Economy & business — Topics

1 Mar 2022

Support for Employers to Better Manage Remote and Hybrid Work Teams

Mr Yip Hon Weng asked whether the Ministry has assessed employer proficiency in managing remote work, if employers have adequate support, and if the Ministry can mediate assessment disputes arising from remote work.
The Minister of State for Manpower replied that the Tripartite Partners support companies implementing remote work, emphasizing employer autonomy, while offering grants like the Productivity Solutions Grant for technology adoption and resources like the Hybrid Work Playbook.
The Minister also noted that employees can seek help from TAFEP for unfair assessment issues, as fair employment principles remain unchanged despite remote work.
Mr Yip followed up by asking if the Ministry would consider leading financial assistance or grants to help companies adopt remote work technologies.
The Minister confirmed that the Productivity Solutions Grant is available for companies needing funding support to acquire remote work technologies.

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28 Feb 2022

Data on Take-up Rates on Reverse Mortgage Tie-Up between CPF and DBS

Ms Joan Pereira asked the Government about take-up rates for the reverse mortgage tie-up between CPF and DBS and measures to promote it for asset-rich, cash-strapped seniors.
Tharman Shanmugaratnam, speaking for the Prime Minister, noted that DBS has approved most applications since August 2021 but cannot share specific data due to commercial sensitivity.
The Government highlighted alternative housing monetisation options like renting, right-sizing, the Silver Housing Bonus, and the Lease Buyback Scheme, with information available on HDB’s website.
The Government will continue reviewing policies to ensure suitable housing monetisation options for retirement needs.

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28 Feb 2022

Grants to Support Banks in Developing Green and Sustainability-linked Liabilities Frameworks

Mr Don Wee asked the Prime Minister if MAS plans to introduce grants for banks to develop frameworks for green and sustainability-linked liabilities to fund green loans through green deposits.
Tharman Shanmugaratnam, responding for the Prime Minister, stated that MAS provides grants to businesses to cover costs related to external reviews and monitoring for green financing projects.
He noted that banks face fewer barriers in offering green deposits and that some financial institutions have already launched such products due to market demand.
The response concluded that there is currently no market failure requiring MAS to support green deposits with grants, unlike other sustainable financing solutions that face higher costs.

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28 Feb 2022

Debate on Annual Budget Statement

Edward Chia welcomed the Budget’s focus on uplifting lower-wage workers and the staggered GST hike, while highlighting labour shortages in essential sectors like childcare and healthcare, and urged a review of foreign talent policies to supplement an ageing local workforce.
Cheng Hsing Yao stressed the need to maintain Singapore’s openness to global talent amid xenophobia, urged careful policy design to balance growth and support for displaced workers, and called for a refreshed national vision to inspire all generations.
Rachel Ong praised the Budget’s social and green measures, proposed using renewable diesel as a transitional fuel for transport, and suggested regulating International Renewable Energy Certificates to boost market liquidity for sustainability goals.
Shawn Huang advocated for bold investments in R&D and innovation, proposing a dedicated Ministry of Science and Technology and stronger support for local enterprises to build globally competitive capabilities, while highlighting successful inclusion of neurodiverse workers.
Yip Hon Weng and other speakers emphasised prudent spending, better coordination of government services, and enhanced support for seniors, including micro jobs, integrated care navigation, and improved palliative care to address ageing population needs.

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28 Feb 2022

Debate on Annual Budget Statement

The debate centered on the government's plan to raise the Goods and Services Tax (GST), with the Workers' Party and Progress Singapore Party strongly opposing it, arguing it is regressive and ill-timed amid high inflation, and proposing alternative revenue sources like higher wealth and corporate taxes.
The government defended the GST hike as necessary for long-term fiscal sustainability, particularly for healthcare and an aging population, highlighting the extensive $6.6 billion Assurance Package and other permanent offsets to cushion the impact, especially for lower and middle-income households.
Other key budget measures discussed included significant increases in carbon tax, property tax, and luxury car taxes to enhance progressivity, as well as expanded support for low-wage workers through the Progressive Wage Model and Workfare schemes.
Members also raised concerns about the impact of the Ukraine conflict on Singapore's economy, the need for stronger support for SMEs amid rising costs, and calls for greater transparency in long-term fiscal projections.

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28 Feb 2022

Second Supplementary Supply (FY 2021) Bill

The Second Supplementary Supply (FY 2021) Bill is introduced to provide additional funding for the financial year from 1 April 2021 to 31 March 2022.
The bill is presented by the Second Minister for Finance, Ms Indranee Rajah, and follows the recommendation of the President.
It undergoes its first reading and is scheduled for a second reading after the conclusion of proceedings on the Estimates of Expenditure for FY 2021/22.

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28 Feb 2022

Supply Bill

The Supply Bill aims to allocate necessary funds from the Consolidated and Development Funds to cover Singapore's estimated government expenditure for the 2022/2023 financial year.
It was presented by the Second Minister for Finance, Ms Indranee Rajah, following the recommendation of the President.
The bill was read for the first time and is scheduled for a second reading after the conclusion of the proceedings on the Estimates of Expenditure for FY2022/23.

