Economy & business — Topics

2 Nov 2021

Labour Productivity Growth during COVID-19 Pandemic and Steps to Promote Entrenchment of Productivity Gains

Labour productivity grew by 1.3% in 2020 and 4.6% in the first half of 2021, as hours worked declined more sharply than output during pandemic disruptions.
The government is refreshing Industry Transformation Maps to accelerate sectoral shifts through digitalisation, innovation, internationalisation, upskilling, and job redesign.
Support for productivity includes grants like the Productivity Solutions Grant, SkillsFuture Enterprise Credit, and SME Centres providing advisory services to businesses.
The National Jobs Council and SGUnited Jobs and Skills Package have placed over 140,000 local jobseekers into roles and training to build a skilled workforce.
Continued focus on enterprise transformation, workforce training, and worker upskilling is key to sustaining productivity gains and supporting Singapore’s economic recovery.

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2 Nov 2021

Redemption Rate of SingapoRediscover Vouchers and Plans to Extend Their Utilisation and Validity

As of 21 October 2021, over 1.25 million Singaporeans have used their SingapoRediscover Vouchers (SRV) at least once, with about $256 million spent under the scheme.
Allowing NRIC redemption at community centres and residents' committees since August 2021 has made it easier for some groups, like seniors, to redeem vouchers and is part of efforts that have helped more citizens use them.
The SRV is designed to support tourism sectors, and the F&B industry benefits indirectly through collaborative packages with tourism businesses, but the Ministry will monitor before considering extending voucher validity or allowing more uses like dining.

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2 Nov 2021

Facility for Individuals to Prevent Outbound Funds Transfer from Bank Accounts of Close Family Members Suspected to be Victims of Scams

Gerald Giam asked if there's a way to prevent close family members suspected of being scam victims from making outbound bank transfers and what recourse families have to protect their savings.
The Prime Minister's representative stated there is no such facility, as banks act only on the account holder's instructions to protect their rights, but families can advise the suspected victim to contact their bank and make a police report.
If the suspected victim does not agree, concerned family members can contact the Singapore Police Anti-Scam Hotline for independent advice and share resources like scamsalert.sg and ScamShield to help with prevention.
Families are encouraged to discuss pre-emptive measures such as setting transaction limits and lowering alert thresholds, while the authorities continue to explore additional scam defense measures.

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2 Nov 2021

Causes for Exit of Electricity Retailers from Singapore Consumer Market

The Minister confirmed that the exits of electricity retailers were due to volatile global energy prices and high wholesale electricity costs, which strained their financial viability.
The current financial viability of existing retailers remains under pressure, with some facing challenges but no systemic instability reported.
The government is reviewing the financial criteria for licensing to ensure future retailers are more resilient, with considerations for higher capital requirements and risk management standards.

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2 Nov 2021

Publication of Public Consultation Exercises for Proposed Revisions to Carbon Tax

Dennis Tan asked if public consultations on proposed revisions to the carbon tax would be published on REACH before Budget 2022 and if enough time would be given for feedback; he also asked if revisions would include updates to the 2030 carbon tax target and if a summary of feedback would be provided before Budget 2022.
Lawrence Wong replied that the Government is reviewing the carbon tax and will announce revised post-2023 levels and expectations up to 2030 at Budget 2022, with public engagement ongoing via the Singapore Green Plan 2030 and potentially REACH, including consultations with businesses on impacts and green growth opportunities.
Feedback from these consultations will be considered in the review, and the Government will provide a summary of relevant feedback at an appropriate time, but no specific commitment was made to publish the consultation on REACH before Budget 2022 or to provide the summary before that date.

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2 Nov 2021

Possibility of HDB BTO Flats Taking Longer to Complete and Measures to Adopt Technology to Improve Productivity in Construction Sector

The Minister confirmed that the COVID-19 pandemic has caused delays of six to twelve months for most HDB BTO projects, but the average waiting time remains between four and five years and is not expected to lengthen further barring unforeseen circumstances.
To improve productivity, the Building and Construction Authority (BCA) is promoting the Design for Manufacturing and Assembly (DfMA) method, which has seen adoption double from 19% in 2017 to 39% in 2020, with plans to make it the default for large projects.
The government is enhancing the Buildability Framework by raising the minimum Buildable Design Score for large developments and offering financial support through the Productivity Innovation Project scheme to help firms adopt DfMA.
HDB has implemented various productivity initiatives, achieving a 25% improvement in site productivity in 2020 compared to 2010 levels, in collaboration with BCA.

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2 Nov 2021

Ensuring Due Diligence Checks are done in Singapore's Financial Services Sector Following Pandora Papers Leak

Murali Pillai questioned what steps MAS will take to ensure Singapore-based professionals, trust companies, and financial institutions are properly conducting due diligence to prevent money laundering, terrorist financing, and tax evasion following the Pandora Papers leak.
Tharman Shanmugaratnam, speaking for the Prime Minister, deferred the answer to a future sitting, referring to an official report on investigations into whether Singapore-based entities were implicated in the Pandora Papers disclosures.

