Economy & business — Topics

3 Nov 2021

Regulations to Monitor or Uncover Any Illicit Activities of Offshore Financial Service Providers with Offices Registered in Singapore in Light of Pandora Papers Leaks

Miss Cheryl Chan asked whether current regulations are sufficient to monitor or uncover illicit activities by offshore financial service providers in Singapore, if stricter compliance is imposed on violators, and if repeated independent audits would be required.
Tharman Shanmugaratnam, responding for the Prime Minister, stated that the Monetary Authority of Singapore (MAS) continually monitors money laundering and terrorism financing risks, using various sources of information, and has engaged financial institutions following the Pandora Papers disclosures.
MAS found no significant concerns with the anti-money laundering controls of Singapore-based financial institutions from the Pandora Papers but is assessing if tighter controls are needed, with clear requirements for identifying beneficial owners and scrutinizing unusual transactions.
Two licensed trust companies mentioned in the Pandora Papers—Asiaciti Trust and Trident Trust—had already faced MAS enforcement actions, including penalties and remediation directions, prior to the leaks.

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3 Nov 2021

Australia-Asia Power Link to Supply 15% of Renewable Energy for Singapore

Dr Lim Wee Kiak asked whether the Australia-Asia Power Link project is part of Singapore’s Green Plan and if its multi-billion investment would raise energy costs.
Minister Gan Kim Yong confirmed the project aligns with the Green Plan’s Energy Reset pillar, which includes importing renewable energy to supplement Singapore’s limited local resources.
Singapore aims to import up to 4 gigawatts of low-carbon electricity by 2035, which could supply around 30% of its electricity needs.
The Energy Market Authority will run a competitive bidding process to ensure imported electricity is cost-competitive, with final prices depending on factors like source distance and technology.
The government emphasized collaboration with various stakeholders to achieve a cleaner, efficient, and secure energy future for Singapore.

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3 Nov 2021

Cases Investigated for Breaches of Consumer Protection (Fair Trading) Act in Past Five Years

The Competition and Consumer Commission of Singapore investigated an average of about five cases per year for breaches of the Consumer Protection (Fair Trading) Act since 2018.
Half of the cases investigated since 2018 were from the Beauty Services industry.
A further 30% of cases were from retailers of consumer goods, with the remaining 20% from other industries such as F&B, travel, and medical consumables.

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3 Nov 2021

Impact of Delayed Major Construction Projects on Singapore Economy

Manpower shortages in the construction sector have reduced output, with its real value-added 25% below pre-pandemic levels in the first three quarters of 2021.
Despite project delays, Singapore's overall economy remained resilient, with real GDP recovering to 0.6% above pre-pandemic levels in the same period, supported by strong manufacturing and finance sectors.
The government has implemented measures to ease manpower constraints, including easier retention of existing workers and assistance for bringing in new workers, while working with firms to meet project needs.

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3 Nov 2021

Scams Resulting from Integration of Cross-border E-payment Services

Minister K Shanmugam reported that since the April 2021 integration of Singapore's PayNow and Thailand's PromptPay, no scams have been recorded in Singapore using this system, but at least one overseas e-commerce scam case involving the linkage was identified.
The same safeguards for domestic PayNow transfers apply to cross-border transfers, including the use of online banking credentials, customizable daily transfer limits, and a system-imposed S$1,000 daily cap.
Users can verify the recipient's identity using their mobile number before transferring, and are urged to practice skepticism, use available safeguards, and confirm transactions to avoid scams.

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3 Nov 2021

Closure of F&B Businesses due to COVID-19 Pandemic and Impact on Employees

Liang Eng Hwa asked the Minister for Trade and Industry about the number of F&B outlets closed, new outlets opened, and the employment impact on workers during the COVID-19 pandemic.
From December 2019 to June 2021, 3,440 F&B businesses ceased operations while 5,620 new ones opened, with total employment in the sector dropping by about eight percent.
The government provided enhanced wage support under the Jobs Support Scheme, a Food Delivery Booster Package to reduce delivery costs, and career support through Workforce Singapore and NTUC initiatives.

