Economy & business — Topics

10 Jan 2022

Number of Vehicle Owners Who Benefited from Electric Vehicle Early Adoption Incentive Since Its Launch

Melvin Yong asked about the number of vehicle owners who benefited from the Electric Vehicle Early Adoption Incentive since its launch in January 2021 and the cost to the government.
S Iswaran replied that 1,636 electric cars and taxis registered since the launch benefited from the incentive by end-2021.
The proportion of electric cars and taxis registered increased from about 0.2% in 2020 to about 4.4% in 2021.
The rebates given under the scheme in 2021 amounted to approximately $30 million.

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10 Jan 2022

Economic and Business Impact of Hosting Bloomberg New Economy Forum 2021

The Bloomberg New Economy Forum 2021 brought together over 300 global CEOs, leaders, and experts to discuss key global issues, affirming Singapore’s status as a leading business hub and supporting local companies' business development.
The event generated about S$1.2 million in tourism receipts over four days, providing a boost to the hard-hit tourism sector amid COVID-19.
It was one of the first physical global MICE events held in Singapore during the pandemic, successfully piloting safe approaches and demonstrating Singapore’s capability to host large-scale international events safely.
The successful hosting enhanced Singapore’s competitiveness as a leading MICE destination and paved the way for future globally significant events.

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10 Jan 2022

Percentage of Current GDP and Economic Growth in 2020 and 2021 Attributable to Real Estate Sector

Shawn Huang Wei Zhong asked the Minister for Trade and Industry to state the percentage of Singapore's current GDP attributable to real estate and its peripheral services, and the percentage of economic growth in 2020 and 2021 due to the real estate sector.
Gan Kim Yong responded that the real estate sector accounted for 3% of Singapore's nominal GDP in 2020.
The sector contributed -0.5 percentage points to the -5.4% contraction in 2020 and 0.3 percentage points to the 7.2% real GDP growth in 2021.

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10 Jan 2022

Hard-selling of Packages by Retailers Targeted at Seniors and Measures in Place

Dr Shahira Abdullah questioned if there has been a rise in hard-selling of packages targeting seniors, what enforcement measures exist, and whether cooling-off clauses should be mandated for retailers warned by CASE.
Minister Gan Kim Yong stated that complaints to CASE about pressure sales targeting seniors have remained around 80 annually and such tactics are unfair under the Consumer Protection (Fair Trading) Act.
Retailers engaging in unfair practices may be investigated by CCCS and face injunctions, and MTI will monitor trends and review the need for additional measures like mandatory cooling-off clauses.

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10 Jan 2022

Data on Insurance Fraud and Efforts to Combat Such Fraud

Darryl David asked for an update on insurance fraud in Singapore, including trends over the past three years, joint efforts by police and the General Insurance Association (GIA), and actions against industry professionals who collude with fraudsters.
K Shanmugam reported an increase in insurance fraud cases from 20 in 2018 to 71 in 2020, largely driven by a spike in fraudulent health insurance claims linked to a single case involving an Indonesian national who was arrested and sentenced.
The police and GIA collaborate through the Insurance Fraud Committee and the Specialised Fraud Insurance Branch to share information, refine fraud detection systems, and alert insurers to new fraud variants, while the Monetary Authority of Singapore (MAS) requires insurers to have robust fraud risk management frameworks and conducts regular reviews.
Individuals who file or collude in fraudulent insurance claims can face criminal charges under the Penal Code with imprisonment terms of up to 10 years, and industry professionals may also face regulatory penalties such as prohibition orders from MAS.
MAS’s oversight includes on-site inspections to identify control gaps and ensure insurers address vulnerabilities, with the GIA’s Fraud Management System using data analytics to detect and prevent fraudulent and duplicate claims.

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10 Jan 2022

Proposal for Opt-in Default Cooling-off Period for Cross-border Fund Transfers of Large Amounts to Prevent Fraud

Assoc Prof Jamus Jerome Lim proposed a default opt-in cooling-off period for large cross-border fund transfers to help recover fraudulent transactions quickly.
The Government, through the Monetary Authority of Singapore (MAS) and other agencies, is actively tackling rising online scams and exploring measures like cooling-off periods to mitigate risks without compromising payment speed.
Progress has been made in freezing domestic accounts linked to scams, but international cooperation remains challenging; efforts with overseas law enforcement have led to busting transnational syndicates.
MAS is considering additional upstream measures such as lowering transaction limits and enhancing fraud surveillance, with a public consultation planned to clarify responsibilities and liability for fraudulent transactions.
The Government urges public vigilance, emphasizing caution with online deals, avoiding unverified links, protecting banking credentials, and monitoring transactions to aid scam recovery.

