Economy & business — Topics

14 Feb 2022

Reasons for Recent Record High Premiums of Motorcycle COEs and Measures to Help Those Impacted and Dependent on Motorcycles for Livelihoods

The record high motorcycle COE premiums are driven by strong demand, with the supply of COEs for each bidding exercise largely determined by the number of motorcycles deregistered in the preceding period.
The Government notes that nearly all temporary COEs issued for motorcycles are used to register vehicles, indicating genuine demand and no significant evidence of excessive bidding by dealers or leasing firms.
Motorcycle riders have lower Additional Registration Fees, road taxes, and ERP charges compared to other vehicles, and the Government is monitoring the situation to consider appropriate measures if needed.

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14 Feb 2022

Considerations in Extending Formula One Singapore Grand Prix for Another Seven Years and Expected Overall Benefits to Singapore

The Government decided to extend the Formula One Singapore Grand Prix for another seven years after evaluating that projected economic benefits outweigh the costs, with the Government co-funding 60% of annual organisational costs estimated at $135 million to $140 million.
Since 2008, the race has generated around $130 million in annual tourist spending, attracted over 550,000 international visitors, and served as a focal point for more than 30 MICE events each year, boosting Singapore's global branding with a media value of $70 million to $75 million in 2019.
The race benefits local businesses, with 90% of organisation sub-contracted to Singapore-based companies and around 30,000 staff and contractors working at the circuit per race, generating revenue and jobs for Singaporeans.
The first few years of the new term may see lower economic benefits due to COVID-19's impact on international travel, but the extension aims to sustain Singapore's global city reputation, support tourism recovery, and normalise long-term appeal.

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14 Feb 2022

Impact on Affordability of Insurance Premiums from NTUC Income's Conversion from Insurance Co-operative to Corporate Entity

Liang Eng Hwa raised concerns about whether NTUC Income’s conversion from a co-operative to a corporate entity would affect the affordability of insurance premiums and workers’ access to affordable insurance.
Tharman Shanmugaratnam, for the Prime Minister, noted that the insurance market has grown significantly with over 40 direct insurers and is highly competitive, so the conversion should not impact affordability.
He emphasized that NTUC Income has committed to continuing its focus on providing affordable and quality insurance solutions to Singaporeans.
The government’s view is that a vibrant and competitive insurance industry is the best way to ensure affordable prices and product variety.
MAS will continue to promote a competitive insurance market to maintain affordability and choice for consumers.

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14 Feb 2022

Economic Expansion Incentives (Relief From Income Tax) (Amendment) Bill

The Bill amends the Economic Expansion Incentives (Relief from Income Tax) Act to enhance the Investment Allowance for Emissions Reduction (IA-ER) scheme, expanding its scope to include greenhouse gas reduction investments and extending its validity until 31 December 2026.
It introduces a new provision allowing the Minister for Trade and Industry to assign tax incentive administration functions to public bodies like EDB and ESG to improve efficiency without changing policy intent.
Members supported the Bill but raised questions about extending the IA-ER scheme to align with the Singapore Green Plan 2030, seeking more support for SMEs and clearer financing for green incentives.
The Minister clarified that the amendments are backdated to 1 April 2021, and the government will review the IA-ER scheme and other sustainability initiatives regularly to ensure they remain effective.

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14 Feb 2022

Financial Services and Markets Bill

The Financial Services and Markets Bill was introduced to establish comprehensive regulation for the financial sector, covering financial services, markets, control over financial institutions, resolution processes, and the licensing of digital token service providers.
The bill also includes incidental amendments to other Acts and adjusts the Income Tax Act 1947 to align with the Financial Holding Companies Act 2013.
It was presented by the Minister of State for Trade and Industry on behalf of the Prime Minister and is scheduled for a second reading in April 2022.

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14 Feb 2022

Breakdown on Financial Aid Per Capita Provided to Students in Tertiary Institutions

Seah Kian Peng asked for a per capita breakdown of financial aid for students in NUS, Yale-NUS, Polytechnics, ITE, and private universities like SIM.
The Minister of State for Education outlined tiered bursaries, with the highest support for lower-income households, including $6,200 annually for autonomous university students and $2,750 for polytechnic students.
ITE students receive $1,500 in cash bursary plus fully covered tuition fees, while private university students get no government aid and must seek PEI or commercial loans.

