Economy & business — Topics

7 Nov 2022

Effects of Global Energy Crunch and High Interest Rates on Green Financing and Adjustments Needed

Headwinds from the global energy crisis and higher interest rates have generally slowed green financing activity, but global green bond issuance is rebounding and is expected to increase in the second half of 2022.
Singapore has continued to see strong growth in green and sustainable financing, with over S$65 billion issued from 2017 to 2021, and recent issuances from entities like PUB, Singtel, and local banks committing to expand sustainable finance portfolios.
The Monetary Authority of Singapore (MAS) is promoting green and transition finance through schemes to defray costs, plans to issue up to S$35 billion in green bonds by 2030, efforts to scale blended finance, and the development of enablers such as a taxonomy, enhanced disclosures, and better ESG data access.

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7 Nov 2022

Support for Development of Green Local Firms and Uptake of Enterprise Sustainability Programme

The Ministry for Trade and Industry highlighted Singapore's net-zero by 2050 commitment and the importance of the green transition for economic competitiveness, acknowledging the higher costs businesses may face but outlining government support through schemes like the Resource Efficiency Grant and Energy Efficiency Fund.
Over 700 enterprises have participated in the Enterprise Sustainability Programme (ESP), with the government committed to enhancing it with more targeted and sector-specific resources to accelerate green growth and innovation among SMEs.
The government is investing over $1 billion in sustainability-related RIE2025 initiatives, including low-carbon technologies, to foster industry-research collaborations with commercialisation potential, while also developing Singapore as a carbon services and green finance hub.

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7 Nov 2022

Unpegging HDB Concessionary Interest Rate for Housing Loans from Prevailing CPF Ordinary Account Interest Rate

The Member asked whether HDB loans are funded by CPF and whether the concessionary interest rate could be unpegged from the CPF OA rate.
The Minister clarified that HDB loans are financed from the Development Fund, not CPF, with funds provided by the government at the prevailing CPF OA rate.
The concessionary interest rate is set at 0.10% above the CPF OA rate to cover HDB’s administrative costs and to reflect the opportunity cost for borrowers using CPF savings for housing.
The rate is currently 2.6% per annum until 31 December 2022 and is reviewed quarterly alongside CPF OA rate reviews.
The government maintains the peg to ensure stability and certainty for borrowers who typically use CPF savings for mortgage repayments.

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7 Nov 2022

Promoting Employment of Persons with Disabilities

The Open Door Programme has 2,268 registered employers as of October 2022, with 23% having hired persons with disabilities, while others may face hiring freezes or lack suitable candidates.
Key initiatives supporting employment include the Enabling Employment Credit for wage offsets, the Jobs Growth Incentive for salary support, and Place-and-Train and Attach-and-Train programmes offering customised employment and skills training.
Additional efforts feature transition-to-work programmes like School-to-Work, the Enabling Mark accreditation for inclusive employers, and a multi-stakeholder task force under the Enabling Masterplan 2030 to enhance opportunities.
The government aims to achieve 40% employment for working-age persons with disabilities by 2030, emphasising employer participation and inclusive societal vision.

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7 Nov 2022

Building a Winning Global Talent Strategy

The debate emphasized that Singapore’s global talent strategy must balance practical economic needs with addressing local concerns about fairness, integration, and national identity, as attracting talent is vital for an advanced economy with a shortage of local skilled workers.
Key measures include clearly distinguishing work pass policies from immigration pathways, ensuring a transactional initial approach to hiring foreigners, and expecting them to respect Singapore’s laws, culture, and local workforce through initiatives like orientation programs.
Enhancing local talent development is crucial, with suggestions to promote overseas exposure and a global mindset among students and workers, while also leveraging SMEs to benefit from international expertise and ensure knowledge transfer to build a stronger Singaporean core.

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7 Nov 2022

Goods and Services Tax (Amendment) Bill

Leon Perera from the Workers' Party raised concerns about the adequacy of Singapore's reserves, the risk of inflation from the GST hike, and whether the projected healthcare expenditure increase justifies the immediate need for a GST hike.
Deputy Prime Minister Lawrence Wong defended the government's position, stating that using more past reserves would burden future generations and that the GST system is fair and effective, with past experience showing that profiteering can be managed.
The Workers' Party expressed philosophical disagreements with the government on reserves growth and GST increases, leading to a recorded dissent during the vote, though the bill was passed.

