Singapore-KL shuttle accord excluded from competition laws

An agreement governing air links between Singapore and Kuala Lumpur is being excluded from competition laws to ensure the number of flights between the two cities does not fall.

Trade and Industry Minister Lim Hng Kiang on Tuesday issued an exclusion order for the Singapore-Kuala Lumpur Shuttle Agreement from Section 34 of the Competition Act.

This section prohibits business agreements that prevent, restrict or distort competition.

In 1982, the two governments set up an air-shuttle service between Singapore and the Malaysian capital.

Under it, flights operated by SIA and MAS share capacity and coordinate their schedules so there are frequent daily services.