Economy & business — Topics

2 Aug 2022

Targets under Trial for Lao PDR-Thailand-Malaysia-Singapore Power Integration Project

The LTMS-PIP trial allows Singapore to import up to 100 megawatts of renewable energy from Laos for two years to study the feasibility of cross-border power trade as a pathfinder for the ASEAN Power Grid.
Since its start in June 2022, the project has facilitated steady electricity trading, supplying around 65,500 megawatt-hours to meet the demand of approximately 140,000 households, demonstrating the viability of regional collaboration for decarbonization.
The Energy Market Authority will monitor the project to refine technical and regulatory frameworks for importing large-scale low-carbon electricity, with plans to import up to four gigawatts by 2035 through initiatives like the ongoing Request for Proposal.
Commitments from electricity trade are expected to attract foreign direct investments into the renewable energy sector in Laos and the region, supporting economic opportunities and decarbonization efforts.

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2 Aug 2022

Outcomes of Complaints on Alleged Price Hikes and Potential Anti-competitive Behaviour

Assoc Prof Jamus Jerome Lim queried the Ministry for Trade and Industry about the number of complaints received and investigations initiated by the Competition and Consumer Commission of Singapore (CCCS) regarding alleged price hikes and anti-competitive behaviour from 2018 to date.
Minister Gan Kim Yong stated that CCCS received an average of about 200 complaints annually on alleged anti-competitive behaviour from 2018 to 2021.
He also noted that CCCS launched 15 investigations and market studies into potential anti-competitive behaviours based on its own surveillance during the same period.

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2 Aug 2022

Assessment of Quantum and Proportion of Household Cost of Living Attributable to Energy Consumption

Dr Tan Wu Meng asked the Ministry for Trade and Industry about the projected short- and long-term changes in the quantum and proportion of household cost of living attributable to energy consumption, considering geopolitical and climate factors, and requested a breakdown by income decile.
Gan Kim Yong cited that in 2017/2018, households spent an average of $220 monthly on energy, representing about 4.5% of total expenditure, and noted that recent global energy price increases due to the Russia-Ukraine war and supply constraints may raise energy costs, with more data expected from the next survey.
The Ministry highlighted that Singapore’s reliance on imported energy makes domestic prices vulnerable to global volatility, and while current projections indicate potential impacts on household energy expenditure, detailed decile breakdowns are not yet available.
The Government is monitoring energy prices and has introduced support measures, such as enhanced GST Voucher U-Save vouchers and a $100 Household Utilities Credit, to help households cope with rising energy costs.
Additional support has been extended to self-employed persons affected by higher fuel costs, including a one-off relief of $150 for eligible taxi and private hire car drivers.

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2 Aug 2022

Enforcement Against Businesses Using Impending GST Increase as Excuse for Unjustified Price Increases

Yip Hon Weng asked whether the Committee Against Profiteering (CAP) takes enforcement against businesses using the GST increase as an excuse for unjustified price hikes, what actions ensure compliance from repeat offenders, and if offending businesses will be named.
Gan Kim Yong explained that CAP investigates such feedback, engages businesses to address issues, and may publicize errant businesses, noting that CAP reviewed about 100 submissions in 2022 with five GST-related cases that were swiftly addressed through collaboration with agencies.
The five cases resulted in businesses committing to transparent pricing and communications, with no repeat complaints so far.

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2 Aug 2022

Discovery of Tax Loophole of Non-bare Trusts

Hazel Poa asked how and when the tax loophole of non-bare trusts was discovered.
Lawrence Wong responded that the issue was addressed during the Stamp Duties (Amendment) Bill 2022 Second Reading.
MOF identified the loophole during a periodic policy review and conducted a thorough study before proposing legislative amendments.
The discovery process involved examining complex trust arrangements set up for various reasons.
The government decided to move forward with amendments after completing its review and analysis.

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2 Aug 2022

Risk Assessment of Borrowers Defaulting on Floating Rate Loan Packages

MAS assesses that household debt remains healthy with low non-performing mortgages and strong financial resilience due to regulatory measures like the TDSR buffer and loan-to-value limits.
Stress tests indicate most households, including those on floating rate loans, can service debt even under scenarios of income loss and sharp interest rate hikes, though a small highly leveraged segment may be more affected.
Borrowers facing difficulties are urged to contact lenders early for refinancing or restructuring, with support available for HDB homeowners through standardized interventions.

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2 Aug 2022

Enhancing Regulation of Cryptocurrency for Investor Protection

Saktiandi Supaat raised concerns about the systemic risk from insolvent cryptocurrency firms, the need for enhanced regulations beyond anti-money laundering, and how such measures align with Singapore’s cryptocurrency hub ambitions.
Tharman Shanmugaratnam responded that the Prime Minister had already addressed these points in a written answer published on 1 August 2022.
The referenced answer discussed licenses for digital payment token providers and Singapore’s strategy to promote itself as a cryptocurrency hub.

