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What is minimum stockholding requirement or MSR
20. An entity that is subject to a minimum stockholding requirement in relation to an MSR product must —(a) hold each day, at least the quantity of stocks of the MSR product designated for the entity for the day (called the daily MSR); and (b) hold, for each relevant period, at least the average quantity of stocks of the MSR product designated for the entity for the relevant period (called the average MSR).
Quantity of MSR product to be held
21.—(1) For the purposes of section 20(a), the daily MSR for an MSR product designated for an entity on a day, is the quantity specified in the trigger notice that —(a) is in force for that day; and (b) was given to the entity in relation to that MSR product. (2) For the purposes of section 20(b), the average MSR for an MSR product designated for an entity for a relevant period applicable to an entity, is the quantity that —(a) is worked out in accordance with section 23(3) for the relevant period and the entity; and (b) is specified in the trigger notice that —(i) is in force for the whole of that relevant period; and (ii) was given to the entity in relation to that MSR product.
Entity subject to MSR
22.—(1) An entity is subject to a minimum stockholding requirement in relation to an MSR product if —(a) the minimum stockholding requirement has been triggered for the entity in relation to the MSR product because of section 23; and (b) the entity has not ceased to be subject to the minimum stockholding requirement in relation to the MSR product because of section 24. (2) An entity is also subject to a minimum stockholding requirement in relation to an MSR product if —(a) a determination is made under section 27 that —(i) the entity has assumed another entity’s minimum stockholding requirement in relation to the MSR product; or (ii) another entity’s minimum stockholding requirement in relation to the MSR product has been divided with the entity; and (b) the entity has not ceased to be subject to the minimum stockholding requirement in relation to the MSR product because of section 24.
Triggering MSR
23.—(1) The Director‑General, Food Security may, by written notice (called a trigger notice) given to an entity, trigger the minimum stockholding requirement for the entity in relation to an MSR product if —(a) the entity is an agri‑food supply chain participant but not an ultimate consumer; and (b) in a period prescribed by the Part 2 Rules —(i) the entity undertakes any MSR activity in relation to the MSR product; and (ii) in doing so, the entity exceeds the quantity prescribed by the Part 2 Rules for undertaking the MSR activity in relation to that MSR product. (2) The trigger notice must specify —(a) the days for which the notice is in force and the quantity of stocks of the MSR product the entity must hold on those days; (b) the relevant periods for which the trigger notice is in force, and the average quantity of stocks of the MSR product the entity must hold for each of those relevant periods; and (c) the place or places in Singapore where those stocks must be held. (3) The average quantity of an MSR product in relation to a relevant period applicable to an entity must be worked out by dividing —(a) the total minimum quantity of stocks of the MSR product which the Director‑General, Food Security determines the entity must hold during the relevant period; by (b) the number of days constituting that relevant period. (4) Trigger notices may specify different quantities or average quantities of stocks —(a) in respect of different MSR products or different entities; or (b) on the basis of different MSR activities undertaken in relation to the same MSR product. (5) The Director‑General, Food Security must determine the quantity or average quantity of stocks of an MSR product in accordance with section 25. (6) A trigger notice given under this section is in force for the days or relevant periods which occur within the period —(a) starting the date specified in the trigger notice as the day the trigger notice comes into force which must be a date after the end of the minimum interval applicable; and (b) ending the day before —(i) the trigger notice is cancelled under section 24; or (ii) another trigger notice given under this section to the same entity in relation to the same MSR product comes into force, whichever first happens. (7) Subsection (6) is subject to section 26(2). (8) In giving a trigger notice under this section, it is not necessary for the Director‑General, Food Security to give any person who may be affected by the trigger notice a chance to be heard before the trigger notice is given. (9) The quantity or average quantity (as the case may be) of stocks of MSR product may be specified in a trigger notice in any of the following terms:(a) a fixed quantity; (b) a rate or formula by which a quantity is to be calculated. (10) The minimum interval in subsection (6)(a), for any trigger notice, is the following period after the day the trigger notice is given:(a) 6 months; (b) another period specified in the Part 2 Rules in substitution of the period in paragraph (a), for a trigger notice or class of trigger notices given on or after the other period as so specified in those Rules.