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10 Jan 2022

Public Consultation Activities for Singapore’s Post-2023 Carbon Tax Level

Prof Koh Lian Pin asked about public consultation activities for Singapore’s post-2023 carbon tax level and trajectory.
Lawrence Wong stated that agencies have been consulting the public over the past six months under the Singapore Green Plan 2030, discussing higher carbon tax needs and trade-offs.
Feedback can be provided through REACH and the People’s Association ahead of Budget 2022, with consultations involving businesses, environment groups, and stakeholders.
The government will consider all feedback in the carbon tax review and announce the revised tax level at Budget 2022.
Engagement focuses on supporting businesses in shifting to lower-carbon operations and pursuing green growth opportunities.

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10 Jan 2022

Factors for Higher-than-expected Inflation in 2021 and Possibility of Measures to Dampen Rise

Shawn Huang asked for the forward-looking indicators of inflation, the key contributors to the 2021 rise, the 2022 outlook, and the Ministry’s planned measures to dampen inflation.
Derrick Goh questioned whether the Government would revise its 2022 inflation projection following the 3.8% November 2021 figure and requested details on the new projection, direction, and drivers.
Gan Kim Yong indicated that the questions would be addressed in his upcoming reply during the next Sitting, referring to an earlier Official Report on cost increases and relief measures.

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10 Jan 2022

Mitigating Cumulative Impact of Inflationary Pressures from General and Specific Price Increases

Derrick Goh questioned the government on actions to mitigate the cumulative impact of inflation and rising borrowing costs on lower- and middle-income households and small businesses.
Lawrence Wong highlighted that household balance sheets are healthy due to prior measures, and prudential credit rules like the Total Debt Servicing Ratio help manage mortgage burdens.
For businesses, support includes the Temporary Bridging Loan Programme and MAS’s SGD Facility for Enterprise Singapore loans, offering fixed low-interest rates until March 2022.
The government is monitoring the situation to ensure continued credit access for businesses amidst inflationary pressures.

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10 Jan 2022

Impact of Recent Total Debt Servicing Ratio Revision and Other Cooling Measures on First-time Buyers

The TDSR threshold was tightened from 60% to 55% and the LTV limit for HDB loans reduced from 90% to 85% to promote financial prudence and protect buyers from rising interest rates and property prices, but most first-time HDB buyers are unaffected due to existing MSR limits and substantial grants.
The government is increasing housing supply, with BTO launches rising to 23,000 flats per year in 2022-2023 and more private housing units via the GLS programme, to support a stable property market and ensure affordability.
Measures aim to encourage right-sizing for private property buyers and sustain housing accessibility, with minimal impact on low-income households and support for first-time buyers through grants and CPF savings.

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10 Jan 2022

Impact of Recent Revisions to Total Debt Servicing Ratio on Ability of First-time Buyers to Own Homes

The Ministry of National Development tightened the Total Debt Servicing Ratio (TDSR) threshold from 60% to 55% as part of cooling measures to promote housing affordability and financial prudence amid rising interest rates and property prices.
The majority of first-time buyers, especially those purchasing HDB flats under the unchanged Mortgage Service Ratio (MSR) of 30%, are unlikely to be affected, while private property buyers are encouraged to right-size their purchases.
To complement demand-side measures, the government is increasing the supply of housing, including ramping up BTO launches to 23,000 flats annually in 2022 and 2023 and expanding private housing supply through the Government Land Sale programme.

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10 Jan 2022

Curbs on Migrant Worker Flows into Singapore and Impact on Business Growth, Costs and Inflation

Mr Chong Kee Hiong inquired about current entry quotas and daily averages for migrant workers in key sectors, along with pre-COVID comparisons, while also seeking measures to address expected worker shortages and rising manpower costs due to inflation and potential border tightening.
Minister Tan See Leng stated that entry approvals resumed in late 2021, with monthly averages rising to 10,000 for services and 18,000 for construction, marine, and process sectors, compared to much lower numbers earlier in the year, and noted no pre-pandemic monitoring due to no restrictions.
The government introduced retention schemes, extended Foreign Worker Levy rebates and waivers to alleviate cost pressures, and emphasized long-term strategies like productivity gains, automation, and local workforce development to reduce reliance on foreign labor.

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10 Jan 2022

Corporate Registers (Miscellaneous Amendments) Bill

The Bill introduces new requirements for companies and LLPs to maintain registers of nominee shareholders and, if no registrable controller is identified, to list individuals with executive control as controllers, aligning with FATF standards to combat money laundering and terrorism financing.
It clarifies timelines for updating registers, requiring local companies to update nominee director details within seven days and foreign companies to update member details within 30 days, with the longer timeframe for foreign companies to accommodate overseas contacts.
The government will provide guidance to support compliance, particularly for small businesses, and noted that the new requirements are unlikely to materially increase costs, especially for entities without nominee arrangements.

