Economy & business — Topics

9 Nov 2022

Monetary Policy and Targeted Measures to Rein in Food and Accommodation Prices

The Minister of State explained that MAS has tightened monetary policy five times since October 2021 to combat high core inflation, which is expected to remain firm before easing in the second half of 2023, and will continue to use exchange rate policy to ensure medium-term price stability.
The government is addressing food and accommodation prices through a stronger Singapore dollar, diversified food supply sources, targeted assistance for vulnerable groups, and increased housing subsidies and supply to maintain affordability.
Officials emphasized that monetary policy affects inflation with a lag and that tripartite partnerships, industry transformation, and productivity enhancements are crucial to mitigating inflation's impact on wages and employment without adversely affecting unemployment.
MAS clarified its unique approach of using the exchange rate as the sole monetary policy target, with interest rates largely determined by global markets, and responded to queries on money supply and reserves by deferring detailed answers to separate parliamentary questions.

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9 Nov 2022

Subsidies and Accreditation for Singapore International Schools Sited Outside Singapore

Assoc Prof Jamus Jerome Lim asked whether the Ministry of Education provides subsidies and accreditation to Singapore international schools located abroad, and the Minister of State replied that MOE provides funding and support specifically to the Singapore International School in Hong Kong (SISHK).
The subsidy for Singaporean students at SISHK is an absolute quantum used to offset part of their school fees, and the support is directed specifically to reducing fees for Singaporeans rather than providing aggregate support to the school.
The strategic reason for supporting SISHK is historical demand from Singaporean expatriates in Hong Kong since the 1990s, with consideration given to parental preferences, student numbers, and available resources, though not all overseas Singaporeans have similar needs or access to such schools.

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9 Nov 2022

Insurance Claims Declined due to Difference in Definition of Medical Terms

Dr Tan Wu Meng raised concerns about Integrated Shield Plan insurers rejecting claims based on technical differences in medical terminology definitions, asking about appeal numbers and policyholder recourse.
The Ministry of Health does not track appeals specifically on terminology disputes but outlined that policyholders can seek recourse via the Clinical Claims Resolution Process for clinical disputes or the Financial Industry Disputes Resolution Centre for other issues.
Dr Tan highlighted cases where genuine claims were denied due to wording mismatches, especially for patients using private insurance in public hospitals, and asked if insurers must review past denied claims if appeals succeed.
The Ministry responded that they work with regulators to ensure fair treatment, investigate unfair practices, and may ask insurers to review past cases, while encouraging policyholders to use dispute resolution platforms and referring specific cases for further examination.

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8 Nov 2022

Ways to Meet Greenhouse Gas Emissions Targets While Continuing as International Financial and Economic Hub

Christopher de Souza asked the Minister for Trade and Industry how Singapore plans to meet its greenhouse gas emissions targets while maintaining its role as an international financial and economic hub.
The Minister for Trade and Industry, Gan Kim Yong, directed the query to a prior reply provided on 7 November 2022 regarding support for local green firms and the Enterprise Sustainability Programme.
The referenced response outlines strategies involving the development of green local firms and the uptake of enterprise sustainability initiatives to balance economic growth with climate goals.

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8 Nov 2022

Measures to Avoid Technical Recession and Help for Companies in High Interest Rate and Inflationary Environment

The government is monitoring global economic conditions and will support companies through enhanced financing schemes, including increased loan limits under the Enterprise Financing Scheme.
A $600 million allocation over four years will scale up the Productivity Solutions Grant and enhance SkillsFuture Enterprise Credit to help businesses transform and improve productivity.
The Manufacturing 2030 strategy aims to position Singapore as a global hub for advanced manufacturing by attracting investments, supporting local enterprises, and developing skilled talent.

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8 Nov 2022

Enhancing ScamShield with Improved Anti-scam Measures and Accessibility to Vulnerable Groups

The Minister confirmed that ScamShield remains relevant as an additional protective layer alongside telco-implemented anti-scam filters, with ongoing enhancements to improve its reporting and blocking capabilities.
The Government is actively promoting ScamShield downloads among vulnerable groups through grassroots outreach, senior citizen engagement sessions, and public publicity campaigns.
To support businesses, the Singapore SMS Sender ID Registry (SSIR) will become mandatory from 31 January 2023, with reduced registration fees to make it more affordable for smaller organisations.

