Economy & business — Topics

29 Nov 2022

Reports of Platform Workers Suffering Injuries in Course of Work

The Ministry of Manpower explained that platform workers are currently not covered by mandatory work injury compensation, so injury data is not reported, but the government has accepted recommendations to strengthen financial protection and will implement a framework for platform workers by the end of 2024.
The Senior Minister of State rejected an insurance industry proposal to use prolonged medical leave and group personal accident insurance instead of a Work Injury Compensation Act-like framework, arguing it would provide inadequate coverage, higher costs, and no dispute resolution mechanism compared to the recommended approach.
Platform companies and workers have generally welcomed the advisory committee’s recommendations, with concerns about implementation details and market distortions addressed by noting that street-hail taxis operate on a different business model and should not be included in the new rules.

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28 Nov 2022

Price to Income Ratio of BTO Flats in Mature Estates

Pritam Singh requested specific pricing data, mortgage servicing ratios, and house price-to-income ratios for BTO flats in mature estates during the first nine months of 2022.
Desmond Lee explained that higher prices in mature estates are due to their desirable locations and amenities, but HDB provides significant subsidies to ensure affordability alongside non-mature estate options.
Over 80% of buyers in mature estates had a mortgage servicing ratio of 25% or lower, allowing most to cover loans with CPF contributions, and over 70% had house price-to-income ratios below five, which is significantly lower than major international cities.

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28 Nov 2022

Incentives in New Nationwide Sodium-reduction Campaign to Shift Consumer Behaviour

The Health Promotion Board launched a public education campaign in October 2022 to raise awareness about the health risks of high sodium intake and encourage the switch to lower-sodium alternatives labelled with the Healthier Choice Symbol.
The Healthier Ingredient Development Scheme provides grants to suppliers of salt, sauces, and seasonings to develop lower-sodium ingredients and promote their adoption by food and beverage businesses.
The government aims to reduce Singaporeans’ daily sodium intake by about 15% over five years, from 3,600 milligrams in 2022 to 3,100 milligrams in 2026.

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28 Nov 2022

Impact from US and India's Upgraded Ties with ASEAN

Singapore welcomed the US and India’s upgraded ties with ASEAN, expecting economic benefits from initiatives like the ASEAN-India trade agreement review and new US-ASEAN partnerships in electric vehicles, infrastructure, smart cities, and public health.
Deeper collaboration with India is anticipated in regional connectivity, cybersecurity, and the digital economy to support businesses and people.
Cooperation with the US aims to advance ASEAN’s clean energy transition, enhance energy security and grid resilience, and develop low-carbon and green energy infrastructure.

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28 Nov 2022

Key Outcomes from German Federal Chancellor Olaf Scholz's Visit to Singapore

German Chancellor Olaf Scholz visited Singapore on 14 November 2022 and met with Singaporean leaders including the President and Prime Minister.
Prime Minister Lee and Chancellor Scholz endorsed a Joint Declaration to strengthen cooperation in renewable energy, the digital economy, and cybersecurity.
Chancellor Scholz delivered a keynote speech at the Asia-Pacific Conference of German Business to promote business ties, and the Germany-Singapore Framework for Sustainability and Innovation was signed.

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28 Nov 2022

Valuation of New and Old Reclaimed Land and Their Inclusion in Current and Past Reserves

Pritam Singh asked whether the value of newly reclaimed land is included in current reserves, how it is valued, and how previously reclaimed land is revalued.
Lawrence Wong explained that land reclamation is funded by Past Reserves, and the reclaimed land becomes part of state land holdings protected as Past Reserves without changing their total value.
The government does not value unsold state land, including reclaimed land, on an ongoing basis but only at the point of sale to ensure fair market value and avoid drawing on Past Reserves.

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28 Nov 2022

Applicability of GST Offset Packages to Singaporeans Employed Overseas with No Reportable Tax Returns

Assoc Prof Jamus Jerome Lim inquired whether Singaporeans working abroad without reportable tax returns are eligible for GST offset packages.
Finance Minister Lawrence Wong clarified that the Assurance Package and GST Voucher scheme are intended to offset GST expenses incurred within Singapore.
Eligibility for benefits, including cash and MediSave top-ups, requires the citizen to be residing in Singapore during the relevant year.
This means Singaporeans employed overseas without local tax returns are generally not eligible for these offset packages.