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10 Jan 2022

Gambling Duties Bill

The Gambling Duties Bill consolidates the laws on the levy and collection of duties on lawful betting and lotteries, aligning tax administration and enforcement across existing acts and harmonizing penalties with other tax laws.
The Bill introduces a tiered casino tax structure effective from March 2022, with higher rates for premium and mass gaming, and extends the casino exclusivity period to 2030 to support integrated resorts' investments, while noting potential delays due to COVID-19.
Ministers addressed concerns about the bill's impact on small retailers, enforcement measures for unpaid duties, data protection, and the government's continued focus on problem gambling, including online gambling, without changing the overall public policy on gambling.

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10 Jan 2022

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

The Minister for Trade and Industry introduced the Economic Expansion Incentives (Relief from Income Tax) (Amendment) Bill to update the existing 1967 Act.
The bill was presented with the President's recommendation, marking its first reading in Parliament.
The bill was scheduled for its second reading at the next parliamentary sitting and ordered to be printed.

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10 Jan 2022

Plans to Jumpstart Aviation Sector, Ensure Success of Singapore AirShow 2022 and Extend Vaccinated Travel Lanes in Face of Rise in COVID-19 Omicron Cases

The Minister outlined how Singapore adjusted border measures in response to the Omicron variant, including freezing new VTL ticket sales, capping traveller quotas, and enhancing testing protocols for VTL travellers and airport workers to balance travel resumption with public health safety.
Changi Airport has upgraded its air filtration and ventilation systems with MERV-14 filters, HEPA purifiers, and UV-C sanitation, while implementing stricter PPE and testing regimes for frontline staff to protect against COVID-19 transmission.
Singapore aims to rebuild its aviation hub status through continued VTL expansion and safe reopening, with passenger traffic recovering to about 15% of pre-pandemic levels by end-2021 and projected to reach 55% by end-2022, while supporting events like the Singapore Airshow 2022 with safe management measures.
The government is addressing competition from regional hubs by focusing on systemic competitiveness, safety confidence, and sustainability, while working with partners to enhance passenger volume growth within public health constraints.
Ongoing monitoring and collaboration with health and environmental agencies ensure airport measures remain effective, with attention to protecting worker welfare and integrating security protocols with COVID-19 safe management.

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3 Nov 2021

Singapore's Source Countries for Sand Imports and Estimated Size of Sand Smuggling Market

Leon Perera asked about Singapore’s source countries for sand imports, the estimated size of the sand smuggling market, the risk of countries banning sand sales due to smuggling or environmental damage, and whether the Government would ban commercial imports from jurisdictions with rampant illicit activity.
Desmond Lee stated that sand is imported commercially from various sources, with importers and contractors required to comply with source countries’ laws and regulations, including proper documentation and permits.
He noted that the Government does not condone illegal trade and will investigate and enforce against any reports of illegal smuggling, but there is currently no evidence of sand smuggling into Singapore.

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3 Nov 2021

Average Licensing Cost Incurred by Non-hawker Food and Beverage Establishment and Plans to Waiver Costs for Licence Renewals for FY2022 Given Impact from COVID-19

Melvin Yong inquired about the average licensing cost for non-hawker F&B establishments and whether costs for FY2022 licence renewals could be waived due to COVID-19 impacts.
Grace Fu stated that SFA licenses F&B establishments with an annual food shop licence costing $195 and a food stall licence costing $32, noting the cost is insignificant.
The government supports F&B establishments through measures like the Jobs Support Scheme, Foreign Worker Levy rebates, and rental waivers, rather than waiving licence renewal costs.
No specific commitment was made to waive licensing costs for FY2022, with emphasis on existing support schemes to address the pandemic's impact.
The response highlighted that licence fees are minimal compared to the broader financial assistance available to the F&B sector during the crisis.

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3 Nov 2021

Value of Services Provided by Public Transport Operators in Return for Grants Given during COVID-19 Pandemic and Sustainability of Model

The Minister outlined that public transport operators have been supported through targeted incentives like the Rail Reliability Incentive and broad-based schemes like the Jobs Support Scheme during the COVID-19 pandemic, which have helped maintain service levels and safety despite reduced ridership and fare revenues.
For the bus industry, the Bus Contracting Model and reliability framework have been used to pay operators for meeting service standards, with no specific grants, while increased competition from more operators has improved service quality and tender bids.
The government is monitoring evolving travel patterns post-pandemic to assess the long-term impact on ridership and financial sustainability, balancing competition with potential economies of scale from consolidation, without immediate plans to restructure or merge operators.

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3 Nov 2021

Impact to Food Prices in Next Six Months Given Supply Chain Disruption and Increase in Energy Costs

Minister Gan Kim Yong explained that food prices are influenced by imported prices, energy costs, freight, labour, and seasonal weather, and have risen due to global commodity price increases, higher energy prices, supply chain issues, and labour shortages.
He noted that food prices are expected to rise further in the coming months because of increasing energy costs, which may lead suppliers to adjust prices to cover these higher expenses.
The government will continue to support low-income households through ComCare assistance and grocery vouchers, while also diversifying import sources to maintain competitive prices and improve supply resilience.

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