Economy & business — Topics

22 Feb 2023

Data on CPF Members Who Are Unable to Set Aside CPF Full Retirement Sum in Retirement Account

About 33% of active CPF members who turned 55 in 2022, approximately 13,400 individuals, did not set aside the Full Retirement Sum, with 6,100 being male and 7,300 being female.
The lower savings among older female members are attributed to historically lower labor force participation and median income for females compared to males.
Improved employment outcomes for both genders are expected to reduce the proportion of members unable to set aside the FRS from about 33% to about 24% over the next five years.
The forecast indicates the number of such members will decrease from around 13,400 to about 11,500 in five years.

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22 Feb 2023

Raising CPF Ordinary Wage Ceilings

Leong Mun Wai asked whether the CPF Ordinary Wage (OW) ceiling would be raised from $6,000 and suggested pegging it to the 80th percentile of income, noting it had not been updated for seven years.
The Minister for Manpower announced that the CPF OW ceiling will be increased to $8,000 by 2026, implemented in four phases to allow adjustment by employers and employees.
The government stated that CPF salary ceilings will continue to be reviewed and adjusted as needed to cover the broad majority of resident workers.

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22 Feb 2023

Factors beyond Annual Value of Home in Assessing Medical Subsidies for Retirees

Christopher de Souza proposed that medical subsidies for retirees should consider more than just the annual value of their home, especially for those with landed property but little savings.
Ong Ye Kung explained that subsidies are means-tested using per capita household income and annual value, which together are the best available proxies for financial need, despite not being perfect.
He noted that disregarding annual value could lead to inequitable outcomes, such as wealthy retirees in high-value homes receiving higher subsidies than low-income families.
The government already provides additional non-means-tested support for seniors, such as higher subsidies at polyclinics and benefits for Pioneer and Merdeka Generation seniors.
Retirees who still struggle after subsidies can apply for discretionary assistance like MediFund, which considers a broader range of factors.

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22 Feb 2023

Proposal for Basic Child Care Subsidy to be Tiered with Increased Subsidies for Second and Third Children

Christopher de Souza proposed that the Basic Child Care Subsidy be tiered to offer higher subsidies for second and third children.
Masagos Zulkifli explained that current measures include means-tested Additional Subsidies for families with working mothers and incomes up to $12,000, with income assessed per capita for larger families to qualify for higher subsidies.
He also noted that Child Development Account funds can be used for preschool fees, with government co-matching capped higher for second and third children.
The current Basic Subsidy remains constant regardless of birth order, but existing policies already provide additional support for families with multiple children.
The debate highlights existing financial mechanisms to assist larger families rather than implementing a tiered Basic Subsidy.

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22 Feb 2023

Review of Basic Child Care Subsidy in Light of Increased Cost of Living

Christopher de Souza asked the Minister for Social and Family Development whether the Basic Child Care Subsidy will be reviewed due to the increased cost of living.
The Minister highlighted that the government has already enhanced preschool affordability by raising the income ceiling for means-tested Additional Subsidies and increasing subsidy amounts in 2020.
The government also keeps fees affordable by imposing fee caps on Anchor and Partner Operators, with recent reductions of up to $40 in monthly childcare fees, which the Minister argued is more effective than increasing the Basic Subsidy.

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22 Feb 2023

Flexibility to Spend Community Development Council Vouchers at Small Businesses

Leong Mun Wai questioned why Singaporeans are not allowed to spend CDC vouchers at small businesses instead of only at supermarkets, arguing small businesses would benefit more.
Lawrence Wong explained that the first two tranches were restricted to heartland merchants and hawkers to support them during the pandemic, but the third tranche was split between supermarkets and heartland businesses due to public requests.
Data shows higher usage of supermarket vouchers, and some members of the public have asked to extend unused heartland vouchers to supermarkets.
The government will maintain the current scheme parameters and review the experience for the fourth tranche of vouchers in January next year.

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22 Feb 2023

Size of Job Market for Information and Communications Sector

Gerald Giam asked if the Information & Communications (I&C) sector's job market is shrinking and if the Ministry of Manpower (MOM) has reduced Employment Pass (EP) and S Pass issuances accordingly.
Minister Tan See Leng stated that I&C employment grew by 13,700 in early 2022 and job vacancies were higher than the previous year, though near-term hiring may slow; the Ministry remains cautiously optimistic about the sector's long-term prospects.
The Minister explained that MOM does not adjust foreign pass quotas in response to business fluctuations, as this would create uncertainty and undermine Singapore's reputation as an open economy.
Instead, MOM has policies like pegging EP and S Pass criteria to local wage benchmarks, the upcoming COMPASS framework, and S Pass sub-Dependency Ratio Ceilings to ensure firms prioritize local hiring and avoid cheap foreign labor.
Additional measures, including the Fair Consideration Framework and Tripartite Advisory on Managing Excess Manpower, are in place to safeguard local employment outcomes during economic downturns.

