Economy & business — Topics

13 Sep 2022

Special Review of Controls and Checks for COVID-19 Pandemic-related Procurement and Expenditure

Foo Mee Har asked if the Government would commission a special review of controls and checks for COVID-19 pandemic procurement and expenditure.
The Second Minister for Finance confirmed that MOF had already begun a review, with agencies conducting audits and the Auditor-General performing a thematic audit, while MOF is also updating guidelines to strengthen controls for future emergencies.
The Minister outlined measures to minimise financial risks during emergencies, including system checks on grant eligibility, methods to assess price reasonableness, proper documentation, and ex post checks using data analytics.
For FY2020 to FY2021, the actual COVID-19 expenditure was $72.3 billion, lower than the initial $100 billion commitment due to under-utilisation of loans and public health resources, with details provided on the breakdown and reasons for the variance.

Summary written by AI

Overview Original source

12 Sep 2022

Singaporeans Employed by Multiple Companies at Less than $1,500 at Each Company for Headcount

Leong Mun Wai asked about the number of Singaporean workers employed by two or more companies with monthly pay under $1,500 at each company, where such headcount is used for foreign worker quotas.
Tan See Leng replied that about 53,200 locals work in two or more jobs, with roughly half earning under $1,500 on average per job, including part-time workers.
The system allows locals to count toward foreign worker quotas for up to two companies, with full credit if paid at least the Local Qualifying Salary of $1,400 and half credit if paid at least $700.
This approach prevents firms from hiring locals on token salaries solely to boost quotas, and the Progressive Wage Model from September 2022 further requires all full-time local workers to earn at least the LQS for firms to hire foreign workers.

Summary written by AI

Overview Original source

12 Sep 2022

Sectors Facing Severe Lack of Workers and Measures to Support Manpower Needs

Mr Chong Kee Hiong asked about the sectors with the most severe worker shortages, support measures for essential services, potential adjustments to the dependency ratio ceiling, and allowing more migrant workers from non-traditional sources.
Minister Tan See Leng noted that some firms face manpower tightness due to catch-up work and training, but total employment has nearly rebounded to pre-COVID levels, with non-resident employment expected to recover further.
Focused support, including additional foreign worker quotas and access to workers from non-traditional sources, has been provided to sectors like aviation, tourism, healthcare, and public housing cleaning, rather than broad dependency ratio adjustments.
A scheme to allow hiring of Work Permit Holders from non-traditional sources in select Services and Manufacturing occupations will start in September 2023.

Summary written by AI

Overview Original source

12 Sep 2022

Plans to Raise Local Qualifying Salary to Benefit Lower-wage Earners

Christopher de Souza asked whether there are plans to raise the Local Qualifying Salary (LQS) to the 10th percentile income of Singaporeans to benefit lower-wage workers.
Tan See Leng explained that the LQS ensures employers pay locals fairly to qualify for foreign worker quotas, and a new requirement now mandates all full-time local workers to be paid at least the LQS for firms to hire foreign workers.
The Ministry of Manpower has raised the LQS four times since 2017, with the latest being $1,400 in 2020, and will continue to review and adjust it based on wage and economic conditions to uplift lower-wage workers.

Summary written by AI

Overview Original source

12 Sep 2022

Impact of Inflation on Workers and Provision of Appropriate Wage Increments

The Government promotes a tripartite approach with employers and employees to boost productivity and wage growth through Industry Transformation Maps and upskilling programmes to help workers cope with inflation.
Various grants and policies, including the Progressive Wage moves and tightened foreign workforce rules, are used to support businesses in restructuring, reskilling employees, and ensuring fair wages for locals.
The National Wages Council will issue annual wage guidelines later this year to guide employers on fair and sustainable wage increments, taking into account the economic recovery and inflation impact.
Lower-wage workers have seen strong real income growth in recent years, and the government has introduced support measures like the $1.5 billion package to help vulnerable groups with cost-of-living pressures.

Summary written by AI

Overview Original source

12 Sep 2022

Reasons Commercial and Institutional Building Owners Not Tapping On Accessibility Fund for Barrier-free Access

Building owners are not tapping the Accessibility Fund mainly due to cashflow concerns from expensive works like lift installation and space constraints in older buildings.
The Building and Construction Authority has enhanced the fund to offer interim payments for lift projects over $200,000, allowing owners to claim up to 70% of funding during construction.
To speed up upgrades, BCA will require owners of larger non-barrier-free commercial and institutional buildings to add basic accessibility features during any addition or alteration works starting early 2023.