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28 Feb 2022

Number of Foreign Remote Employees Hired by Companies Based in Singapore and Breakdown by Industries

Yip Hon Weng asked for the number and industry breakdown of foreign remote employees hired by Singapore-based companies and measures to discourage excessive offshoring, but the Minister for Manpower (Dr Tan See Leng) stated that the Ministry does not track this data and emphasized Singapore's focus on transforming its economy toward higher-value activities while maintaining openness to global trade and foreign manpower to complement the local workforce.
Dr Tan explained that remote work has increased due to COVID-19, potentially prompting offshoring of lower-value work, but Singapore has historically shifted to higher-value industries like Advanced Manufacturing and Fintech, and tripartite efforts are ongoing to reskill workers for future jobs, with caution against balancing foreign and local workforce policies to avoid losing higher-value opportunities.
In a supplementary question, Yip asked if foreign remote employees are subject to foreign workforce levies, quotas, and CPF payments, and Dr Tan replied that they are not currently, but the Ministry would review if contracts are changed to attract such requirements.

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18 Feb 2022

Prices of HDB Flats for First-time Buyers Before and After Subsidies and Their Average Household Income in Past 10 Years

First-time buyers of BTO flats saw pre-subsidy price increases of 10% to 22% between 2012 and 2021, but after grants, the after-subsidy price for 4-room BTO flats rose only 1.4%, with household incomes growing 8% to 46% over the same period.
In 2021, first-time buyers of BTO flats in non-mature estates needed only 13% to 26% of their monthly income for loan instalments, well below the 30% to 35% international benchmark, and most could use CPF with little cash outlay.
For resale flats, first-time buyers can receive up to $160,000 in grants, and after-grant prices for 4-room resale flats in non-mature estates decreased by 1% between 2012 and 2021, with buyers needing less than a quarter of their monthly income for loans.
Resale flat prices decreased in six of the last eight years since 2013, with recent increases partly due to low interest rates, but grants have kept resale flats affordable for first-time buyers.
The government continues to monitor housing market conditions to ensure affordable public housing for Singaporeans.

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18 Feb 2022

Assistance Available to Charities Running Shelters or Homes in Their Implementation of COVID-19-related Safe Management Measures in Premises

The Ministry of Social and Family Development (MSF) has provided additional funding to shelters and homes under its purview to cover costs from COVID-19 measures, including hiring extra staff and raising ongoing funding rates.
MSF, in collaboration with other agencies, has arranged for free on-site mobile vaccinations, supplied government-funded ART kits, and funded PCR testing and deep cleaning during outbreaks.
Community support initiatives like the ComChest Emergency Fund and the Invictus Fund offer grants to social service agencies for business continuity, safe management systems, and ART kits.
MSF has facilitated donations-in-kind such as PPE, masks, and gloves to help offset expenses for shelters and homes.

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18 Feb 2022

Study on Possibility of Trade Associations and Chambers Playing Greater Role in Supporting Sole Proprietors of Micro SMEs in Landlord-tenant Disputes

Dr Tan Wu Meng asked if trade associations and chambers could better support micro SME sole proprietors in landlord-tenant disputes outside the Small Claims Tribunal, especially for elderly or financially vulnerable tenants.
Minister Gan Kim Yong noted the Fair Tenancy Industry Committee (FTIC) has a Code of Conduct for fair lease negotiations and a dispute resolution channel via the Singapore Mediation Centre.
The Singapore Business Federation facilitates FTIC, which includes landlords, tenants, and trade groups, and tenants can seek help from FTIC as detailed on its website.

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18 Feb 2022

Annual Budget Statement

The Minister for Finance outlined a comprehensive budget to support Singapore's post-pandemic recovery, proposing targeted measures like a $500 million Jobs and Business Support Package and a $560 million Household Support Package to aid struggling sectors and households amid inflation and economic uncertainties.
To address long-term challenges, the budget emphasized investing in new capabilities, including digital infrastructure and R&D, advancing the green transition by raising the carbon tax and setting a net-zero emissions target by around 2050, and strengthening the social compact through enhancements to lower-wage worker support, retirement adequacy, and healthcare reforms.
Revenue enhancements were announced, including higher personal income tax rates for top earners, increased property tax rates for non-owner-occupied and high-value homes, and a staggered GST increase from 7% to 9% starting in 2023, accompanied by an enhanced Assurance Package to cushion the impact on Singaporeans.
The budget also detailed adjustments to foreign worker policies, such as raising qualifying salaries for Employment Pass and S Pass holders, and reflected a revised fiscal outlook with lower-than-expected draws on past reserves for COVID-19 relief, while maintaining deficits for FY2021 and FY2022.

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18 Feb 2022

Regulating Imposition of Credit Card Fees by Banks

Lim Biow Chuan asked whether MAS should regulate annual credit card fees to ensure fair treatment, especially for less savvy consumers who may not request waivers.
The Minister of State responded that MAS does not set fees but requires banks to disclose charges transparently and follow industry codes, enabling consumers to make informed choices.
Lim Biow Chuan highlighted that banks often waive fees upon request, but less knowledgeable consumers may still pay, and suggested regulation to make fees optional for those in genuine need.
The Minister of State noted that fee waivers are discretionary, vary by card and issuer, and advised consumers to review terms and use resources like the ABS Consumer Guide before applying.