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8 Nov 2022

Last Review on Bottom-end of Marginal Resident Personal Income Tax Rates and Need to Increase Tax-free Threshold

Chua Kheng Wee Louis asked when the bottom-end of marginal resident personal income tax rates was last reviewed and whether the tax-free threshold for the first $20,000 of chargeable income could be increased to reflect inflation.
Lawrence Wong explained that the current $20,000 tax-free threshold, combined with progressive rates and reliefs, means half of workers pay no personal income tax and 80% of payers have an effective rate under 4%.
The government periodically reviews the tax system to ensure it remains competitive, fiscally resilient, and progressive, and provides direct support like Cost-of-Living Special Payments to mitigate inflation's impact.

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8 Nov 2022

Free Trade Agreement with Most Trade Benefits and Minimised Imported Costs and Inflationary Pressures

Minister Gan Kim Yong stated that Singapore’s 27 Free Trade Agreements (FTAs) have collectively reduced tariffs, lowered non-tariff barriers, and boosted market access, with tariff savings nearly doubling from S$700 million to S$1.3 billion between 2016 and 2021.
He noted that comparing individual FTAs for trade benefits is not meaningful due to varying coverage, timing, and the unique trade relationships with each partner, though the network enhances Singapore’s appeal as a trade hub.
FTAs, along with diversified sourcing and a strong Singapore dollar, have helped curb imported inflation and business costs, while government support packages further assist households and businesses with price pressures.

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8 Nov 2022

Changes in Average Loan-to-Value Ratio and Percentage of Mortgage Loans Used for Owner-occupied versus Investment Properties since 2008

Since 2008, the average Loan-to-Value (LTV) ratio rose from 44% to a peak of 54% between 2011 and 2017, then declined back to 44% by Q2 2022.
The share of mortgage loans for owner-occupied properties increased from 74% in 2008 to 79% in 2022, while those for investment properties fell from 26% to 21%.
The government notes that the current low LTV ratio provides a buffer against falling property valuations, but households are urged to exercise prudence amid rising interest rates and global uncertainty.
The Monetary Authority of Singapore has tightened credit rules, including lowering the Total Debt Servicing Ratio threshold, to mitigate risks from higher borrowing.

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8 Nov 2022

Take-up of Buy Now Pay Later Services among Those Aged 21 and Below

Melvin Yong asked for data on BNPL usage among youths under 21, any repayment defaults, and their consequences.
Tharman responded that BNPL providers typically do not open accounts for under-18s and MAS lacks data on 18–21-year-olds’ usage or defaults.
He noted the BNPL Code includes safeguards like credit assessments, payment limits, capped fees, and no bankruptcy proceedings, with MAS monitoring implementation.

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8 Nov 2022

Dispute Resolution Platforms for Tenancies Signed before Set-up of Fair Tenancy Industry Committee's Code of Conduct for Retail Leases

Dr Tan Wu Meng asked what advice, assistance, and dispute resolution platforms are available for small businesses facing unfair tenancy terms in agreements signed before the Fair Tenancy Industry Committee's Code of Conduct was established.
Minister Gan Kim Yong stated that the Code, introduced in March 2021, cannot be applied retroactively to existing contracts, and tenants must seek recourse through mediation or legal channels, while landlords are encouraged to act fairly.
The Ministry of Trade and Industry will introduce legislation to make the Code mandatory for new and renewed retail leases, including a dispute resolution framework with mediation and adjudication, with the Code currently adopted voluntarily by major landlords.

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8 Nov 2022

First-time Buyers No Longer Able to Purchase New HDB Flats under New Loan-to-Value Limit and Other Parameters in Recent Property Cooling Measures

Leong Mun Wai asked for the estimated number of first-time HDB buyers in 2022 who could have qualified under previous loan rules but would not meet the new cooling measures.
Desmond Lee explained the new measures include an interest rate floor of 3% and a lower Loan-to-Value limit of 80% to promote prudent borrowing amid rising rates.
He noted most buyers, including first-timers, are unaffected as they often do not take maximum loans and can use grants, CPF, and cash to purchase flats.
The measures aim to protect Singaporeans by ensuring loans reflect future interest rate risks and prevent overleveraging.
First-time buyers, especially lower-income households, remain supported through substantial grants like the Enhanced CPF Housing Grant.

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8 Nov 2022

Sale of Counterfeit Healthcare Products in Online Marketplaces

Over the past five years, the Health Sciences Authority received an average of about three complaints per year regarding the sale of counterfeit healthcare products on online marketplaces.
Consumers who have been duped into buying these products can lodge a complaint with the Consumer Association of Singapore or take civil legal action against the seller in the Small Claims Tribunals or Singapore Courts.
Anyone caught selling counterfeit health products online can be fined up to $100,000 and/or jailed for up to three years, indicating enforcement action is taken against the seller.

