We can learn from Singapore's tight controls on border trade

There is currently a great deal of discussion in Hong Kong about cross-border [parallel] traders.

I am a Singaporean presently based in Hong Kong. Having lived in several places in the Asia-Pacific region, I must say I love Hong Kong very much in terms of its infrastructure, roads and transportation, but no city in the world is perfect.

Having regard to these traders and having had some experiences with bureaucracy in the past, I would say that Singapore also experienced similar problems with regard to neighbouring and poorer Johore, in Malaysia. Singapore tackled this problem in a number of ways.

It had compulsory registration of all individual traders. This move can distinguish traders from other individuals and tourists who need to cross the border. This distinction is important, as any trading activity in a country has to be registered and subject to taxes where applicable.

It is also important for businesses to be properly registered regardless of whether they are trading as a company, in a partnership or as a sole proprietor. If the Hong Kong government adopted this policy, it could better monitor and manage the situation and, where necessary, draw up a blacklist.

A quota for items imported and exported is important.