Economy & business — Topics

5 Jul 2022

Prevalence of Drip Pricing and Its Impact on Business of Physical Merchants

Saktiandi Supaat asked whether the Competition and Consumer Commission of Singapore (CCCS) has received feedback that drip pricing is eroding the business of physical merchants in favor of online ones, where advertised prices exclude additional fees.
Gan Kim Yong explained that drip pricing involves advertising a lower headline price and adding mandatory or optional fees later, resulting in a higher final price, with feedback received on both online and physical stores.
Under the Consumer Protection (Fair Trading) Act, suppliers must include unavoidable fees in the headline price or clearly disclose them, and consumers can seek assistance from CASE, which may refer egregious cases to CCCS for investigation.
CCCS published Price Transparency Guidelines in 2020 to clarify pricing practices that could infringe the law, aiming to help businesses comply with fair trading standards.

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5 Jul 2022

Threshold for Price Increases on Food Items before Government Intervention

Ms Ng Ling Ling asked whether the Ministry has a specific threshold for cost increases on food items before considering government intervention to stabilize prices.
Minister Gan Kim Yong explained that global supply disruptions from the pandemic and the Ukraine conflict have led to significant price rises, but direct price controls could cause shortages.
The government uses three measures to mitigate impacts: a strong Singapore dollar to moderate inflation, diversification of food sources to reduce exposure to regional disruptions, and support packages for lower-income Singaporeans.
Singapore's food inflation has been more moderate than global levels, with a 4.5% increase in May 2022 compared to the FAO index's 22.8% rise.
The government will monitor the situation and encourages consumers to use the Price Kaki app to compare prices and stretch their dollars.

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5 Jul 2022

Rationale for Exemption from Fair Consideration Framework and Complementarity Assessment Framework

The Fair Consideration Framework requires job advertising to promote fair employment, while the Complementarity Assessment Framework uses a points system to ensure foreign hires complement the local workforce, with different exemptions for small firms due to their distinct impacts.
Small firms with fewer than 10 employees are exempt from the FCF job advertising requirement due to resource constraints, but all employers must still follow fair hiring practices, whereas firms with fewer than 25 PMET employees get default points on certain COMPASS criteria to avoid skewed ratios.
The exemptions are not about one scheme being more lenient but tailored to each framework’s purpose, ensuring policies do not disproportionately burden small firms while still safeguarding local job opportunities.
These measures aim to create a conducive environment for startups to grow, ultimately strengthening the Singaporean core in the workforce by balancing support for small firms with fair employment safeguards.

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5 Jul 2022

Adequacy of Prevailing Total Debt Servicing Ratio in Minimising Systemic Risk to Financial Institutions and Borrowers

Mr Gan Thiam Poh questioned if the current Total Debt Servicing Ratio (TDSR) is sufficient to protect both financial institutions and borrowers amid rising interest rates and inflation.
The Prime Minister, through Tharman Shanmugaratnam, stated that the TDSR is part of MAS's measures to promote prudent borrowing, with a maximum limit of 55% and built-in buffers using an interest rate of 3.5% or higher.
Household debt remains healthy, with median TDSR at 43% for new loans and delinquent mortgages below 1%, reducing systemic risk to lenders.
MAS has strong regulatory frameworks, including stress testing for banks, and urges households to plan for further rate increases before taking on new debt.

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5 Jul 2022

Encouraging Banks to Help Retired Seniors Refinance Housing Loans

Kwek Hian Chuan Henry asked the Prime Minister whether MAS can encourage banks to help retired seniors above 65 refinance their housing loans, as many are turned down despite having the financial means.
Tharman Shanmugaratnam clarified that borrowers are exempt from total debt servicing ratio, mortgage servicing ratio, and loan-to-value limits when refinancing owner-occupied properties, allowing them to explore options after the lock-in period.
Financial institutions conduct credit assessments considering factors like rental income, repayment records, and loan-to-property value, and may require a joint borrower or guarantor to ensure long-term repayment ability.
Local banks have committed to be facilitative to borrowers with financial means, and borrowers are encouraged to approach lenders to discuss refinancing options when needed.

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5 Jul 2022

Debt Management Assistance Options for Singaporeans Given Rising Property Rentals and Interest Rates

The government highlighted that household debt remains healthy, with declining charge-off and non-performing mortgage rates, and noted a significant drop in applications for loan assistance and debt consolidation plans over the past year.
Singaporeans facing repayment difficulties are encouraged to first approach lenders for bilateral assistance or consider debt consolidation plans, and can also seek help from Credit Counselling Singapore for credit counselling and debt management plans, though recent take-up rates have slightly declined.
To address debt issues proactively, the government has established standardised interventions for late mortgage repayments and promotes financial education through MoneySense, aiming to destigmatise seeking help and support early intervention.

