Economy & business — Topics

12 Jan 2022

Review of Seller’s Stamp Duty to Discourage Short-term Holding of Residential Properties

Murali Pillai asked the Ministry of Finance to review the Seller’s Stamp Duty (SSD) to discourage short-term holding of residential properties and promote a stable property market.
Lawrence Wong stated that the government last changed SSD in 2017 by reducing the holding period from four to three years and did not adjust it in recent cooling measures as short-term holding remained stable.
The government will continue monitoring the residential property market and consider adjustments to ensure stability and sustainability.

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12 Jan 2022

Ensuring Workers Not Covered by Progressive Wage Models and Local Qualifying Salary Scheme Will Earn Monthly Salary of At Least $1,400

Gerald Giam asked how many workers earning under $1,400 are in firms with over 10 employees but no foreigners, and how they would be ensured a minimum wage of $1,400 after September 2022, since the Local Qualifying Salary (LQS) does not apply to such firms.
Tan See Leng explained that measures like the Progressive Wage Model and LQS would cover 234,000 lower-wage workers from September 2022, with only about 2,000 workers in firms with over 10 employees and no foreigners earning under $1,400, mostly in small family businesses.
The Minister stated that market forces and wage increases in sectors like cleaning and security would eventually lift wages for uncovered workers, with entry-level cleaners and security officers seeing significant cumulative wage growth by 2028.
The Government is enhancing the Workfare Income Supplement scheme to provide higher cash and CPF top-ups to lower-wage workers from 2023, and introducing the Progressive Wage Mark to incentivize employers to adopt progressive wages.
The Ministry will continue implementing more Progressive Wage Models in 2022 and 2023, and require government suppliers to obtain the PW Mark to support wage uplifts for lower-wage workers.

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12 Jan 2022

Towards a Low-carbon Society

Singapore plans to develop a green economy by capturing opportunities in areas like green finance, carbon services, and low-carbon technologies, while transforming existing industries and equipping workers with relevant skills.
The government will use a calibrated carbon tax approach, complemented by financial support and standards, to guide the transition without compromising competitiveness.
Public-private partnerships and international cooperation, including carbon markets and sustainability standards, are key to ensuring an inclusive and effective shift toward a low-carbon society.

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12 Jan 2022

Towards a Low-carbon Society

Parliament debated measures to advance Singapore's inclusive transition to a low-carbon society, focusing on enhancing green financing, creating green jobs, and strengthening corporate accountability, with a call for whole-of-society partnership.
Speakers highlighted Singapore's energy constraints and the need for international carbon trading and renewable energy imports, while urging a faster pace on climate targets, including a net-zero by 2050 commitment and a significantly higher carbon tax.
Emphasis was placed on supporting businesses, especially SMEs, through funding and capability-building, and ensuring an inclusive transition by upskilling workers—particularly mid-career and older employees—for green jobs in sectors like finance, built environment, and carbon services.

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11 Jan 2022

Clarification by Senior Minister of State for Health

The Senior Minister of State for Health highlighted that tobacco tax is the most effective tool to reduce smoking, citing studies showing a 10% price increase leads to a 3-5% drop in overall consumption.
He noted a 3.5% reduction in young people taking up smoking and a 7% decline in kids starting to smoke due to higher prices, but the tax was last raised in 2018.
With inflation and income growth eroding the tax's impact, he emphasized the need to work with the Ministry of Finance to review and potentially increase the tobacco tax rate.

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11 Jan 2022

Proposal for Financial Support for Families to Cover Increased Costs of Bringing in Migrant Domestic Workers in Event of Unsuccessful Employment Relationship

Assoc Prof Jamus Jerome Lim proposed financial support for families to cover increased costs if an employment relationship with a migrant domestic worker ends unsuccessfully.
The Ministry of Manpower introduced a cost-sharing initiative in September 2021 for Stay-Home Notice and COVID-19 test costs if an employer change occurs within the first year.
With eased border measures, employers can arrange for migrant domestic workers to serve quarantine at their own residence or an agent’s location, lowering hiring costs.
The ministry also improved access to migrant domestic workers' employment history to help employers assess suitability and promote successful employment relationships.

