Economy & business — Topics

11 Jan 2022

Most Significant Economic Impact for Singapore in Next Two Years

The Minister outlined that while global supply chain disruptions, labour shortages, and inflation pose risks, Singapore's economy is projected to grow by 3% to 5% in 2022, driven by opportunities in global trade, Asia's growth, digitalisation, and sustainability trends.
Key challenges include geopolitical tensions, persistent supply chain issues, domestic resource constraints like manpower shortages and rising energy costs, and imported inflation pressures expected to average 1.5% to 2.5% in 2022.
The government emphasized three focus areas for businesses and workers: transforming and restructuring to raise productivity and resilience, developing new business models to seize growth in digital and sustainable sectors, and remaining open to foreign talent while upskilling the local workforce to stay globally competitive.

Summary written by AI

Overview Original source

11 Jan 2022

Impact of Tight Labour Market on Wage Inflation

The tight labour market in Singapore, driven by economic recovery and COVID-19 border restrictions, has led to a higher job vacancy-to-unemployed ratio and wage inflation, with median income growth reversing from a decline in 2020 to a 3.2% increase in 2021.
Wage growth is beneficial for workers but requires productivity gains to be sustainable for businesses, prompting the government to support transformation through grants like the Productivity Solutions Grant (PSG) and Enterprise Development Grant (EDG).
The government is investing in worker upskilling via initiatives such as the SGUnited Jobs and Skills Package, Career Conversion Programmes, and sector-specific reskilling to equip Singaporeans for emerging job roles.
Access to critical manpower is being facilitated through updated foreign manpower policies and schemes like Tech.Pass and Tech@SG, alongside calibrated border reopening to balance public health and economic needs.
The government continues to monitor the labour market, wage growth, and productivity to ensure businesses can grow and provide better outcomes for Singaporeans.

Summary written by AI

Overview Original source

11 Jan 2022

Impact of Efforts to Strengthen Singapore Core at Workplaces on Companies' Ability to Fill Specialised Roles

Singapore’s labour market tightened due to COVID-19 entry restrictions, causing companies to report greater difficulties in filling specialised roles over the past two years.
The government has eased entry restrictions in a calibrated manner and introduced initiatives like Career Conversion Programmes and SGUnited Mid-Career Pathways to help businesses reskill locals and fill vacancies.
To remain attractive to global talent, Singapore maintains an open and consistent work pass regime, including schemes like Tech.Pass and Tech@SG for specialised tech roles, while exploring refinements to the Employment Pass framework.

Summary written by AI

Overview Original source

11 Jan 2022

Amounts Involved in Cases of Misuse of COVID-19 Government Grants and Payouts Currently Under Investigation

From March 2020 to December 2021, police received 57 reports involving abuse or fraudulent application of COVID-19 grants, with $1.7 million in government funds at issue, of which not all was disbursed due to early detection.
Investigations into 17 cases have concluded, involving $68,000 in funds, with $7,000 recovered from the approximately $31,000 that had been disbursed; 42 people have been arrested and 8 convicted.
The Ministry stated that a separate agency is unnecessary as the Commercial Affairs Department's Public Institutional Fraud Division already handles such cases, and existing police and agency channels are sufficient for whistle-blowers.

Summary written by AI

Overview Original source

11 Jan 2022

Outlook for Aviation, Hospitality and Tourism Sectors Given Suspension of Vaccinated Travel Lanes and Rise of COVID-19 Omicron Variant

The Minister for Trade and Industry noted that while the suspension of Vaccinated Travel Lanes and the rise of the Omicron variant have slowed near-term recovery, long-term prospects for aviation and tourism remain strong due to sustained demand for travel.
Quarantine measures for Omicron cases will not be a reliable revenue source for hotels, as positive cases are now allowed to recover at home or in community care facilities rather than being isolated in hotels.
The Government has provided extensive support through broad-based schemes like the Jobs Support Scheme and targeted measures such as the OneAviation Support Package and SingapoRediscovers Vouchers to help the sectors preserve capabilities and jobs.
Companies are receiving assistance to transform and upgrade, including training support under the Enhanced Training Support Package and funds like the Aviation Development Fund and Business Improvement Fund to prepare for recovery.
The Ministry will continue helping businesses pivot, diversify offerings, and reduce reliance on travel-intensive sectors over time.

