Economy & business — Topics

5 Apr 2022

Financial Services and Markets Bill

The bill consolidates and expands MAS's regulatory powers to address evolving risks in digital assets, technology management, and prohibition orders, with members seeking clarifications on virtual asset service provider licensing, NFT regulation, and financial penalties for lapses.
The Minister of State explained that MAS regulates based on activity and risk, not technology, and will not impose additional licensing if entities are already regulated under existing acts, while addressing concerns about NFTs, cross-border enforcement, and consumer protection measures.
Members raised issues on accountability for prohibition orders, including the need for public explanations and appeal committee transparency, with the Minister clarifying existing notification processes and potential publication of a public register in the future.

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5 Apr 2022

Growing Popularity of "Buy Now Pay Later" Schemes and Plans to Regulate Firms Offering such Schemes

BNPL transactions in Singapore reached $440 million in 2021, representing less than 0.5% of total consumer payments, and the government does not currently see significant consumer debt risks due to existing safeguards like age limits and payment caps.
The Monetary Authority of Singapore is guiding the development of an industry code of conduct for BNPL providers, expected in the second half of the year, to mitigate over-indebtedness and protect consumer interests.
MPs raised concerns about unsecured lending, double leverage, and advertising to youths, with the Minister noting these issues may be addressed in the code and encouraging collaboration with the Singapore FinTech Association.

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5 Apr 2022

Take-up Rate of Capability Transfer Programme and Its Effectiveness in Helping Singaporean Workers Acquire New Capabilities

Since October 2017, over 140 companies and nearly 1,000 Singaporeans across 20 sectors have benefited from the Capability Transfer Programme (CTP), with top sectors including Precision Engineering, Air Transport, and Logistics, and funding up to 90% provided for training plans that ensure genuine upskilling.
The programme uses various methods for capability transfer, such as bringing in foreign specialists, overseas training, and remote learning, and has been extended to September 2024, though take-up was low during COVID-19 due to travel restrictions but is expected to rise as borders reopen.
While the government requires companies to commit to training locals and considers expanding CTP to include transfers from existing foreign employees, it has rejected imposing foreign workforce reduction conditions as too blunt, and instead supports broader skills acquisition through other schemes like the Global Ready Talent Programme and Global Rotation Scheme.
The government monitors CTP’s effectiveness through macro employment data, showing strong resident employment growth and low unemployment, but specific funding details for the highest 90% cap have not been provided yet.
Additional suggestions include higher funding for CTP and union involvement via Company Training Committees, but existing support rates and a S$300,000 funding cap have not faced company feedback as restrictive, with ongoing reviews based on uptake.

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5 Apr 2022

Outlook for Gig and Platform Workers and Measures to Help Enhance Their Employability and CPF Savings

The Advisory Committee on Platform Workers is reviewing mandatory CPF contributions for gig workers, with early feedback from over 20,000 engaged workers showing 55% support, primarily for housing and retirement adequacy, while considering a phased implementation to manage cost impacts.
Platform workers, including delivery riders and drivers, face physically demanding roles with lower job protections, and while 80% view platform work as their preferred job, only 8% transitioned to permanent employment in 2021, with diverse demographics among those who moved.
The government acknowledges long-term employability concerns due to technological changes like drone delivery and physical demands on older workers, and offers career support through Workforce Singapore and NTUC, emphasizing skills upgrading and tailored interventions rather than a one-size-fits-all approach.
Data on platform workers, such as CPF contribution rates (estimated at about 45%) and ex-offender involvement, is limited due to casual and diverse work patterns, prompting efforts to improve data collection and design flexible support measures.
Stakeholders, including platform companies and workers, are engaged in discussions to balance protections like CPF contributions with concerns over take-home pay and business costs, with recommendations aimed at being practicable and sustainable.

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4 Apr 2022

Clarification by Senior Minister of State for Sustainability and the Environment

The Senior Minister of State clarified that during dining restrictions, rental revisions for hawker stalls were frozen, and in the upcoming review, 94% of stalls will either have no change or a rental reduction, with 58% seeing a reduction.
Only about 6% of stalls (14 stalls) will see a rental increase, but these revisions are moderated and capped at around $300, while reductions range from $20 to over $2,400.
The official corrected a prior statement, adjusting the percentage of stalls with no revision or a reduction from 96% to 94% for accuracy.

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4 Apr 2022

Number of Residential Units Transacted in First Two Months of 2022 from Latest Round of Property Cooling Measures

Miss Cheng Li Hui asked for the number of residential units transacted in the first two months of 2022 and whether the latest property cooling measures have significantly reduced transactions and achieved their policy intent.
The Minister reported that around 3,400 private housing and 4,500 HDB resale flats were transacted in the first two months of 2022, representing a 43.1% and 8.1% decrease respectively compared to the same period in 2021.
Early signs indicate the measures may have moderated price increases, with the private housing price index rising 0.4% in Q1 2022 compared to 5.0% in Q4 2021, and the HDB resale price index rising 2.3% compared to 3.4% previously.
The Minister affirmed the measures aim to promote a stable, sustainable property market, housing affordability, and financial prudence, and the government will continue monitoring the market.