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7 Nov 2022

Goods and Services Tax (Amendment) Bill

Lawrence Wong defended the GST increase by arguing it is not regressive in Singapore due to permanent offsets like the GST Voucher and Assurance Package, which delay the financial impact on most households until around 2030 and ensure lower-income families pay little to no effective GST.
He emphasized that the broader GST system, combined with targeted support, ensures high-income households, foreigners, and tourists bear most of the burden, making it a fair and sustainable way to fund future needs like healthcare without over-relying on volatile revenues or raising other taxes.
In clarifications, Wong addressed concerns about fiscal outturn, NIRC contributions, and GST exemptions, noting that revenues and spending have risen, NIRC is expected to keep pace with growth, and expanding exemptions would complicate the system like in other countries.
He rejected calls to delay or pause the GST hike, stating the Assurance Package already provides longer relief, and dismissed multi-tiered GST systems as ineffective based on global studies, favoring Singapore’s income-tiered approach.
Leong Mun Wai pressed questions on NIRC allocation and HDB grants, but Wong clarified all revenues are pooled into a consolidated fund with no hypothecation, and any surpluses are prudently set aside for long-term needs like climate adaptation.

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7 Nov 2022

Goods and Services Tax (Amendment) Bill

The Bill will increase the GST from 7% to 8% in 2023 and to 9% in 2024 to fund rising healthcare and social spending, with the government emphasizing that the Assurance Package and permanent GST Vouchers will offset the impact for lower- and middle-income households for at least five to ten years.
The opposition, including the Workers’ Party and Progress Singapore Party, argued the GST hike is ill-timed due to high inflation and economic uncertainty, proposing alternatives like raising the Net Investment Returns Contribution or land sales revenues instead.
The government defended the hike as necessary for long-term fiscal sustainability, countering that alternatives either reduce reserves for future generations or are insufficient, while highlighting measures to curb profiteering and support vulnerable groups.

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7 Nov 2022

Impact Sale of State Land on Reserves and Accounting Treatment of Cost of State Land for Public Housing

Officials explained that selling state land converts a physical asset into an equivalent financial asset without increasing past reserves, and land automatically reverts to the state after a lease expiry, again with no net reserve gain.
It was clarified that there is no "triple payment" by Singaporeans for HDB land, as HDB pays fair market value to preserve reserves, and flats are sold below market value with subsidies, resulting in annual deficits for HDB's homeownership program.
Minister Indranee Rajah declined to provide a detailed breakdown of HDB development costs and subsidies, deeming it not meaningful, while stating that HDB's audited financial statements already show net deficits from subsidizing flat sales.
Additional parliamentary questions were raised about the treatment of reclaimed land in reserves and affordability indices for mature estate BTO flats, with officials requesting formal submissions for technical answers.

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20 Oct 2022

Extending Validity Period of CDC Vouchers Scheme

Zhulkarnain Abdul Rahim asked whether the validity of the CDC Vouchers Scheme could be extended beyond 31 December 2022.
Edwin Tong Chun Fai stated that all households are encouraged to use the vouchers before the expiry date.
The CDC Vouchers for 2021 and 2022 will expire on 31 December 2022 as scheduled.
A new round of CDC Vouchers will be disbursed to every Singaporean household in early 2023.
The exchange indicates no extension of the current expiry date but confirms an upcoming disbursement.

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20 Oct 2022

Ensuring Prospective HDB Flat Buyers Can Afford Necessary Payments Before Processing Sale

HDB requires buyers using an HDB loan to have a valid HLE letter before booking a flat or obtaining an OTP, while those using bank loans must get a Letter of Offer before signing the Agreement for Lease or exercising the OTP.
Since 2016, over 70% of new flat buyers using HDB loans obtained an HLE letter before booking; others with extenuating reasons must secure it before signing the Agreement for Lease and making the down payment.
HDB advises buyers on financial prudence, conducts financial counselling, and partners with institutions to guide housing and financing decisions.
HDB officers review a financial plan with buyers during flat booking, explaining required payments and having buyers sign it to acknowledge their commitment.

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20 Oct 2022

Circumstances for Inclusion of More Efficacious Medicine in Rare Disease Fund

The Rare Disease Fund (RDF) evaluates treatments based on their effectiveness in extending lifespan and improving quality of life, considering the unique nature of each rare disease and the limited fund size.
The RDF Committee already uses a tiered support model to determine the amount of financing support for each approved treatment, balancing efficacy and cost.
The Government encourages public donations to the RDF, which are matched three-for-one and eligible for enhanced tax deductions, to help cover more expensive, efficacious medicines.