Summary written by AI

Overview Original source

11 Jan 2022

Building of Further Agri-tech and Urban Farm Clusters to Ensure Food Supply

Dennis Tan questioned whether the Ministry would expand agri-tech and urban farm clusters to secure food supply and curb price disruptions.
Grace Fu clarified that food price fluctuations are influenced by multiple global factors beyond local supply, making total price stability through local production unrealistic.
She emphasized that import diversification, paired with local production, is a more effective strategy for resilience.
The Singapore Food Agency is optimizing land and sea space, including Lim Chu Kang and new sea tenders, to boost farm productivity.
High-tech and urban farms in industrial spaces and on HDB rooftops are being utilized as additional food sources.

Summary written by AI

Overview Original source

11 Jan 2022

Impact of Tightened Total Debt Servicing and Loan-to-value Ratios on First-time Buyers' Ability to Own Homes

The Minister explained that tightening the total debt servicing ratio (TDSR) from 60% to 55% and lowering the loan-to-value (LTV) limit for HDB loans from 90% to 85% were part of cooling measures to promote housing affordability and financial prudence amid rising interest rates.
First-time home buyers are largely unaffected, as most HDB buyers already face a stricter mortgage service ratio (MSR), and the reduced LTV limit applies to a small minority due to generous grants and CPF usage.
To ensure housing accessibility, the government plans to significantly increase BTO flat launches and private housing supply in 2022-2023, supporting a stable and sustainable property market for Singaporeans.

Summary written by AI

Overview Original source

11 Jan 2022

Exchanges (Demutualisation and Merger) (Amendment) Bill

The Bill amends the Exchanges (Demutualisation and Merger) Act to allow SEL Holdings, which holds SGX shares for the Financial Sector Development Fund (FSDF), to elect to receive new SGX shares in corporate actions like scrip dividends, with approval from the Minister-in-charge of MAS.
Amendments ensure new shares are held under the same safeguards as original shares, including non-voting rights, to prevent conflicts of interest while enabling FSDF to benefit from SGX’s growth and support financial sector development.
Parliamentarians expressed support while raising concerns about FSDF’s funding diversification, governance, and SGX’s competitiveness, with the Minister assuring robust controls and highlighting FSDF’s strong financial position and role in talent and innovation development.

Summary written by AI

Overview Original source

11 Jan 2022

Monetary Authority of Singapore (Amendment) Bill

The Bill introduces a new mechanism for MAS to transfer excess Official Foreign Reserves (OFR) to the Government for long-term management by GIC, using Reserves Management Government Securities (RMGS) to address constraints in the current transfer system.
Safeguards are established to prevent RMGS from being used for government spending, requiring MAS to use only foreign assets for subscriptions and limiting RMGS issuance to S$580 billion, with parliamentary approval needed for increases.
Members raised concerns about the determination of the optimal OFR level (65-75% of GDP), the impact on monetary policy independence, and transparency of reserves, with the Minister affirming that MAS retains autonomy and that the transfer mechanism aligns with long-standing practices.
The debate highlighted broader issues such as the accumulation of reserves, potential undervaluation of the Singapore dollar, and the need for clarity on how excess reserves are managed, with the Minister clarifying that the Bill does not constitute monetary financing.
The Bill was supported by most members, with emphasis on ensuring fiscal discipline, maintaining reserves liquidity for crises, and the positive long-term impact on investment returns through GIC.

Summary written by AI

Overview Original source

11 Jan 2022

Support for Point-to-Point Sector Given Rising Petrol Prices and Slow Recovery in Passenger Numbers

The government has provided over $1 billion in support for the point-to-point sector, including specific schemes and rebates to offset costs, but stated it has no plans for additional aid as rising fuel prices are due to global market forces.
Fares in the sector are not regulated by the government, with operators adjusting them based on market conditions, though any changes must be notified in advance for transparency.
Ridership has recovered to about 80% of pre-pandemic levels, which has helped improve driver incomes amid ongoing challenges.