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11 Jan 2022

Study on Prevalence of Concept of Intergenerational Teams in Local Companies

Yip Hon Weng asked whether any study has been conducted on the prevalence of inter-generational teams in local companies and how the Ministry will encourage work redesign to leverage age diversity.
The Ministry of Manpower does not have specific data on the prevalence of such teams but emphasises that an age-diverse workforce is crucial for business competitiveness as populations age.
The Ministry supports businesses by increasing statutory retirement and re-employment ages and expecting employers to adopt fair, merit-based employment practices.
The Ministry encourages age-friendly job redesign through grants like the Productivity Solutions Grant and Enterprise Development Grant, and recognises such practices via the Tripartite Standard on Age-friendly Workplace Practices.
Tripartite partners like NTUC support workforce transformation through initiatives such as Company Training Committees, contributing to strong senior employment rates despite the pandemic.

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11 Jan 2022

Plans to Regulate New Frontiers of Technologies Such as Metaverse and Non-fungible Tokens

The Minister stated that technologies like the Metaverse and NFTs are still in early stages with limited real-world applications in Singapore, and the government is studying their risks and benefits for online safety, consumer protection, and intellectual property.
The government aims to balance promoting economic vitality with preserving social stability and public security in regulating these technologies, acknowledging their borderless nature and the need for international coordination.
The response emphasized that industry players and users must also act responsibly and exercise caution when engaging with the Metaverse and NFTs, even as the government develops regulatory approaches.

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11 Jan 2022

Assessment of Second-round Inflation Effects in 2022 and Additional Fiscal Policy Related Measures to Offset Impact of Non-demand Driven Inflation Effects

Saktiandi Supaat questioned the assessment of second-round inflation effects in 2022 and additional fiscal measures to offset non-demand driven inflation from supply-side constraints.
Lawrence Wong stated that the matter was already addressed in a combined oral reply by MTI and MOF on 11 January 2022.
The response referred to an official report on measures to help Singaporeans cope with rising inflation and the impact of fiscal support on inflation.

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11 Jan 2022

Data on Residential Property Stamp Duties and Additional Buyer's Stamp Duties Collected in Last 10 Years

Chua Kheng Wee Louis asked for a yearly breakdown over the last 10 years of residential property stamp duties and Additional Buyer’s Stamp Duty (ABSD) collected from Singaporeans, permanent residents, foreigners, and entities.
Lawrence Wong stated that providing such a long time series is not feasible, but shared data for 2017–2021 showing Singapore Citizens contributed about 78% of Buyer’s Stamp Duty and 71% of ABSD, permanent residents about 1% and 3%, foreigners about 2% and 17%, and entities about 18% and 10%, respectively.
The figures have been updated in official reports, and transactions with mixed statuses are categorized under the profile with the highest ABSD rate.

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11 Jan 2022

Successful Applications for Agri-food Cluster Transformation Fund and Total Amount of Grants Given Out

The Agri-food Cluster Transformation Fund has received 23 applications since its launch on 30 April 2021, with eight approved as of 31 December 2021.
Approved grants range from $10,000 to $700,000 per farm, with co-funding at 70% for commonly-consumed food items and 50% for other food items.
The Singapore Food Agency is currently evaluating the remaining 15 applications, and no breakdown by types of successful applicants was provided in the response.

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11 Jan 2022

Emergence of Second-round Effect of Inflation and Main Drivers Contributing to Wage and Services Inflation Outlook in 2022

Saktiandi Supaat inquired about the emergence, persistence, and drivers of second-round inflation effects, alongside wage and services inflation outlook, price stabilization measures, and retailer cooperation in 2022.
Gan Kim Yong responded that the matter had been previously addressed in an oral reply on January 11, 2022, directing attention to an official report on cost rises and measures to help Singaporeans cope.
The debate highlighted concerns over supply-side cost drivers and excessive pricing on essentials, with the government indicating existing responses rather than new announcements.
No new policy measures or specific cooperation plans with retailers were detailed in the exchange, emphasizing reliance on prior official communications.

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11 Jan 2022

Annual Number and Proportion of HDB and Private Property Flat Buyers with Total Debt Servicing Ratio of above 55%

Chua Kheng Wee Louis asked the Prime Minister for the annual number and proportion of HDB and private property buyers with Total Debt Servicing Ratio (TDSR) above 55% since 2013.
Tharman Shanmugaratnam explained that the TDSR threshold was lowered from 60% to 55% in December 2021 to promote property market stability and financial prudence among buyers.
In 2020, only 3% of HDB flat buyers had a TDSR above 55%, while about 40% of private property buyers did, reflecting higher debt burdens in the private market.
The tightened TDSR framework is expected to encourage buyers to adjust their purchases and mortgages, helping them manage debt better amid rising interest rates.
The TDSR applies to loans from financial institutions, including those for HDB flat buyers, and aims to moderate demand, especially in the private property sector.

