Economy & business — Topics

30 Nov 2022

Inclusion of Data from "Buy Now, Pay Later" and Licensed Moneylender Arrangements in Consumer Credit Reports

Gerald Giam asked whether credit data from Buy Now, Pay Later (BNPL) and licensed moneylenders is included in consumer credit reports, what considerations affect inclusion, and what MAS is doing to educate consumers on BNPL debt risks.
Tharman explained that financial institutions provide most household credit, with BNPL and licensed moneylenders making up a small share, and current credit information sharing is separate for FI and non-FI lenders due to market realities and limited benefits from a common system.
The BNPL Code introduces safeguards like account suspension on default and no compounding fees, reducing the need for a shared credit bureau, though a BNPL-specific bureau for industry sharing is mandated and MAS will monitor the sector.
MAS, through MoneySENSE, provides ongoing financial education to help consumers manage budgeting and understand the risks and costs of BNPL and other instalment plans.

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30 Nov 2022

Banks Offering Alleged Scam Victims Final Settlement Sums Lower than Scammed Amount

Yeo Wan Ling questioned whether the Government is aware of banks offering scam victims settlement sums lower than the scammed amount during ongoing police investigations and if the practice will be regulated to protect victims' rights to further claims.
Tharman Shanmugaratnam stated that MAS expects banks to treat customers fairly, investigate promptly, and consider goodwill payments, with customers having the option to decline offers and seek resolution through FIDReC.
He noted that accepting an offer binds the customer, but new materially different information could allow a request for the bank to relook the case or approach FIDReC, and MAS is working on a shared responsibility framework for scams.

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30 Nov 2022

Opening Rail Lines to New Operators

Mr Chua Kheng Wee Louis asked the Minister for Transport if there are plans to open the rail market to new operators beyond the two existing ones.
The Minister for Transport explained that while contestability is important to spur improvements, the rail industry's complexity and need for economies of scale must be balanced, and the New Rail Financing Framework already shortens licence periods to encourage competition.
Mr Chua sought clarification on whether foreign players would be considered, akin to the bus industry, or if a single operator for all rail lines might be more efficient, to which the Minister responded that policy is informed by data and current circumstances, with no immediate move toward consolidation or a new foreign operator, but openness to partnerships with foreign expertise remains.

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30 Nov 2022

Incentivising SMEs to Lease Electric Vehicles for Commercial Use

The Minister for Transport outlined existing incentives such as the Commercial Vehicle Emissions Scheme and Early Turnover Scheme, noting a significant rise in electric Light Goods Vehicle adoption from 0.4% in 2020 to around 28% this year.
The government is not targeting specific sectors for electric vehicle transition but acknowledges that sectors with intensive usage, like taxis and buses, could yield greater emissions benefits, with plans to electrify 50% of the bus fleet by the end of the decade.
In response to concerns about electric motorcycles, the Minister highlighted ongoing trials involving battery swapping and charging solutions, coordinated by the Land Transport Authority, while emphasizing safety considerations for battery removal and recharging.
The government continues to monitor the effectiveness of current incentives and remains open to reviewing the need for additional measures to support broader EV adoption, including for commercial use by SMEs.

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30 Nov 2022

Protection for Customers of Home-based or Micro Businesses

The Minister explained that the Consumer Protection (Fair Trading) Act protects customers of all businesses, including home-based and micro businesses, against unfair practices like misrepresentation, and consumers can seek help from CASE for negotiation or mediation, with escalation to the Small Claims Tribunal or legal redress if needed.
Ms Yeo Wan Ling highlighted the growth of home-based businesses and resident support but raised concerns about consumer representation and the cost of pursuing claims through the Small Claims Tribunal, suggesting CASE could play a larger role.
The Minister clarified that home-based and micro businesses must be registered with ACRA and assured that CASE and the Competition and Consumer Commission of Singapore (CCCS) can investigate unfair practices, including issuing injunctions and requiring compensation.
Ms Carrie Tan inquired about CASE's collaboration with the Police for potential fraud cases, and the Minister detailed that CASE works with CCCS and SPF, using factors like evidence strength and consumer harm to decide on escalation, including Voluntary Compliance Agreements.
The debate emphasized existing consumer protections while acknowledging challenges for home-based business transactions, with assurances that agencies are equipped to handle complaints and escalate serious cases.

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30 Nov 2022

Impact of FTX's Bankruptcy on Singapore's Financial Markets, Regulation of Asset Classes and Strategies of Investment Entities

The Deputy Prime Minister emphasized that while MAS will introduce basic investor protection measures for licensed digital payment token service providers, no regulation can eliminate the risks of cryptocurrency trading, as cryptocurrencies have no intrinsic value and are highly speculative.
Temasek's US$275 million investment in FTX resulted in a financial and reputational loss, but the loss is contained within its early-stage portfolio and will not impact the Net Investment Returns Contribution, as the entities' governance structures are robust and focused on long-term performance.
The government monitors but does not prescribe investment strategies for sovereign wealth funds like Temasek and GIC, relying on their boards for commercial decisions while ensuring overall risk parameters and diversification are maintained.
MAS is piloting specific blockchain use cases in payments and capital markets but is not seeking to hub cryptocurrency trading activities in Singapore, instead focusing on responsible innovation in the digital asset ecosystem.