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28 Nov 2022

Value of Temasek Holdings' Investments in Cryptocurrency Trading Platform FTX and Its Subsidiaries

Mariam Jaafar asked the Minister for Finance about the value of Temasek Holdings' investments in FTX and its subsidiaries.
Lawrence Wong stated that Temasek invested a total of US$275 million in FTX.
This investment represented 0.09% of Temasek's net portfolio value of S$403 billion as of March 31, 2022.

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28 Nov 2022

Limits for Exposure to Different Asset Classes for National Sovereign Wealth Funds

Assoc Prof Jamus Jerome Lim asked if the Ministry issues guidelines to national sovereign wealth funds GIC and Temasek on acceptable exposure limits for different asset classes, including alternative assets like cryptocurrency.
Lawrence Wong responded that the Government does not prescribe specific asset allocation guidelines but sets overall risk tolerance and expects the funds to deliver long-term returns in line with their mandates.
The Government systematically reviews portfolio risks, including diversification across asset classes, sectors, and geographies, and holds the boards and management of GIC and Temasek responsible for their investment and risk management strategies.

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28 Nov 2022

Contribution and Withdrawal Requirements of Supplementary Retirement Scheme for Locals and Foreigners

Yip Hon Weng asked the Ministry to review the Supplementary Retirement Scheme (SRS) to raise the maximum annual contribution for Singaporeans to match that of foreigners, and to explain why foreigners receive tax reliefs on SRS contributions, while also inquiring about amendments to withdrawal requirements and penalties for greater equality between locals and foreigners.
Lawrence Wong clarified that the SRS is a supplementary savings scheme for all workers in Singapore, distinct from the CPF which is specific to Singaporeans and Permanent Residents, and that it offers tax deferral rather than full tax relief like the CPF.
The maximum SRS contribution for foreigners is currently set to equal the combined maximum for Singaporeans and Permanent Residents plus their CPF contributions, since foreigners do not participate in CPF.
Both Singaporeans, Permanent Residents, and foreigners face the same withdrawal conditions, including penalties for early withdrawals, but foreigners may make a penalty-free one-time withdrawal after 10 years from their first contribution under specific conditions.
The concession for foreigners aims to acknowledge the non-permanent residency status of non-Permanent Resident foreigners while maintaining the scheme's goal of encouraging retirement savings.

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28 Nov 2022

Breakdown of Effective Tax Rate by Companies' Profits before Tax

Ms Hazel Poa asked for the effective corporate tax rates broken down by profit bands for the years 2018 to 2021.
Lawrence Wong noted that compiling new permutations of data requires significant effort and that extensive corporate tax data is already publicly available on data.gov.sg.
He suggested Ms Poa refer to the website to access the necessary data to estimate the rates for each profit band.

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28 Nov 2022

Treatment of Singapore Banks' Crypto Asset Exposure and Capital Adequacy

MAS requires Singapore banks to apply a 1,250% risk weight to risky crypto assets like Bitcoin and Ether, meaning $125 in capital must be held for every $100 of exposure.
Current crypto asset exposures are insignificant, making up less than 0.05% of banks' total risk-weighted assets.
MAS is actively contributing to the Basel Committee's work on a final prudential framework for crypto assets, expected to be completed around the end of 2022.
For less risky tokenised assets, such as qualifying tokenised corporate bonds, the prudential treatment aligns with that of traditional non-tokenised assets.

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28 Nov 2022

Impact of FTX's Bankruptcy on Singapore Investors and Businesses and on Implementation of Digital Singapore Dollar

Members of Parliament asked for lessons from the FTX bankruptcy on the digital Singapore dollar rollout and the impact on Singapore investors, including estimated numbers, investment sizes, and retail investor exposure.
They sought details on protective measures for investors and short- to medium-term plans to develop the crypto industry in Singapore at a measured pace.
The Deputy Prime Minister, as Deputy Chairman of MAS, will address these questions at the Parliament sitting on 30 November 2022.