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22 Feb 2023

Debate on Annual Budget Statement

Nadia Ahmad Samdin supported the Budget while highlighting concerns about middle-class squeeze, social mobility, and mental health, proposing initiatives like a mental well-being credit scheme and better support for seniors, families, and youths.
Wan Rizal endorsed the Budget and suggested improvements for workers' well-being, including work-life balance for healthcare and education staff, expanding preschool education, and enhancing support for families with special needs.
Louis Ng focused on the challenges faced by nurses, recommending protected rest time between and during shifts, and increased ancillary support to reduce burnout and improve patient care.
Darryl David supported the Budget but raised concerns about wealth inequality, suggesting enhanced housing support for families and better encouragement for fathers' roles in parenting.
Joan Pereira emphasized community unity and crisis preparedness, advocating for more training in life-saving skills and stronger local networks to respond to future emergencies.

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22 Feb 2023

Debate on Annual Budget Statement

The debate highlighted Singapore's need to strengthen its social compact and address inequality, with concerns over a potential "two Singapores" split and calls for progressive policies to support lower- and middle-income groups, while ensuring economic growth remains robust.
Specific budget measures, such as raising the CPF income ceiling, increasing HDB grants, and introducing Jobs-Skills Integrators, were discussed, with questions raised about their impact on retirement adequacy, housing affordability, and job matching effectiveness.
Members emphasized the importance of fiscal prudence, sustainable growth, and resilience against global uncertainties, including proposals to enhance tripartism, support businesses, and manage long-term challenges like aging population and climate transition.

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22 Feb 2023

Supplementary Supply (FY2022) Bill

The supplementary supply bill authorizes additional government spending for the fiscal year from 1 April 2022 to 31 March 2023.
It was presented by the Second Minister for Finance, Ms Indranee Rajah, following the recommendation of the President.
The bill underwent its first reading and is scheduled for a second reading after the conclusion of the Estimates of Expenditure for FY2023/2024.
The supplementary funding addresses unforeseen or urgent expenditure needs during the specified financial year.
The bill will be printed as part of the legislative process for parliamentary approval.

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22 Feb 2023

Supply Bill

The Supply Bill seeks to authorize the issuance of funds from the Consolidated Fund and Development Fund to meet the government's estimated expenditure for the financial year from 1 April 2023 to 31 March 2024.
The Bill was recommended by the President, presented by Second Minister for Finance Ms Indranee Rajah, and read for the first time.
It is scheduled for a second reading after the conclusion of proceedings on the Estimates of Expenditure for FY2023/2024 and will be printed thereafter.

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22 Feb 2023

Help for Firms to Boost Productivity with Progressive Wage Model's Approach to Wage Increases

The Progressive Wage Model (PWM) requires wages to grow with productivity, supported by government and tripartite initiatives such as upskilling, Industry Transformation Maps, and grants like the Productivity Solutions Grant and NTUC CTC Grant.
To ease cost pressures during the transition, the government provides schemes like the Progressive Wage Credit Scheme (PWCS), which co-funds wage increases for lower-wage workers, and the Workfare Skills Support Scheme, which offers training support and absentee payroll funding.
All PWM sectors have potential for productivity improvements, with each supported by their respective Industry Transformation Maps; the approach emphasizes simultaneous transformation of workers, businesses, and industries to achieve sustainable wage growth and efficiency.

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14 Feb 2023

Annual Budget Statement

The Finance Minister outlined Singapore's economic recovery post-COVID, acknowledging ongoing inflation pressures and global uncertainties, and projected modest GDP growth of 0.5% to 2.5% for 2023.
The Budget introduces enhanced cost-of-living support, including a $9.6 billion Assurance Package, permanent GST Voucher increases, and one-off payments to cushion inflation and GST impacts for lower- and middle-income households.
Major investments are planned to grow the economy and support businesses and workers, such as a $4 billion top-up to the National Productivity Fund, new innovation tax incentives, and extended support for senior employment and lower-wage workers.
Significant measures are aimed at strengthening families, including increased housing grants, enhanced Baby Bonus benefits, doubled paternity leave, and expanded childcare support to address demographic and social challenges.
The government will bolster national resilience through fiscal prudence, without drawing on past reserves for 2023, and implement progressive tax adjustments on properties, vehicles, and tobacco to ensure sustainable funding while maintaining a fair and inclusive system.

