatment of Real Estate Investment Trusts ("REITs").

A draft Business Trusts Bill, incorporating the proposals on the governance of BTs, has been formulated and is attached to the consultation paper.

MAS seeks comments on both the policy issues highlighted in the consultation paper, and the draft Business Trusts Bill.

MAS requests that comments be submitted by 12 Jan 2004. Interested parties may email their comments to btcon@mas.gov.sg.