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28 Nov 2022

Factors Considered When Introducing Mandatory Disclosure Requirements for Financial Institutions

Louis Ng Kok Kwang asked if MAS would consider the UN Sustainable Stock Exchanges’ Model Guidance alongside ISSB standards when introducing mandatory disclosures for financial institutions.
Tharman Shanmugaratnam explained that the SSE Model Guidance is a template for TCFD recommendations, while ISSB standards build on TCFD and SASB and are expected to become the global baseline.
ISSB is likely to issue its own guidance that will supersede the SSE Model Guidance over time, with jurisdictions shifting toward ISSB standards.
MAS has indicated it will set out a roadmap for mandatory disclosure requirements for financial institutions based on ISSB standards.

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28 Nov 2022

Digital Singapore Dollar as Genuine Electronic Currency

Assoc Prof Jamus Jerome Lim questioned whether restrictions on fungibility and bearer value in the proposed digital Singapore dollar (DSGD) trial would hinder its function as genuine electronic currency and how it would differ from e-voucher systems like RedeemSG.
Tharman Shanmugaratnam clarified that the DSGD is programmable money with conditions that are removed after use, ensuring no restrictions on fungibility or bearer value, and highlighted its advantages over e-voucher systems such as no separate claims, automated verification, and support for multiple issuers.
MAS is collaborating on trials to test the DSGD's applications, with future phases focusing on improving user experience, security, and privacy.

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28 Nov 2022

Impact of Rising Costs and Resource Constraints on Timeline for "30 by 30" Goal

Liang Eng Hwa questioned the resource constraints and cost pressures faced by local food producers and whether these could delay Singapore's "30 by 30" goal.
Grace Fu Hai Yien highlighted that food producers face land, manpower, and cost constraints, with energy and input costs rising due to geopolitical, inflationary, and weather factors.
The Singapore Food Agency is collaborating with farms to address these challenges and remains committed to meeting the 30% nutritional needs target by 2030.

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28 Nov 2022

Strategy on Cryptocurrency Investments and Protection of Retail Investors

The Government's strategy for cryptocurrency investments involves managing risks and protecting retail investors, with a focus on educating the public about the risks associated with such investments.
The Monetary Authority of Singapore (MAS) is considering further tightening regulations on cryptocurrency trading for retail investors, including potential limits on asset parking and additional safeguards for cryptocurrency firms.
The eligibility factors for cryptocurrency trading platforms like Binance and FTX to operate in Singapore are under review, with a focus on ensuring consumer protection and assessing the impact of platform collapses on local investors.

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28 Nov 2022

Subsidies for Prime Location Public Flat Owners

Leong Mun Wai questioned how HDB reassures PLH flat owners that subsidies provided exceed those recovered, whether subsidies recovered are nominal or inflation-adjusted, and if the recovery percentage would be reduced for greater-than-expected price appreciation.
Desmond Lee explained that PLH flats receive additional subsidies to keep prime location housing affordable, with a fixed 6% subsidy recovery rate on resale to prevent disproportionate gains compared to other BTO buyers.
The recovery rate is not tied to the actual subsidy amount, so nominal versus inflation-adjusted recovery does not apply, and the rate remains fixed regardless of price appreciation, allowing owners to benefit from 94% of gains.
PLH buyers are informed of the recovery terms upfront, and the rate only applies if they sell, with the model reviewed periodically to maintain affordability and accessibility.

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28 Nov 2022

Additional Guidelines to Investment Mandate of Singapore's Sovereign Funds

Leong Mun Wai asked whether the Ministry would introduce additional investment guidelines for Singapore’s sovereign funds, citing recent investments in cryptocurrency exchanges.
Lawrence Wong thanked the member and stated he would address the question in his reply at the 30 November 2022 Parliament Sitting, referring to a prior official report on the FTX bankruptcy and its impact.
The exchange highlights parliamentary interest in revising sovereign fund mandates amid concerns over cryptocurrency investments, with a commitment to a formal response at the next sitting.

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28 Nov 2022

Greenhouse Gas Emissions Reporting Requirements for Businesses

Don Wee proposed mandating GHG emissions reporting for all businesses or establishing minimum requirements with progressive tightening.
Grace Fu confirmed that current regulations require reporting only for large emitters, covering nearly all industrial and power emissions, while listed companies face SGX climate disclosure rules.
The government has no plans to extend reporting to smaller emitters like SMEs but will support them through capability-building programmes to monitor and reduce emissions.

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