Economy & business — Topics

4 Jul 2022

Insights on Anonymised Data of Community Development Council Digital Voucher Usage for Targeted Support to Lower-income Households

Edward Chia asked for insights on anonymised CDC digital voucher usage data, how CDCs plan to use these insights to target support for lower-income households, and how the data and system can support social agency partners’ voucher schemes.
Minister Edwin Tong stated the CDC Vouchers Scheme was launched to support households and heartland merchants during the pandemic, with no need to collect household income data as it is open to all Singaporean households.
High uptake and spending were reported: 96% of eligible households claimed 2021 vouchers with 80.3% spent, and 83% claimed 2022 vouchers with 40.2% spent within two months.
The digital voucher system uses GovTech’s RedeemSG platform, which can be adopted by other government agencies interested in similar schemes.

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4 Jul 2022

Measures to Deal With Consecutive Increases in HDB Resale Flat Prices

Yip Hon Weng questioned if the government's current measures, such as increasing BTO flat supply and recent property cooling measures, are enough to control rising HDB resale prices and whether further steps will be taken.
Desmond Lee outlined that the government has reduced the Loan-to-Value limit and Total Debt Servicing Ratio threshold to encourage financial prudence, while ramping up BTO flat supply to 23,000 units per year in 2022 and 2023, with plans for up to 100,000 flats from 2021 to 2025 if needed.
The government noted early signs of moderated price increases but emphasized the need for more time to assess the full impact of measures, while committing to monitor the market and make adjustments to ensure housing affordability.

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4 Jul 2022

Rent Control Measures on Coffee Shop Stalls in HDB Estates to Prevent Transfer of Cost Increases to Consumers

Ms. Carrie Tan asked if rent control measures would be implemented on coffee shop stalls in HDB estates to prevent high rental costs from being passed to consumers.
Desmond Lee highlighted the government’s efforts to ensure affordable food through new coffeeshop developments, competition, and price-quality tenders that prioritize budget meals and sustainable rentals.
The minister cautioned against rent control, noting it could reduce incentives for owners to invest in improving coffee shops, and emphasized ongoing monitoring of resale markets and food prices to address affordability.

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4 Jul 2022

Measures to Prevent Disruption to Singapore’s Electricity Supply Given Global Energy Crunch

The government has established a standby LNG facility and required generation companies to bolster fuel stockpiles to secure electricity supply, which helped stabilize prices from $440/MWh to $300/MWh.
The Temporary Electricity Contracting Support (TRECS) Scheme and longer-term fixed-price plans have been extended to March 2023 to help businesses manage volatile wholesale electricity markets, alongside an energy storage system initiative to enhance grid resilience.
Instead of imposing demand caps, the government is promoting energy efficiency through various grants and support schemes, such as the Energy Efficiency Grant and financing programmes, to help businesses reduce costs without disrupting operations.

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4 Jul 2022

Impact of Malaysia’s Renewable Energy Exports Ban on Singapore's Energy Security Strategies

Malaysia’s ban on exporting renewable energy does not restrict the passage of electricity from other countries like Laos through Malaysia to Singapore, as demonstrated by the ongoing LTMS-PIP project.
Singapore is importing up to 100 MW of hydropower from Laos via Thailand and Malaysia under the LTMS-PIP, which serves as a model for multilateral renewable energy trading.
The Ministry encourages continued regional collaboration on cross-border electricity trade to support the ASEAN Power Grid and mutual energy security goals.

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4 Jul 2022

Impact of Export Curbs on Supply of Key Food Items to Singapore and on Singapore's "30 by 30" Food Production Goal

The Minister outlined Singapore's multi-pronged strategy to ensure food supply resilience, including diversifying import sources across over 170 countries, building business continuity plans, and maintaining crisis stockpiles, while acknowledging that complete prevention of disruptions is impossible and global price fluctuations cannot be fully insulated.
While the "30 by 30" goal to produce 30% of nutritional needs locally by 2030 is ambitious and faces land and resource constraints, the government is exploring options like master-planning the Lim Chu Kang area and incorporating stakeholder suggestions, but prioritizes resource-efficient food items like eggs and fish over poultry.
The Minister highlighted that businesses and consumers have shown adaptability during the recent Malaysian chicken export ban, and encouraged continued diversification, flexibility in consumption, and collective resilience, while noting that support packages exist to alleviate cost pressures without distorting market conditions.

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4 Jul 2022

Impact of Rising Inflation on Planned GST Increase and Related Financial Offset Measures

The government will proceed with the planned GST increase in January 2023, stating that postponing it would create a structural funding gap for healthcare and social spending, but has allocated a $6.6 billion Assurance Package to offset household impacts for five to ten years.
A $1.5 billion support package was introduced to provide targeted relief for lower-income and vulnerable groups, including cash payouts, utilities rebates, and enhanced wage support for lower-wage workers, while monetary policy continues to curb imported inflation.
Officials emphasized fiscal responsibility, noting that one-off revenue gains from property and vehicle transactions cannot fund long-term needs, and committed to monitoring inflation closely and enhancing support measures if the situation worsens.