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8 Nov 2022

Update on Lao PDR-Thailand-Malaysia-Singapore Power Integration Project

Minister Gan Kim Yong confirmed that the flow of electricity from Lao PDR to Singapore under the LTMS-PIP has remained stable since its commencement on 23 June 2022.
From 23 June to 31 October 2022, Singapore imported over 170,000 megawatt hours of electricity from Lao PDR under the project.
The LTMS-PIP has demonstrated the economic and technical feasibility of cross-border electricity trading and supports regional efforts towards the ASEAN Power Grid.
At a ministerial meeting in September 2022, the four countries agreed to further discuss enhancements and future plans for multilateral power trade.
There was no mention of plans to export energy out of Singapore under the LTMS-PIP.

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8 Nov 2022

Details of Discussions on Australia-Asia Power Link's Sun Cable Project

He Ting Ru questioned if there are discussions on the Sun Cable project outside the Energy Market Authority's Request for Proposal (RFP) programme, whether details can be shared, and if the government plans to invest.
Gan Kim Yong stated that all Sun Cable discussions occur under the RFP framework, with the proposal still being assessed and no further details available.
He noted Singapore's goal to import 4 gigawatts of low-carbon electricity by 2035 via RFPs, with Sun Cable's proposal for 1.75 gigawatts under consideration.
Gan highlighted that Singapore and Australia are collaborating on cross-border electricity trade, including through the Green Economy Agreement to enhance regional energy connectivity.
The government has not announced any plans to invest in the Sun Cable project.

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8 Nov 2022

Adequacy of Rare Disease Fund in Supporting Applicants

Leon Perera inquired about the number of applications received by the Rare Disease Fund (RDF) since April 2021, the ratio of applicants to grants, and the availability of funds for new applicants.
Health Minister Ong Ye Kung stated that the RDF has received six applications since April 2021, all of which are currently supported, with sufficient funds available and seven medicines listed for five conditions.
The RDF operates as an endowed fund with a "listing" approach, focusing on medicines that meaningfully extend life expectancy and improve quality of life, but does not support non-listed medications.
The government provides a 3:1 matching grant for donations to the RDF, and efforts are ongoing to expand the fund’s scope while acknowledging the challenges of supporting high-cost treatments with uncertain efficacy.
The debate highlighted the need for careful review of government support for rare disease treatments and encouraged public donations to increase the RDF's capacity.

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8 Nov 2022

Pegging Cost-of-Living Support to Numbers in Households

Gan Thiam Poh suggested reviewing cost-of-living support to be based on household size to better assist larger low- and middle-income families with children.
Lawrence Wong explained that current schemes use a mix of individual and household criteria, with measures like CDC vouchers and education subsidies already accounting for family sizes.
The government provides targeted support such as cash payouts, education top-ups, and lowered childcare fees, while continuously reviewing criteria to ensure assistance reaches those with greater needs.

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8 Nov 2022

Carbon Pricing (Amendment) Bill

The Carbon Pricing (Amendment) Bill significantly raises Singapore's carbon tax from $5 to $25 per tonne in 2024-2025 and $45 from 2026, aiming for $50-$80 by 2030 to meet the net-zero by 2050 target, with advance notice given to businesses for transition.
It introduces an industry transition framework with allowances for Emissions-Intensive Trade-Exposed sectors to maintain competitiveness and prevent carbon leakage, and establishes an International Carbon Credits framework allowing companies to offset up to 5% of emissions with high-quality credits, subject to strict environmental standards.
Parliament debated amendments to increase transparency and accountability, but proposals for public registries of allowances and ministerial decisions were rejected to protect commercial confidentiality, with the government committed to supporting businesses and households through the transition using carbon tax revenue.

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8 Nov 2022

Personal Explanation

Assoc Prof Jamus Jerome Lim clarified that he misspoke in a previous statement, correcting that he intended to ask if the current government is under-saving relative to the 2008 government.
He emphasized the need for accuracy in the record regarding his analogy about government savings in the context of GST amendments.
The Speaker acknowledged the clarification and moved to the next agenda item.

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8 Nov 2022

Public Transport Fare Adjustment in Fare Review Exercise 2022

The Public Transport Council (PTC) set a maximum fare adjustment of 13.5% for 2022 but implemented only a 2.9% increase, carrying over 10.6% to future exercises after considering economic and social factors, with the government providing an additional $200 million subsidy.
Minister S Iswaran emphasized that fare adjustments balance cost sustainability with affordability, noting that public transport spending as a proportion of household income has decreased over the past decade, and support measures like concession fares and Public Transport Vouchers (PTVs) target vulnerable commuters.
Questions on bus service reliability, headway reductions, and the sustainability of fare gaps were raised, with the Minister highlighting cost implications and ongoing reviews to ensure the financial health of the public transport system.

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