To ensure a level-playing field and to prevent ‘money politics’, the law imposes a ceiling on the amount that may be incurred by way of election expenses.

Election expenses means expenses incurred, whether before, during or after the election by a candidate or his election agents on account of or in respect of the conduct or management of the election of the candidate, but not the following expenses:

1. any expenditure incurred by the candidate for his personal expenses; and
2. any fee paid to the election agent not exceeding $500.

	MAXIMUM SPENDING LIMIT

The Presidential Elections Act 1991 and Parliamentary Elections Act 1954 set a maximum spending limit on election expenses for candidates during Presidential elections and Parliamentary elections respectively. Spending in excess of the maximum spending limit is an Illegal Practice.

For a Presidential Candidate

The maximum spending limit for election expenses is currently $600,000 or 30 cents for each elector on the Registers of Electors for all electoral divisions, whichever is greater.

For a Parliamentary Candidate

The maximum spending limit for election expenses is currently $4 for each elector on the Register of Electors for the electoral division that the candidate is seeking election to be a Member of Parliament (MP).

If a candidate is contesting as part of a group of candidates in a Group Representation Constituency (GRC), the maximum spending limit per candidate in the group is determined as follows:

Where E is the total number of electors in the Register of Electors for the electoral division

	THROUGH ELECTION AGENT(S)

In general, payments for election expenses can only be made by or through a candidate’s election agent(s). Accordingly, even though a candidate may be permitted to enter into a contract whereby election expenses are incurred, the candidate cannot pay those expenses unless he is his own election agent. Furthermore, all money provided by any person for any election expenses, whether as gift, loan, advance or deposit, must be paid to the candidate or his election agent(s) and not otherwise.

These restrictions have been imposed by law to prevent loopholes in the control over spending on election expenses. No person other than the election agent(s) can make payment, and the election agent(s) cannot plead ignorance of what payments have been made by others.

The exceptions to these restrictions are:

1. any payments made by the Returning Officer;
2. any payments which are made by the candidate for personal expenses incurred by him on account of or in connection with or incidental to the election up to $1,000;
3. any payments which are made by the candidate in respect of claims for election expenses sent in late, or disputed claims for election expenses, pursuant to a court order;
4. any expenses for stationery, postage, telephonic communication (or any other similar means of communication) and other petty expenses which are paid by a person authorised in writing by an election agent(s);
5. any expenses which are paid by the candidate’s political party in accordance with the authorisation of the candidate’s election agent in writing (for Parliamentary elections only); and
6. any sum disbursed by any person out of his own money for any small expense legally incurred by himself, if the sum is not repaid to him.

A candidate should therefore ensure that the principal election agent he appoints (or the election agent appointed by each candidate at a Parliamentary election) is involved in all budgeting and financial decisions related to the campaign and is consulted before electoral campaign expenses are incurred.

A candidate should also ensure that all money received for election purposes is turned over to the election agent(s) for deposit.

	BY CANDIDATE

A candidate may pay for personal expenses incurred as a result of the election, such as travelling and accommodation expenses, up to $1,000. The balance unpaid can be the subject of a claim by the candidate against the principal election agent in a Presidential election (or the election agent appointed by each candidate in a Parliamentary election), which must be made within 14 days of the publication of the election results in the Government Gazette.

	BY POLITICAL PARTY AND SUB-AGENTS [FOR PARLIAMENTARY ELECTIONS ONLY]

Election expenses incurred for a candidate can be paid by the candidate’s political party, or an authorised officer of the party, in accordance with the written authorisation of the candidate’s election agent. The authorisation can set limits as to the amount and type of expenses that can be paid for.

An election agent of any candidate standing for election as part of a group in a Group Representation Constituency (GRC) may authorise in writing, the election agent of any other candidate belonging to the same group (called a sub agent) to act on his behalf and to incur election expenses for the conduct or management of the election for the candidates.

Any expenses paid by political parties and GRC sub-agents should be included in the candidates’ return respecting election expenses.

	EXPENDITURE UNDER ELECTION EXPENSES

Candidates must declare all expenditures incurred on account of or in respect of the conduct or management of the election. This includes:

1. expenses incurred for the election even if they are incurred before the issuance of the Writ (e.g. manifesto flyers, candidate introduction videos and collaterals such as umbrellas and badges printed or produced for use at the election);
2. expenses incurred to support their volunteers who assisted them in their campaign (e.g. payment for food for the volunteers). Expenses for items used by volunteers during the election period (for example, the costs of refreshments, lodging or transportation related to the campaign) are election expenses that must be declared; and
3. expenses associated with the production and distribution of advertising and promotional materials related to a fundraising activity for the election. For example, the expenses incurred for the rental of a venue to host an event, cost of refreshments, and expenses incurred to promote an event are expenses that must be declared.

	EXPENDITURE INCURED BY GROUP OF CANDIDATES (ONLY FOR PARLIAMENTARY ELECTION)

Candidates must accurately declare the portion of the group expenses incurred for his election. While the Parliamentary Elections Act 1954 does not stipulate how candidates should apportion expenses incurred as a group, an accurate account of the amount incurred for the candidate’s election should be declared, which may not be a simple averaging of the group expenses.

	EXPENDITURE EXCLUDED FROM ELECTION EXPENSES

Expenditures to implement cybersecurity measures are not considered election expenses. Expenses incurred by candidates to respond to cyber-attacks are also not considered election expenses.

All claims have to be sent to the election agent within 14 days of the date of publication of the election results in the Government Gazette. In general, all payments must be made by the election agents within 28 days of the aforementioned date of publication.

Every donation accepted by every election agent or by the candidate for the purpose of expenses incurred or to be incurred on account of or in respect of the management of the election, whether they are accepted before or after the candidate has become a candidate, must be declared. These would include discounts given by vendors (i.e. the difference between the price paid and the market value is considered a donation), donations in-kind, and donations received from fundraising activities by the candidate for his election.

Each payment made in relation to election expenses has to be vouched for by a receipt and a bill stating the particulars. Bills and receipts are not necessary if the payment does not exceed $10 or where a receipt is not obtainable by nature of the expense, such as travel by rail or postage. Where the expenses are incurred by a person authorised by an election agent, the authorisation must be in writing.

	FOR PRESIDENTIAL ELECTIONS ONLY

It is the principal election agent’s responsibility to ensure that all particulars and supporting documents relating to election expenses are collected and preserved for the purposes of the return respecting election expenses and declarations, which have to be submitted to the Returning Officer after the election.

The Returning Officer must preserve all such returns (including the supporting documents) for a period of 6 months starting from the date the notice of the receipt of the returns is published in the Government Gazette. After a period of one year starting from the date the notice of the receipt of the returns is published in the Government Gazette, the returns (including the supporting documents) may be destroyed or returned to the candidates if application for their return is made by the candidates before they are destroyed.

	FOR PARLIAMENTARY ELECTIONS ONLY

Candidates and election agents do not need to submit supporting documents, such as bills and receipts, or the written authorisations from election agents to incur expenses, when submitting their return respecting election expenses and declarations to the Returning Officer. However, candidates and election agents are required to keep these supporting documents for the return for a period of one year starting from the date the notice of the receipt of the returns is published in the Government Gazette. During this one-year period, the Returning Officer may require the candidate or the election agent, or both of them, to furnish any supporting document or any other information relating to the return. Failure to comply with such a request by the Returning Officer’s constitutes an Illegal Practice.