Economy & business — Topics

3 Oct 2022

Accountants (Amendment) Bill

The Accountants (Amendment) Bill introduces four key sets of amendments to enhance Singapore's audit regulatory regime, including formalising quality control inspections for accounting entities, enabling anti-money laundering inspections, refining the assessment framework from a pass-fail to a tiered system, and requiring disclosure of inspection findings to audited entities for better transparency and compliance.
Minister Indranee Rajah addressed concerns about compliance costs and support for small and medium-sized practices, explaining that risk-based inspections and fee caps will be implemented, and ACRA is working with professional bodies to provide training and guidance to help firms adapt to the new standards.
MPs raised questions about the appointment and powers of the Public Accountants Oversight Committee (PAOC), the criteria for reasonable excuses in inspections, and the appeal process, with the Minister clarifying procedures to ensure impartiality, due process, and confidentiality while maintaining regulatory effectiveness.

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3 Oct 2022

Business Trusts (Amendment) Bill

The Bill updates the Business Trusts Act to align it with the Companies Act and REIT regulations, enhancing transparency, governance, and unit-holder rights while reducing administrative burdens.
Key amendments include lowering the threshold for unit-holders to call a poll, aligning trustee-manager removal rules with REIT standards, and requiring unlisted trusts to disclose beneficial owners to combat illicit activities.
Ministers addressed concerns about loans to directors and controller identification, clarifying that regulatory differences between business trusts and REITs are justified due to their distinct structures and purposes.
Broader discussions on promoting philanthropy through trusts were noted as outside the Bill’s scope but acknowledged as a separate area for future study, with MAS aiming to develop Singapore as a philanthropy hub.

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3 Oct 2022

Income Tax (Amendment) Bill

The Bill increases the top marginal personal income tax rate for residents earning over $500,000 to 23% and over $1 million to 24% from the Year of Assessment 2024, aiming to enhance tax progressivity and generate an estimated $170 million in additional annual revenue.
It amends the Income Tax Act to facilitate more extensive sharing of taxpayer information by IRAS with public sector agencies for official duties, including with taxpayer consent for broader purposes and without consent for specific company-related data listed in the 11th Schedule, with safeguards like data anonymization and limited access.
The Bill updates the definition of "local employee" for the Mergers and Acquisitions Scheme and streamlines the Board of Review's procedures, allowing for single-member hearings in less complex cases to improve efficiency in tax dispute resolution.

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3 Oct 2022

Carbon Pricing (Amendment) Bill

The Carbon Pricing (Amendment) Bill was introduced to amend the Carbon Pricing Act 2018, presented by Senior Minister of State Dr Amy Khor on behalf of the Minister for Sustainability and the Environment.
The Bill was read for the first time and is scheduled for a second reading at the first available Parliament Sitting in November 2022.
The introduction follows the recommendation of the President and was formally presented and recorded for printing.

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3 Oct 2022

Accountancy Functions (Consolidation) Bill

The Accountancy Functions (Consolidation) Bill aims to amend multiple acts, including the Accounting and Corporate Regulatory Authority Act 2004 and the Accountants Act 2004, while repealing the Singapore Accountancy Commission Act 2013.
The bill was presented by the Second Minister for Finance, Ms Indranee Rajah, and read for the first time in Parliament.
It is scheduled for a second reading at the first available sitting in November 2022 and will be printed for further legislative action.

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3 Oct 2022

Bringing Forward Distribution of CDC Vouchers

Ang Wei Neng proposed distributing CDC Vouchers earlier in Q3 2022 and issuing them per individual rather than per household to better address high inflation.
The government highlighted that most households have claimed and used existing CDC Vouchers, along with other support measures, and will consider more assistance if inflation worsens.
Ang Wei Neng emphasized rising inflation rates and asked if larger households could receive more vouchers and if support could be extended individually.
The government explained that while CDC Vouchers are broad-based, targeted measures like GST-Voucher cash payments are more effective for lower-income individuals.

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13 Sep 2022

One-off Adjustment to CPF Ordinary Account Interest Rates to Better Reflect Inflation Premium

Assoc Prof Jamus Jerome Lim proposed a one-off adjustment to CPF Ordinary Account interest rates to better reflect the inflation premium seen in lending rates, and suggested incorporating lending rates into the CPF OA rate formula.
The Minister for Manpower responded that CPF OA rates are not comparable to bank lending rates because the principal and interest are government-guaranteed, unlike loans which carry default risk.
Instead of adjusting CPF OA rates, the government has implemented a $1.5 billion support package to provide targeted relief for inflation, especially for lower-income and vulnerable groups.
The minister noted that while the OA pegged rate is around 0.09%, the government pays up to 3.5% on OA balances through additional interest and the statutory minimum, with options to transfer funds to higher-yielding accounts.
The government continues to monitor the interest rate environment to ensure CPF OA rates remain relevant amid prevailing and long-term conditions.