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18 Feb 2022

Effects of Impending Winding up of Dream Cruises and Genting Hong Kong Ltd and Measures to Mitigate Negative Impact on Singapore as Cruise Hub

The Ministry of Trade and Industry is monitoring the impact of the winding up of Dream Cruises and Genting Hong Kong on the Marina Bay Cruise Centre Singapore and Singapore’s status as a cruise hub, while noting that World Dream continues to sail from Singapore and new bookings are suspended.
Singapore remains an attractive cruise hub due to its tropical climate and market potential, with Royal Caribbean bringing forward its deployment of Spectrum of the Seas and discussions ongoing with other cruise lines.
Efforts to maintain Singapore’s position as a cruise hub include anchoring more cruise ships and supporting the industry’s recovery as the country transitions to living with endemic COVID-19.

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18 Feb 2022

Take-up Rate of Trust Services for Persons with Disabilities from Low- and Middle-income Families

The Special Needs Trust Company (SNTC) manages 889 trust accounts, with 65% set up by families living in HDB flats, and the Ministry fully funds its operating costs to keep services affordable with a low $5,000 initial capital requirement.
SNTC offers financial assistance and the GOAL scheme to help low-income families cover the initial $5,000 for trust setup, including matching grants and insurance provisions to ensure long-term care funds.
The Ministry is exploring ways to maintain affordability and accessibility for low- and middle-income families, with plans to assess gaps in demand after the GOAL scheme matures.

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18 Feb 2022

Impact of Rise in Hybrid Working Arrangements on CPF Contributions

The Minister for Manpower confirmed that CPF contributions have not been adversely affected by the rise in hybrid work arrangements, with obligations applying equally to all employees, including those working remotely for overseas employers.
Employers are legally required to pay mandatory CPF contributions based on wages earned in Singapore, and employees can voluntarily contribute up to $37,740 annually to boost their retirement savings.
The CPF Board uses detection systems, reporting mechanisms, and proactive audits to ensure compliance, and will enforce penalties against employers who fail to meet their CPF obligations.

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18 Feb 2022

Income Data of Long-term Unemployed Population with Breakdown by Income Group in Past Three Years and Help Measures Planned

The Minister for Manpower stated that the Ministry tracks long-term unemployment by age, gender, and education, and cited industries like Transportation, Administrative Support, Arts, Construction, and Accommodation as most affected by COVID-19, but emphasized a broad-based approach to help all workers stay relevant through upskilling and job redesign.
Government measures include Job Transformation Maps, funding support for employers under the Productivity Solutions Grant, Job Redesign Reskilling Programmes, and the National Jobs Council's placement of over 174,000 jobseekers through the SGUnited Jobs and Skills package, with enhanced support for long-term unemployed via Career Conversion Programmes.
The Minister noted that long-term unemployment is low at 0.9% (about 22,000 residents), with higher rates among older, less-educated workers in inward-facing sectors, and plans to proactively identify at-risk industries and expand reskilling programmes, though capacity is limited by employer resources.

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15 Feb 2022

Breakdown of Investments made by CPF Members under CPF Investment Scheme

The Minister explained that CPF members can invest through the CPF Investment Scheme (CPFIS) using their Ordinary and Special Accounts, accessing products like bonds, fixed deposits, unit trusts, shares, and ETFs.
About 75% of 645,000 CPFIS-OA members made profits or broke even in FY2020, while 25% (162,000 members) incurred cumulative losses.
The breakdown of invested amounts by product and cumulative performance for each product category was not provided in the response.

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15 Feb 2022

Raising of Standards of Accountancy Sector by Singapore Accountancy Commission Since Inception in 2013

The Singapore Accountancy Commission launched the Singapore Chartered Accountant Qualification in 2013, which has seen steady growth in candidates and introduced a first-in-Asia Chartered Valuer and Appraiser programme to enhance business valuation standards.
It partnered with Workforce Singapore to upskill workers through initiatives like the Career Conversion Programme for internal audit and created Jobs Transformation Maps to prepare the workforce for evolving job roles in the accountancy sector.
The Commission rolled out the Digital Transformation for Accountancy programme to help small and medium practices adopt technology, supporting about 140 firms from 2018 to 2020 and organising hackathons to drive innovation.
These efforts have contributed to the sector’s growth, with accounting revenue increasing by an average of 5.8% annually from 2015 to 2019 and more than 3,000 jobs created prior to the pandemic.

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15 Feb 2022

Impact of Carbon Tax on Petrol and Diesel Pump Prices

Leon Perera asked about the impact of carbon tax on petrol and diesel pump prices and whether the Ministry studied the effects of increasing petrol duties on driving behavior.
The Government levies excise duties on fuels to encourage reduced usage, while carbon tax targets large industrial emitters, not direct fuel pump prices.
The Ministry has not conducted detailed studies on petrol duty impacts due to limitations in tracking individual driving behavior, but notes that higher duties aim to discourage petrol vehicle use for environmental reasons.

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