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11 Jan 2022

Regulation of Consumer Credit Extended by Retailers

Dr. Tan Wu Meng asked about the regulatory framework for retailer-provided consumer credit, including measures against predatory lending, dispute resolution, and data on debt collector actions and bankruptcies in 2021.
Minister Gan Kim Yong explained that retailer credit is regulated under the Hire-Purchase Act and general consumer protection laws, and in 2021, 39 individuals were bankrupt with retailer-submitted debt proofs, though data on other debt collector actions is unavailable.
Consumers can seek dispute resolution via CASE, and the government has engaged retailers to improve practices, such as better disclosure and credit assessments, while maintaining oversight of market practices.

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11 Jan 2022

Measures to Protect Youths from Falling Prey to Cryptocurrency Game Scams

The government has stepped up public education efforts, including advisories and campaigns like MoneySense, to teach youths and the public about cryptocurrency risks and how to “Ask, Check, and Confirm” before transacting.
A Police cryptocurrency taskforce was established in 2018 to improve investigations, build overseas cooperation, and work with regulators like MAS to address scams.
Since many scammers are based overseas, recovery of funds is difficult, so prevention through public awareness and dealing only with MAS-regulated entities is emphasized.

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11 Jan 2022

Proposal for Granting Upfront Remission of Additional Buyer’s Stamp Duty to Married Couples with at least One Singapore Citizen Spouse Purchasing Replacement Private Residential Property

Chua Kheng Wee Louis proposed that married couples with at least one Singapore Citizen spouse buying a replacement private residential property should receive upfront remission of Additional Buyer’s Stamp Duty, similar to the concession for HDB or Executive Condominium purchases.
Lawrence Wong explained that the government already provides a refund of ABSD for such couples if they sell their first property within six months after buying a replacement, supporting families with changing needs.
He noted that upfront ABSD remission is given for HDB or new EC purchases because these involve regulations requiring disposal of existing properties, which do not apply to private residential properties.

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11 Jan 2022

Measures to Protect Bank Customers from Losses and Penalties due to Outages of Banks' Online Systems

MAS requires financial institutions to maintain robust systems and to restore services quickly while activating contingency measures during disruptions.
Financial institutions are expected to fairly handle customer appeals for losses or penalties caused by outages, considering factors like disruption severity and whether alternative channels were used.
MAS expects banks to waive penalties such as late credit card repayments when caused by outages and to consider compensation for directly resulting losses.
MAS advises consumers who need time-critical payments to maintain accounts at multiple financial institutions as a precaution against system disruptions.

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11 Jan 2022

Steps to Reduce Carbon Footprint of Data Centres in Singapore

The debate noted that as of 2021, Singapore has over 70 operational data centres with a total IT capacity of approximately 1,000 megawatts.
The government completed a 2019 review of the data centre industry to balance digital economy needs with sustainability and climate commitments.
Future data centre growth will be more selective, prioritizing investments that are best in class in resource efficiency and align with Singapore's economic and strategic goals.
Measures will be introduced to enhance the efficiency of existing data centres over time.

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11 Jan 2022

Amounts Allocated to Enhance Employment and Employability for Youths with Special Needs

The government allocated approximately $4.2 million in FY2020 and FY2021 to support youth transition and internship programmes, benefiting about 160 youths with disabilities in FY2020.
Multiple schemes like the Open Door Programme, Enabling Employment Credit, and Jobs Growth Incentive have placed thousands of persons with disabilities into jobs and provided wage support to employers.
Initiatives are being expanded, including extending the School-to-Work programme and launching new training and employment schemes under the National Jobs Council.
The government is implementing recommendations from the Third Enabling Masterplan and plans to further strengthen disability-inclusive employment efforts in the upcoming Enabling Masterplan 2030.

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11 Jan 2022

Measures to Promote Low-sodium Diet amongst Singaporeans

The Ministry of Health reported that Singapore residents consume an average of 3.6g of sodium daily, exceeding the WHO recommendation of less than 2g, and outlined current measures such as promoting reduced-sodium products and grants for sauce manufacturers.
Future plans include expanding efforts to reduce salt added during food preparation, increasing industry engagement for healthier alternatives, and boosting public education on sodium reduction.
The government is studying the feasibility of sodium taxes, along with other fiscal and regulatory measures, to help lower national salt intake.

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