Summary written by AI

Overview Original source

11 Jan 2022

Measures to Help Singaporeans Cope with Rising Inflation and Impact of Government's Fiscal Support for Businesses and Households on Inflation

The government has provided substantial fiscal support, including rebates for utilities, vouchers for groceries and transport, and income support schemes, to help Singaporeans cope with rising inflation, with emphasis on shielding lower-income households and seniors from cost pressures.
The planned GST increase from 7% to 9% remains part of long-term fiscal sustainability strategy, but the government will mitigate its impact through the $6 billion Assurance Package, delaying the effect by at least five years for most households and up to ten years for lower-income groups.
Officials attributed recent inflation primarily to global factors like energy and food prices, which are expected to be temporary, and emphasized structural measures such as wage growth, productivity support for businesses, and targeted assistance in Budget 2022 to address cost-of-living concerns.

Summary written by AI

Overview Original source

11 Jan 2022

Reasons for Recent Rise in Costs and Measures to Help Singaporeans Cope

The recent rise in inflation is driven by global factors such as higher energy and food prices, supply bottlenecks, and transport costs, alongside domestic factors like increased car and rental housing prices, with Singapore's CPI-All Items inflation reaching 3.8% in November 2021.
The government expects inflation to ease gradually over the year, with core inflation projected to average in the upper half of the 1% to 2% forecast range for 2022, and will continue to monitor trends and adjust policies as needed.
Measures to mitigate impact include maintaining economic competitiveness for wage growth, tightening monetary policy to strengthen the Singapore dollar, managing supply-side constraints, diversifying food sources, partnering retailers to keep prices affordable, and providing targeted assistance to lower-income households.

Summary written by AI

Overview Original source

10 Jan 2022

Median Income of Visual and Performing Artistes in 2019, 2020 and 2021 and Efforts to Further Develop Local Arts Industry

The median monthly income for workers in the arts, entertainment and recreation sector was between $3,800 and $4,100 from 2018 to 2020, with 2021 data to be released later by the Ministry of Manpower.
The outlook for the arts scene in 2022 is cautiously optimistic, building on digital engagement and new experiences developed during COVID-19, with continued efforts to blend digital and in-person activities.
Efforts to develop the local arts industry include growing audience engagement, enhancing digital capabilities for arts workers, creating experimental spaces, boosting sustainability through funds like stART and the Cultural Matching Fund, and public consultations for the next Our SG Arts Plan.

Summary written by AI

Overview Original source

10 Jan 2022

Update on Redemption of Community Development Council Vouchers

Edwin Tong reported that over three-quarters of the 1.3 million eligible households claimed their $100 CDC vouchers within the first month, with over $28 million redeemed, and that the scheme supports hawkers and heartland merchants affected by the pandemic.
Assistance for households that are not technologically savvy is available at Community Centres/Clubs, Residents’ Committee Centres, and through Digital Ambassadors and Silver Generation Ambassadors, with printed vouchers also provided upon request.
The government has promoted the scheme through digital display panels, newspaper ads, and social media, and launched an online search function to help residents find participating merchants.
Feedback from residents and merchants on the CDC Vouchers Scheme has been positive, citing ease of use and business support.

Summary written by AI

Overview Original source

10 Jan 2022

Lower, Median and Upper Quartile Prices of New HDB Flats Before and After Subsidies

Hazel Poa requested the Minister for National Development to provide, for each year in the past three years, the lower, median, and upper quartile prices of new HDB flats before and after subsidies, broken down by first-time and repeat buyers.
Desmond Lee stated that all flat buyers receive a housing subsidy on new Build-to-Order (BTO) flats, with first-timers eligible for an Enhanced CPF Housing Grant of up to $80,000, and that prices have remained stable over the past three years.
He explained that flat purchase prices are the same for first- and second-timer families, but second-timers pay a resale levy that reduces the total subsidy they receive for a second subsidised flat.
The Government will continue to monitor housing market conditions to ensure affordable public housing for Singaporeans.

