Economy & business — Topics

12 Sep 2022

Impact of Measures to Encourage Prudent Bidding of COEs for Motorcycles

Abdul Samad inquired whether measures introduced in March 2022 to encourage prudent bidding for motorcycle COEs have mitigated rising prices.
S Iswaran explained that COE prices are driven by market forces and noted strong demand for Category D COEs, with two changes implemented: raising the bid deposit from $200 to $800 and shortening the validity period of temporary COEs from six to three months.
Since the changes, Category D COE prices have been relatively stable, with the September bid about 1% lower than in March, indicating the measures may have helped moderate price increases.

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12 Sep 2022

Impact of Inflation on Singapore Companies' Product and Service Competitiveness and Productivity

Higher global inflation poses unique challenges for Singapore due to its import-dependent economy, but competitiveness has remained resilient with improvements in unit labour costs and growth in both non-oil domestic exports and services exports.
To address rising costs, the government is enhancing support through schemes like the Productivity Solutions Grant, which aims to fund over 100,000 projects in the next four years, and the SkillsFuture Enterprise Credit for enterprise transformation.
Companies are encouraged to leverage these initiatives, alongside tools like the Enterprise Development Grant and refreshed Industry Transformation Maps, to boost productivity, upskill workers, and stay competitive amid wage and cost pressures.

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12 Sep 2022

Impact of Strengthening Sing Dollar on Plans to Rejuvenate Tourism and MICE Sectors

A stronger Singapore dollar helps lower inflation and import costs for businesses and households but may raise expenses for foreign visitors to Singapore.
Singapore continues to attract tourists and MICE events, with visitor arrivals and tourism receipts rising significantly in 2022 despite currency strength.
The government emphasizes competing on service quality, connectivity, and unique experiences rather than cost alone for the MICE sector, with support schemes in place to maintain competitiveness.

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12 Sep 2022

Energy-efficient Accreditation of Commercial Equipment and Plans to Expand Scale of Accreditation for SMEs

Edward Chia queried the adequacy of energy-efficient accreditation for commercial refrigerators and asked if plans exist to expand accreditation to give SMEs more purchase choices.
Grace Fu stated the Energy Efficiency Grant provides pre-approved, high-efficiency models in categories like air-conditioners, refrigerators, clothes dryers, and LED lighting, and uses pre-approved models for commercial equipment where international standards are lacking.
The government will regularly review the list of pre-approved models and welcomes SME suggestions for models or technologies to be assessed for inclusion.

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12 Sep 2022

Operating Revenue, Expenditures and Overall Surplus or Deficit of Current Government

Chua Kheng Wee Louis asked for the current fiscal performance of the government for FY2022, including operating revenue, expenditures, and surplus/deficit compared to budgeted figures and the estimated $3 billion deficit.
Lawrence Wong explained that it is premature to compare year-to-date figures with budgeted estimates or compute a primary surplus early in the financial year due to uneven revenue and spending patterns.
He noted that projecting the full-year fiscal position is not yet meaningful due to uncertainties in the macroeconomic environment and the COVID-19 situation.
The government typically provides a detailed fiscal update and revised estimates at the Budget statement.
Data on monthly revenue and quarterly expenditure is published by the Department of Statistics.

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12 Sep 2022

Impact of Change of Singapore Sports Hub Ownership and Management on Access to Facilities and Government Funding

The government confirmed that funding for National Sports Associations (NSAs) will not be affected by the change in Sports Hub ownership, as existing funds for operating and maintaining the Hub will continue.
NSAs will retain priority access to book Sports Hub and ActiveSG facilities for national team training, with SportSG assisting in securing alternative venues if needed.
Post-takeover, the government aims to optimize facility use across NSAs, athletes, and the public, ensuring a balanced approach to high-performance and recreational needs.

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12 Sep 2022

Proposal for Unused SkillsFuture Credits to be Donated to A Pool for Sharing

Ms Yeo Wan Ling asked about the percentage of unused SkillsFuture funding and proposed allowing unused credits to be pooled for sharing.
Minister Chan Chun Sing noted that as of June 2022, about 29% of eligible Singaporeans had used their credits, and credits are not transferable to encourage personal ownership of learning.
The government has provided top-ups, including a $500 credit in 2020 and an additional $500 for mid-career support, with continued subsidies for course fees.