Summary written by AI

Overview Original source

12 Sep 2022

Steps Taken to Ensure Affordability of Food Sold in School Canteens

Schools monitor canteen food quality, portions, and prices based on MOE guidelines to ensure affordability and meet nutritional needs, with vendors checked for practices like shrinking portions.
School meal subsidies for low-income students are regularly reviewed and enhanced, with MOE Financial Assistance Scheme boosted by 20% to 30% from January 2023.
Additional funds are provided to schools for extra assistance to lower-income households beyond the MOE FAS, including for those who may not qualify for the scheme.

Summary written by AI

Overview Original source

12 Sep 2022

Effect of US' Inflation Reduction Act on Singapore Green Plan 2030

The Inflation Reduction Act (IRA) with its US$369 billion in climate spending presents opportunities for Singapore to collaborate with the US on clean energy, low-carbon solutions, and green technologies, which can support the Singapore Green Plan 2030’s targets.
Singapore and the US are utilizing the US-Singapore Climate Partnership to cooperate on carbon credit markets, sustainable finance, energy transitions, and clean energy infrastructure, aligning with broader initiatives like the Partnership for Growth and Innovation and the Indo-Pacific Economic Framework.
The Singapore Green Plan is a living document that will be regularly reviewed to incorporate new technologies and solutions, ensuring it remains responsive to global developments like the IRA and evolving bilateral partnerships.

Summary written by AI

Overview Original source

12 Sep 2022

Measures to Reduce COE Price Volatility and Encourage Switch to Electric Vehicles

Sitoh Yih Pin proposed a new COE category for point-to-point transportation to lower costs for workers, while Nadia Ahmad Samdin suggested a separate COE model to encourage electric vehicle adoption and asked if recent adjustments have reduced COE volatility and stabilized prices.
Melvin Yong Yik Chye recommended reviewing or removing the Category E COE due to its use for large cars, but Minister S Iswaran explained that creating additional COE categories would fragment the market, increase volatility, and that direct incentives like rebates are already in place for electric vehicles.
The government has introduced measures such as increased bid deposits and adjusted quota computations to reduce volatility, with ongoing monitoring of the Vehicle Quota System to address supply and demand pressures.

Summary written by AI

Overview Original source

12 Sep 2022

Effect of US' CHIPS and Science Act on Singapore's Semiconductor Manufacturing Industry

The CHIPS and Science Act’s subsidies have intensified global competition for semiconductor investments, with US firms like Intel increasing domestic production, posing a challenge to Singapore’s ability to attract foreign investment.
Singapore’s semiconductor sector, which contributes 7% of GDP, has shown resilience with long-term growth despite recent output declines, underpinned by strong fundamentals like stability, IP protection, and a skilled workforce.
The government is countering competition by partnering with global industry leaders on advanced manufacturing, workforce training, R&D, and sustainability initiatives to deepen Singapore’s role in the global semiconductor value chain.

Summary written by AI

Overview Original source

12 Sep 2022

Pro-Enterprise Panel's Help to Businesses in Singapore

The Pro-Enterprise Panel (PEP), chaired by the Head of Civil Service, reviews and streamlines government regulations to reduce compliance costs and foster innovation for businesses.
Since its inception in 2000, the PEP has implemented over 1,100 rule changes across industries, including the creation of the Gobusiness portal for 300+ government-to-business services.
The panel has supported new business models like peer-to-peer car sharing, 24/7 unmanned gyms, and container hotels by facilitating regulatory approvals.
Going forward, the PEP aims to make regulations more agile and smart to help businesses capitalize on emerging technologies and opportunities while safeguarding public interest.

Summary written by AI

Overview Original source

12 Sep 2022

Number of Singaporean PMEs Placed on Global Ready Talent Programme Since Establishment

Patrick Tay asked the Minister for Trade and Industry for the annual number of Singaporean PMEs placed in the Global Ready Talent Programme from its establishment to 31 August 2022.
The Global Ready Talent Programme was launched in 2019 to support businesses in offering local and overseas internships for students and overseas work placements for management associates.
Approximately 18,500 local interns and management associates have benefited from the programme since its launch, with over 80% in PMET roles despite COVID-19 travel restrictions.
The government encourages more companies to join the programme to develop a pipeline of global-ready talent.

Summary written by AI

Overview Original source

12 Sep 2022

Number of EntrePasses and Tech.Passes Issued to Foreign PMEs Since Introduction

Patrick Tay asked for the number of foreign PMEs holding EntrePass and Tech.Pass each year from their introduction until 31 August 2022.
Gan Kim Yong explained that EntrePass was introduced in 2003, saw 1,000–2,000 holders initially, dropped to 200–400 after 2013 repositioning, and was enhanced in 2017, with about 700 holders as of 31 July 2022.
Tech.Pass was launched in January 2021, and as of 31 July 2022, around 250 unique applications had been approved by EDB.