Summary written by AI

Overview Original source

10 Jan 2022

Market Value of Future BTO Flats from High Demand and Prices of HDB Resale Flats and Ensuring Affordability for All Singaporeans

Mr Yip Hon Weng asked if high resale flat prices will affect future BTO flat values and how affordability can be ensured, while Desmond Lee affirmed that BTO flats are priced below market value with significant subsidies and grants to keep them affordable.
The government provides up to $80,000 in Enhanced CPF Housing Grant for first-timer buyers of new flats and up to $160,000 in grants for resale flats, ensuring both options remain affordable with low mortgage servicing ratios.
HDB has been ramping up flat supply, offering about 17,100 BTO flats in 2021 and planning up to 23,000 per year in 2022-2023, with a potential 100,000 flats from 2021 to 2025 to meet demand.
The government implemented housing market cooling measures on 16 December 2021 and continues to monitor conditions to maintain affordability for all Singaporeans.

Summary written by AI

Overview Original source

10 Jan 2022

Financial Aid for Beneficiaries who are Foreign Nationals or Foreign-based Institutions and Organisations in FY2020

Leong Mun Wai asked whether any government funds in FY2020 were given to foreign nationals or foreign-based institutions and organizations, and sought a detailed breakdown of the amounts.
Lawrence Wong stated that the government's priority is to benefit Singapore and Singaporeans, with examples including transfers like S&CC rebates and Workfare Income Supplement.
He explained that in some cases, funds are disbursed to Singapore-registered foreign companies, such as in the Jobs Support Scheme, to support local workers during the COVID-19 pandemic.
The government does not track all beneficiaries of its schemes and therefore cannot provide the detailed breakdown requested.
Overall, the response emphasized that spending is designed to benefit Singaporeans, even if some disbursements go to foreign-owned companies operating in Singapore.

Summary written by AI

Overview Original source

10 Jan 2022

Assessable Income and Personal Income Tax Paid by Singapore Citizens, Permanent Residents and Foreigners in Past 30 Years

Leong Mun Wai requested a 30-year annual time series of assessable income and personal income tax paid by Singapore citizens, permanent residents, and foreigners.
Lawrence Wong stated that the Ministry cannot provide such a long-term data series.
For the Year of Assessment 2021, Singapore citizens accounted for 61% of total assessable income and 51% of total personal income tax.
Permanent Residents accounted for 15% of total assessable income and 17% of total personal income tax in the same year.
Foreigners accounted for 24% of total assessable income and 32% of total personal income tax in the Year of Assessment 2021.

Summary written by AI

Overview Original source

10 Jan 2022

Proposal to Provide Financial Support for Bereaved Families to Offset Elevated COVID-19-Related Funeral Expenses

Assoc Prof Jamus Jerome Lim asked whether the Ministry of Sustainability and the Environment would explore providing additional financial support for bereaved families to offset elevated COVID-19-related funeral expenses.
Grace Fu Hai Yien noted that funeral costs vary based on family preferences and that additional expenses may arise from COVID-19 safety requirements such as PPE for staff handling infectious bodies.
She highlighted that bereaved families can seek financial support from public and social service avenues, including Social Service Offices, for funeral expenses.

Summary written by AI

Overview Original source

10 Jan 2022

Electric Cars Sold in Last Six Months and Plans to Set Up Electric Charging Stations and Reskill Automotive Industry

In the second half of 2021, 1,400 new electric cars were sold, making up 7.2% of total new car registrations.
The government plans to deploy 60,000 charging points by 2030, with 40,000 in public carparks and 20,000 at private premises, and will work with operators to address high-demand locations while reviewing plans based on adoption rates.
The government is facilitating private building charging installations through grants and initiatives, noting strong interest from private building owners.
The government is partnering with industry to reskill automotive workers, including training at least 1,000 technicians over the next three years to maintain electric vehicles.

Summary written by AI

Overview Original source