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29 Nov 2022

Breakdown of Average Discount Applied to New HDB BTO Flats in Mature and Non-mature Estates in Last Five Years

HDB prices new BTO flats below market value of comparable resale flats to ensure affordability, with the subsidy amount varying by project, launch year, and estate type (mature or non-mature) due to differing market conditions and flat attributes.
The pricing process is separate from development costs, and HDB runs a structural deficit for its homeownership programme, as flat prices are set to help a broad segment of Singaporeans buy homes without heavy cash outlay.
Eligible first-time buyers receive an additional Enhanced CPF Housing Grant (up to $80,000, means-tested), which is applied on top of the market discount and further enhances affordability across income levels.
HDB provides transparent information on comparable resale prices, flat attributes, and affordability metrics (e.g., Mortgage Servicing Ratio) in its sales launches to guide homebuyer decisions.

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29 Nov 2022

Update on Fresh Chicken Supply from Malaysia and Expected Imports from Indonesia

The Singapore Food Agency confirmed that live broiler chicken imports from Malaysia have resumed since 11 October 2022, and the overall supply of chicken in Singapore remains stable.
SFA is working with the industry to diversify chicken sources and has approved Indonesia to export frozen and chilled chicken to Singapore since 30 June 2022.
Businesses in both Indonesia and Singapore are currently finalizing collaboration arrangements to enable the import of fresh chicken from Indonesia.

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29 Nov 2022

Increase in Electricity and Fuel Costs for Public Transport Operators Year-to-date and Expected Proportion Offset by Subsidies

Public transport operators have faced increased electricity and fuel costs, but the specific year-to-date increase has not been quantified in the debate.
The additional $200 million subsidy is intended to cover revenue shortfalls from a postponed fare adjustment, not to offset specific energy cost items.
The subsidy, combined with a limited fare increase, helps address overall operating cost increases, including energy expenses for rail and buses.

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29 Nov 2022

Government Assistance for Ride-sharing Initiative for Commercial Vehicles

Saktiandi Supaat asked if the Government will assist SMRT's EVCo ride-sharing initiative for commercial vehicles.
S Iswaran responded that the Government has measures like the Commercial Vehicle Emissions Scheme and Early Turnover Scheme.
These schemes incentivize electric Light Goods Vehicles purchases, which EVCo as a fleet owner can benefit from.

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29 Nov 2022

Change in Share of Private Residential Properties and HDB Flats with Outstanding Mortgage Loans Since 2008 Global Financial Crisis

The share of private residential property owners with outstanding mortgage loans rose from 54% in 2011 to 62% in 2013 and has since stabilized at 62% in 2022.
In contrast, the share of HDB flat owners with outstanding mortgage loans decreased from 57% in 2011 to 42% in 2022.
The Monetary Authority of Singapore's stress tests indicate most households are resilient to income and interest rate shocks, though some remain vulnerable under more stressed conditions.
Authorities advise households to prudently manage borrowings, especially when considering new mortgage loans, as interest rates rise.

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29 Nov 2022

Upcoming Development Plans to Ensure Dynamic Singapore Initial Public Offering Market

The Prime Minister noted that IPO activity has declined globally, with SGX listings roughly in line with 2021 and proceeds falling in line with global trends.
Key initiatives include a $1.5 billion fund with Temasek to invest in public listings, an EDBi growth IPO fund to prepare companies for listing, and an enhanced MAS grant scheme to cover listing costs and develop equity research.
SGX has introduced new listing options such as the Special Purpose Acquisition Companies (SPAC) framework to attract new economy companies.
The government plans to allow recent measures time to take effect before evaluating the need for additional interventions.

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29 Nov 2022

Discouraging Excessive Sale of Cars by Disallowing Conversion of Rental Cars to Private Cars and Practices to Bypass Car Loan Curbs

The Ministry for Transport explained that COE prices are high due to strong demand and fewer deregistrations, and disallowing conversion of rental cars to private cars would increase costs and reduce flexibility for the private-hire car market, affecting commuter services.
Financial prudence measures like loan-to-value and tenure limits are in place, with penalties including loan rescission or reduction for false declarations, but these curbs do not apply to commercial vehicles to support business operations.
The government is aware of practices to bypass car loan curbs but did not specify penalties, and current policies exclude rental, leasing, and commercial vehicles from loan limits to avoid constraining credit for business and livelihood needs.