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2 Aug 2022

Median Debt-to-income Ratio of Singaporeans Compared to Those Living in Top 10 Global Cities

The Prime Minister's office provided a comparative analysis showing Singapore's household debt-to-income ratio averaged 1.3 from 2018 to 2020, which is lower than most of the top 10 advanced economies by GDP per capita.
Singaporean households have a significantly higher net assets-to-income ratio of 7.9 on average during the same period, the highest among comparable economies, indicating strong net asset positions.
About 70% of household debt in Singapore consists of mortgage loans, with an average loan-to-value ratio of under 50%, reflecting substantial net positive equity in residential properties.
The median Total Debt Servicing Ratio for new mortgages in Singapore was 43% over the past year, demonstrating healthy overall debt servicing ability despite a small segment of highly leveraged households.

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2 Aug 2022

Progress of Singapore's E-sports Scene and Info-Communications and Media Professionals Required to Support Games Sector

During the COVID-19 pandemic, Singapore's e-sports scene grew significantly, with the global e-sports audience expected to exceed 500 million in 2022 and events like the Garena's Free Fire World Series achieving record viewership.
The games sector in Singapore, including e-sports, has created diverse job opportunities, with nearly 2,000 people employed in the sector in 2021, though a skilled talent shortage persists globally.
The 2,700 info-communications and media professionals figure from IMDA's 2019 survey is an indicative estimate based on expected growth, not a fixed target, and actual job creation varies with market conditions.
The government plans to support growth in the games and e-sports sector by enabling job creation and training Singaporeans with relevant skills to seize emerging opportunities.

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2 Aug 2022

Target Levels of Employment for Hospitality Industry with Expected Recovery From COVID-19 Pandemic

In December 2019, the hospitality industry employed 35,000 people, but due to COVID-19 restrictions, this dropped to 23,000 by March 2022, with hiring expected to increase as borders reopen and events resume.
To support local hiring, initiatives like the Tourism Careers Hub and Career Conversion Programmes have been launched to match job seekers, upskill workers, and help mid-careerists transition into the industry.
To address immediate labour needs, the government is providing temporary additional foreign worker quotas, while also encouraging business transformation and technology adoption to create quality jobs for locals.

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2 Aug 2022

Extension of Concessionary Migrant Domestic Worker Levy to Singaporeans Living with Permanent Resident Parents

The concessionary levy for migrant domestic workers is currently $60 for households with a Singaporean child under 16, elderly person aged 67 or above, or a person with disabilities who needs daily assistance.
The concession is also extended to Singaporeans living with PR parents who are elderly or have disabilities, recognizing their long-term commitment to Singapore.
The levy concession does not apply if the person needing care is a foreigner, including Long-Term Visit Pass holders, to align with broader government policy that provides fewer benefits to non-residents.
Households facing financial difficulties can seek support from Social Service Offices.

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2 Aug 2022

Regulation of Consumer-facing Charges and Terms Imposed by Major Ride Hailing Platforms

The Government does not limit the number of ride-hailing platforms but requires those with over 800 vehicles to be licensed and comply with safety and transparency rules.
Regulations mandate clear publication of all fares and charges, with operators required to give at least seven days' notice before implementing any fee changes.
The Ministry does not approve specific fee structures; Grab’s recent changes to waiting fees and grace periods were commercial decisions made within the notice requirement.
The regulatory focus is on safety, transparency, and fostering a contestable market rather than controlling fares or platform numbers.
The debate raised questions about the extent of supervision over unilateral term changes and whether more competition should be encouraged.

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2 Aug 2022

Assessment of Whether Governments' Period Contracts and Framework Agreements Favour Large, Full-Service Companies

Gerald Giam asked whether whole-of-Government Period Contracts and Framework Agreements favour large, full-service multinational companies over local SMEs and independent contractors who may offer more competitive prices for partial services, and whether the Ministry conducts contractor concentration analysis and tracks the average share of the top vendor.
Lawrence Wong explained that these contracts are demand aggregation agreements intended to improve efficiency and value-for-money by appointing panels of vendors through competitive tenders, with panel size varying based on the procurement's nature.
He stated that agencies select vendors based on best meeting requirements at suitable pricing, not on targets for vendor share, making such targets not meaningful for MOF to set.
Wong noted that SMEs comprise about 75% of vendors on these panels and receive over 85% of procurements through these contracts, indicating the contracts are open to both large companies and SMEs.
The key criterion for awarding these contracts is a vendor's ability to deliver cost-effective services, not the size of the company.

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2 Aug 2022

Structuring Tenders in Whole-of-Government Period Contract and Framework Agreement to Build Up Players in Creative Services Industry

Mrs Josephine Teo explained that the whole-of-Government Period Contract and Framework Agreement (PCFA) for Creative Services was introduced in 2018 to streamline procurement and achieve value-for-money through aggregated demand and open tender, resulting in a panel of vendors predominantly SMEs.
She noted that while the PCFA does not guarantee contracts, all vendors on the panel have received projects of varying sizes based on agency assessments of quality and price, with no irregularities observed, and this exposure helps vendors build track records and client awareness.
To further support the creative services industry, MCI encourages agencies to consider a wider range of vendors, share vendor information proactively, and allow payment for pitching services to assist smaller agencies.
MCI will continue to refine the PCFA by monitoring expenditure distribution and increasing invitations-to-pitch, while making adjustments to better promote industry growth.