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20 Oct 2022

Subsidies for Dedicated Transport Service Providers to Purchase Special Needs Vehicles

Dr Shahira Abdullah queried if purchases of special needs vehicles have increased and if subsidies exist for providers to buy them.
The number of new registrations of wheelchair-accessible vehicles has stayed stable at about 70 per year over the past five years, with around 1,000 such vehicles registered as of September 2022.
The Ministry of Social and Family Development administers a COE Grant Scheme to subsidize COE and Additional Registration Fee costs for commercial vehicles used to transport seniors and Persons with Disabilities who cannot use public transport unassisted.

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20 Oct 2022

Take-up of Provisions of Comprehensive and Progressive Agreement for Trans-Pacific Partnership by Companies

Sylvia Lim asked the Minister for Trade and Industry to assess how companies, especially small and medium-sized enterprises, are utilizing the provisions of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
The CPTPP has been in force for eight countries including Singapore, and total trade with these markets grew from S$108 billion in 2019 to S$118 billion in 2021.
MTI, EnterpriseSG, and the Singapore Business Federation actively reach out to companies to help them understand and use FTAs, including through outreach sessions and an online portal for tariff and non-tariff information.

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20 Oct 2022

Take-up of Provisions of Regional Comprehensive Economic Partnership by Companies

Sylvia Lim requested an assessment of the take-up rates of RCEP provisions by companies in Singapore.
Gan Kim Yong noted that RCEP only recently entered into force for Singapore, requiring more time to analyze take-up rates.
MTI, Enterprise Singapore, and the Singapore Business Federation are actively outreach to companies through sessions and guidebooks to help them utilize RCEP provisions.

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20 Oct 2022

Total Economic Value Created by Formula One Singapore Grand Prix 2022

The 2022 Formula One Singapore Grand Prix recorded a record attendance of 302,000 spectators, with at least 40% from overseas, generating around $130 million in incremental tourist spending.
The event directly supported local businesses in engineering, construction, and hospitality, with about 30,000 staff and contractors accredited, and hotel room rates exceeding $440 per night.
The race boosted the local economy through 90,000 delegates attending approximately 25 Meetings, Incentives, Conferences, and Exhibitions events held around the race period.

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20 Oct 2022

Cryptocurrency-related Scams Reported Annually in Past Three Years

In 2019, 125 cryptocurrency-related scam reports were received, increasing to 397 in 2020 and 631 in 2021, indicating a rising trend.
Most cryptocurrency scams are perpetrated by scammers based outside Singapore, making investigation and recovery challenging due to reliance on overseas cooperation.
The Police established a cryptocurrency task force in 2018 to enhance investigations and work with overseas agencies, while MAS and MoneySENSE continue public education efforts to warn about the risks of cryptocurrencies.

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20 Oct 2022

Borrowers on Fixed and Floating Rate Mortgages for HDB and Private Residential Properties

Chua Kheng Wee Louis asked for the percentage of borrowers on fixed versus floating rate mortgages for HDB and private residential properties.
Tharman Shanmugaratnam, for the Prime Minister, stated that as of Q2 2022, about 20% of HDB loans were floating rate, with 80% on rates linked to board or fixed deposit rates or fixed for initial years.
For private residential properties, about 37% of loans were floating rate, while the remaining 63% were on similar linked or fixed-rate packages.

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20 Oct 2022

Review of Payouts to Retirees on Government Pension Schemes Given Rising Cost of Living

Members of Parliament asked if pension payouts for retirees should be reviewed to address rising living costs and inflation.
The Government explained that pensions are fixed based on service and salary, but provides the Singapore Allowance to counter inflation, with the latest increase of $30 in September 2022.
Regular reviews are conducted on the Singapore Allowance and pension ceiling, and retirees also receive additional support like GST vouchers and other rebates.

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20 Oct 2022

Inclusion of Monies Lost to Scams by Migrant Workers in MAS' Framework for Equitable Sharing of Losses

Miss Rachel Ong inquired about the amounts lost by migrant workers to scams over the past three years, whether MAS’s loss-sharing framework includes them, and if special compensation considerations would be made due to their vulnerability.
Tharman Shanmugaratnam reported that migrant workers lost S$4.5 million in 2019, S$10.4 million in 2020, and S$24.9 million in 2021, with phishing and job scams being the most common, and noted ongoing government efforts in education and enforcement.
The government is taking multi-faceted actions to combat scams, including public education campaigns in multiple languages and outreach through NGOs and community partners specifically targeting migrant workers.
MAS is developing a framework for shared responsibility among relevant parties to incentivize vigilance against scams, which will apply to customers of financial institutions but did not explicitly confirm inclusion of migrant workers in this framework.

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