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3 Nov 2021

Government Borrowing (Miscellaneous Amendments) Bill

The government proposes to merge the Local Treasury Bills Act into the Government Securities Act to consolidate non-spending borrowings, renaming it the Government Securities (Debt Market and Investment) Act, while maintaining separate borrowing under the Significant Infrastructure Government Loan Act for spending on infrastructure.
The combined borrowing limit under the new act is set at $1.065 trillion, with no change to the overall limit, and the government emphasized that proceeds from these borrowings cannot be spent, only invested.
Members raised questions about the rationale for merging limits, potential impacts on market clarity, and governance processes, but the government clarified that the changes are administrative, aimed at improving transparency and flexibility while preserving existing safeguards.

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3 Nov 2021

Potential Disruptions to Manpower Resources in Sectors Such as Cleaning and Hospitality as Singapore Reopens under Vaccinated Travel Lanes

The Minister for Manpower highlighted that COVID-19 caused a sharp contraction in employment in 2020, with foreign workers accounting for the decline, and noted ongoing labour market tightness due to border restrictions and reduced foreign worker supply in 2021.
The government is supporting local hiring through initiatives like the SGUnited Jobs and Skills Package and the Jobs Growth Incentive, which have placed many locals into jobs and helped businesses hire residents.
Efforts are being made to retain and hire foreign workers, including matching existing foreign workers with employers and facilitating safe inflows, while easing border restrictions to address labour demands in sectors like cleaning and hospitality.

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3 Nov 2021

Impact of COVID-19 Work Arrangements on Sectoral Productivity Rates

Sectoral productivity growth has been uneven since COVID-19, with outward-oriented sectors like manufacturing and finance seeing increases in 2020, while sectors disrupted by travel and domestic restrictions such as transportation and F&B services experienced declines.
The Ministry of Trade and Industry uses real value-added per actual hour worked as the key measure of labour productivity, which is internationally recognized and accounts for varying work intensities in hybrid models.
Productivity outlook remains positive for outward-oriented sectors due to global recovery, but sectors like transportation and F&B are not expected to return to pre-pandemic levels in the near term.
The government is exploring further granular data studies, including multi-factor productivity measures, to better assess productivity during and after the pandemic, while initiatives like Industry Transformation Maps aim to boost productivity through upskilling and technological advances.

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3 Nov 2021

Closure of Tourism-related and Retail Businesses and Efforts to Stimulate Growth In These Sectors

From January 2020 to September 2021, 8,600 retail businesses closed but 15,570 new ones opened, resulting in a net increase of 6,970 firms; the tourism sector saw stable numbers with around 420 hotels and 2,900 tourist guides despite some closures.
The government provided support through the Jobs Support Scheme, the SingapoRediscovers Vouchers scheme, and fee waivers, which helped boost tour participation and aid workers, with 67% of locally retrenched tourism workers finding new jobs within six months.
Initiatives like the E-Commerce Booster Package and Retail Industry Transformation Map are helping businesses digitalize and adapt to trends such as on-demand retail and sustainability to position for future growth.
The travel agency sector was hit harder, with 157 closures (8% of licensed agents), but new entrants and support measures are aiding survival and recovery as the endemic scenario unfolds.
The outlook aims for tourism to reach pre-pandemic levels in the next few years, with ongoing transformation efforts to capture opportunities when travel resumes.

