Economy & business — Topics

4 Apr 2022

Parenthood Tax Rebate and Working Mother’s Child Relief for Single Unwed Mother Divorced from Father of Child

The Minister for Finance clarified that a single unwed mother who marries the father of her child and later divorces can still qualify for the Working Mother’s Child Relief (WMCR) if she meets the criteria, such as maintaining a Singaporean child.
The mother can claim the Parenthood Tax Rebate (PTR) after marrying the father, provided the marriage occurs before the child turns six and the child is a Singapore Citizen, with both parties able to claim unutilised PTR even after divorce.
WMCR and PTR become available from the Year of Assessment immediately following the year of marriage, regardless of future divorce circumstances.

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4 Apr 2022

Itemised Breakdown of COVID-19-related Government Expenditure

Lawrence Wong stated that MOF has been publicly releasing COVID-19 spending breakdowns on various platforms and through annual Budget Statements, with detailed commitments for FY2020 and FY2021 already available via parliamentary responses and the Estimates Committee report.
The FY2020 spending breakdown includes $13.8 billion for public health, $73.5 billion for livelihoods, and $10 billion for direct social support, with actual spending lower than initial estimates due to unused loan capital, which was later addressed in FY2021 packages.
FY2021 spending has just concluded, with final audited figures expected by the third quarter of 2022, and overall COVID-19 expenditure for FY2020 and FY2021 is projected to align closely with the August 2021 Estimates Committee report.
Breaking down COVID-19 expenditure by object classes (e.g., manpower, operating expenses) is not practicable because these categories cover multiple government functions beyond COVID-19, but outcome assessment reports are available on MOF’s website.

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4 Apr 2022

Average Annual Cost for Mental Health Treatment at Public Health Institutions and Proposal for Use of MediSave for such Treatment

The average annual post-subsidy cost for mental health outpatient treatment at polyclinics and public specialist outpatient clinics is about $110 and $270, respectively.
Patients can use MediSave up to $500 or $700 per year for mental health treatment under the Chronic Disease Management Programme, with most not exhausting these limits.
MediSave can already be used for mental health treatment at polyclinics and over 90 accredited private clinics, and more clinics are encouraged to apply for accreditation.

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4 Apr 2022

Potential Revenue from Possible Hikes in Personal Income Tax for Top 10% Income Bracket

Leong Mun Wai asked for estimates of the tax revenue that would be raised from increasing the personal income tax rates for the top 10% of income earners by four, six, or eight percentage points.
Lawrence Wong clarified that the revenue estimates depend on applying the rate changes to chargeable income rather than assessable income and only to the relevant income brackets, which would yield at most an additional $1.8 billion, $2.7 billion, and $3.5 billion per year for the proposed increases, respectively.
Wong warned that a static analysis overestimates potential revenue, as behavioral responses to higher tax rates could reduce the tax base, and a top marginal rate of 30% might undermine Singapore's competitiveness by encouraging talent and investment to move elsewhere.

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4 Apr 2022

Rise in Effective Corporate Income Tax Rate that would be Equivalent to Two-percentage Point Hike in GST

Hazel Poa asked how much the effective corporate income tax rate would need to rise to match the revenue from a 2% GST hike, with Lawrence Wong explaining simulations based on headline corporate tax rates show a 5 percentage point increase to 22% would be needed if the tax base remains unchanged, but a rate above 22% would likely be required due to firms moving operations abroad to lower-tax jurisdictions.
Wong noted that corporate tax system design, including deductions and exemption schemes, creates varying effective rates for different companies, and simulations used pre-COVID data (YA 2019 and 2020) with revised tax scheme parameters to estimate the revenue impact.
He warned that a corporate tax hike could harm Singapore’s competitiveness by making it harder to attract investment, especially compared to regions like Thailand, Hong Kong, Switzerland, and Ireland with lower rates, ultimately affecting Singaporeans.
The Ministry of Finance plans to review all revenue sources and ensure any future tax increases are fair, inclusive, and do not hurt Singapore’s overall competitiveness.

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4 Apr 2022

Effect of Recent Energy and Fuel Price Hikes on Public Transport Costs and Measures to Prevent Flow-through Cost Increases to Commuters

The recent rise in energy and fuel prices has increased operating costs for public transport operators (PTOs) in Singapore.
PTOs manage energy cost risks through various strategies and can draw on the Fuel Equalisation Fund, subject to Public Transport Council approval, to mitigate volatility.
Public transport fares are determined by an annual Fare Review Exercise, where the PTC considers energy prices, operator finances, and economic conditions before making decisions.
Commuters needing additional assistance can apply for Public Transport Vouchers to help defray transport expenses.
The government is taking steps to monitor and manage the flow-through of cost increases to commuters through the existing fare regulatory framework and support measures.