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5 Jul 2022

Companies Implementing Workplace Safety and Health-enhancing Technologies

In response to Leon Perera’s query, the Minister stated that about seven in ten businesses have implemented Workplace Safety and Health (WSH) technology solutions as per a December 2021 survey.
Over 500 small and medium-sized enterprises have used the Productivity Solutions Grant (PSG) to adopt WSH technologies, receiving up to 70% grant support capped at $30,000 per solution.
The Minister noted that while the correlation between technology adoption and reduced workplace injuries varies by solution and industry, specific technologies like Fleet Safety Management have shown significant reductions in fatigue episodes and potential collisions.
The Ministry of Manpower will continue promoting WSH technologies through collaboration with employers, industry groups, and other agencies, and incorporate them into public sector tender specifications.

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5 Jul 2022

Ensuring Affordability of Food Prices Despite Higher Sale Transaction Prices of Coffee Shops

Foo Mee Har raised concerns about high transaction prices for coffee shops and rising stall rentals in suburban areas, asking how the government will ensure affordable food and drinks for residents.
Desmond Lee noted that HDB manages over 770 coffee shops, some privately owned and others rented out, and highlighted measures like maintaining a good supply for competition, running some via social enterprises, and building new coffee shops and hawker centres to increase options.
Since 1998, HDB has only rented out coffee shops and introduced Price-Quality tenders in 2018 to prioritize quality and affordability, with budget meals priced around $3 and lower rentals to support sustainable operations.
The government regularly monitors resale markets and food prices to review policies and address affordability concerns, ensuring coffee shops serve as community hubs while providing accessible food options.

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5 Jul 2022

Location of Commercial and Coffee Shop Space within HDB Estates and Efforts to Keep Food Prices Affordable Given Recent High Transacted Sale Prices of Coffee Shops

HDB plans the location of coffee shops and commercial spaces in both mature and new housing estates based on household density, resident accessibility, and the availability of nearby amenities, aiming for most residents to reach a coffee shop within a 10-minute walk.
To address high transacted prices of privately owned coffee shops, the government promotes competition by ensuring a good supply of coffee shops in each town, supports social enterprise operators, and has shifted since 1998 to renting rather than selling HDB coffee shops, with price-quality tenders to encourage affordable food options.
HDB monitors resale and rental markets for coffee shops and food prices, has built 34 new coffee shops in the last four years with 30 more planned, and is expanding hawker centres to provide additional affordable cooked food choices for residents.

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5 Jul 2022

Adequacy of CPF Basic Retirement Sum to Provide for Minimum Retirement Needs of Seniors and Ensure Decent Quality of Life

Mr. Gan Thiam Poh questioned whether studies assess if the CPF Basic Retirement Sum (BRS) meets minimum retirement needs and if the government has defined adequacy goals or long-term plans for seniors.
Mr. Chua Kheng Wee Louis asked how the 3.5% annual BRS increase from 2023 to 2027 is determined, what caused the rise from 3%, and what long-term inflation assumptions are used.
Minister Tan See Leng explained that the BRS is based on lower-middle retiree household expenses, long-term inflation, and living standards, with the 3.5% increase reflecting strong past economic growth and higher monthly payouts projected for future cohorts.
The minister noted that CPF is one of several retirement funding sources, with BRS attainment seen as an adequacy indicator, and measures like the Matched Retirement Savings Scheme and Silver Support provide additional support for seniors.
The government plans to continue enhancing retirement adequacy through policies like raising retirement ages and CPF contribution rates for older workers, with ongoing reviews to meet seniors' needs.

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5 Jul 2022

Tackling the Macro Picture in Rising Cost of Living Challenges

Assoc Prof Jamus Lim highlighted Singapore’s rising cost of living, with food, energy, and transport prices surging, and argued that macroeconomic tools—like strengthening the Singapore dollar, quantitative tightening, and targeted fiscal support—could help curb inflation and cushion households, especially fixed-income groups.
The Minister of State for Trade and Industry emphasized the government’s long-term macro approach, citing the effectiveness of exchange-rate policy in mitigating imported inflation, ongoing trade diversification, and recent fiscal packages providing immediate relief to vulnerable groups.
The debate concluded with a call for proactive, balanced policy combining monetary and fiscal measures, while cautioning against wage indexation and stressing the need for timely, targeted support amid global inflationary pressures.

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5 Jul 2022

Stamp Duties (Amendment) Bill

The Stamp Duties (Amendment) Bill introduces Additional Conveyance Duties for Trust (ACD (Trust)) and stamp duty on the renunciation of interest in residential property held on trust to close loopholes and ensure consistent tax treatment, effective from May 10, 2022.
The changes harmonize stamp duties for direct and trust-based property acquisitions, with exemptions for charitable institutions, and include strict enforcement and penalties for non-compliance.
Parliamentarians broadly supported the Bill, with some calling for retrospective application and a review of related policies, but the Ministry clarified the changes are forward-looking and part of property market cooling measures.

