Economy & business — Topics

1 Nov 2021

Measures Taken to Restore Manpower Supply to Pre-COVID-19 Levels for Construction Companies

The government has extended work permit renewals for existing construction workers and launched a retention scheme to match employers with experienced workers whose permits have expired or been cancelled.
Measures to bring in new workers include allowing skills certification in Singapore for workers from approved sources like China and, from November 2021, vaccinated workers from countries such as India and Bangladesh, with a strict COVID-19 testing protocol.
The industry is encouraged to reduce reliance on migrant workers and adopt productivity-enhancing methods, supported by incentives like the Construction Productivity and Capability Fund and Productivity Solutions Grant.

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1 Nov 2021

Statistics on Mortgage and Total Debt Servicing Ratios among HDB Resale Flat Buyers

Mr Chua Kheng Wee Louis requested annual statistics on the 25th percentile, mean, median, and 75th percentile mortgage servicing ratios and total debt servicing ratios for HDB resale flat buyers since 2013.
Desmond Lee stated that HDB and MAS impose a 30% mortgage servicing ratio cap and a 60% total debt servicing ratio cap to promote financial prudence for HDB borrowers.
From 2013 to Q3 2021, the mortgage and total debt servicing ratios for HDB flat buyers generally remained below their respective limits, as detailed in a provided table.

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1 Nov 2021

Enforcement Action against Singapore-based Company Fined for Making False Claims about Its Health Supplements

The Minister explained that under the Medicines Act, false health supplement claims can result in fines up to $5,000 or jail up to two years, and this case was the first prosecution for such offences, taken due to the company's persistent disregard of advisories.
While the company's profits were not factored into the penalty due to insufficient evidence linking advertisements to earnings, the court imposed a $3,000 fine near the maximum, considering the company's outreach to a wider audience through distributors.
HSA publicised the case and issued consumer advisories as an additional deterrent, adopting a firm approach despite generally using a light-touch for remorseful first-time offenders.

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1 Nov 2021

Total Taxable Personal Income Earned by All Persons in Each Decile for FY 2019

Leong Mun Wai asked the Minister for Finance for the total taxable personal income for FY 2019 and the breakdown by income decile.
Lawrence Wong responded that the total assessable income for personal income tax in YA 2020 was S$208.3 billion.
He provided the total assessable income earned by all persons in each decile for YA 2020.
The figures given are for the Year of Assessment 2020, which corresponds to income earned in FY 2019.
The response directly addresses both parts of the query with specific data.

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1 Nov 2021

Tier Additional Buyer's Stamp Duty and Selling Deadlines for Development Projects of Different sizes

Mr. Don Wee asked the Minister for Finance to consider adjusting the Additional Buyer's Stamp Duty (ABSD) and selling deadlines for development projects of different sizes to promote equity.
Housing developers can qualify for a 25% upfront ABSD remission by meeting conditions for timely commencement, completion, and sale of all units within set deadlines.
The existing ABSD remission conditions already differentiate between licensed developers (five or more units, five-year deadline) and non-licensed developers (four or less units, three-year deadline).
The government reviews the ABSD framework regularly and notes that the current deadlines remain relevant, with high compliance rates in recent years.

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1 Nov 2021

Impact of 11% Reduction in Non-resident Population on Singapore’s Economy and Business

The 11% reduction in Singapore’s non-resident population was largely driven by the pandemic’s economic uncertainty and border restrictions, leading to a significant drop in non-resident workers, especially in construction, marine shipyard, and process sectors.
The fall in workers, combined with economic recovery, created record job vacancies and a labor shortage, pushing up business costs, consumer prices, and slowing the recovery of sectors reliant on non-resident labor.
The government responded with measures like foreign worker levy rebates and support for hiring and retaining work permit holders, while also facilitating the safe inflow of new workers to ease manpower shortages.

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1 Nov 2021

Monthly Consumption of COVID-19 Antigen Test Kits and Plans to Increase Capability to Produce Test Kits Locally

Tan Wu Meng and Saktiandi Supaat asked about monthly ART kit consumption, local production, pricing, and supply resilience.
Gan Kim Yong reported that around 83 million ART kits were distributed or sold over the past three months, with eight kits approved for retail and two locally made for clinical use.
The Ministry of Trade and Industry collaborates with retailers and manufacturers to maintain supply and competitive prices, noting no reports of profiteering.