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4 Apr 2022

Negotiations Between Government and Singapore Press Holdings Ltd Before Establishment of SPH Media Trust

Leong Mun Wai asked the Minister for Communications and Information about the duration and number of negotiation rounds between the Government and Singapore Press Holdings Limited before the establishment of SPH Media Trust.
Mrs Josephine Teo clarified that the discussions were not negotiations but exploratory talks where SPH explained its restructuring proposal to seek in-principle regulatory approval under the Newspaper and Printing Presses Act.
MCI agreed to SPH's proposal to transfer its media business to a Company Limited by Guarantee, citing structural pressures like digital disruption and declining ad revenues, which would allow sustainable investment without stock market constraints.

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4 Apr 2022

Additional Financial Resources for Cancer Patients to Draw on under Recommended Changes by MediShield Life Council

Ms Sylvia Lim asked whether cancer patients will have additional financial resources to cover cancer scan costs beyond the current $600 annual MediSave withdrawal limit under the new MediShield Life changes.
Health Minister Ong Ye Kung stated that from September 2022, patients receiving cancer drug treatments can claim up to an additional $1,200 per year for outpatient costs like scans, separate from cancer drug treatment limits.
Patients undergoing radiotherapy can claim scan costs under radiotherapy limits ranging from $300 to $1,800 per treatment, while inpatient scans remain claimable under inpatient limits.
Those with Integrated Shield Plans may also claim scan costs from their IP where applicable, and Singaporeans facing financial difficulties can seek further assistance through MediFund.

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4 Apr 2022

Impact of Recent Global Events on Costs of Daily Necessities and Goods and Support Measures for Needy Singaporeans

Gerald Giam asked the Minister for Finance to detail any studies on how global events like rising commodity prices, inflation, the Russia-Ukraine conflict, and the COVID-19 pandemic might affect the cost of daily necessities and goods in Singapore.
He also inquired about additional government measures beyond the Assurance Package for the GST increase to help needy Singaporeans cope with rising costs of non-GST-related daily necessities.
Lawrence Wong responded that the question was addressed in a joint Ministerial Statement delivered on 4 April 2022, referencing an official report on inflation and business costs.

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4 Apr 2022

Target Number of Taxi and Private Hire Vehicles under Land Transport Master Plan 2040 and Support Measures to Alleviate Impact of Rising Oil Prices on Drivers, Cabbies and Delivery Riders

The Minister clarified that the Land Transport Master Plan 2040 does not set targets for the number of taxi and private hire vehicles, as these are determined by market forces and platform pricing.
Fuel costs have risen by 15% since the start of 2022, increasing overall business costs for drivers by about 3%, with rental being the largest cost component.
Taxi and private hire operators have introduced measures like fare adjustments, rental rebates, and commission incentives to help drivers cope with rising fuel prices.
The government will continue monitoring the situation and collaborate with driver associations to support affected workers.
No specific support packages from the government were announced, but operators are taking proactive steps to alleviate the impact.

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4 Apr 2022

Participating Merchants under Community Development Council Vouchers Scheme

More than 14,500 heartland merchants and hawkers are participating in the CDC Vouchers Scheme three months after its launch.
CDC Ambassadors are actively engaging merchants and hawkers across a broad range of sectors to encourage participation.
Interested merchants can register online or through associations, with ambassadors continuing to visit heartlands to promote the scheme.

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4 Apr 2022

Plans and Long-Term Strategies to Address Rising Costs for Businesses and Cost of Living in Singapore

Sitoh Yih Pin inquired about the trajectory of energy prices and the Government's plans to mitigate rising business costs and the cost of living for Singaporeans.
Desmond Choo and Melvin Yong Yik Chye questioned the impact of the Ukraine-Russia conflict on food prices, requested information on specific price increases and stockpiles, and asked about long-term strategies to keep basic food affordable.
Minister Gan Kim Yong stated that the questions had been addressed in earlier Ministerial Statements by Ministers Lawrence Wong and Tan See Leng on 4 April 2022.

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4 Apr 2022

Data on Companies Granted Exemption from Holding Licence under Payment Services Act

The Payment Services Act introduced transitional exemptions for entities that submitted licence applications by specified deadlines, with exemptions lasting until applications were approved, rejected, or withdrawn.
Since the Act's commencement, 415 entities were exempted from holding a licence, with 87 approved, 11 rejected, 147 withdrawn, and about 170 still pending review.
The Monetary Authority of Singapore (MAS) maintains and updates public lists of exempt and non-exempt entities, while noting that application processing times vary based on completeness and applicant engagement.

