MAS Lifts Foreign Shareholding Limit on Finance Companies

Singapore, 10 December 2002. The Monetary Authority of Singapore (MAS) today announced the removal of the 20% aggregate foreign shareholding limit on finance companies with effect from 11 December 2002.  This will allow listed finance companies to merge their foreign and local share tranches.

2   This removal follows the lifting of the 40% aggregate foreign shareholding limit for banks in 1999, which led to improved trading liquidity and the removal of price distortions in the market value of bank shares, without compromising MAS' policy of disallowing foreign control of local banks. As is the case with banks, there is no change to MAS' policy of not allowing a foreign takeover of a finance company. Substantial stakes of 5% and 20% in a finance company require MAS' approval.