Summary written by AI

Overview Original source

12 Sep 2022

Effect of Pandemic on Singapore's Nominal Wage Growth and Nominal National Productivity

The pandemic caused a reversal in Singapore’s economic performance in 2020, with nominal productivity declining by 0.4% and nominal income by 0.6%, compared to the average annual growth of 4.1% and 4.5% over the previous decade.
Economic recovery in 2021 led to a rebound, with nominal productivity growing by 9.5% and nominal income by 3.2%.
By 2021, both nominal productivity and nominal income had surpassed their pre-pandemic levels, standing 9.0% and 2.6% above their 2019 figures, respectively.

Summary written by AI

Overview Original source

12 Sep 2022

Enhancing Transaction Safety on Social Media and E-commerce Platforms

The Inter-Ministry Committee on Scams introduced the Transaction Safety Ratings (TSR) and revised Technical Reference 76 (TR 76) to guide e-commerce platforms on user authentication, transaction security, and anti-scam measures, with TSR rating platforms like Amazon and Lazada highly for their safety features.
The TSR and TR 76 aim to raise consumer and industry awareness through advisories and guidelines, though TR 76 measures are not mandatory and will be monitored for potential regulation.
Over 300,500 users have downloaded ScamShield since November 2020, with millions of scam SMSes reported and thousands of numbers blocked, and an Android version is forthcoming to expand protection.

Summary written by AI

Overview Original source

12 Sep 2022

Annual Amount of Subsidies and Other Support Provided to Businesses in Past Three Years

Liang Eng Hwa asked for the annual amounts of subsidies, support, and government-backed financing given to businesses over the past three years.
Lawrence Wong stated that significantly more support was provided in 2020 and 2021 due to COVID-19 compared to 2019, and presented a table with the breakdown.
The debate centered on the scale of government financial assistance to businesses across the three-year period, highlighting the impact of the pandemic.

Summary written by AI

Overview Original source

12 Sep 2022

Raising Tax Relief Claimable under Working Mother's Child Relief Scheme

Christopher de Souza proposed raising the personal income tax relief cap from $80,000 to $100,000 under the Working Mother's Child Relief scheme to support families and encourage a higher national fertility rate.
Lawrence Wong explained that the current $80,000 cap affects only 1% of tax residents, with most working mothers not reaching the limit, so increasing it would not benefit the majority.
The government provides extensive support for families beyond tax reliefs, including cash gifts, savings schemes, grants, subsidies for education and healthcare, and various forms of leave and childcare support.
These measures collectively demonstrate the government's commitment to supporting parenthood, with ongoing policy reviews to enhance family-friendly support in Singapore.

Summary written by AI

Overview Original source

12 Sep 2022

Public's Retail Exposure to Licensed Digital Payment Token Service Providers

Derrick Goh asked the Prime Minister for the current percentage of the public's retail exposure to MAS-licensed digital payment token service providers.
Tharman Shanmugaratnam, responding for the Prime Minister, stated that data on total cryptocurrency holdings of the Singapore public are not available due to transactions with both local and overseas providers.
It is therefore not possible to determine the proportion of cryptocurrency holdings obtained through MAS-licensed providers.
MAS has repeatedly warned retail investors not to trade in cryptocurrencies because of extreme price volatility and the risk of losing all invested funds.

Summary written by AI

Overview Original source

12 Sep 2022

Limits on Borrowing Costs for Secured and Unsecured Lending to Consumers

The Prime Minister explained that MAS does not set maximum interest rates or fees, as these are commercial decisions by financial institutions, but instead enforces safeguards and disclosure rules to promote informed consumer choices and financial prudence.
For unsecured credit, MAS imposes a minimum income requirement of $20,000, caps total unsecured borrowings at annual income, and suspends credit access if debt is over 60 days past due to prevent excessive debt.
For mortgages, MAS uses the total debt servicing ratio framework, loan-to-value limits, and loan tenure caps to enhance households' resilience in servicing loans, especially during periods of higher interest rates.
MAS requires financial institutions to provide clear disclosures on fees, interest charges, and loan features, such as fact sheets for mortgages and detailed payoff projections for credit cards, to help consumers make informed borrowing decisions.
The Prime Minister urged households to exercise caution, expect further interest rate increases, and approach lenders early for refinancing or repayment solutions if facing difficulties.

Summary written by AI

Overview Original source

12 Sep 2022

Update on "Buy Now Pay Later" Loans

Derrick Goh asked about the value and growth of BNPL loans, the development of an industry code, reporting loans to credit bureaus, and measures to prevent consumer over-indebtedness.
BNPL transactions reached $440 million last year, up from $114 million in 2020, but remain under 1% of total card payments.
An industry code for BNPL providers is on track for launch this year, aiming to limit debt accumulation through measures like suspending overdue users and assessing creditworthiness.
Providers are exploring sharing customer information to improve credit assessments, and MAS will continue monitoring the sector for risks.

Summary written by AI

Overview Original source