Ceasing to be subject to MSR
24.—(1) An entity ceases to be subject to the minimum stockholding requirement in relation to an MSR product if the Director‑General, Food Security cancels the trigger notice given to the entity. (2) The Director‑General, Food Security must, upon being satisfied that the entity has permanently or indefinitely stopped undertaking all MSR activities in relation to that MSR product, cancel the trigger notice given to the entity. (3) An entity ceases to be subject to the minimum stockholding requirement in relation to an MSR product if a determination is made under section 27 that another entity has assumed the entity’s minimum stockholding requirement in relation to that product.
Decision-making criteria for triggering MSR, etc.
25.—(1) The Director‑General, Food Security must have regard to, and give such weight as the Director‑General, Food Security considers appropriate to, all of the matters in subsection (2) —(a) in deciding whether or not to give a trigger notice under section 23; (b) in determining under section 23(3) the total minimum quantity of stocks of an MSR product that an entity must hold during a relevant period; or (c) in determining under section 23(5) the quantity or average quantity of stocks of an MSR product to be specified in a trigger notice. (2) The matters for the purposes mentioned in subsection (1) are as follows:(a) the food security factors; (b) the need to enhance resilience of the agri-food supply chain for Singapore; (c) the local eating patterns and preferences; (d) the local food production capacity.
Temporary suspension of MSR by Minister
26.—(1) The Minister may, by order in the Gazette, suspend section 20(a) or (b) in relation to a specified MSR product for a period (not exceeding 6 months) specified in the order (called a suspension period) if the Minister is satisfied that —(a) a disruptive event which directly affects the supply of the MSR product in Singapore is occurring or has occurred, or there is a threat of such a disruptive event; and (b) a suspension under this section is necessary to substantially prevent, or substantially assist in mitigating, the impact of the disruptive event or the threatened disruptive event, on the supply of the MSR product in Singapore. (2) During the period an order made under subsection (1) has effect, entities are not required to comply with section 20(a) or (b) in relation to the specified MSR product. (3) An order made under subsection (1) has effect for the suspension period specified in it or until the day it is earlier revoked under subsection (4). (4) An order made under subsection (1) may be revoked at any time by the Minister before the expiry of the suspension period specified in that order. (5) However, the cessation of an order made under subsection (1) having effect (whether by revocation or expiry of a suspension period) does not prevent a further order being made under subsection (1) by the Minister if the Minister is satisfied that the circumstances warrant it under subsection (1).
Determination of assumption or division of MSR
27.—(1) The Director‑General, Food Security may make a determination that he or she is satisfied that an entity’s (called the divesting entity’s) minimum stockholding requirement in relation to an MSR product is being assumed by, or divided with, another entity or entities (called the receiving entity or entities). (2) The Director‑General, Food Security may make the determination on the application of a divesting entity or receiving entity or on the Director‑General, Food Security’s own initiative. (3) The determination must specify the effect the determination is to have on trigger notices in force under section 23, including whether a trigger notice is taken to have been given to one or more receiving entities by the determination or that a trigger notice is taken to specify a different quantity or average quantity.
Reporting capacity to hold, etc.
28.—(1) If an entity is subject to the minimum stockholding requirement in relation to an MSR product, and the entity intends —(a) to undertake another MSR activity in relation to the same MSR product; (b) to permanently or indefinitely cease undertaking an MSR activity in relation to the same MSR product; or (c) to cease undertaking an MSR activity in relation to the same MSR product in circumstances in which paragraph (b) does not apply, the entity must give the Director‑General, Food Security a written advice in advance in accordance with subsection (2). (2) The written advice must —(a) set out details of the situation to which the advice relates; (b) set out any matters that might affect the entity’s capacity to meet any minimum stockholding requirement in relation to an MSR product; (c) be in accordance with any other requirements prescribed by the Part 2 Rules; and (d) be given to the Director‑General, Food Security within the period (if any) prescribed by the Part 2 Rules for the situation. (3) An entity that intentionally or negligently contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000.