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3 Nov 2021

Business Closures due to COVID-19 Pressures and Support for Companies for Post-crisis Growth

The government reported that business deregistrations remained steady at an average of 3,840 per month over the past two years, while new registrations increased to over 5,000 per month, indicating a net growth in the number of businesses despite the pandemic.
Support measures focus on enhancing physical and digital connectivity, including reopening borders, establishing Digital Economy Agreements, and investing in digital infrastructure and initiatives like the Grow Digital programme and Enterprise Development Grant.
Future efforts emphasize capturing emerging opportunities in sustainability through the Enterprise Sustainability Programme and Enterprise Financing Scheme–Green, aiming to help SMEs develop green capabilities and integrate sustainability as a competitive advantage.
The government is also refreshing Industry Transformation Maps across 23 sectors to drive productivity, innovation, and upskilling, with growth expected in outward-oriented sectors like manufacturing and finance, while tourism and consumer-facing sectors recover more gradually.
A sectoral and ecosystem-wide approach is being taken, partnering with trade associations and industry stakeholders to build a vibrant sustainability ecosystem and ensure Singapore remains a global hub for technology, innovation, and enterprise.

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3 Nov 2021

Expected ComCare Assistance Payouts in FY2021

In FY2020, ComCare cash assistance rose to $236 million, a 56% increase from FY2019, with around 96,000 beneficiaries, largely due to the economic impact of COVID-19 and increased flexibility from Social Service Offices.
The government extended support for existing beneficiaries and provided at least six months of assistance to most new beneficiaries between April and December 2020 to help them stabilize their circumstances.
ComCare Short-to-Medium-Term Assistance (SMTA) offers cash aid, bill support, and employment assistance to low-income individuals and families temporarily unable to work or earning a low income.
For FY2021, early data shows a steady decrease in beneficiaries compared to FY2020, with expectations that numbers and payouts will not remain at FY2020 levels but may still be higher than pre-COVID-19 levels in FY2019.
MSF continues to collaborate with other agencies and community partners to support those in need, encouraging volunteers and referrals through the ComCare hotline and local service offices.

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3 Nov 2021

Near- and Medium-term Outlook for Inflation in Singapore and Steps to Mitigate Sharp Rise

Singapore's near-term inflation is projected at around 2% for 2021 and averaging 1.5% to 2.5% in 2022, driven by higher global energy and food prices, supply bottlenecks, and domestic labour and rental cost pressures, while economic recovery remains on track with GDP growth expected between 6% and 7%.
The government is adopting a multi-pronged approach to mitigate inflation, including an appreciating Singapore dollar via monetary policy, managing supply-side constraints through business support schemes, diversifying food import sources, and providing direct assistance to lower- and middle-income households via vouchers and grants.
Additional pre-emptive measures involve monitoring retail prices through consumer tools like the CASE Price Kaki app, collaborating with cooperatives for price stability, and ensuring long-term trade facilitation through agreements like RCEP and CPTPP to maintain export competitiveness and manage cost pressures.

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3 Nov 2021

Investigations into Whether Singapore-based Individuals or Financial Institutions were Implicated in Pandora Papers Disclosures

The Minister for Finance, representing the Prime Minister, assured Parliament that the Monetary Authority of Singapore (MAS) takes the Pandora Papers disclosures seriously and will investigate any Singapore-based entities or individuals implicated.
MAS noted that while two foreign-incorporated trust companies with Singapore subsidiaries were mentioned, its initial assessment found no significant concerns regarding the anti-money laundering and counter-terrorism financing controls of Singapore financial institutions, though it is engaging with relevant institutions to assess if tighter controls are needed.
The Minister emphasized that Singapore has clear regulatory requirements for financial institutions to identify beneficial owners and scrutinize unusual transactions, and highlighted that two trust companies mentioned in the papers had already been subject to MAS enforcement actions before the disclosures.

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2 Nov 2021

Measures to Experiment, Certify and Deploy New Construction Materials, Building Capabilities or Techniques to Reduce Construction Cost and Time

The Ministry highlighted that innovation and technology are key to transforming the construction industry, with BCA collaborating with agencies and industry to develop and deploy new solutions to enhance productivity and reduce time and costs.
Initiatives like the Built Environment Accelerate-to-Market Programme (BEAMP) and the Building Innovation Panel (BIP) support innovators and facilitate regulatory clearances for deploying new construction solutions.
HDB prices flats based on market value with significant subsidies for affordability, not directly on construction costs, while BCA continues to work with HDB to deploy innovative solutions in projects.