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2 Nov 2021

Framework for Keeping Debt Levels Sustainable for Autonomous Universities in Light of NTU's Recent Bond Issue

Member of Parliament He Ting Ru inquired about the Ministry of Education's oversight and support for Autonomous Universities (AUs) issuing bonds or taking on debt, such as NTU's recent sustainability bond, and the framework to ensure debt sustainability.
Minister Chan Chun Sing explained that AUs receive substantial government funding for operations and capital costs but may borrow from capital markets for additional initiatives, with oversight exercised by their Boards of Trustees (BOTs) appointed by MOE.
He emphasized that major financial decisions, including bond issuance, require BOT or finance committee approval, with NTU's sustainability bond approved by its BOT to support corporate and sustainability goals.
The framework relies on BOT fiduciary duties for oversight, investment strategy, internal audit, and risk management to keep debt levels sustainable.
No explicit restrictions were mentioned beyond existing governance structures and approval processes for AUs' borrowing.

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2 Nov 2021

Correlation between Income of Singaporeans and Cost of HDB BTO and Resale Flats

The Minister for National Development explained that HDB applies significant subsidies to new flats and offers grants of up to $80,000 for BTO and up to $160,000 for resale flats to ensure affordability, particularly for first-time buyers.
He stated that incomes have generally kept pace with BTO and resale flat prices over the past few years, with the mortgage servicing ratio remaining at about 23% or below for HDB loans over the last three years.
The government monitors the long-term financial ability of flat owners to repay loans, noting that arrears among HDB loan households were stable below 5% pre-COVID, rising slightly to 6% in early 2021 due to pandemic impacts.

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2 Nov 2021

Government's Response to Current Pace of Increase in HDB Resale Prices

Chua Kheng Wee Louis raised concerns about whether the 12.3% year-on-year increase in HDB resale prices aligns with the government's goal of a stable property market and what measures are planned to improve affordability.
Minister Desmond Lee stated that the price rise is partly due to increased demand and low interest rates, and emphasized that HDB resale flats remain affordable, with mortgage servicing ratios stable and grants of up to $160,000 available for first-time buyers.
The government is ramping up flat supply, with 17,000 BTO flats launched in 2021 and more than 17,000 planned for 2022, alongside additional flats from other schemes to meet demand.
The government is closely monitoring economic and property market conditions to ensure public housing stays affordable and accessible for Singaporeans.

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2 Nov 2021

Ensuring Dynamism as Singapore Faces Record Low Birth Rates and Rapidly Ageing Population

The Government views low birth rates and an ageing population as key challenges, with the total fertility rate hitting a historic low of 1.10 in 2020 and life expectancy rising, which could lead to a shrinking and ageing workforce.
To address this, the Government is prioritising marriage and parenthood through comprehensive support measures like parental leave, childcare, housing, cash grants, and a one-off Baby Support Grant, while strengthening a whole-of-society ecosystem for families.
Efforts are also focused on enabling seniors to remain active and productive through workplace adjustments, raising retirement and re-employment ages by 2030, and increasing CPF contributions for senior workers.
The Government is adapting the economy by broadening global linkages, promoting growth in new areas like sustainability and the Digital Economy, and refreshing Industry Transformation Maps to create good jobs and upskill workers.
Where local manpower is insufficient, the Government will complement the workforce with global talent and foreign manpower, while ensuring fair hiring and skills transfer to Singaporeans.

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2 Nov 2021

Proposal to Raise Singapore Allowance for Low-income Government Pensioners in View of Inflation

Mr Murali Pillai asked if the Singapore Allowance for low-income government pensioners will be raised to counter inflation.
The government noted the Singapore Allowance was last revised in 2019 and, after a recent review, was retained due to low inflation, with periodic reviews continuing.
Additional support for eligible pensioners includes GST vouchers, CDC vouchers, grocery vouchers, and service and conservancy charge rebates.
Pensioners meeting Pioneer or Merdeka Generation criteria also receive Medisave top-ups, outpatient subsidies, and MediShield Life premium support.

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2 Nov 2021

Measures to Help Landscape Maintenance Companies and Their Service Buyers Transit into Progressive Wage Model and Outcome-based Procurement Regime

NParks is encouraging service buyers to adopt performance-based contracts through guidance and by developing a service buyer’s guide with the Landscape Industry Association of Singapore.
As a major service buyer, NParks awards performance-based landscape maintenance contracts with increasing emphasis on quality outcomes, requiring bidders to be registered and compliant with the Progressive Wage Model.
NParks supports industry transformation through the 10-year Landscape Sector Transformation Plan, collaborating with educational institutions to enhance training and launching a digital technology pilot to improve productivity and reduce manual labour.