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2 Aug 2022

Successfully Commercialised Ideas from SMEs' Partnerships with Local Institutes of Higher Learning

Over 3,000 SMEs engaged with Centres of Innovation (COIs) in local IHLs from 2016 to 2020, resulting in about 300 innovation projects across sectors like technology translation and product co-development.
The government has increased support for SME innovation, with COIs expected to undertake nearly 2,000 projects over five years in agri-tech, construction, food manufacturing, precision engineering, and retail.
SMEs can access resources like lab facilities, consultancy, and IP licensing through COIs, with outreach efforts conducted via trade associations and industry partnerships.
Mechanisms exist for SMEs to influence R&D directions and access patents, and the government regularly benchmarks performance against global innovation ecosystems like Israel’s.

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2 Aug 2022

Intent and Approach Towards Criteria for New Energy Efficiency Grant for SMEs

The Energy Efficiency Grant (EEG) is designed to support SMEs in food services, manufacturing, and retail sectors by providing funding of up to 70% for pre-approved energy-efficient equipment in six categories, chosen for their high energy usage and long operating hours.
The government encourages a "total solution" approach to energy efficiency, with additional support available through schemes like NEA's Energy Efficiency Fund and BCA's Green Mark Incentive for system-level upgrades and building retrofits.
The ministry is engaging with industry stakeholders to refine the EEG and is open to reviewing and expanding the list of eligible equipment based on SME feedback and technological advancements.
MTI and ESG are committed to helping SMEs at all stages of their sustainability journey, offering various support measures including energy audits and capability-building programs to facilitate green transformations.

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2 Aug 2022

Adjustments to CPF Interest Rates Given Inflation

Members asked whether CPF interest rates should be raised to offset high inflation and questioned the formula used for the Ordinary Account, including the banks and parameters considered.
The Minister explained that CPF rates are pegged to market returns, with Ordinary Account rates based on major local banks’ averages and Special/MediSave/Retirement Account rates tied to 10-year Singapore Government Securities plus 1%, with floor rates ensuring minimum returns.
The Minister highlighted that despite low market rates, the government has maintained higher floor rates since 2008, providing risk-free interest up to 5% for those below 55 and 6% for those 55 and above, with periodic reviews to avoid fluctuations.
A supplementary question raised whether the government would consider granting extra interest in light of inflation and reviewing the 1999 formula for Ordinary Account rates, given changes in bank deposit structures.
The Minister responded that CPF focuses on long-term security, promotional bank rates often have conditions, and the current framework ensures fair, risk-free returns, with ongoing annual and quarterly reviews.

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2 Aug 2022

Temporary State Control of Energy Market to Keep Electricity Prices Stable for Consumers and Businesses

Yip Hon Weng asked whether the government would consider temporarily state-controlling the energy market to stabilize electricity prices amid global volatility.
The Second Minister for Trade and Industry replied that while global energy prices are volatile, existing measures like the SLF, fuel stockpiling, and TRECS have ensured supply stability without state intervention, and the government will introduce new measures if needed.
Yip inquired about diversifying electricity sources to reduce reliance on imported natural gas, which accounts for 95% of Singapore's electricity.
The Minister outlined ongoing efforts to diversify, including electricity imports via projects like LTMS and RFPs, accelerating solar deployment, and developing low-carbon alternatives like hydrogen and geothermal energy.
The government emphasized maintaining natural gas as a transition fuel while advancing international cooperation for energy resilience and sustainability.

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1 Aug 2022

Percentage of Self-employed Persons Not Meeting MediSave Contribution Obligations in Full

Over the past five years, around 25% of self-employed persons did not meet their MediSave contribution obligations in full each year.
Slightly more than half of these SEPs had less than $3,000 in outstanding MediSave liabilities annually during this period.
The government piloted the Contribute-As-You-Earn (CAYE) scheme in 2020 with SEPs contracting with the government, which saw high participation and regular contributions.
Following the pilot, the government is studying the feasibility of extending the CAYE scheme to SEPs in the private sector.

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1 Aug 2022

Statistics on 2022 CDC Vouchers Claimed, Redeemed and Utilised and Measures to Benefit Specific Businesses or Segments of Singaporeans

86.8% of Singaporean households, or 1.06 million, claimed their 2022 CDC vouchers as of 19 July 2022, with about $62 million spent at over 17,700 participating hawkers and merchants.
A total of more than $163 million has been spent using the 2021 and 2022 CDC vouchers, with $27 million (16.6%) utilized in 2,800 stalls across 677 coffee shops.
The CDC Vouchers Scheme supports both households with daily expenses and businesses, with ongoing efforts to onboard more heartland merchants and hawkers to widen benefits.
The government is encouraged by positive feedback on the scheme’s ease of use and its role in boosting heartland merchant and hawker businesses.

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