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14 Feb 2022

Jobs Created by New Investments Brought in by EDB in Last Three Years, their Profile and Preparedness of Local Workforce for this Growth

EDB attracted investments over the last three years created about 54,000 jobs in high-value sectors like advanced manufacturing, digital, and green economy, with a focus on roles such as software engineers, data scientists, and lab technicians.
The local workforce is supported through multi-agency initiatives like Career Conversion Programmes, SkillsFuture, and partnerships with companies like Bosch and Siemens to upskill workers for Industry 4.0 and new job roles.
Approximately 80% of jobs created from 2021 investments are projected to be held by locals with salaries above $4,000, though this depends on labor market conditions and the availability of suitable local talent.
The government is calibrating foreign manpower policies to complement local talent gaps while ensuring Singaporeans benefit from new investments through training and fair recruitment practices under the Fair Consideration Framework.
Investments are increasingly focused on capital- and skills-intensive sectors to enhance productivity, with efforts to make engineering and manufacturing careers more attractive to locals as part of the Manufacturing 2030 strategy.

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14 Feb 2022

Update on Temporary Electricity Contracting Support Scheme and Impact of Exit of Electricity Retailers on SMEs and Support Available

The Temporary Electricity Contracting Support Scheme (TRECS) has been fully subscribed for January and February 2022, and will now be extended through March, April, and May to help about 11,000 business accounts exposed to volatile wholesale electricity prices after six retailers exited the market in late 2021.
The government is providing support through TRECS, fixed-price plans from generators like Sembcorp, and financing options such as instalment plans and SME working capital loans, while noting that allowing SMEs to buy at the regulated tariff would unfairly raise costs for households and smaller consumers.
Officials are monitoring energy prices weekly, are cautiously optimistic prices may ease after winter, and are promoting energy efficiency measures including grants for solar panels, building efficiency, and using energy-efficient devices to help businesses manage costs.

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14 Feb 2022

Enhancing Security of Digital Banking Following Recent Scams

Multiple MPs raised urgent questions about helping scam victims, enhancing digital banking security, and reconsidering the use of one-time passwords following recent phishing scams targeting bank customers.
Concerns were voiced about the need for better consumer protection, including a review of liability frameworks, mandatory SMS sender ID registries, and 24-hour hotlines for reporting fraud.
Ministers are set to deliver statements outlining government actions, including regulatory reviews, cooperation with banks and telcos, and public education efforts to combat scams and restore confidence in digital banking.

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12 Jan 2022

Utilisation of CPF Savings to Service Mortgage Loans for HDB Flats Based on Islamic Financing

Member Zhulkarnain asked if CPF savings can be used for Islamic financing mortgage loans on HDB flats.
Minister Tan replied there are currently no Islamic financing mortgage products for HDB flats.
He said if institutions propose such products, the CPF Board and authorities will assess them while protecting members' retirement savings.

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12 Jan 2022

Beneficiaries of COVID-19 Recovery Grant

Melvin Yong asked how many individuals have been supported by the COVID-19 Recovery Grant and how many were assisted per tranche
As of 31 December 2021, about 27,500 individuals had been supported, with 22,000 receiving one tranche and 5,500 receiving two tranches
Each tranche provides three months of support, and the grant’s application period has been extended to 31 December 2022
From 1 January 2022, eligible individuals can receive up to three tranches of support over 2021 and 2022
The government continues to provide financial assistance to those significantly affected by the pandemic through the extended CRG

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12 Jan 2022

Subsidiaries of Temasek Holdings and GIC Involved in Major Potential Environmental, Social and Corporate Governance Issues

Leon Perera questioned whether the Government directs Temasek or GIC on ESG issues involving subsidiaries and how the public can hold their boards accountable.
Lawrence Wong stated that the Government does not direct individual investment decisions of Temasek or GIC, which operate independently and focus on long-term sustainable returns.
Both Temasek and GIC integrate ESG considerations into their investment processes, with Temasek engaging investee companies on sustainability and GIC incorporating climate risks and promoting transitions.

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12 Jan 2022

Domestic Consumer Spending in Last Five Years and Expected Trend in 2022

The Minister reported domestic consumption expenditure from 2016 to 2020 at $134.4 billion, $139.3 billion, $146.3 billion, $151.8 billion, and $147.1 billion respectively, noting that data is not available to break this down by luxury and non-luxury items.
Domestic spending under schemes like the SingapoRediscovers Vouchers (SRV) reached $280 million by December 2021, but this is insufficient to offset the sharp drop in international tourism receipts, which fell from nearly $28 billion in 2019 to under $5 billion in 2020.
Domestic consumer spending is expected to rise in 2022 as restrictions ease and labor market conditions improve, though it will not fully compensate for the continued decline in tourism receipts, and some consumer-facing sectors may not recover to pre-COVID levels by year-end.

