Economy & business — Topics

15 Feb 2022

Breakdown of Annual Principal Statistics of Manufacturing by Capital Ownership Structure in Last Five Years

MP Chua Kheng Wee Louis requested a five-year breakdown of manufacturing statistics by capital ownership structure, specifically distinguishing wholly local, majority local, majority foreign, and wholly foreign ownership.
Minister Gan Kim Yong directed the inquirer to the Economic Development Board's website, which publishes annual manufacturing statistics by capital structure.
The Minister stated that historical data from 2016 to 2020 is available in the tables on the EDB’s media releases and publications page.

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15 Feb 2022

Individuals Involved in Financial Crimes and Deemed Credit Risk and Needing Ministry's Intervention to Open Bank Accounts from 2012 to 2021

From 2012 to 2021, only six requests for assistance were received from ex-offenders unable to open bank accounts, with four successfully opened following intervention by Singapore Prisons Service, Yellow Ribbon Singapore, and the Monetary Authority of Singapore.
Banks may deny account openings due to concerns over serious financial crimes like money laundering or scams, but credit risk is not typically a factor in account opening; limited-purpose accounts are available for daily needs.
Since 2015, POSB has collaborated with Singapore Prisons Service to help local ex-offenders open accounts using a discharge letter, with service charges waived for up to a year.

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15 Feb 2022

Breakdown of Applications Received for Schemes under Financial Sector Development Fund Annually in Last Five Years

In the last five years, the Financial Sector Development Fund received annual applications for course fee subsidies for individuals, with all claims approved and S$188 million disbursed to about 176,000 individuals, 87% of whom were Singapore Citizens.
For financial institutions, nearly 600 applications were supported over five years, amounting to S$86 million and benefiting close to 2,200 Singapore Citizens, with almost all applications approved except for the Financial Specialist Scholarship, which had a 50% approval rate.
The schemes aim to support career development at various levels, from pre-entry internships to senior leadership programmes, focusing on areas like digitalisation, sustainable finance, and cybersecurity.

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15 Feb 2022

Plans to Regulate Activities in Non-fungible Tokens

The Prime Minister stated that MAS does not currently regulate NFTs because their underlying assets, such as digital art, do not typically fall under its regulatory scope, aligning with international practice.
MAS adopts a tech-neutral approach, assessing each digital token based on its substance; an NFT would be regulated only if it exhibits characteristics of a capital markets product under the Securities and Futures Act.
MAS warned that NFTs are not suitable for retail investors due to speculative price inflation, potential for significant losses, and complex legal risks regarding ownership rights.

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15 Feb 2022

Goals and Priorities Set under Research, Innovation and Enterprise 2025 Plan

The RIE2025 Plan allocates S$25 billion for 2021-2025, sustaining R&D investment at about 1% of GDP, with three focus areas: broadening national needs and economic growth domains, enriching the scientific base, and strengthening company support for innovation and enterprise.
It expands four domains—Manufacturing, Trade and Connectivity; Human Health and Potential; Urban Solutions and Sustainability; and Smart Nation and Digital Economy—to address post-pandemic economic growth and challenges like sustainability, digital resilience, and early childhood development.
The plan emphasises building scientific talent through schemes like NRF Fellowship and Returning Singapore Scientist Scheme, while scaling Innovation & Enterprise platforms to translate research into commercial applications, as seen with the Fortitude COVID-19 test kit deployed globally.
Support is tailored for startups, SMEs, and large enterprises, with initiatives like T-Up, Centres of Innovation, and corporate labs to drive deeptech commercialisation and upskill workers, leading to increased startup funding and unicorn creations.
Investments in R&D are expected to benefit Singapore companies and workers by creating commercial applications, expanding innovation platforms, and providing upskilling opportunities in deeptech sectors.

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15 Feb 2022

Multi-pronged Approach by Government, Telcos and Banks to Combat Phishing and Credit Card Scams

Members of Parliament Christopher de Souza and Jamus Jerome Lim raised questions about the government’s, telcos’, and banks’ collaborative efforts to address phishing and credit card scams, including the percentage of unauthorized transactions and recovery rates.
The Prime Minister’s response indicated that these issues would be addressed in upcoming Ministerial Statements by the Ministers of Finance, Communications and Information, and Home Affairs.
The debate highlighted a multi-agency approach involving the Monetary Authority of Singapore, the Singapore Police Force, telcos, and banks to combat scams.
Specific concerns were raised about implementing additional safeguards beyond one-time passwords for credit card transactions, such as mandatory notifications for anomalous transactions.

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15 Feb 2022

Application and Approval Process for Registered Fund Management Company, Licensed Fund Management Company and Venture Capital Fund Management Permits

Assoc Prof Jamus Jerome Lim asked for the average, minimum, and maximum processing times for RFMC, LFMC, and VCFM licences, as well as the challenges causing delays.
Tharman Shanmugaratnam stated that LFMC and RFMC applications take 1 to 10 months (average 5 months), while VCFM applications take 1 to 6 months (average 3 months).
Delays arise from incomplete submissions, weak business plans, adverse records of key personnel, insufficient experience, and conflicts of interest.
MAS provides online guides and annual reports to assist applicants and has seen a 14% and 33% increase in applications in 2021 and 2020, respectively.
MAS continues to simplify and automate the process while incorporating market feedback to improve the application experience.