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2 Nov 2021

COVID-19's Impact on Integrated Resorts' Investment Commitments in Singapore and on Impending Casino Tax Regime

Mr Chua asked about changes to the S$9 billion investment commitments and the timeline for the new casino tax regime due to COVID-19 disruptions.
Minister Gan Kim Yong confirmed the IRs remain committed to their expansion plans but acknowledged potential construction delays from the pandemic.
The new casino tax regime will still take effect from 1 March 2022 as scheduled.

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2 Nov 2021

Ensuring Jobs Support Scheme Payments are Used Directly for Wage Support and Not for Executive Directors' Remuneration or Bonuses

The Jobs Support Scheme (JSS) was designed to reimburse employers for wage support based on actual CPF contributions, and the government does not track whether companies used the funds for executive bonuses, as the scheme’s structure inherently links payouts to wages paid to employees.
IRAS has an anti-gaming framework that denied or adjusted 1,889 cases and reported 10 for investigation as of August 2021, while the CPF Board audits contributions and allows employees to verify payments via alerts, with no government intervention in executive remuneration.
The government encourages good corporate governance, suggesting that grants not be included in performance-based remuneration, and studies the balance between public recognition and anonymity when considering publishing lists of companies that returned JSS funds.

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2 Nov 2021

Measures to Ensure Essential Supplies Reach Singapore Despite Global Supply Chain Disruptions

The Ministry for Transport is addressing global supply chain disruptions by closely monitoring developments and working with businesses to mitigate impacts, including diversifying imports, boosting local production, and stockpiling essential goods like food from over 170 countries.
Singapore leverages its strong sea and air connectivity, with the Port of Singapore operating 24/7 across 600 ports globally and Changi Airport increasing cargo flights to over 990 weekly to ensure efficient movement of goods.
These measures have helped maintain resilient trade flows, with Singapore’s merchandise trade holding up well amid global disruptions and essential supplies largely unimpaired for consumption and production.

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2 Nov 2021

Impact of Global Supply Chain Disruptions on Economy, Prices and Business Operations

Global supply chain disruptions have led to higher costs for Singapore’s manufacturing and construction sectors, with rising prices for construction materials like steel and cement, and increased working capital needs for SMEs due to inventory buffers and payment terms.
Consumers face price increases for imported goods and food due to higher global commodity prices, freight charges, and port congestion, with measures like import diversification and the Price Kaki App to help compare prices and support low-income households.
The government is monitoring essential goods prices and acting against profiteering, while continuing to support SMEs through the Enterprise Financing Scheme and ComCare assistance for daily expenses.

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2 Nov 2021

Goods and Services Tax (Amendment) Bill

MPs supported extending GST to low-value imports to level the playing field for local businesses but raised concerns about unintended impacts on home-based businesses and lower-income households.
Questions were raised about implementation challenges, including compliance burdens for overseas vendors, enforcement, and consumer awareness, with the minister detailing existing frameworks like Overseas Vendor Registration and Reverse Charge.
The debate also covered GST treatment for media sales, with clarifications sought on determining the "direct beneficiary" and use of "best available information" for tax compliance.
The minister highlighted broader fiscal considerations, noting that GST revenue is part of a larger strategy to fund future expenditures like healthcare and climate initiatives, while assuring support for vulnerable groups through existing schemes.

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2 Nov 2021

Goods and Services Tax (Amendment) Bill

The Bill introduces GST on low-value goods imported via air or post and on imported non-digital services from 1 January 2023 to create a level playing field for local businesses and ensure tax fairness.
It updates the GST treatment for media sales based on the location of the contractual customer and beneficiary, effective from 1 January 2022, to reflect modern digital advertising practices.
Amendments also revise transitional rules for GST treatment changes and make miscellaneous updates to Overseas Vendor Registration and Reverse Charge regimes to prevent revenue risks and ease compliance.
MPs support the Bill to address tax leakage and support local retailers but express concerns about enforcement, impact on low-income households, and the broader effect of a potential GST hike amid inflation.
The Minister acknowledges public feedback and emphasizes that the changes are necessary to keep the GST system resilient and aligned with international standards.

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2 Nov 2021

Retirement and Re-employment (Amendment) Bill

The Retirement and Re-employment (Amendment) Bill aims to raise the retirement and re-employment ages progressively to 65 and 70 respectively by 2030, allowing older workers to continue contributing to the economy and providing businesses access to experienced workers.
Speakers supported the Bills but emphasized the need for additional measures, such as expediting fair employment legislation to prevent age discrimination, promoting fundamental changes in HR policies like flexible work arrangements, and redesigning jobs to leverage seniors' strengths.
The CPF (Amendment) Bill includes provisions to simplify the distribution of un-nominated CPF monies through a beneficiary representative, with safeguards to protect beneficiaries' interests and expedite disbursements, though some members raised concerns about potential disputes and accessibility for overseas beneficiaries.

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