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1 Nov 2021

Compensation when Electricity Retailers Exit Market and Plans to Increase Power Generation Capacity

Mr. Don Wee inquired about assistance for households receiving compensation from electricity retailers that exited the market, which led to higher prices.
Mr. Chua Kheng Wee Louis asked for data on past and projected electricity reserve margins and plans to increase power generation capacity to meet rising demand.
Minister Gan Kim Yong stated that his reply to the questions was provided in a previous parliamentary session on 1 November 2021, directing members to the official report.

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1 Nov 2021

Number of Ex-offenders Who Secured Employment through Yellow Ribbon Singapore in Past Three Years and Incentives for Employers to Hire Them

Abdul Samad asked the Minister for Home Affairs about the annual number of ex-offenders securing employment through Yellow Ribbon Singapore (YRSG) over the past three years and whether incentives for employers hiring ex-offenders are being considered.
The Minister provided the employment numbers via a table (not detailed in the text), noted over 6,000 employers registered with YRSG as of September 2021, and highlighted initiatives like career coaching, Project Beyond Hiring, and the Career Trial programme which supported around 70 employers and over 280 ex-offenders.
Additional incentives include the Jobs Growth Incentive (JGI), where employers hiring ex-offenders through YRSG, ISCOS, or halfway houses can receive up to $36,000 per hire; the JGI supported about 1,000 ex-offender hires by 380 employers from September 2020 to May 2021 and has been extended until March 2022.

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1 Nov 2021

Utilisation Rate for Category D COEs and Proportion of Successful Bids by Commercial Entities and Individual Buyers

From January to September 2021, the utilisation rate for Category D COEs was 99.9% for temporary COEs that expired, while those issued after April 2021 had not yet expired due to their six-month validity.
96% of successful Category D COE bids were made by commercial entities, but most of these COEs are ultimately used to register motorcycles for individual buyers, as many prefer purchasing through dealers for immediate availability.
The Ministry does not support setting a fixed quota for individual buyers, as it would be arbitrary, potentially increase market volatility, and could lead to higher COE prices, with no evidence that current prices are driven by allowing both dealers and individuals to bid.
The Ministry is closely monitoring the impact of COE prices on motorcycle owners, particularly those who ride for a living, and will consider appropriate measures if needed.

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1 Nov 2021

Likely Changes to Government's Bus Contracting Model

The Ministry confirmed that the bus contracting model, introduced in 2016 to enhance competition and service responsiveness, has succeeded in increasing operators, lowering tender prices, and improving commuter satisfaction.
LTA is continuously refining the model, such as by raising service reliability standards and bundling packages to boost competitiveness, and will keep reviewing tender terms for future contracts.
The shift to cleaner energy buses will be smoothly integrated into the existing contracting model through updated contract provisions, without disrupting current operations.
Decisions on on-demand bus services will be evaluated separately based on commercial viability and are not directly tied to the electrification of the bus fleet.

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1 Nov 2021

Volume of Trade Turnover on Singapore Exchange and Measures to Make Trades on Singapore Exchange More Attractive to Foreign Investors

The government does not track monthly retail investor fund outflows to overseas exchanges but estimates that about half of retail funds remain in Singapore, with the US, Hong Kong, and Thailand being the top overseas markets.
SGX equity turnover has grown by around 20% since early 2019 but has been outpaced by competitors, with the exchange traditionally stronger in income-generating investments like REITs.
SGX is enhancing its attractiveness by introducing new listing pathways (e.g., dual-class shares, SPACs), building regional linkages, expanding product offerings, and strengthening market maker ecosystems.
Government initiatives include a S$1.5 billion co-investment fund with Temasek to support pre-IPO funding and listings, a new Growth IPO Fund via EDBi, and MAS grants to reduce listing costs and boost equity research.
These measures aim to deepen Singapore’s capital markets, attract growth companies, and draw both retail and institutional investors to SGX.

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1 Nov 2021

Considerations for Allotting Foreign Manpower Quotas to Companies that Employ Part-timers who May Work for Different Companies

The Ministry explained that a firm’s foreign worker quota is calculated based on locals hired at the Local Qualifying Salary of $1,400, with part-time locals earning between $700 and $1,400 counting as half an employee, and locals working for up to two firms allowed to contribute to each firm’s quota under similar rules.
Employers are prohibited from splitting an employee’s salary across different business entities to artificially increase foreign worker quotas, with such actions considered abuse and subject to investigation.
Data shows very few locals work in three or more jobs, remaining at about 0.2% of resident employees from 2016 to 2021, indicating it is uncommon for part-timers to have multiple employers.

