Economy & business — Topics

9 Jan 2023

Growing Pool of Financial Professionals Due to Outflow of Talent Joining Singapore-based Single Family Offices

The Monetary Authority of Singapore estimates that about 1% of financial institution employees worked at Single Family Offices in 2022, with no significant outflow of talent or adverse impact on Singapore's financial hub status.
The growth of Single Family Offices is complementary to Singapore’s value proposition as a global wealth management hub, and the government is not considering measures to address a talent drain.
MAS and the Institute of Banking and Finance have launched skills maps and co-funded training programmes to develop competencies for employees of Single Family Offices and related service providers.
The government is focused on building a strong pipeline of financial professionals through industry collaboration and tripartite partnerships to meet sector needs.

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9 Jan 2023

Cost for Acquiring and Maintaining Four Invincible-class Submarines

Gerald Giam asked for the total acquisition cost of four Invincible-class submarines, their annual maintenance cost, a comparison with the ownership cost of the current Archer-class and Challenger-class submarines, and the reasons for replacing the older submarines.
MINDEF declined to disclose exact figures for security reasons but cited comparable costs from Turkey and Korea, estimating each submarine at about $600 million and a fleet of four at $2.4 billion, with annual maintenance typically 2% to 3% of the capital cost.
The new submarines will significantly enhance maritime security for Singapore, replacing the older Challenger and Archer submarines that are over 60 and 40 years old, respectively, and have served to build expertise.
The acquisition of the Invincible-class submarines is timed to meet future operational needs and security challenges for the next 30 years, following over 20 years of operation with the older vessels.

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9 Jan 2023

Disbursement of Housing Grants through Home Buyers' CPF Accounts

The government provides housing subsidies for BTO flat buyers through below-market pricing and grants like the Enhanced CPF Housing Grant up to $80,000, while resale flat buyers can receive up to $160,000 in combined grants for first-timer purchases.
Housing grants are credited to the CPF Ordinary Account to ensure funds are reserved for housing, allowing use for downpayment and reducing loan amounts, with the grants returned to CPF upon flat disposal to support long-term retirement and healthcare needs.
The rationale for disbursing grants via CPF accounts is to align housing assistance with Singaporeans' retirement planning and financial security, ensuring the grants are used for housing purposes and recycled to bolster future needs.

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9 Jan 2023

Inclusion of Adult Children's Names in Elderly Parents' HDB Loan Applications for Compassionate Reasons

Mr Zhulkarnain Abdul Rahim asked if HDB can set policies so that loans for elderly parents, where adult children's names are included for compassionate reasons, do not count toward the children's own housing loan limits.
Desmond Lee explained that HDB provides up to two housing loans per household based on credit assessment, and all borrowers are considered to have taken the loan once disbursed.
He noted that beyond two loans, households can seek financing from financial institutions, but HDB may consider additional loans on a case-by-case basis for those in urgent need.
The response emphasized that HDB exercises flexibility for flat buyers who have exhausted their financing options and require assistance.
The debate focused on balancing compassionate housing needs with existing loan policies and credit assessment requirements.

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9 Jan 2023

Helping Self-employed Persons or Small Business Owners with Vehicle-related Cost Increases

Ms Carrie Tan asked the Ministry for Transport about the number of heavy and light goods vehicles registered under self-employed persons and requested temporary cost-reducing measures like lower COE prices or subsidies for them and small business owners.
The Minister responded that most goods vehicles are registered by businesses, but the Land Transport Authority does not collect employment data to identify self-employed owners.
The Government offers broad-based business support instead of vehicle-specific subsidies, and owners can find relevant schemes on the GoBusiness portal.

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9 Jan 2023

Keeping Food Prices Affordable

The government is using a strong Singapore dollar through exchange rate policy to moderate inflation and is diversifying food sources to reduce exposure to price shocks.
Households receive direct support via CDC vouchers and past packages that offset cost-of-living inflation, with retailers also absorbing GST increases on essentials temporarily.
Consumers are encouraged to use tools like the Price Kaki app and adjust food choices to manage budgets, while the government monitors the situation for further measures if needed.

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9 Jan 2023

Measures to Improve Sustainability Efforts and Reduce Carbon Footprint in Industrial Sector

Minister Gan Kim Yong outlined Singapore’s net-zero by 2050 commitment, focusing on decarbonising energy through increased solar use, 4 GW of imported green electricity by 2035, and new sources like hydrogen.
The National Hydrogen Strategy was launched to develop low-carbon hydrogen as a feedstock or fuel for industrial sectors, especially manufacturing, to cut emissions.
Economic agencies are restructuring emissions-intensive industries, such as through Sustainable Jurong Island, to boost sustainable products and deploy system-wide solutions like carbon capture.
Government schemes like the Resource Efficiency Grant for Emissions and Energy Efficiency Fund support companies in improving energy efficiency and developing sustainability strategies.
Continued collaboration between the government and industry is key to transitioning toward a low-carbon economy.