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13 Sep 2022

Breakdown of $193.7 Million Annual Fee Paid to Sports Hub Pte Ltd

Hazel Poa inquired about the $193.7 million annual fee paid to Sports Hub Pte Ltd, asking whether it includes costs beyond operations, maintenance, lifecycle, and debt servicing, for a breakdown of these costs, and if contractual clauses allow discontinuation of payment for non-performance.
Edwin Tong Chun Fai explained that 65% of the fee covers SHPL's debt repayments for the Sports Hub construction loan, with the remainder funding daily maintenance, operations, and lifecycle costs of the assets.
The payments are tied to SHPL meeting Key Performance Indicators on facility availability, event programming, cleanliness, security, and customer care, with deductions applied for unmet KPIs but no full fee discontinuation mentioned.

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13 Sep 2022

Complaints of Unfair and Pressure Sales Tactics and Recourse Available to Aggrieved Consumers

Over the past five years, the Consumers Association of Singapore (CASE) received 1,216 complaints about pressure sales tactics, while the Police do not track such civil consumer complaints.
Consumers can seek redress by approaching CASE for negotiation or mediation, and if unsuccessful, they may file a claim with the Small Claims Tribunal or pursue other legal remedies.
In serious cases, CASE refers errant suppliers to the Competition and Consumer Commission of Singapore (CCCS), which investigated five pressure sales cases in the last five years, leading to ceased unfair practices and compliance agreements or undertakings.

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13 Sep 2022

Annual Subvention Grant to Town Councils with Raising of GST in 2023 and 2024

The government announced it would provide funding to Town Councils to absorb the additional GST payable on Service and Conservancy Charges, as stated in the February 2022 Budget.
Minister Lawrence Wong confirmed this support was detailed to Town Councils by the Ministry of National Development in August 2022.
The funding aims to offset the GST increases scheduled for 2023 and 2024, ensuring no additional cost to Town Councils from the tax hike.

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13 Sep 2022

Breakdown of $980 Billion in Government Securities Fund in Financial Statements for FY2021/2022

Hazel Poa asked for a breakdown of the $980 billion in the Government Securities Fund as per the FY2021/2022 Government Financial Statements.
Lawrence Wong explained that the statements provide the breakdown, including details on outstanding borrowings issued under the fund.
The relevant information is located in section 1 (VII) of the Government Financial Statements, specifically in the Statement of Government Securities Fund.
This clarifies that the data is publicly available in the official financial documents for that fiscal year.

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13 Sep 2022

Statement of Assets and Liabilities in Government Financial Statements for FY2021/2022

Hazel Poa asked if the $1.57 trillion in government financial assets includes the latest increases in GIC and Temasek holdings and, if not, what the contribution would be.
Lawrence Wong clarified that the SAL records all government gross financial assets, including cash, investments, and government funds managed by GIC.
Wong confirmed that government investments in Temasek are also recorded in the SAL according to its basis of preparation.
The reply indicates that the SAL comprehensively includes assets managed by both GIC and Temasek, implying the reported figure is up to date.

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13 Sep 2022

Review of Disclosure Requirements and Penalty Regimes for Breaches of Securities and Futures Act and Companies Act

The government emphasized that Singapore's regulatory framework for financial disclosures is multi-layered, involving obligations under the Securities and Futures Act, Companies Act, SGX Listing Rules, and auditors, with recent actions against Noble Group illustrating this structure.
MAS imposed a $12.6 million civil penalty on Noble Group Limited for false financial statements under the SFA, while two directors of its Singapore subsidiary received stern warnings under the Companies Act, with no individual penalties due to insufficient evidence.
Authorities have enhanced coordination through a joint MAS-ACRA forum, established a SGX whistleblowing office, and required local auditor appointments to strengthen oversight of listed companies.
MOF and ACRA are currently reviewing fines for directors who fail to prepare compliant financial statements, and regulators will continue investigating corporate malfeasance to maintain a fair system.

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13 Sep 2022

Coverage of New Subsidy Framework for Standard Drugs List and Drug Affordability

The new subsidy framework for the Standard Drugs List (SDL) will raise subsidies to 75% for Singaporeans with a Per Capita Household Income (PCHI) up to $2,000, effective from 1 November 2022, while those with higher incomes continue to receive 50% subsidies.
Government expenditure on SDL subsidies is expected to increase by about 7% to over $120 million per year as a result of these changes.
The Ministry is enhancing affordability through increased subsidies under the Medication Assistance Fund for eligible residents and by managing drug procurement costs via centralised purchasing and negotiations to secure better prices.