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4 Apr 2022

Public Transport Vouchers to Encourage More to Switch to Public Transport Given Spike in Oil Prices

The Minister for Transport, S Iswaran, noted that public transport remains affordable, making up only 2% to 3% of household expenditure for lower-income groups over the past five years, supported by over $2 billion in annual government subsidies and additional discounts for students, seniors, and persons with disabilities.
Targeted support is provided through Public Transport Vouchers (PTVs), with 600,000 vouchers worth $30 each available in the 2021 exercise, and about 300,000 households have already received them, with a second round from April 2022 for low-income households.
Households in need can obtain PTVs from community centres or clubs until 31 October 2022, ensuring assistance is accessible to those who require it.

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4 Apr 2022

Financial Services and Markets Bill

The Bill consolidates and expands MAS’s regulatory powers across the financial sector, including harmonising technology risk management requirements and enhancing enforcement tools like Prohibition Orders to address misconduct and digitalisation risks.
It introduces licensing and anti-money laundering requirements for digital token service providers operating from Singapore but offering services overseas, aiming to close regulatory gaps and align with international standards.
Measures are proposed to strengthen consumer protection, including higher penalties for technology risk breaches and statutory protection for dispute resolution mediators, though some MPs called for stronger legislative safeguards against scams and fraud.
The debate highlighted concerns about balancing regulatory rigor with industry competitiveness, the need for clarity in applying new rules, and ensuring that reforms support innovation while maintaining Singapore’s reputation as a trusted financial hub.

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4 Apr 2022

Inflation and Business Costs

The Minister for Finance outlined that global inflation is driven by post-pandemic demand surges, supply chain disruptions, and the Ukraine conflict, which has spiked energy and food prices, and he announced the early disbursement of budget measures like CDC vouchers and utility rebates to help households, while ruling out fuel duty cuts as they would disproportionately benefit car owners and undermine green transition efforts.
The Second Minister for Trade and Industry detailed measures to manage energy costs, including securing electricity supply through LNG facilities and extending support schemes for businesses, while emphasizing the need for energy efficiency and diversification of energy sources to enhance long-term resilience.
The government will monitor the economic situation closely and stand ready to provide further assistance if needed, while urging businesses and households to adapt through transformation and productivity improvements to withstand external shocks and sustain income growth.

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4 Apr 2022

Impact of Higher Electricity and Ingredient Prices on Earnings of Hawkers

Hawk ers have been affected by rising electricity and ingredient prices as well as COVID-19 dining restrictions, but footfall is improving with eased measures and travel reopening, though the government does not track individual hawkers’ earnings.
The government has provided support including rental waivers, service subsidies, cash payouts, and a new Small Business Recovery Grant offering up to $10,000 per hawker business, while low-income families can seek assistance through ComCare and CDC vouchers.
In response to concerns about private hawker centres and targeted aid, the government noted that most rental reviews result in no change or reductions, the Small Business Recovery Grant applies to eligible stallholders, and CDC vouchers can already be used at participating hawker stalls.

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4 Apr 2022

Number of Applicants for SGUnited Mid-Career Pathways Programme

The SGUnited Mid-Career Pathways Programme received over 20,800 applications from locals by January 2022, with 7,200 placed into attachments, and about 2,600 (77% of 3,400 who completed or exited) found employment within six months.
Participants received monthly training allowances ranging from $1,600 to $3,800, with both the average and median allowances around $2,600, funded up to 90% by the government.
The programme, launched in July 2020 to support mid-career jobseekers during a weak labour market, has seen a high drop-out rate but remains a permanent employment facilitation tool for mature trainees facing career-switch challenges.

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4 Apr 2022

Encouraging Younger Singaporeans to Take Up Trade Jobs such as Licensed Electricians and Plumbers

Member of Parliament Pritam Singh inquired about government strategies to attract younger Singaporeans to trade jobs and the feasibility of growing a Singaporean core in these roles.
The Minister for Manpower responded that the focus is on preparing the workforce for in-demand jobs as the economy transforms, using Industry Transformation Maps and Jobs Transformation Maps to guide reskilling and talent pipeline development.
The Minister highlighted that the local workforce is finite and aging, with a shift toward higher-value PMET roles, leading to a decline in non-PMET trade jobs’ share from 2011 to 2021.
Young residents aged 25-29 have high employment rates and a growing proportion in PMET jobs, with real median income growth, indicating strong outcomes in the current job landscape.
The government will continue collaborating with industry and tripartite partners to create job opportunities and prepare workers for roles in demand.

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4 Apr 2022

Streamlining Vaccination-differentiated Safe Management Measures for Coffee Shops and Canteens

The Minister outlined that coffee shops and canteens can now choose between allowing up to five persons dine-in without VDS checks or up to 10 persons with checks, after receiving feedback on implementation difficulties.
Operators wishing to implement the 10-person VDS must submit plans to SFA, which will respond within seven working days, and as of late March 2022, 237 premises had adopted this option.
SFA and Safe Distancing Ambassadors conduct regular compliance checks, and the government offers one-off cash support to affected SMEs, including in the F&B sector.
The Minister confirmed that awareness of time- and area-bound VDS is being improved and that VDS alignment across markets, hawker centres, coffee shops, and canteens will follow the Multi-Ministry Taskforce’s decisions.
The Ministry is reviewing the resumption of events like pasar malams as the situation allows, with past examples like Geylang Serai referenced.