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1 Nov 2021

Regulations for F&B Establishments to be Charged Less by Food Delivery Platforms to Cope with Reduced Dine-in Business

Darryl David proposed that food delivery platforms be required to lower commissions for F&B establishments during periods of tightened dining restrictions, noting these businesses suffer losses from reduced dine-in traffic.
Gan Kim Yong stated that Enterprise Singapore already offers support like the Food Delivery Booster Package and wage subsidies, and the delivery market is competitive with varied commission structures.
Gan Kim Yong argued against regulating commission rates, warning that artificially low commissions could harm delivery times, personnel earnings, and F&B businesses, while noting the Competition and Consumer Commission monitors for anti-competitive practices.

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1 Nov 2021

Ensuring Accuracy Given Different Brands of Antigen Rapid Test Kits

The Ministry of Health and Health Sciences Authority ensure all antigen rapid test kits sold locally are authorized under the Pandemic Special Access Route, with robust quality standards and validation processes.
MOH conducts analytical and clinical validations of test kits, supported by healthcare institutions and the Diagnostics Development Hub, to ensure only high-quality kits are approved.
HSA monitors the performance of ART kits after authorization and ensures only approved kits are sold for self-testing, while MOH evaluates additional kits to diversify supply.
MOH keeps prices under close watch but has not observed or received reports of profiteering from ART kit sales.
The government aims to maintain market competition and ensure benefits from economies of scale are passed to consumers.

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1 Nov 2021

Bulk Purchase Programme to Allow Households to Purchase Antigen Rapid Test Kits More Competitive Price

Chua Kheng Wee Louis proposed a government bulk purchase programme to sell antigen rapid test kits at competitive prices to households needing more kits.
Ong Ye Kung stated that both MOH and retailers already buy in bulk and that MOH has made kits affordable through free distributions, vending machine withdrawals, and monitoring supply.
Ong Ye Kung also noted that the government is prepared to release stocks to retailers if shortages occur.

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1 Nov 2021

Annual Revenue, Profit before Tax, Chargeable Income and Effective Tax Rate of Multinational Enterprises in Singapore in Last 10 Years

Mr. Chua Kheng Wee Louis requested detailed annual tax and revenue data for 1,800 multinational enterprises in Singapore over the past 10 years, including revenue, profit, chargeable income, tax paid, and effective tax rates.
Minister Lawrence Wong explained that current data does not easily support estimating the impact of the OECD’s Pillar 2 global minimum tax, as group-level data required for such analysis is not available in existing tax returns.
The Minister highlighted that Pillar 1 will reallocate some corporate profits away from Singapore, likely reducing tax revenue, while Pillar 2’s 15% minimum tax may limit the effectiveness of tax incentives.
He noted that Singapore is adjusting its corporate tax system in response to Pillar 2 to protect taxing rights, which may bring some additional revenue, but the overall fiscal impact must account for potential losses under Pillar 1.
In a post-BEPS environment, competition for investment and jobs will intensify, and any additional tax revenue from Pillar 2 would need to be reinvested to maintain Singapore’s competitiveness.

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1 Nov 2021

Extending Workfare Income Supplement to Singaporeans and Permanent Residents Who Work as Food Delivery Riders

Gan Thiam Poh asked if the Ministry for Manpower would extend the Workfare Income Supplement to Singaporean and Permanent Resident food delivery riders.
The Minister for Manpower clarified that the scheme already tops up incomes of lower-earning Singaporeans, including both employees and self-employed persons across all occupations.
The Minister noted that the scheme aims to encourage regular work and build up CPF savings for eligible Singaporeans.

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1 Nov 2021

Financial Viability of Construction Firms with Government Contracts

The Minister reported that the Government has introduced multiple support measures, including a $1.36 billion Construction Support Package, Jobs Support Scheme, and Foreign Worker Levy waivers, to help construction firms manage COVID-19 cost pressures.
Deregistrations of contractors due to financial reasons remained stable at less than 1% in both 2020 and 2021, indicating overall industry stability despite challenges.
However, firms already facing financial difficulties before the pandemic have seen their positions further weakened by the prolonged impact of COVID-19.
The Building and Construction Authority will continue to monitor contractors’ financial health and collaborate with trade associations to provide ongoing industry support.

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1 Nov 2021

Drivers for Inflation Over Next 24 Months and Impact on Singapore's Economy

Mr Desmond Choo asked about expected inflation, its drivers, and its impact on Singapore’s economy over the next 24 months.
Minister Gan Kim Yong projected CPI inflation at 1.5–2.5% in 2022, driven by higher global energy and food prices, supply bottlenecks, and rising domestic labour and housing costs.
Despite inflation, Singapore’s economic recovery is on track, with 2021 GDP growth expected between 6% and 7%, supported by outward-oriented sectors.

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