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12 Sep 2022

Flow of Foreign Money into Local Property Market in Last Two Years

Leong Mun Wai asked about the trend of foreign money inflow into Singapore's property market over the last two years and its impact on prices.
Desmond Lee responded that foreigners account for a small and declining proportion of private housing transactions, about 3% in the past two years, down from pre-pandemic levels.
He noted that foreigners are not allowed to buy HDB flats and that the government will monitor foreign inflows and adjust policies as needed to maintain a stable property market.

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12 Sep 2022

Curbs on Bulk Purchases of Units within A Single Property Development

Yip Hon Weng asked the Ministry for National Development whether it would consider a higher Additional Buyer’s Stamp Duty tier for buyers purchasing multiple units in one development and how bulk-purchase discounts might affect past ABSD increases.
Desmond Lee explained that ABSD already moderates investment demand by differentiating rates based on residency status and property ownership, with recent rate hikes except for first-time purchases by citizens and permanent residents.
He noted that multiple-unit purchases in a single development are uncommon, accounting for about 1% of transactions this year, with even fewer involving more than two units, indicating minimal market impact.
The ministry will continue monitoring the property market and adjust policies as needed to ensure stability and sustainability.

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12 Sep 2022

Singapore Tourism Board (Amendment) Bill

The Bill transfers economic regulation of cruise terminals from the Maritime and Port Authority to the Singapore Tourism Board (STB) to support growth in the cruise tourism sector, including powers to set service standards and prevent excessive pricing.
It introduces provisions for STB to act as a guarantor for strategic tourism enterprises, with safeguards such as risk assessments and ministerial approval, to support economic benefits.
The Bill clarifies STB’s powers to collect tourism data, recognize electronic tourist guide badges, and enforce regulations, including using “public interest” as a basis for decisions like licensing conditions.
Amendments enhance STB’s administrative flexibility, such as updating voting processes and board tenure, and align with other statutory boards’ practices.
The government addressed concerns about sustainability, noting the cruise industry’s commitments to net-zero emissions by 2050 and Singapore’s role in supporting cleaner fuels like LNG.

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12 Sep 2022

Accountants (Amendment) Bill

The Second Minister for Finance introduced the Accountants (Amendment) Bill to amend the Accountants Act 2004 and make consequential amendments to the Banking Act 1970
The bill was presented for the first time and scheduled for a second reading at the next available parliamentary sitting
The procedural text was read and the bill was ordered to be printed for parliamentary proceedings

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12 Sep 2022

Income Tax (Amendment) Bill

The debate focused on amending the Income Tax Act 1947 to introduce tax incentives for offshore green investments, with the bill presented by Second Minister for Finance Ms Indranee Rajah.
Ministers emphasized that the amendments would position Singapore as a leading green finance hub and attract sustainable investment flows to support the nation's climate commitments.
The bill also included consequential changes to other related Acts to ensure regulatory consistency and effective implementation of the new tax measures.
During the debate, concerns were raised about the potential revenue impact and the need for robust safeguards to prevent misuse of the incentives.
The government assured that the amendments were carefully calibrated to balance economic growth with fiscal prudence and environmental responsibility.

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12 Sep 2022

Business Trusts (Amendment) Bill

The Business Trusts (Amendment) Bill aims to update the Business Trusts Act 2004, presented by Minister of State Alvin Tan on behalf of the Prime Minister.
The bill was read for the first time and scheduled for a second reading at the next parliamentary sitting.
The debate focuses on modernizing business trust regulations to enhance flexibility and governance for market participants.
The amendments seek to align Singapore’s business trust framework with international standards and stakeholder needs.
The changes are expected to improve transparency, investor protection, and the overall competitiveness of Singapore as a financial hub.