Average MSR default — civil penalty
29.—(1) If —(a) an entity is subject to a minimum stockholding requirement in relation to an MSR product; and (b) the entity contravenes section 20(b) by not holding, for a relevant period for which a trigger notice given to the entity is in force, at least the average MSR of stocks of the MSR product designated for the entity for that relevant period, the entity shall be liable to pay an MSR charge of an amount that is in subsection (3). (2) The MSR charge payable under subsection (1) must be paid to the Director‑General, Food Security not later than the 14th day after a written demand to pay that MSR charge is given by the Director‑General, Food Security to the entity in question. (3) For the purposes of subsection (1), the MSR charge, for each relevant period which is the subject of the written demand given under subsection (2), is as follows: where — (a) Ma is the rate prescribed by the Part 2 Rules for the MSR product concerned and in force on the last day of the relevant period; and (b) Ka is the MSR product average shortfall for the relevant period, calculated in accordance with subsection (4). (4) For the purposes of subsection (3), “MSR product average shortfall”, for an entity that is subject to a minimum stockholding requirement in relation to an MSR product for a relevant period, means the quantity calculated by subtracting —(a) the average quantity of the stocks of the MSR product actually held by the entity during that relevant period where lower than the quantity in paragraph (b); from (b) the average quantity of the stocks of the MSR product specified in a trigger notice which the entity is required to hold during that relevant period. (5) Where an entity subject to a minimum stockholding requirement in relation to an MSR product becomes liable under subsection (1) to pay an MSR charge for a relevant period, the entity’s liability continues despite the entity ceasing to be subject to that minimum stockholding requirement. (6) Any liability under this section is in addition to and does not affect any liability under section 30. (7) This section is subject to a remission under section 39.
Daily MSR default — civil penalty
30.—(1) If —(a) an entity is subject to a minimum stockholding requirement in relation to an MSR product; and (b) the entity contravenes section 20(a) by not holding at least the daily MSR of stocks of the MSR product designated for the entity for any day for which a trigger notice given to the entity is in force, the entity shall be liable to pay an MSR charge of an amount that is calculated in relation to that day using the formula in subsection (3). (2) The MSR charge payable under subsection (1) must be paid to the Director‑General, Food Security not later than the 14th day after a written demand to pay that MSR charge is given by the Director‑General, Food Security to the entity in question. (3) For the purposes of subsection (1), the formula, for each day which is the subject of the written demand given under subsection (2), is as follows: where — (a) M is the rate prescribed by the Part 2 Rules for the MSR product concerned and in force on the day; and (b) K is the MSR product shortfall for that day, calculated in accordance with subsection (4). (4) For the purposes of subsection (3), “MSR product shortfall”, for an entity that is subject to a minimum stockholding requirement in relation to an MSR product on a day, means the quantity calculated by subtracting —(a) the quantity of the stocks of the MSR product actually held by the entity on that day where lower than the quantity in paragraph (b); from (b) the quantity of the stocks of the MSR product specified in a trigger notice which the entity is required to hold on that day. (5) Where an entity subject to a minimum stockholding requirement in relation to an MSR product becomes liable under subsection (1) to pay an MSR charge for any day or days, the entity’s liability continues despite the entity ceasing to be subject to that minimum stockholding requirement. (6) Any liability under this section is in addition to and does not affect any liability under section 29. (7) This section is subject to a remission under section 39.
Daily MSR default — offence
31.—(1) An entity commits an offence if —(a) the entity is subject to a minimum stockholding requirement in section 20(a) in relation to an MSR product on any day for which a trigger notice given to the entity is in force; and (b) the entity intentionally or recklessly holds less than the daily MSR of stocks of the MSR product designated for the entity for any day for which a trigger notice given to the entity is in force. (2) An entity that is guilty of an offence under subsection (1) shall be liable on conviction to a fine not exceeding one of the following amounts, whichever being the higher:(a) $25,000; (b) an amount that is calculated in relation to that day using the formula in subsection (3). (3) For the purposes of subsection (2)(b), the formula for the day which is the subject of the charge, is as follows: where — (a) N is the rate prescribed by the Part 2 Rules for the MSR product concerned and in force on the day; and (b) K is the MSR product shortfall for that day, calculated in accordance with subsection (4). (4) For the purposes of subsection (3), “MSR product shortfall”, for an entity that is subject to a minimum stockholding requirement in relation to an MSR product on a day, means the quantity calculated by subtracting —(a) the quantity of the stocks of the MSR product actually held by the entity on that day where lower than the quantity in paragraph (b); from (b) the quantity of the stocks of the MSR product specified in a trigger notice which the entity is required to hold on that day.
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Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails. Read the official text ↗
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