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2 Nov 2021

Current and Projected Levels of Carbon Emission by Built Environment Sector and Plans to Enhance Green Financing for Construction Companies

The built environment sector emitted about 11 million tonnes of CO2-equivalent in 2018, with emissions expected to rise as construction recovers post-pandemic.
The Building and Construction Authority will mandate minimum sustainable construction practices like low-carbon concrete from December 2021, while the voluntary Green Mark scheme promotes reducing a building’s entire lifecycle carbon footprint.
The Monetary Authority of Singapore launched the Green and Sustainability-Linked Loans Grant Scheme to help companies cover costs for sustainability assessments and support banks in developing green loan frameworks.
Authorities are collaborating with industry groups to build green financing capabilities, including engaging banks on green building standards and raising awareness through workshops.
Plans include reducing embodied carbon through sustainable materials and design, and enhancing green financing access for construction companies via public-private partnerships.

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2 Nov 2021

Initiatives to Develop Artificial Intelligence Ecosystem and Its Deployment in Singapore

The National AI Strategy targets Singapore to be an AI leader by 2030, focusing on five key projects in logistics, smart estates, education, healthcare, and border security to boost productivity and public services.
Initiatives like the Open Innovation Platform and SMEs Go Digital programme help businesses adopt AI solutions, while over $500 million has been invested in AI R&D over five years to build local capabilities.
Programs such as AI Singapore’s “100 Experiments” and PhD Fellowship, along with TechSkills Accelerator, support talent development and real-world AI deployment, aiming to place 15,500 Singaporeans in tech roles by 2026.
The government promotes responsible AI use through the Model AI Governance Framework and is developing testing frameworks for transparency, while engaging internationally to set best practices.

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2 Nov 2021

Steps to Prevent Back Flow of Salary Payment from Employee to Employer under Jobs Support Scheme and Mechanism for Employees to Report Such Cases

The Jobs Support Scheme payouts are based on CPF contributions and wage data, with the CPF Board auditing employers to ensure accuracy.
The CPF Board is piloting a CPF Contribution Alert to send employees personalized notifications for verifying declared wages and contributions against their payslip.
Employees and whistleblowers can report non-compliance of CPF contributions directly to the CPF Board.

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2 Nov 2021

Plans to Adjust Amounts of Imported Food and Support Local Producers to Meet 30% of Singapore's Nutritional Needs by 2030

Dr Shahira Abdullah inquired about SFA’s plans to adjust food import volumes to limit surplus while supporting local producers to achieve the 30% nutritional goal by 2030.
Grace Fu highlighted that Singapore imports over 90% of its food and that importers commercially balance supply with demand to minimize surplus.
The “30 by 30” goal aims to grow local agri-food capabilities to produce 30% of nutritional needs, up from less than 10% today.
Local farms are encouraged to differentiate their produce, maintain quality and competitive pricing, and SFA supports them through funds, R&D, and branding initiatives.
SFA’s approach focuses on ecosystem growth and commercial sustainability rather than direct control over import adjustments.

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2 Nov 2021

Annual Cases of Odometer Tampering in Past Five Years and Plans to Educate Consumers against Such Practices

The Minister for Transport, S Iswaran, reported that between 2016 and 2020, an average of 14 cases of odometer tampering were reported annually.
Odometer tampering is considered an unfair trade practice and is an offence under the Penal Code when done with intent to deceive.
Consumers affected by such practices can seek assistance from the Consumers' Association of Singapore (CASE).
CASE has published a Standard and Functional Evaluation (SAFE) Checklist to help prospective buyers assess the quality and condition of pre-owned cars.
The debate highlighted existing measures to address odometer tampering, including legal consequences and consumer education resources.

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