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15 Feb 2022

Government Procurement Function Office's Role to Manage Global Inflation and Supply Disruption

The Government Procurement Function Office (GPFO) collaborates across national, sectoral, and project levels to mitigate global inflation and supply disruption by promoting forward planning, supplier diversification, and contingency planning.
During crises like the COVID-19 pandemic, GPFO activated emergency procurement procedures and co-shared cost increases with contractors to ensure project continuity while maintaining financial governance.
To minimise procurement lapses, GPFO is consolidating procurement teams across agencies to build scale and expertise, and has established competency standards and training programs for procurement officers.

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15 Feb 2022

Actions by Competition and Consumer Commission of Singapore against Retailers for Profiteering in Past Three Years

The Ministry of Trade and Industry and the Competition and Consumer Commission of Singapore (CCCS) enforce a multi-pronged strategy against profiteering, including investigating anti-competitive behaviour and promoting price transparency through guidelines and tools like the Price Kaki app.
During the pandemic, the government swiftly investigated and compelled merchants, such as those selling masks, to justify and reduce prices after reports of profiteering, resulting in more reasonable levels.
The government maintains heightened surveillance on essential goods, encourages consumers to report suspected profiteering, and works with businesses to diversify supply chains to prevent shortages and anti-competitive conduct.

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15 Feb 2022

Plan to Shift Public Service's Operating Model from "Just in Time" to "Just in Case"

The Minister for Finance confirmed that the Government already incorporates "just in case" provisions in planning for resilience against shocks, but will not fully shift to a "just in case" model due to the high costs and fiscal imprudence of comprehensive insurance against all risks.
Singapore balances resilience and efficiency through targeted measures, such as the Four National Taps for water security, the Rice Stockpile Scheme for food supply, and the Coastal and Flood Protection Fund for climate risks, ensuring preparedness without over-budgeting.
To manage costs, the Government uses cost-efficient approaches like dual-purpose facilities, and will continue seeking new ways to maintain resilience sustainably amid tightening fiscal space.

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15 Feb 2022

Reasons and Preventive Measures for Continued Rise in Premiums for Motorcycle COEs

Melvin Yong questioned if speculative bidding by dealerships and leasing firms is driving the rise in motorcycle COE premiums and asked what measures exist to prevent such speculation and whether these measures are sufficient.
S Iswaran referred to his previous written reply dated 14 February 2022, which addressed the reasons for high motorcycle COE premiums and the measures to help those impacted, implying that the Ministry’s stance and existing measures were already documented there.
The exchange highlights parliamentary scrutiny of COE market dynamics but does not introduce new policy actions beyond referencing an earlier official response.

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15 Feb 2022

Extending GST Voucher Scheme to Seniors Whose Homes Exceed $21,000 Annual Value but Who Have Little Cash Savings

Joan Pereira proposed extending the GST Voucher scheme to seniors living in homes with an annual value above $21,000 who have little cash savings and no family support.
Lawrence Wong explained that eligibility is based on Assessable Income and Annual Value as proxies for means, noting that properties above $21,000 are typically private and indicate greater resources.
The Ministry of Finance considers appeals from those in financial hardship who do not qualify, and seniors also benefit from other support schemes like the Pioneer and Merdeka Generation packages.
The GST Voucher scheme is regularly reviewed to ensure it targets those most in need.

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15 Feb 2022

Increasing Awareness of Risks amongst Retail Investors of Special Purpose Acquisition Companies

The Singapore Exchange (SGX) has implemented a comprehensive listing framework for SPACs with stricter safeguards than other jurisdictions, including requirements for sponsor equity retention, voting restrictions on sponsor shares, and caps on sponsor compensation and dilution from warrants.
To address the inherent risks of SPACs, such as sponsor conflicts of interest and potential dilution, SGX partners with the Securities Investors Association (Singapore) to provide independent research on acquisition targets and has launched educational initiatives like webinars and online materials to help retail investors understand SPAC features and risks.
The Government believes the existing safeguards and educational efforts provide adequate protection for retail investors and that restricting their access to SPAC IPOs could limit investment opportunities and drive them to riskier unregulated alternatives, so no additional restrictions are planned at this time.

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15 Feb 2022

Amount and Breakdown of Funds Disbursed to Town Councils for Implementation of Safe Management Measures

The Ministry of National Development provided funding to Town Councils for safe management measures from April 2020, with cost caps that were regularly reviewed and increased as COVID-19 guidelines evolved.
For FY2020, Town Councils submitted $1.38 million in claims, and $1.24 million was disbursed; for FY2021, $4.66 million was claimed, with $4.65 million approved, with differences due to cost cap limits or non-claimable items.
The claims process involved batch processing to analyze trends, and payment typically took about one month, but delays occurred due to late or incomplete submissions from some Town Councils.
From August 2021, the Ministry shifted to a subvention model where Town Councils no longer need to submit supporting documents, with audits conducted instead to speed up reimbursement.
Town Councils were told to expect FY2021 claim payments by end-March 2022, with late or incomplete claims processed in the next cycle.