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14 Feb 2023

Singapore Residents' Total Spending on E-Commerce Platforms and Measures to Support Local Businesses

Gan Thiam Poh questioned the Ministry on whether it tracks Singapore residents' spending on overseas e-commerce platforms, the trend compared to offline local purchases, and measures to support local businesses competing with these platforms.
The Minister of State for Trade and Industry responded that the Ministry does not track overseas e-commerce spending, but noted the rise in online retail sales from 5.8% in 2019 to 13.1% in 2022, with initiatives to help businesses adopt e-commerce and expand globally.
Enterprise Singapore supports local companies through capabilities in data analytics, order fulfilment, and omni-channel strategies, as seen with examples like Castlery and Skin Inc, with the Government committed to helping enterprises innovate for e-commerce growth.

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14 Feb 2023

Review to Tighten Licensing Conditions for Electricity Retailers to Better Protect Consumers

The Ministry of Trade and Industry (MTI) and the Energy Market Authority (EMA) launched a public consultation in February 2023 to review and tighten licensing conditions for electricity retailers, with the goal of strengthening consumer protection and retailer resilience.
The proposed enhancements include requiring retailers to hedge at least 80% of their retail contract quantity and provide a performance bond, which are designed to minimize cost impacts on consumers while ensuring retailers can fulfill contracts during market volatility.
The review aims to maintain consumer choice among retailers while providing greater assurance that their contracts will be honored, with final enhancements to be fine-tuned based on feedback from the ongoing consultation.

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14 Feb 2023

Expected Cost Savings for Government from Pursuit of Healthier SG Initiative

Mr Yip Hon Weng asked the Minister for Health about expected healthcare budget savings from the Healthier SG initiative over the next five years.
The Senior Parliamentary Secretary replied that it is too early to provide a robust budgetary estimate as the initiative has just begun and the focus is on getting everyone on board.
Mr Yip then asked when the Ministry plans to move to the new healthcare financing model under Healthier SG, given its mid-year launch.
The Senior Parliamentary Secretary stated that the Ministry will address these issues as they arise and make appropriate announcements when ready.
The debate highlighted the government's cautious approach to budgeting for Healthier SG, emphasizing current focus on implementation and future announcements on financing changes.

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14 Feb 2023

Extension of Inclusive Business Programme to Industrial Properties Operated by JTC

Mr Murali Pillai suggested extending the Inclusive Business Programme (IBP) from HDB to JTC-operated industrial properties, especially those near HDB estates, to help persons with disabilities (PwDs) find employment.
The Ministry for Social and Family Development (MSF) will work with the Ministry of Trade and Industry (MTI) and JTC to explore this extension as part of efforts to raise PwD employment rates.
Mr Pillai further proposed considering rental rebates for small- and medium-sized enterprises (SMEs) that employ PwDs, and the Senior Parliamentary Secretary confirmed this suggestion would be considered in the review.

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14 Feb 2023

Proposal to Require USB-C to be Adopted as Charging Standard for Portable Electronics

Mr Leon Perera asked if the government will require USB-C as a charging standard for portable electronics, similar to the EU and India, to reduce electronic waste and consumer costs.
The Minister of State for Trade and Industry responded that while the EU and India are implementing such measures, most countries have not, and Singapore is monitoring developments alongside other e-waste management efforts like the Extended Producer Responsibility framework.
Mr Perera followed up by asking for the key factors or triggers that would lead to a policy change, citing potential e-waste reduction and cost savings from the EU's upcoming regulation.
The Minister of State reiterated that the government is still monitoring developments in this area without specifying immediate policy triggers.

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14 Feb 2023

Tax Benefits Enjoyed by Family Offices in Singapore and Spin-offs for the Economy

The government explained that tax incentives for family offices are designed to provide certainty and attract them to Singapore, with recent enhancements to hiring and local investment requirements, while emphasizing job creation through ancillary services and sectoral initiatives.
MAS oversees family offices through robust banking controls and international tax cooperation to prevent tax evasion and fraud, but it does not mandate hiring Singaporeans, allowing families discretion in recruitment based on merit and global needs.
To support local job creation, MAS partners with training institutions to develop skills maps and co-fund programmes for Singaporeans, aiming to equip them with capabilities relevant to the family office sector.

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14 Feb 2023

Effect of Prices of Goods on Major E-commerce Platforms on Consumer Price Index

Gan Thiam Poh inquired whether major e-commerce platforms like Shopee, Lazada, and Qoo10 are considered in the Consumer Price Index (CPI) and if their competitive pricing helps lower the cost of living alongside a stronger Singapore dollar.
The Minister of State for Trade and Industry confirmed that prices from these e-commerce platforms are included in the CPI calculation.
The minister highlighted that e-commerce provides consumers with more choices and price ranges, reducing costs associated with physical retail outlets.
The discussion emphasized that e-commerce could contribute to a lower cost of living for local residents through wider diversity and competitive pricing.
The debate concluded that both the inclusion of e-commerce prices in the CPI and their impact on consumer affordability were acknowledged by the government.

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