Economy & business — Topics

3 Oct 2022

Most In-demand Services at SME Centres and Key Metrics Used to Measure Success in Transforming SME Clients

From 2016 to date, the most in-demand services at SME Centres include business advisory on capability and business development, Government assistance, and safe management measures during the pandemic, along with capability-building workshops on productivity, digitalisation, innovation, and internationalisation.
The median duration SME Centres spend engaging each SME client varies depending on the nature and complexity of assistance, with about 20,000 business advisory sessions conducted annually and an average of 190 workshops reaching over 6,000 SMEs yearly.
Key metrics used to measure success include output-based tracking for simple consultations (e.g., number of SMEs in workshops) and project-specific outcomes for deeper engagements (e.g., sales volumes, channels, and international presence), as illustrated by the case of Asyura Paste.
These metrics are tracked to varying extents, with output indicators for advisory sessions and workshops, and outcome indicators for in-depth projects, though the extent of tracking depends on the assistance type.

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3 Oct 2022

Steps to Mitigate Risks for Singapore Government-linked Projects and Investments in China

The Minister highlighted Singapore’s proactive diversification of economic relations through multiple free trade agreements such as RCEP and CPTPP to mitigate country-specific risks.
Singapore maintains strong economic ties with China, which remains its largest trading partner and top investment destination, benefiting from China’s growth.
Government-to-government projects like the Chongqing Connectivity Initiative and the China-Singapore Suzhou Industrial Park are progressing well, with strategic commitments reducing vulnerability to economic cycles.

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3 Oct 2022

Cases of Resellers of Luxury Items Defrauding Buyers and Plans for Public Education and Regulation

Police do not specifically track cases of luxury item resellers defrauding buyers, and defining a clear list of luxury items is difficult.
The Inter-Ministry Committee on Scams leads public education, working with e-commerce platforms to introduce Transaction Safety Ratings and advise buyers to verify seller legitimacy.
There are no announced plans to specifically regulate resellers of luxury items, with current efforts focused on general scam prevention and consumer education.

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3 Oct 2022

Exemption of Amount Granted to National Servicemen under NS Excellence Award from Income Tax

The NS Excellence Award (NSEA) recognizes excellent performance by Operationally Ready National Servicemen, with total awards from 2017 to 2021 showing a dip in 2020 and 2021 due to scaled-down activities during the COVID-19 pandemic.
Under current tax policy, monetary awards like the NSEA are taxable as they are treated similarly to employment income, unlike non-taxable appreciation gifts such as the NS55 Recognition Package.
All NSmen receive a tax relief of $1,500 to $5,000 annually as recognition of their service, but the exact tax clawback from NSEA payments cannot be determined as it depends on individual income factors.
Only NSmen with higher incomes are effectively taxed on their NSEA payments due to the interplay of personal reliefs and marginal tax rates.
The question of whether NSEA could be made tax-exempt remains unresolved, with the government maintaining that performance-based awards are taxable in line with existing tax treatment.

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3 Oct 2022

Total Profit Before Tax and Corporate Tax Paid by Companies from 2018 to 2022

Hazel Poa requested total profit before tax and corporate tax paid by companies across seven profit brackets from 2018 to 2022.
Lawrence Wong provided tables with the data for earlier years but noted that 2022 information is not yet available.
He clarified that effective tax rates are calculated using chargeable income, not accounting profit before tax, and shared average rates for SMEs and non-SMEs.

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3 Oct 2022

Tax Treatment of Full-time National Serviceman Allowances

Leon Perera asked about the number of full-time National Servicemen (NSFs) whose parents claimed tax relief such as Qualifying Child Relief (QCR) or Working Mother Child Relief (WMCR) over the past five years, the rationale for the $4,000 income cap under these reliefs, and whether NSF allowances could be treated like other allowances for tax purposes.
Lawrence Wong explained that QCR and WMCR aim to support parents and encourage working mothers, with children qualifying if unmarried, financially dependent, and meeting age or full-time study criteria, including a concession for those with annual income up to $4,000.
He noted that NSFs generally are not considered financially dependent as their needs are provided by the armed forces, but they may qualify if their total NS allowance and other income are under $4,000 in a year.
Wong stated that NSF allowances are already treated like transport and meal allowances for tax purposes, being considered income subject to tax if chargeable income reaches $20,000 or more.
The Ministry provided data on the number of NSFs whose parents had QCR/WMCR claims allowed in the last five years, aligning with the stated tax relief objectives and criteria.

