MRT insider trading? Singapore reviews civil servants’ property buys

Singapore's government is investigating property purchases made by civil servants involved in MRT planning after a study found they were more likely to buy homes near future MRT stations before the locations were announced. The Public Service Division (PSD) will review purchases made between 2007 and 2011, focusing on properties close to later MRT station announcements.

However, the study by the National Bureau of Economic Research has not been peer-reviewed and does not prove misconduct. The researchers found a higher incidence of property purchases near planned MRT stations among civil servants compared to a control group, with the discrepancy concentrated in the year or two before station locations were publicly announced.

The PSD stated that while the statistical patterns were concerning, they did not establish whether any officer had access to non-public information or if it influenced property purchases. If evidence emerges that an officer used non-public information for personal gain, the case would be referred to the police. The paper estimated that civil servants made about 50 more property purchases near future MRT stations two years before announcements and 63 more one year before, totaling approximately S$138 million in value.

The study also noted similar patterns among individuals connected to officials through shared residential addresses, though it did not confirm familial relationships. The PSD emphasized that Singapore's public service has safeguards against officials using non-public information for personal benefit, including mandatory declarations and restricted access to sensitive information.

The government previously announced it would review the paper's data and methodology, with a referral to the Corrupt Practices Investigation Bureau if warranted. Some paper authors have since requested to have their names removed from acknowledgments, according to local media reports. Ultimately, conclusions of wrongdoing must be based on evidence and the specifics of each case.