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29 Nov 2022

Plans to Maintain Dynamism in Tech Industry amidst Layoffs

The Minister acknowledged recent layoffs in tech firms but highlighted that Singapore's Information & Communications sector continues to grow, with job vacancies tripling since 2020 and retrenched workers finding new employment quickly.
The government has activated measures like the Taskforce for Responsible Retrenchment and Employment Facilitation to provide career coaching and resources to support affected tech workers.
To maintain a dynamic tech industry, Singapore will focus on attracting companies and talent, investing in local firms, strengthening partnerships between multinationals and SMEs, and upskilling the workforce.
The government is also establishing digital trade rules through Digital Economy Agreements to integrate Singapore's tech ecosystem globally and ensure long-term competitiveness.

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29 Nov 2022

Temasek Holdings and GIC's Financial Losses from Investing in Cryptocurrency Platform FTX

Hazel Poa asked whether internal and external investigations are conducted to ascertain negligence or misconduct when Temasek Holdings and GIC incur large investment losses.
He Ting Ru asked whether Singapore has an equivalent to Norway’s Council of Ethics for observing and excluding companies from state funds, and if so, whether the list can be publicly shared for accountability.
Hazel Poa inquired how the Government monitors and assesses Temasek Holdings and GIC’s performance, including benchmarking against other funds and the specific funds used for comparison.
He Ting Ru asked about guidelines for sustainability and environmental due diligence, monitoring of investments with climate change impact, and how state-linked investments can strengthen their global sustainability contributions.
Lawrence Wong responded that he would address the questions in his reply at the 30 November 2022 Parliament Sitting, referring to the Official Report on the FTX bankruptcy and its impact.

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29 Nov 2022

Windfall Taxes on Energy Companies in Light of Their Record Profits

The government has considered but rejected windfall taxes on energy companies, citing concerns that such taxes could undermine long-term economic stability and deter private investment.
Officials argue that windfall taxes create business uncertainty and may discourage energy companies from investing in greener fuels and decarbonization efforts, hindering Singapore’s net-zero goals.
The government emphasized that Singapore’s competitiveness relies on a predictable regulatory environment, and arbitrary taxes could signal instability to investors, affecting jobs and economic growth.

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29 Nov 2022

Protection of Interests of Sub-accounts in Enhanced Central Intermediary Scheme for Excess Solar Power Flowed Back to Grid

Edward Chia raised concerns about the lack of specific regulations to protect sub-accounts under the Enhanced Central Intermediary Scheme (ECIS) for exporting excess solar power, asking about potential workarounds and whether master account holders could be mandated to fairly compensate sub-accounts.
The Minister of State explained that sub-accounts must commercial agreements with master account holders to share revenues, as SP Services only sees the master account's data, and MTI is exploring IT system enhancements to enable fairer payments, though this requires time due to system-wide changes.
The Minister encouraged fairness and transparency in negotiations, noting that while no specific rules govern these agreements, the government supports industry-led best practices and will review feedback, with potential use of frameworks like the Fair Tenancy Industry Committee code for retail premises.

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29 Nov 2022

Educating First-time Home Buyers or Sellers on Non-exclusive Agreements

Dr Tan Wu Meng raised concerns that first-time home buyers or sellers may not be informed about non-exclusive agreements when signing exclusive estate agency agreements, potentially leading to uninformed decisions.
The Senior Minister of State for National Development clarified that while property agents must explain agreements to clients, there is no mandatory requirement to advise on exclusive versus non-exclusive options, though the Council for Estate Agencies promotes consumer education on the differences.
Dr Tan Wu Meng questioned whether omitting the option of a non-exclusive agreement could be considered an unfair practice under consumer protection laws and asked about the fiduciary duty of estate agents to ensure informed consent, especially for inexperienced first-time sellers.
The Senior Minister of State responded that the use of estate agency agreements is not mandatory, agents are required to explain agreement contents, and complaints about exclusive versus non-exclusive agreements are rare, urging consumers to utilize CEA's educational resources for informed decisions.

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29 Nov 2022

Number of Consumers Enjoying Tax Rebates under Commercial Vehicle Emissions Scheme

More than 6,700 consumers have received tax rebates under the Commercial Vehicle Emissions Scheme since its implementation on 1 April 2021.
The scheme, originally due to end on 31 March 2023, was extended with adjusted incentives after industry consultation to maintain lower total ownership costs for cleaner vehicles.
The Ministry cited the need to align with new global emissions test standards and ensure a variety of competitively priced cleaner vehicle models as reasons for the adjustments rather than a full extension without changes.

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29 Nov 2022

Time Taken for Anti-Scam Centre to Investigate Cases

The Anti-Scam Centre's investigation time varies based on factors like scam type and whether funds were transferred overseas, with no fixed average or longest/shortest times provided.
Individuals with frozen accounts can apply to courts under Section 35(8) of the Criminal Procedure Code for access to funds for essential expenses, and police may advise them of this option.
For ongoing transactions like salaries, it is recommended to open a separate bank account, as frozen accounts cannot receive new deposits during investigations.
Police may share investigation updates with banks, but banks retain discretion on risk assessments, and information sharing is limited to avoid compromising probes.

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