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3 Oct 2022

Measures against Insider Gifting of SGX-listed Shares and Unit Trusts to Approved Charities for Tax Deduction

Mr Murali Pillai questioned whether IRAS has procedures to detect and address insider gifting of SGX-listed shares or unit trusts to approved charities for tax deductions by individuals with price-sensitive information.
Lawrence Wong stated that IRAS reviews high-value donations of shares and unit trusts, investigates potential tax avoidance including insider gifting, and collaborates with the Monetary Authority of Singapore.
IRAS can use section 33 of the Income Tax Act to disregard or adjust tax deduction claims and impose surcharges, and charities must have robust due diligence processes to maintain IPC status.

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3 Oct 2022

Duties Due from Under-declaration of Imported Cars from 2011 to 2021

Miss Cheryl Chan asked about the total duties due from under-declared imported cars from 2011 to 2021 and the effectiveness of measures to prevent such under-declaration.
Lawrence Wong stated that Singapore Customs uses measures like requiring commercial documents and conducting audits and inspections, with under-declared duties kept low at $1.3 million from 2011 to 2021, representing less than 0.1% of total excise duties collected.
The Minister indicated that importers found under-declaring values may be prosecuted, and the measures have been effective in keeping duties due low.

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3 Oct 2022

Registration or Licensing of Family Offices in Singapore

The Government will not require registration or licensing for Single Family Offices (SFOs) as they manage assets for only one family, unlike Multi-Family Offices (MFOs) which are regulated under the Securities and Futures Act.
The Monetary Authority of Singapore lacks comprehensive data on specific investment areas of family offices, though they typically invest in globally diversified assets like equities, private equity, and ESG-related investments.
There is growing interest among SFOs in Environmental, Social, and Governance investments, private equity, venture capital, and philanthropy, with potential for increased local investments in Singapore.

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3 Oct 2022

Sufficiency of Exchange Rate, Fiscal and Macroprudential Measures to Contain Rising Cost of Living

The Government adopts a multi-pronged approach, using tighter monetary policy to dampen imported inflation and targeted fiscal and credit support to help vulnerable Singaporeans cope with rising costs.
The Monetary Authority of Singapore estimates its policy moves since October 2021 will restrain core inflation by an average of 1.2 percentage points annually over 2022-2023, preventing it from being 30% higher.
Fiscal support is crucial to cushion the impact of global food and energy price surges, as monetary policy alone cannot fully offset these effects, similar to other countries facing high inflation.
Rising interest rates affect borrowing costs, prompting MAS and HDB to implement measures to prevent excessive household borrowing for home purchases.
Given global uncertainties, the Government and MAS will continue to deploy fiscal, monetary, and macroprudential tools as needed to ease inflationary pressures and support Singaporeans.

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3 Oct 2022

Donations Made to Rare Disease Fund and Alternative Fundraising Arrangements with Matching Donation Support for More Diseases

The Rare Disease Fund (RDF) raised about $137.9 million since its 2019 inception, including $37.9 million in FY2021 and $8.6 million by July 2022, with government matching and tax incentives.
The RDF does not accept earmarked donations for specific patients to ensure fairness, and a committee assesses which conditions to support based on medical need and cost-effectiveness.
An alternative fundraising arrangement with different matching ratios was not formally proposed, but the government encourages public donations to the RDF to expand coverage for more rare diseases.

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3 Oct 2022

Guidelines for Cruise Ship Industry's Practice of Overbooking

Melvin Yong Yik Chye asked the government whether it would consider regulating or introducing guidelines for cruise ship overbooking to protect consumers.
Gan Kim Yong explained that overbooking is a common global cruise industry practice to account for cancellations and no-shows, helping keep fares affordable and sailings available.
He noted that cruise operators must compensate affected passengers, and all such cases in Singapore have been compensated so far.
The Singapore Tourism Board will continue to engage cruise lines to ensure responsible practices and maintain high standards.

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3 Oct 2022

Proposal for Review of Water Conservation Tax Structure for Potable Water Usage

Leon Perera questioned the rationale behind the two-tier water conservation tax structure, the 40 cubic metre threshold, and proposed trials for a more progressive multi-tiered system.
Grace Fu explained that the two-tier structure, in place since 2000, aims to discourage consumption, with 96% of households paying the lower tier and increasing numbers using under 40 cubic metres monthly.
She stated that water pricing reflects scarcity and the government does not see a need for more tiers, while providing targeted assistance like GST U-Save rebates for lower-income households.