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12 Sep 2022

Personal Explanation

Assoc Prof Jamus Jerome Lim clarified a misstatement in his earlier speech, noting he meant the government should sell, not buy, long bonds to manage inflation.
The correction was made to ensure the parliamentary record accurately reflects his intended policy recommendation on macroeconomic measures.
The Speaker acknowledged the personal explanation and proceeded to the introduction of Government Bills.

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12 Sep 2022

Strengthening Singapore’s Position as a Global Hub for Talent

The Minister for Manpower introduced new work pass enhancements, including a five-year Overseas Networks & Expertise Pass for top earners and professionals in high-demand sectors, to attract global talent and strengthen Singapore's position as a global hub.
Safeguards were outlined to prevent abuse, such as rigorous vetting of applications and engagement with pass holders to monitor their contributions, while no quotas were set for the new pass due to the targeted nature of the talent sought.
The government emphasized its dual approach of attracting global talent while investing heavily in local workforce development, including leadership exposure and skills upgrading, to ensure Singaporeans benefit from the economic spillovers and opportunities created.

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12 Sep 2022

Proposal to Defer GST Increase Given Increased Tax Collection in FY2021/2022 and Below-inflation Income Growth

Parliamentarians asked if the 22.4% increase in tax revenue for FY2021/2022 could allow deferring the planned GST rises in 2023 and 2024, given below-inflation income growth.
The Deputy Prime Minister explained that the revenue surge was partly due to volatile stamp duty collections from a buoyant property market and was used for new spending needs; therefore, the government will proceed with the GST increase as planned to meet future expenditure commitments.
He assured that the government will maintain measures to shield households from the GST impact, enhancing support for lower-income groups if necessary, while acknowledging the difficulty in predicting revenue due to Singapore's economic volatility.

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2 Aug 2022

Average Rent Per Square Foot for Commercial HDB Units

Ms He Ting Ru requested the average rent per square foot for commercial HDB units in residential estates over the past 10 years, broken down by business type and ownership status.
The minister explained that 56% of HDB commercial properties were sold to private entities, and HDB does not collect rental data for these; the remaining 44% are directly managed by HDB.
HDB rental shops have far lower rents than private market rates, with median private rentals outside the Central Area exceeding $13 per square foot in 2021.
Since 2018, HDB has used Price-Quality tenders for coffeeshops, prioritizing affordable food options and stable rentals over pure price competition.

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2 Aug 2022

Special Bank Accounts to Allow Low-income Grant Recipients to Receive Digital Disbursements

Assoc Prof Jamus Jerome Lim asked whether the transition to digital disbursements is hindered by low-income grantees lacking bank accounts and if special accounts could be created for them.
Masagos Zulkifli B M M confirmed that Social Service Offices currently use cash and vouchers but plan to move to digital disbursements via bank transfers.
He noted that banks already assist clients in opening accounts without fees and the government will continue encouraging account opening to ensure access to financial services.

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2 Aug 2022

Data on Outstanding Skill Development Levy Collections Owed by Companies

Assoc Prof Jamus Jerome Lim requested a breakdown of outstanding Skills Development Levy collections owed by companies, separated into public versus private companies and multinational corporations versus small and medium-sized enterprises, and asked whether companies in arrears could access SkillsFuture Credits.
SkillsFuture Singapore explained that variances in SDL payments can arise from actual underpayments or updated employee data, and they are engaging affected employers with all public sector employers having paid in full.
SSG noted it cannot yet provide a breakdown of private companies as the engagement process is ongoing, and clarified that companies cannot access SkillsFuture Credits on behalf of their employees for training purposes.

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2 Aug 2022

Plans to Recover Overpayments of SkillsFuture Singapore Agency Grants from Service Provider

Assoc Prof Jamus Jerome Lim inquired about plans to recover overpayments of SkillsFuture Singapore agency grants, replace the outsourced service provider, and bring grant management payments in-house.
SkillsFuture Singapore has taken immediate corrective action, contacting affected parties for recovery and attributing lapses to wrong declarations and manual processing errors.
SSG will tighten audits, reduce reliance on declarations and manual processing, and consider the service provider's past performance when awarding a new contract.

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