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4 Apr 2022

Impact of Rising Interest Rate Outlook on Household Debt Situation in Singapore

The Minister of State affirmed that Singapore’s household debt situation remains healthy, with manageable debt servicing ratios and low mortgage delinquency, but cautioned that a small segment of highly-leveraged households may be more vulnerable to rising interest rates, and emphasized the importance of prudence in borrowing.
Various measures are in place to mitigate risks, including the Total Debt Servicing Ratio framework, loan-to-value limits, stress tests by the Monetary Authority of Singapore (MAS), and requirements for financial institutions to provide clear information to borrowers.
MAS and MoneySense educate the public, especially younger and first-time home buyers, on financial planning and the impact of rising interest rates, with plans to increase awareness through guides and social media.
Supplementary questions highlighted concerns about the pace of interest rate increases linked to global trends, the state of unsecured personal loans, and the need for enhanced due diligence and projections for borrowers in a changing rate environment.

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4 Apr 2022

Measures to Dampen Inflationary Pressures or to Help Singaporeans Cope Given Higher Prices

Parliament members proposed various measures to ease inflation, including reducing petrol and diesel excise duties, providing road tax rebates, and offering utility rebates or CDC vouchers to households.
Several speakers asked about government interventions for businesses and lower-income groups, such as temporary tax cuts, support for SMEs, and measures against profiteering and shrinkflation.
The Minister for Finance indicated that the government would address these concerns in a later ministerial statement on inflation and business costs.

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11 Mar 2022

Acknowledgement to the Chair

The debate highlighted the uniquely challenging circumstances of Budget 2022, including the impact of COVID-19 on parliamentary proceedings, the urgency of climate change, and the global repercussions of the Ukraine conflict, all of which shaped the budget's focus on a fairer, greener, and more inclusive Singapore.
Key measures in the budget were detailed, such as support for businesses and workers through the Progressive Wage Model, transitioning to a sustainable society with increased carbon tax and green initiatives, strengthening the social compact through cost-of-living support, and funding these through a reformed tax structure including GST with offset packages.
The Leader of the House contrasted the government's philosophical approach to funding—balancing taxes, reserves, and competitiveness—with the Workers' Party's proposals to rely more on taxing large companies, the wealthy, or using reserves, cautioning against potential negative economic impacts.
The Speaker reflected on broader themes of governing in uncertain times, emphasizing the need to rise above a "post-truth" world where stories and misinformation can distort public discourse, while acknowledging Singapore's strengths in housing, employment, and social trust amid global challenges.
The session concluded with gratitude for all contributors to the budget process, from MPs and public servants to support staff, underscoring the importance of disciplined execution and public trust to achieve long-term national goals.

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11 Mar 2022

Second Supplementary Supply (2021) Bill

The Second Minister for Finance moved the Second Supplementary Supply (2021) Bill to authorize additional government spending beyond the original 2021 budget.
The additional funds are approved under the Constitution for expenditures exceeding the sums authorized by the Supply Act 2021.
The Bill was passed after its second and third readings were agreed to by the House.

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11 Mar 2022

Supply Bill

The Second Minister for Finance introduced the Supply Bill to authorize government expenditures for the financial year 1 April 2022 to 31 March 2023, as required by the Constitution.
The Bill details appropriations from the Consolidated and Development Funds, with specific amounts listed in the Schedule and previously approved in the Main and Development Estimates.
The Bill was read a second time, agreed upon by the House, and subsequently read a third time and passed without opposition.

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11 Mar 2022

Extension of Temporary Electricity Contracting Support Scheme

The Minister confirmed that the Temporary Electricity Contracting Support Scheme (TRECS) has been extended until May 2022, with EMA working with retailers to ensure fair contractual terms and compliance with the Code of Conduct, while also encouraging longer-term fixed-price contracts from retailers like Keppel Electric and Sembcorp Power.
EMA confirmed there is no limit for generating companies to draw on the Standby LNG Facility for TRECS, and while capacity for March was sufficient, the Minister addressed concerns about over-subscription in February and noted plans to monitor and negotiate for more fixed-price contracts to enhance energy security.
The Minister advised against making TRECS mandatory for all gencos, explaining that its voluntary and short-term nature allows flexibility for price hedging, and emphasized ongoing efforts to support longer-term stability alongside the scheme's temporary objectives.

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11 Mar 2022

Tax Treatment of Revenue of Sale of Non-fungible Tokens

Yip Hon Weng asked whether revenue from the sale of non-fungible tokens (NFTs) is subject to income tax.
The Minister for Finance stated that income tax rules apply to NFT transactions based on the nature and use of the NFT.
Income derived from NFT transactions or trading is generally taxable, but capital gains from NFTs are not taxed as Singapore has no capital gains tax.

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