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4 Apr 2022

Update on Research Initiatives Grant under Grant for Equity Market Singapore and Notable Initiatives Developed

Since its launch in January 2019, the Research Initiatives Grant under the Grant for Equity Market Singapore (GEMS) has received 30 enquiries and pilot concepts, with 15 proceeding to draft applications.
Only one project has been approved for funding to date, which uses digital tools to help smaller SGX-listed companies improve investor engagement and has facilitated nearly 20 outreach events since mid-2021.
Five other grant applications are currently under review, and MAS continues to welcome proposals that address market gaps in equity research and trading.

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4 Apr 2022

Measures to Prevent Sanctioned Entities from Circumventing Sanctions Imposed Against Russia

The Prime Minister clarified that Singapore's financial sanctions against Russia apply to all financial institutions, including cryptocurrency and DeFi service providers, requiring them to comply with measures that prohibit transactions facilitating sanctioned activities.
The Monetary Authority of Singapore mandates robust controls such as customer screening and vigilance to prevent sanctioned parties from using non-traditional finance to bypass sanctions, with circulars issued to underscore these obligations.
All financial institutions must demonstrate compliance to MAS and are subject to scrutiny, with regulatory actions to be taken against any breaches of the financial measures.

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4 Apr 2022

Utilisation of Temporary Certificates of Entitlement (TCOEs) for Motorcycles Secured

The utilisation rate for motorcycle temporary Certificates of Entitlement (TCOEs) secured between May 2021 and September 2021 was over 99%, indicating strong demand.
Among the utilised TCOEs, about 70% were for motorcycles with engines of 200cc or below, 20% for 201cc to 400cc, and 10% for above 400cc.
To address high COE prices, the Land Transport Authority raised the bid deposit for Category D COEs to $800 and shortened the validity of TCOEs to three months, effective March 2022.
These measures aim to encourage prudent bidding and return unutilised COEs to the pool faster, with LTA continuing to monitor the market closely.

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4 Apr 2022

Reasons for Not Extending MediSave Usage to Health Screenings and Other Preventative Health Procedures

Assoc Prof Jamus Jerome Lim inquired why MediSave cannot be used for comprehensive health screenings and other preventative procedures like vaccinations not under the National Adult Immunisation Schedule or smoking cessation programmes.
Health Minister Ong Ye Kung explained that MediSave is currently limited to nationally recommended vaccinations and screenings that are heavily subsidised or free, as they are deemed safe, cost-effective, and appropriate based on robust scientific evidence.
This policy safeguards MediSave funds to ensure savings for basic healthcare needs in old age and keeps contribution rates reasonable, while smoking cessation support is provided free through programmes like the Health Promotion Board’s "I Quit Programme."

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4 Apr 2022

Home Care Services that Received ElderCare Fund Disbursements

The ElderCare Fund's interest income in FY 2020 was only sufficient to cover about 20% of the operating subsidies for intermediate and long-term care services, with the remaining 80% funded by the government budget, and the disbursements for home care services included home medical, nursing, personal care, and therapy.
The low disbursement quantum is due to the fund's current interest income being insufficient to fully cover the annual operating subsidies for ILTC services, making it premature to consider using the fund for other purposes beyond these subsidies.
The government has implemented alternative support measures for informal caregivers, such as the Home Caregiving Grant (which will be increased in early 2023), the Seniors’ Mobility and Enabling Fund, and other schemes like CareShield Life, ElderShield, and MediSave Care.

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4 Apr 2022

Taxes Paid by Those with Assessable Income of More Than $320,000

Leong Mun Wai asked for statistics on taxpayers with assessable income over $320,000 in 2019, including the number, total income, and taxes paid.
Lawrence Wong stated that approximately 70,000 taxpayers had assessable income exceeding $320,000 for the Year of Assessment 2020.
Their total assessable income was around $42.5 billion, with total tax payable amounting to $7 billion.
The figures relate to income earned in 2019, with assessable income defined as total income minus allowable deductions.
The response clarified the tax calculation and data timeframe, providing specific numbers requested in the query.

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4 Apr 2022

Additional Cost of Implementing Multi-tiered GST for Exemption of Basic Necessities

Hazel Poa asked about the additional cost of implementing a multi-tiered GST to exempt basic necessities, and Lawrence Wong responded that Singapore already achieves multi-tier effective GST rates through GST Vouchers and GST absorption on subsidized services, which targets low-income households more effectively than blanket exemptions.
Wong noted that exemptions for essential goods tend to benefit higher-income households more, as they consume more of all goods, and such a move would not enhance GST fairness; he also highlighted that businesses and IRAS would pass implementation costs to Singaporeans.
He cited European and Swedish studies showing multi-rate GST systems increase compliance costs, disproportionately burden SMEs, and lead to higher fraud and disputes, with Sweden estimating a 30% compliance cost reduction from switching to a single rate.
The Swedish study also estimated around S$146 million in public and private sector resources spent on GST dispute cases, underscoring the inefficiencies of multi-rate systems.

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