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5 Jul 2022

Proposal to Regulate Petrol and Diesel Pump Prices Given Recent Increases

Two Members of Parliament raised concerns about rising petrol and diesel prices, suggesting a cooperative model for fuel supply and government price regulation.
The Minister of State explained that global oil price increases are driven by demand and supply constraints, and that price regulation would distort the market and benefit high-consuming car owners.
The government prefers to maintain a competitive fuel retail market, with the Competition and Consumer Commission monitoring for anti-competitive practices and encouraging consumers to use the Fuel Kaki website for price comparisons.
Targeted financial relief has been announced for self-employed persons and drivers hardest hit by fuel costs, and the government is reviewing the fuel retail market to consider further measures.
The government emphasised its commitment to market competition, price transparency, and readiness to provide more assistance if needed.

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5 Jul 2022

Effect of New Insurance Coverage Limits on Cancer Patients and Their Treatments

The government has introduced a Cancer Drug List (CDL) under MediShield Life and Integrated Shield Plans to curb rising drug costs, securing average price reductions of 30% and enabling subsidies for 66 additional drugs, with the CDL updated every four months and covering 90% of treatments in public institutions.
For exceptional cases where patients need non-CDL drugs, doctors can prescribe them based on clinical evidence and must justify decisions, with patients having options such as appealing to ACE, transferring to subsidized public care, or using private insurance riders.
Regulatory oversight by MOH and MAS ensures insurers handle claims fairly, while premium adjustments are commercially driven but aims to moderate increases long-term, with measures in place for patients facing affordability issues.

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4 Jul 2022

Disbursement of Workcare Grant and Plans to Increase Take-up Rate

Raj Joshua Thomas inquired about the number of companies that have taken up the Workcare Grant, the total amount disbursed, and any plans to increase its take-up rate.
Since its launch in May 2021, there have been 26 applications, with five approved and the rest under assessment, totaling $46,000 committed to support seven rest areas for about 120 workers.
Most applications were submitted from early 2022 due to COVID-19 delays, and NTUC U Care Centre is conducting outreach efforts to encourage more applications from building owners and employers.

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4 Jul 2022

Utilisation of First Tranche of $100 CDC Vouchers by Elderly Households

About 96% of Singaporean households claimed the first tranche of $100 CDC vouchers as of June 2022, with 80.3% of the total value spent.
The vouchers were launched in December 2021 to thank citizens for solidarity during the pandemic and to support heartland merchants and hawkers.
The Ministry does not collect specific data on the claim or utilisation rates for elderly households, as the CDCs do not gather information on household demographics or the age of heads of households.

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4 Jul 2022

Singaporeans Approaching Credit Counselling Singapore for Assistance in Past Three Years and Adequacy of Resources and Capabilities Available

Mr Saktiandi Supaat inquired about the trend in Singaporeans seeking credit counselling from CCS over the past three years and the adequacy of resources and capabilities.
Minister Edwin Tong stated that CCS, a registered charity, has not observed any increase in borrowers seeking assistance between 2019 and 2021.
The Minister highlighted that the Commissioner of Charities supports charities like CCS through grants such as the Charities Capability Fund to improve productivity and operational efficiency.

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4 Jul 2022

Penalties for Internet Service Providers for Fault Repairs Taking Longer than 24 Hours

Raj Joshua Thomas proposed penalties for ISPs if internet fault repairs exceed 24 hours, emphasizing the critical role of internet access in Singapore.
Mrs Josephine Teo responded that existing IMDA standards are already stricter, with investigations and financial penalties for outages lasting over an hour, ranging from $30,000 to $400,000 in the past two years.
IMDA also implements measures like regular audits and network resilience requirements to ensure prompt service restoration and international best practices.

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4 Jul 2022

Support for Stallholders Facing Steep Rental Hikes in Heartland Coffee Shops and Policy Measures to Manage Rising Valuations and Rental Rates

Nadia Ahmad Samdin and Liang Eng Hwa raised concerns about steep rental hikes for stallholders in heartland coffee shops following high transaction prices and asked about support measures, rent control, and policy interventions to manage valuations and rental rates.
Desmond Lee responded that HDB ensures affordable cooked food by maintaining a good supply of coffee shops for healthy competition, including running some by social enterprises, and has built new facilities while planning more.
HDB stopped selling coffee shops since 1998 and now rents them out, introducing Price-Quality tenders in 2018 to prioritize quality and budget meals, which result in more sustainable rentals and food options around $3.
The government is cautious about rent control, as it may discourage owners from investing in improvements, and HDB regularly monitors resale markets and food prices to review policies for affordability.

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4 Jul 2022

Government Spending on Subsidising COVID-19 Patients for Various Treatments since Start of Pandemic

Ms He Ting Ru asked the Minister for Health for the total amount spent on subsidising in-patient and outpatient treatments for COVID-19 patients since the pandemic began.
She also inquired whether there are plans to reduce the number of Public Health Preparedness Clinics.
Minister Ong Ye Kung responded that he would address the questions in a reply to other Members of Parliament on 5 July 2022.

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