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12 Jan 2022

Reports Received of Consumer Prepayments Lost Due to Business Closures and Amounts Involved and Recovered

Since 2020, the Consumers Association of Singapore received about 420 reports of consumer prepayments lost due to business closures.
The total reported lost prepayments amount to approximately $720,000, with a median loss of around $680 per affected consumer.
About one-third of consumers who sought assistance from the association recovered some of their losses, though data on recoveries through other avenues is unavailable.

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12 Jan 2022

Lower Reliance on Liquified Natural Gas to Hedge against Rising Electricity Prices and Pilot Trial to Import Electricity from Malaysia

Minister Gan Kim Yong highlighted Singapore's multi-pronged approach under the Energy Reset pillar, including scaling solar power to at least 2 GWp by 2030, which is expected to meet about 3% of demand given land constraints.
The Energy Market Authority is advancing plans to import up to 4 GW of low-carbon electricity by 2035, with a pilot trial to import 100 MW from Malaysia via existing interconnectors set to commence this year.
To hedge against global energy price volatility, Singapore is diversifying into emerging low-carbon technologies such as hydrogen and geothermal energy through research funding and international partnerships, while noting that energy import dependence remains.

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12 Jan 2022

Review of Prepayment Practices Given Sudden Business Closures and Financial Impact on Consumers

Melvin Yong asked the Ministry for Trade and Industry to review prepayment practices across sectors to better protect consumers from sudden business closures.
Gan Kim Yong acknowledged consumer losses but noted that strict regulations like escrow accounts can increase costs for businesses and consumers.
The government prefers a complementary approach of consumer education, such as promoting CASETrust-accredited businesses and progressive payments.
Consumers are encouraged to use credit cards for prepayments, allowing them to dispute charges with card issuers if businesses close unexpectedly.
MTI will continue working with CASE to monitor the prepayment landscape and protect consumer interests.

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12 Jan 2022

Complaints about Unsuccessful Medical Insurance Claims

Carrie Tan asked whether MAS monitors complaints about unsuccessful medical insurance claims, what percentage arise from non-declaration of health information, and if there are data on reported and unreported incidents.
Tharman, responding for the Prime Minister, stated that MAS expects insurers to be fair and that less than 5% of health-insurance complaints over three years were about claims rejected due to non-disclosure of health conditions.
Most complaints about unsuccessful claims related to coverage limits, lapsed policies, or missing documents, not non-disclosure.
Insurers must prove non-disclosure is material to reject claims, and policyholders can seek mediation through FIDReC or the Clinical Claims Resolution Process for disputes.

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12 Jan 2022

Freeze on Increases to Fees Imposed by Government Agencies and Statutory Boards

Member of Parliament Chua Kheng Wee Louis asked the Minister for Finance whether the government would consider mitigating fee increases by government agencies and statutory boards for lower-income households over the next 12 months.
Minister for Finance Lawrence Wong stated that this issue had already been addressed in a combined reply by the Ministry of Trade and Industry and Ministry of Finance during the 11 January 2022 Parliament sitting.
The reply covered multiple questions from the Order Paper on 10 and 11 January 2022, both oral and written, regarding cost rises and measures to help Singaporeans cope with inflation.
Official reports from 11 January 2022 were referenced, detailing reasons for rising costs, measures to assist households, and analysis of inflation drivers and fiscal support impacts.
The government’s position indicates that existing measures and responses are in place rather than implementing a new freeze on fee increases for lower-income households.

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12 Jan 2022

Extending Relief Framework under COVID-19 (Temporary Measures) Act to Include Material Costs to Further Support Built Sector

Kwek Hian Chuan Henry suggested expanding the COVID-19 (Temporary Measures) Act to include material costs and establishing a BCA team to assist firms with claims.
Desmond Lee responded that the Act addresses pandemic-related contractual disruptions, not general material price fluctuations caused by global factors, and thus expansion is inappropriate.
He advised firms to negotiate and use existing contractual mechanisms, noting that public contracts already include fluctuation clauses for material prices.
While BCA provides resources and guidance on the Act, it cannot offer legal advice; firms should consult professionals and industry associations for specific project issues.

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12 Jan 2022

Proposal to Subsidise Small Sub-contractors in Built Environment Sector to Bring In Foreign Manpower

Kwek Hian Chuan Henry proposed that the government subsidise small sub-contractors and specialists in the built environment sector to lower the cost of bringing in foreign workers from non-traditional source countries.
The government has implemented temporary support measures, including extended foreign worker levy rebates and waivers, as well as contract adjustments under the COVID-19 Act, to help construction firms manage manpower shortages and cost increases.
These measures are under review as the sector recovers, with signs of improvement such as increased entry of foreign workers and near-pre-COVID progress payments.
The government encourages firms to adopt automation and digitalisation through available incentives to boost productivity and reduce reliance on labour-intensive methods.

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