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3 Oct 2022

Beneficiaries and Targeted Competencies under Talent and Leaders in Finance Programme

The Talent and Leaders in Finance programme supports Singaporeans at all career stages to build deep specialist and leadership skills, focusing on technology, sustainability, and senior roles.
Beneficiaries include students, mid-career professionals, and existing workers, with initiatives like internships, career conversion programmes, and overseas stints to develop in-demand competencies.
The programme targets competencies in technology (e.g., data analytics, software engineering) and sustainable finance, alongside leadership development to help Singaporeans secure senior finance jobs and support Singapore’s growth as a global financial hub.

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3 Oct 2022

Guidelines for Regulated Financial Institutions to Limit Financing of Businesses in Hard-to-abate Sectors

MAS requires regulated financial institutions to assess and mitigate environmental risks, guiding them to support firms in hard-to-abate sectors with transition financing aligned with credible, Paris-aligned plans rather than indiscriminate credit withdrawal.
MAS has issued guidelines on environmental risk management, worked with banks to develop information templates for financing decisions, and published best practices, with the three local banks establishing sector-specific policies for higher-risk sectors.
Financial institutions are encouraged to pursue voluntary net-zero pledges and interim targets under initiatives like GFANZ, with MAS supporting the establishment of the GFANZ Asia-Pacific Network in Singapore to foster credible, inclusive decarbonization efforts.

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3 Oct 2022

Additional Workfare Income Supplement Cash Support to Cushion Inflation

Gan Thiam Poh asked if additional Workfare Income Supplement cash support can be provided to help beneficiaries cope with inflation.
Tan See Leng responded that Workfare is regularly reviewed and was enhanced from 2023, with maximum annual payouts raised and cash portions increased for lower-wage workers.
The government is also raising lower-income wages through Progressive Wages, Local Qualifying Salary, and annual wage recommendations, supported by a $1.5 billion relief package.
The government will continue monitoring the situation and provide targeted help if needed.

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3 Oct 2022

Applications and Eventual Approval for Enterprise Development and Productivity Solutions Grants

Edward Chia inquired about the number of Enterprise Development Grant (EDG) and Productivity Solutions Grant (PSG) applications received and approved over the past three years, and how these figures compared to their annual budgets.
From FY2019 to FY2021, over 20,400 EDG applications were received with about 85% approved, and over 116,100 PSG applications were received with nearly 95% approved; most projects were completed and disbursed within three years for EDG and within 13 months for PSG.
The Ministry of Trade and Industry and Enterprise Singapore emphasized no applications were turned away due to budget constraints, with support levels increased during the pandemic and additional funding provided to meet rising demand.

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3 Oct 2022

Assistance for Hawkers to Meet Requirements for Nutri-Grade Mark for Freshly-prepared Drinks

Ms Ng Ling Ling asked when the Ministry of Health will clarify how sugar and fat levels will be measured for freshly prepared drinks and whether the government will support stallholders in promoting healthier drink options.
The Ministry of Health and Health Promotion Board will implement mandatory Nutri-Grade labelling using nutrient databases instead of laboratory analysis and will provide industry guidance by end 2023.
The measures will initially apply only to larger establishments, with smaller stalls exempted at the start, and will be reviewed over time.
The government encourages participation in the Healthier Dining Programme, which offers support for developing healthier food and drink products.

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3 Oct 2022

Decarbonising Government's Investment Holdings and Reducing Government's Exposure to Climate-related Financial Risks

MAS and government investment entities like GIC and Temasek are already integrating sustainability and climate risk considerations into their investment strategies across various asset classes.
MAS specifically excludes companies deriving over 10% of revenues from thermal coal mining and oil sands from its portfolio and is tilting its equities benchmark toward lower carbon intensity.
GIC and Temasek are supporting decarbonisation by investing in low-carbon transition solutions and engaging portfolio companies on climate plans, though the government does not prescribe individual investment actions.

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3 Oct 2022

Ensuring Better Oversight of Public Expenditures

Leong Mun Wai criticized two major public expenditures totaling $2.4 billion, questioning the financial prudence behind the $900 million funding for SPH Media Trust and the $1.5 billion termination cost for the Sports Hub public-private partnership.
He argued that SPH shareholders should have left more assets to fund the media trust rather than relying on taxpayers, and that the Sports Hub termination cost was overly generous, suggesting a lower figure based on his analysis of debt and reserves.
Minister Indranee Rajah rejected the allegations as without basis, explaining that both transactions were carefully considered to serve national interests, such as preserving a Singaporean media lens and vernacular languages, and that the Sports Hub termination was financially neutral compared to continuing the partnership.

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