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15 Feb 2022

Annual Budgets Provided to Primary Care, Community Hospitals and Nursing Homes in Last Three Financial Years and Plans for Higher Allocations Given Ageing Population with More Chronic Diseases

MOH’s expenditure on public acute hospitals and specialist outpatient clinics rose from $6.7 billion in FY2017 to $6.9 billion in FY2019.
Expenditure on primary care and intermediate and long-term care, including community hospitals and nursing homes, increased from $1.4 billion in FY2017 to $2 billion in FY2019.
Investment in primary and long-term care is expected to continue rising to support an ageing population with more chronic diseases.
Plans include expanding polyclinics from 23 to 32 by 2030, building three new public community hospitals, and growing aged care services to help seniors age in place.

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15 Feb 2022

Strengthening Enforcement and Public Education

The Inter-Ministry Committee on Scams coordinates efforts across government agencies and private sector partners to combat scams, with a focus on enforcement, public education, and leveraging technology like the ScamShield app and the Anti-Scam Centre, which has frozen thousands of accounts and recovered significant funds.
Challenges in enforcement include the transnational nature of scams, reliance on overseas cooperation, and difficulty in recovering funds transferred abroad, as illustrated by the OCBC phishing scam where investigations involve local and international collaboration.
Public education is emphasized as critical, with targeted campaigns like "Spot the Signs. Stop the Crimes" and initiatives for specific age groups, while MAS is developing an equitable loss-sharing framework between banks and customers to enhance accountability and security.

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15 Feb 2022

Bolstering the Security of Digital Banking

The government is adopting an ecosystem approach to combat digital banking scams, involving banks, telcos, law enforcement, and consumers, following the OCBC phishing scam that affected 790 customers and caused $13.7 million in losses.
Immediate measures include removing clickable links in bank communications, delaying new token activation, lowering transaction notification thresholds, and setting up 24/7 dedicated call centres to assist customers.
Longer-term strategies focus on enhancing fraud surveillance with AI, enabling instant transaction blocking, introducing additional customer confirmations for high-risk actions, and accelerating the shift to mobile banking apps.
MAS and the Payments Council are developing a framework for equitable loss-sharing between banks and customers, to be published for public consultation within three months.
Public education and enforcement efforts are being strengthened, with a call for constant vigilance as scams evolve in sophistication and cannot be entirely eliminated.

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15 Feb 2022

Measures to Encourage Supermarkets and Companies to Adopt More Sustainable Forms of Packaging without Passing on Costs to Consumers

Dr Shahira Abdullah asked the Minister for Sustainability and the Environment how to encourage supermarkets and companies to adopt sustainable packaging without passing the costs to consumers, focusing on reducing packaging waste, using greener materials, and minimizing pre-packaged groceries.
The Minister acknowledged the importance of sustainable practices, noting that while some sustainable products may cost more, competition and economies of scale could reduce prices, and highlighted the Mandatory Packaging Reporting framework and the Packaging Partnership Programme to promote waste reduction.
The Minister emphasized that packaging is crucial for protecting goods and reducing food waste, and encouraged businesses to explore reusable and refillable models, while urging consumers to avoid excessive packaging.
Dr Shahira Abdullah followed up by asking about the take-up rate of the Packaging Partnership Programme and how companies are encouraged to participate, to which the Minister responded that the programme is new, with various workshops and webinars held, and expressed hope for broader adoption over time.

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15 Feb 2022

Steps to Diversify Sources of Seafood and Vegetable Items Ahead of Major Festivities to Mitigate Price Increases

The Singapore government has diversified seafood and vegetable imports from over 10 source countries to strengthen supply resilience and mitigate festive price increases, while also working with retailers and CASE to promote consumer awareness.
Prices rise due to seasonal demand surges, and the government employs a multi-pronged strategy—including import diversification, local production goals, and stockpiling—to stabilize food prices amid global disruptions like climate change and supply chain issues.
Retailers are actively moderating prices through campaigns and discounts, and the government collaborates closely with local companies to ensure sufficient supply, with factors like currency appreciation and passing monsoon seasons helping to temper cost pressures.

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15 Feb 2022

Number of Firms in Built Environment Sector that have Ceased Operations in Recent Years

About 2,200 construction firms ceased operations in 2021, a figure similar to the annual average from 2018 to 2020, with the government having provided extensive support measures during the pandemic.
The government will end most COVID-19 temporary relief measures for the sector by February 2022, barring unforeseen circumstances, and is encouraging firms to negotiate sustainable arrangements.
Efforts are underway to help resolve disputes and facilitate worker transitions if firms close, including low-cost resolution mechanisms and collaboration with industry associations for workforce sharing.

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