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13 Sep 2022

Debt Collection Bill

The Singapore government introduced the Debt Collection Bill to regulate the industry and curb problematic debt collection practices, citing a high number of police reports about harassment and public alarm.
The Bill establishes a licensing regime for debt collection businesses and a class licensing system for already-regulated entities like banks, with requirements for fitness and propriety, conduct rules, and penalties for violations.
MPs supported the Bill but raised concerns about clarity on prohibited conduct, online harassment, protection of debtors and compliance officers, and the need for public education and debt counselling support.

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13 Sep 2022

Further Measures to Address Labour Crunch and Reduce Dependence on Foreign Labour

The Minister outlined that Singapore’s resident Labour Force Participation Rate has steadily increased, with more women and seniors joining the workforce, and noted that flexible work arrangements, improved preschool access, and increased retirement and re-employment ages are key strategies to further boost participation.
To support senior workers, the government provides wage offsets and part-time re-employment grants, while Workforce Singapore offers mid-career pathways and career conversion programmes to promote local employment.
Businesses are encouraged to transform and increase productivity through Industry Transformation Maps, Job Redesign, and reskilling programmes, supported by grants to enhance manpower efficiency and reduce reliance on foreign labour.

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13 Sep 2022

Impact on COE Prices Exerted by Car Rental Companies that Lease Out Private Hire Cars

Chua Kheng Wee Louis questioned if car rental companies leasing to private hire vehicles (PHVs) have influenced COE bid prices, whether a study would be conducted, and if PHVs could be removed from COE bidding.
Senior Minister of State Dr Amy Khor responded that there is no evidence PHV companies have driven up COE prices, noting stable demand and population; she explained PHVs are treated as private cars due to their flexibility, and creating a separate COE category would be difficult to enforce and increase compliance costs.
Louis Chua followed up, highlighting the significant growth of PHVs compared to taxis (70,000 vs. 14,000) and suggesting PHVs should receive similar COE treatment as taxis, which were removed from bidding in 2012.
Dr Khor reiterated that PHVs' autonomy makes them akin to private cars, and separating them into a new COE category would lead to enforcement challenges, higher costs, and potential volatility in COE premiums.
The Ministry emphasized continuous monitoring of the point-to-point sector and COE market, with no evidence that PHVs have contributed to rising COE premiums.

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13 Sep 2022

Business Costs in Singapore and Measures to Help Businesses Remain Competitive

Business costs in Singapore have risen sharply due to global factors like higher energy prices and supply disruptions, as well as domestic labour market tightness, with unit business costs increasing for both manufacturing and services sectors compared to the past five years, though businesses have remained profitable with gross profits rising.
The government is providing targeted short-term support through measures such as the Small Business Recovery Grant, Energy Efficiency Grant, Enterprise Financing Scheme, Progressive Wage Credit Scheme, and extended Jobs Growth Incentive to help businesses cope with rising costs.
Long-term strategies focus on enhancing productivity and competitiveness via schemes like the Enterprise Development Grant and Productivity Solutions Grant, with support levels increased for sectors like retail and food services.
The government emphasises a whole-of-government approach, closely monitoring feedback and refining initiatives such as increased financing limits and energy efficiency grants to ensure businesses can navigate both immediate and future challenges.
The response highlights that despite cost pressures, businesses are expected to remain profitable and are embracing digitalisation, which is seen as key to sustaining competitiveness and mitigating labour constraints.

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13 Sep 2022

Rebound of Retail and Hospitality Sectors since Start of 2022

Retail and hospitality sectors have rebounded to pre-pandemic levels, with retail sales in July 2022 reaching $3.4 billion (18% year-on-year increase) and hotel room revenue at $319 million (4.5 times year-on-year), supported by a recovery in visitor arrivals.
The Ministry forecasts continued recovery over the next 12 months, though global geopolitical tensions and economic slowdown may moderate growth, with visitor arrivals projected at 4–6 million for 2022.
Industry Transformation Maps for retail and hospitality are being refreshed to enhance resilience against future pandemics, focusing on digitalisation, sustainable practices, and workforce upskilling to attract and retain talent through job redesign and better career pathways.

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13 Sep 2022

Annual Public Transport Subsidy Amount and How This Compares with Other Government Subsidies and Support

The Government subsidizes public transport by over $2 billion annually, with costs rising due to network expansion and inflation, and aims to balance affordability for commuters with fiscal sustainability across generations.
The Public Transport Council will review the fare adjustment formula to account for changing commuting patterns, energy costs, and inflation, ensuring the formula remains relevant for the next three to five years.
Public Transport Vouchers are provided to support low-income households, with eligibility covering up to 40% of Singapore households, and these are considered part of broader household support measures like the GST Offset Package.

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