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4 Jul 2022

Singapore's Economic Outlook Given Rising Inflation and Government's Plans to Assist Businesses and Singaporeans

The Minister of State highlighted that global supply disruptions and the Russia-Ukraine conflict have driven significant inflation in Singapore, with core and headline inflation expected to average 2.5-3.5% and 4.5-5.5% respectively in 2022, but to moderate by year-end, while affirming that the economy is not expected to face a recession or stagflation in 2023 despite global risks.
The government is addressing the challenging environment through three key measures: maintaining a stable macroeconomic environment with a tighter monetary policy, providing immediate relief via a $1.5 billion support package for lower-income and vulnerable groups, and continuing to attract investments and create jobs to combat inflation.
Economic growth remains resilient with GDP expanding 3.7% year-on-year in the first quarter of 2022, and the economy is operating slightly above potential with a mild positive output gap, though labour shortages and cost pressures persist but are expected to ease as non-resident worker inflows resume.
The Ministry is confident in achieving its 3-5% GDP growth forecast for 2022, with above-trend growth expected to continue, while closely monitoring external risks and implementing measures to support businesses and households in managing borrowing costs and cost-of-living challenges.

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4 Jul 2022

Decision for Government to Take Over Ownership and Management of Singapore Sports Hub

Multiple MPs questioned the Government's decision to terminate the public-private partnership (PPP) with SportsHub Pte Ltd and take over ownership and management of the Singapore Sports Hub, citing concerns about contractual limitations, performance failures, financial costs, and the lack of clarity on SportSG's capabilities and long-term plans.
Key issues raised included the reasons for terminating the PPP before its 2035 end date, the outstanding responsibilities and final payment to SportsHub Pte Ltd, the financial and strategic implications of the takeover, and the lessons learned from the PPP model to improve future contracts.
MPs sought clarity on SportSG's vision, operational model, and plans to enhance community access, support junior sports development, and balance world-class events with affordable public use, as well as funding arrangements for related facilities like Kallang Alive.
The Minister of State indicated that a detailed ministerial statement would be provided to address the 20 questions, covering the Government's rationale, financial impact, and future plans for the Singapore Sports Hub.

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9 May 2022

Update on Utilisation of CDC Vouchers and Heartland Merchants On board CDC Vouchers Scheme

As of end-March 2022, over 15,000 hawkers and heartland merchants have onboarded the CDC Vouchers Scheme, with about 1.12 million households claiming vouchers and more than $72 million spent at participating merchants.
The CDC Vouchers Scheme uses the RedeemSG platform, a general-purpose system designed to support various government campaigns and make digital voucher redemption easy for merchants and recipients.
The RedeemSG platform is being developed to accommodate a wider range of uses, including by government agencies, charities, and for philanthropic purposes, potentially allowing e-vouchers to be distributed to heartland shops.

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9 May 2022

Sufficient Supply of Public and Private Housing to Meet Demand and Projected Increase in Private Residential Prices in 2022

The government announced plans to significantly increase housing supply, with up to 23,000 BTO flats launched annually in 2022 and 2023, a 35% rise from 2021, and up to 100,000 flats from 2021 to 2025 if needed.
For private housing, the Government Land Sales Programme will offer around 2,800 units on the Confirmed List in the first half of 2022, a 40% increase from the previous period, with additional sites on the Reserve List to allow for more supply if demand warrants.
The government is implementing cooling measures and supply adjustments to stabilize the property market, as evidenced by moderated price increases in private residential properties and HDB resale prices in early 2022.
Authorities will continue to monitor market conditions to ensure housing prices remain aligned with economic fundamentals.

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9 May 2022

Total Amount of Quarantine Order Allowance Distributed to Affected Persons since 2 November 2021

Dennis Tan Lip Fong asked the Minister for Health for the total amount of Quarantine Order Allowance distributed since 2 November 2021.
Ong Ye Kung responded that between 2 November 2021 and 30 April 2022, $19.35 million was distributed to eligible applicants under the Quarantine Order Allowance Scheme.
The figure covers the period specified and reflects payments made to affected persons under the scheme.
The response confirms the total amount distributed within the timeframe without further breakdowns or additional details.