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9 Jan 2023

Government Scholarships for Encouraging Students to Work with Local SMEs

Leon Perera asked the Minister for Trade and Industry about the existence and rationale of Government scholarships specifically aimed at encouraging students to work with local SMEs.
The Minister confirmed that the Government administers the Singapore-Industry Scholarships (SgIS) in partnership with local SMEs and other companies, which support students across various industries.
Additionally, sector-specific scholarships like the SG Digital Scholarships are available for local SMEs to tap on for talent development.
Beyond scholarships, EnterpriseSG and MOE run talent development programmes, including internships and work-study schemes, to help local SMEs attract and develop young talent.
The Government's approach combines scholarships with broader initiatives to support local SMEs in building a skilled workforce.

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9 Jan 2023

Effectiveness of Scale-up SG Scheme in Accelerating Growth of High-potential Local Companies

The Scale-up SG scheme, managed by Enterprise Singapore, supports high-growth local companies to scale and become global champions through management development, innovation, and market expansion.
Since its launch in 2019, the programme has admitted 80 enterprises across seven cohorts, with outcomes expected to take several years to fully materialize.
Early indicators show 85% of the first three cohorts have launched new businesses or products, over half have expanded overseas, and they have collectively created about 500 PMET jobs.
The government is gathering feedback from participants to refine the programme and develop new growth tools.
The Minister noted that the scheme contributes to Singapore’s economy by creating good jobs and strengthening the Singapore brand.

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9 Jan 2023

Increase in SingPost Postage and Delivery Service Rates

Seah Kian Peng questioned the Ministry for Communications and Information on how it ensures that SingPost's postage rate increases are reasonable and moderated given their essential service nature.
Mrs Josephine Teo explained that SingPost's basic letter rates had not changed since 2014 and that IMDA approved the increase after considering higher operating costs like manpower and energy, plus the GST hike.
The rate adjustments apply only to letters weighing up to 20 and 40 grammes, rising by 1 cent per year in 2023 and 2024, with existing stamps remaining valid without additional payment.

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9 Jan 2023

Employment Passes Issued to Non-residents who Secured New Jobs in Third Quarter 2022 and Measures to Encourage Singaporeans to Fill These Roles

The Ministry for Manpower reported that of the 71,100 new jobs taken by non-residents in Q3 2022, 11,300 were Employment Pass holders, 5,900 were S Pass holders, and 53,900 held work permits or other passes, with growth concentrated in Manufacturing and Construction.
The Minister expects total employment to continue growing but more moderately for residents, given that resident unemployment has recovered to pre-COVID levels while non-resident employment remains below its pre-pandemic peak despite recent increases.
The government is leveraging initiatives like the National Jobs Council’s SGUnited Jobs and Skills Package and Workforce Singapore’s Career Conversion Programmes to support Singaporeans in filling new roles, having placed about 200,000 locals into jobs and training opportunities from April 2020 to April 2022.

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9 Jan 2023

Investment by Family Offices in Commercial and Residential Property Pre- and Post-COVID-19 Pandemic

Desmond Choo asked the Minister for National Development for the total investment by family offices in commercial and residential property from 2020 to 2022 and how it compares to the three years before the COVID-19 pandemic.
The Minister responded that over the past six years, there were only four commercial property transactions and no residential property transactions by family offices.
These commercial purchases accounted for approximately 0.04% of the total commercial property transaction value over the six-year period.

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9 Jan 2023

Government's Accounting Practice for Development Expenditure

The Singapore Government accounts on a cash basis, recording development expenditure only when funds are disbursed, in line with Regulation 19 of the Financial Regulations.
This practice is used because it aligns with how the Overall Fiscal Position and annual Budget are determined based on cash requirements for both operating and development spending.
For major long-term infrastructure projects financed under the Significant Infrastructure Government Loan Act, the full cash outlay is not recorded immediately; instead, annual depreciation and borrowing costs are used to assess the fiscal position.
The accounting approach ensures development expenditures are recognized in the Statement of Development Fund as project progress requires cash disbursement, not at the point of appropriation.
This method allows the Government to manage fiscal sustainability while funding long-term assets through borrowings, without reflecting the entire cost upfront in the annual Budget.

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9 Jan 2023

Employee Compensation Trends in Firms that Have Adopted Progressive Wage Model

The Ministry of Manpower enforces Progressive Wage Model compliance through inspections and investigations, with penalties for non-compliance such as suspension of work pass privileges.
MOM has not found any substantiated case of companies reducing total employee compensation in response to implementing the Progressive Wage Model, as a tight labour market makes such cuts counterproductive for attracting and retaining workers.
Progressive Wages are designed to increase annually through tripartite consensus, and data shows that cleaners, security guards, and landscape maintenance workers saw their real median wages grow faster than the median worker from 2016 to 2021.

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9 Jan 2023

SkillsFuture Singapore Agency (Amendment) Bill

The Bill introduces new offences to criminalise abusive funding arrangements and false or misleading advertisements related to SkillsFuture, imposing penalties such as fines, imprisonment, and mandatory repayment of wrongly obtained funds.
It grants SkillsFuture Singapore enhanced investigative powers, including the authority for appointed inspectors to conduct interviews, searches, and seizures to better investigate offences.
The amendments streamline and consolidate enforcement provisions across different funding sources to ensure consistent application, while also simplifying the calculation of Skills Development Levy contributions for employers.

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9 Jan 2023

Insolvency, Restructuring and Dissolution (Amendment) Bill

The Bill mandates that Private Trustees in Bankruptcy (PTIBs) will administer all bankruptcy cases, except those deemed to be in the public interest and handled by the Official Assignee (OA), to improve efficiency and reduce public resource use.
Amendments streamline the remuneration process for PTIBs by allowing a deemed consent mechanism for creditors, aiming to reduce administrative costs and ensure fees remain reasonable.
The Bill enhances protections for the public in commercial dealings with bankrupts by introducing new offences for non-disclosure of bankruptcy status when receiving deposits and making employment information of bankrupts publicly accessible.

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9 Jan 2023

Enforcement against Businesses who Raise Prices Using GST Increase as Excuse

The Committee Against Profiteering (CAP) investigates and may publicly highlight businesses that unjustifiably raise prices using the GST increase as an excuse, while encouraging transparent pricing communications through guidelines from IRAS and trade associations.
Consumers can report suspected GST misrepresentation to CAP via online forms, hotlines, or community centres, and the government monitors essential item prices through the Department of Statistics and the Consumer Price Index.
The Price Kaki app, developed by CASE with MTI and CCCS, allows consumers to compare prices of over 10,000 supermarket items and 37,000 cooked food items, and now includes unit price comparisons for over 1,200 grocery items to help make informed purchasing decisions.

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9 Jan 2023

Work Passes Issued under Manpower for Strategic Economic Priorities Scheme

The Manpower for Strategic Economic Priorities (M-SEP) scheme provides temporary foreign worker flexibilities to about 1,000 firms participating in key economic programs, such as Scale-Up SG, with firms required to commit to hiring or training local workers to support Singaporean talent development.
Ministers emphasized strict safeguards against abuse, including barring firms with poor employment practices, and clarified that the scheme is highly selective and time-limited, aimed at generating economic opportunities for Singaporeans without significantly impacting the overall foreign workforce ratio.
MPs raised concerns about the scheme's complexity, eligibility for smaller companies and professional service providers, and potential effects on local wages and job opportunities, with the government assuring that existing programs support local upskilling and that the scheme will be monitored and adjusted based on economic conditions.

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30 Nov 2022

Eligibility of Buyers Below Age 35 for Subsidy and HDB Loan for BTO and Resale Flats

Leong Mun Wai asked for specific subsidy and loan details for buyers under 35 earning at the bottom quintile and median, including average subsidies, loan quantum, cash payment required, and monthly repayments.
Desmond Lee responded that the requested data for BTO and resale flat buyers under 35, broken down by income level, is provided in Table 1, listing average grants, maximum loan eligibility, median cash payment, and median monthly repayments in cash and CPF.
The debate centered on clarifying the financial support and costs for younger buyers at different income tiers for both BTO and resale flats.

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30 Nov 2022

Property Tax Collected from Owner-occupied and Non-owner-occupied HDB Flats

Leong Mun Wai asked the Deputy Prime Minister for the annual percentage of total property tax collected from owner-occupied and non-owner-occupied HDB flats since 2000.
Lawrence Wong responded that the requested data over two decades is unavailable, but provided figures for 2018 to 2022.
During 2018 to 2022, owner-occupied HDB flats contributed an average of 1.3% of total property tax annually.
Non-owner-occupied HDB flats contributed an average of 1.4% of total property tax annually over the same period.

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