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9 May 2022

Statistics and Trends in relation to Ships Calling at Ports of Singapore to Refuel and Plans to Boost Singapore's Status as Bunkering Hub

The number of ships calling at Singapore for refuelling fell 13% from 10,294 to 8,940 in Q1 2022, while bunker sales volumes dropped 12% from 12.8 to 11.3 million tonnes, attributed to higher global crude oil prices and overseas port congestion causing ships to refuel elsewhere.
Singapore is enhancing efficiency and future-proofing its bunkering sector by funding digital and automated workflows, preparing for multi-fuel transition with LNG bunkering since 2017 and biofuel trials, and co-establishing the Global Centre for Maritime Decarbonisation.
The Maritime and Port Authority of Singapore aims to maintain and boost Singapore’s status as a bunkering hub by improving operational reliability and supporting industry decarbonisation efforts.

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9 May 2022

Aviation Industry and Airports' Preparation for Expected Surge in Tourism and Challenges in Meeting Increased Travel Demand

The Ministry of Transport and aviation agencies are coordinating with Changi Airport Group and stakeholders to manage increased travel demand safely.
The aviation industry has ramped up recruitment and retained experienced staff, supported by a $500 million resilience package including $60 million for manpower.
CAAS has intensified safety oversight to maintain high standards amid growing flight volumes.
The sector faces challenges from having lost nearly a third of its workforce during COVID-19, requiring ongoing efforts to rebuild capacity.

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9 May 2022

Proposal for Management Corporation Strata Title of Condominiums to Pay Residential Rates for Electricity Bills

Christopher de Souza asked whether Management Corporation Strata Title (MCST) of condominiums pay commercial electricity rates and if they should switch to residential rates amid rising prices.
Gan Kim Yong clarified that MCST accounts are classified as non-residential under regulations due to their significant electricity use for common areas and business operations, making them ineligible for regulated residential tariffs.
Large MCST accounts consuming over four megawatt-hours monthly cannot switch to regulated tariffs because limited vesting contracts would require additional wholesale purchases, potentially raising the regulated tariff for others.
The Energy Market Authority has worked with industry players to offer alternative contracting options for non-eligible consumers, with details available on its website.

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9 May 2022

Plans to Assist Singapore Companies in Managing Myanmar Junta's New Regulation on Exchange of Foreign Currency According to Mandated Rate

The debate concerned a Myanmar Central Bank directive requiring foreign currency conversion at a mandated rate, which prompted concerns from Singapore companies operating there.
The Singapore Embassy in Yangon has expressed concerns, sought clarification, and requested exemptions for Singapore firms but is still awaiting a response from Myanmar authorities.
The Minister emphasized that due to heightened uncertainty, Singapore companies must make their own commercial assessments about continuing operations in Myanmar.

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9 May 2022

Breakdown of Spending on Organising and Running General Elections in 2011, 2015 and 2020 Respectively

The Elections Department reported spending $13.5 million in 2011, $23.2 million in 2015, and $30.3 million in 2020 on organising and running general elections.
Expenditure varies due to factors like the number of contested seats, deployment of election officials, logistics, and the replacement of equipment.
The 2020 election costs were higher partly because about $8 million was spent on safe management measures during the COVID-19 pandemic.

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9 May 2022

Local Banks Exposure to Commodity Trading and Commodity Financing and Assessment of Risks to Financial Sector from Commodity Market Volatilities

Local banks' aggregated commodities financing exposure was S$109 billion (around 9% of total credit exposures) as at end-2021, with firms increasing hedging and working capital demands due to price volatility.
MAS is not providing direct liquidity to commodity firms, preferring the banking system to meet financing needs, and notes that financing conditions remain stable with access to diverse funding sources.
MAS and banks are monitoring exposures and conducting stress tests to assess impacts from supply chain disruptions, commodity price spikes, and China's lockdowns, while engaging borrowers to manage evolving risks.

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9 May 2022

Steps to Address Potential Use of Social Media Bots to Manipulate Stock Trading in Singapore Exchange

The Prime Minister, through Tharman Shanmugaratnam, outlined that MAS and SGX Regco conduct surveillance and post-trade monitoring, with the capability to investigate social media when unusual trading is detected.
If bots are identified, authorities will work with social media providers to disable accounts or remove content and collaborate with trading members to disrupt suspicious activity, including suspending securities or disabling accounts.
MAS, the Commercial Affairs Department, and SGX Regco have issued public advisories warning investors to be cautious of stock recommendations on social media, as they may be manipulative or not from real individuals.

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9 May 2022

Physical Tokens for Less Technologically Savvy Users to Access Mobile and Digital Banking Services

Christopher de Souza asked whether banks should be required to keep issuing physical tokens for mobile and digital banking, especially for those less tech-savvy or unable to afford newer phones.
Tharman Shanmugaratnam stated that MAS mandates multi-factor authentication but does not prescribe specific technologies, allowing banks to choose methods that best suit customer preferences.
Banks offer hardware tokens, digital tokens, and biometrics, and those that have phased out hardware tokens have advised customers and trained staff to assist with digital token use.
Major banks have stopped issuing hardware tokens by default for new internet banking applicants, but customers can still request them if preferred.

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