Economy & business — Topics

5 Oct 2021

Income Tax (Amendment) Bill

The Bill extends several COVID-19 support measures, including the Loss Carry-Back Relief scheme and Double Tax Deduction for Internationalisation, while also making periodic revisions to clarify tax treatments for trading stock and capital assets.
It introduces protections for tax informers and allows limited, audited access to taxpayer data for scheme administration, with safeguards to prevent misuse.
MPs raised concerns about donor-advised funds, data confidentiality, landlord tax deductions, wealth inequality, and SME support, with the Minister addressing these and affirming ongoing reviews of tax policies.
The Bill passed its second reading and was committed to a Committee of the whole House.

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5 Oct 2021

Measures to Assist Employees Affected by COVID-19 and Digital Disruptions

The Minister outlined extensive measures under the SGUnited Jobs and Skills Package and Jobs Support Scheme to assist workers affected by COVID-19, focusing on job placement, reskilling, and wage support for distressed sectors like F&B and retail.
Specific support for seniors and digitally disadvantaged workers includes the Senior Worker Support Package, career conversion programs, and digital training initiatives to help them pivot to new roles amid economic transformation.
The government is addressing job matching challenges by expanding career coaching, redesigning jobs through grants, and leveraging industry partnerships to improve alignment between job vacancies and local talent.
Ongoing efforts, such as the Jobs Taskforce and Company Training Committees, aim to continuously update skills training and ensure the workforce adapts to structural changes and digital disruptions.

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5 Oct 2021

Seniors Aged 55 and Above Who Benefited from Senior Worker Support Package

The Senior Worker Support Package, introduced in 2020, provides wage offsets and grants to employers to support senior workers aged 55 and above, with close to $150 million disbursed to 86,000 employers benefiting 482,000 senior workers.
Despite the COVID-19 pandemic, senior employment rates remained stable, with over 90% re-employment offer rates among eligible private sector employees and job roles largely maintained or improved.
Additional support measures include the Jobs Growth Incentive, which offers higher wage support for hiring mature workers, and the government has allocated $1.5 billion over three years for senior worker support.
The government is exploring future plans, including raising the retirement and re-employment ages further and studying dynamic models based on healthy life expectancy.
MPs highlighted concerns about seniors depleting retirement savings due to COVID-19 and requested more training programs, particularly place-and-train initiatives, to enhance senior employability.

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5 Oct 2021

Review of Fraudulent Credit Card Transactions Involving Diversion of One-time Passwords Prior to September 2020

Dr. Tan Wu Meng questioned if a retrospective review would be conducted for fraudulent credit card transactions involving SMS OTP diversion before September 2020, as banks have already addressed 75 confirmed cases from September to December 2020.
The Minister confirmed that while no cases prior to September 2020 have been confirmed, banks are reviewing all disputes and new reports, and customers will not bear losses if they protected their credentials, emphasizing collective responsibility among banks, customers, and authorities.
Measures include banks enhancing fraud surveillance, telecoms implementing safeguards to block SMS diversion, and ongoing efforts to educate consumers and review authentication methods, with the Payments Council working to clarify liabilities and responsibilities.

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4 Oct 2021

Workers and Companies Assisted by Waiver of Foreign Work Levies Due to Workers on Stay-Home Notice

From January to August 2021, a monthly average of 6,900 workers from 2,700 companies were assisted by the waiver of foreign worker levies during their Stay-Home Notice after entering Singapore.
The Ministry of Manpower announced on 20 September 2021 that the levy waiver would be extended up to December 2021 to help employers adjust to costs as borders gradually reopen.
A review on whether to further extend the waiver will be conducted at end-2021, depending on the COVID-19 situation and border measures then.

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4 Oct 2021

Proposal to Extend Household Services Scheme to Cleaning Businesses Providing Non-residential Cleaning Services

Mohd Fahmi Aliman proposed extending the Household Services Scheme’s female worker sourcing from India, Myanmar, Sri Lanka, Thailand, and Cambodia to cleaning businesses providing non-residential services.
The Ministry of Manpower stated that extending this scheme would be carefully studied due to concerns about increased job competition and downward wage pressure on locals.
The ministry emphasized the need to avoid over-reliance on lower-wage migrant workers, encouraging cleaning firms to invest in automation and job redesign to retain local workers.
Licensed cleaning firms are already covered by the Cleaning Progressive Wage Model, which provides clear progression pathways and scheduled wage increases to attract local workers.

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4 Oct 2021

Take-up Rate of IMDA's Pre-approved Cybersecurity Solutions among SMEs and Efforts to Increase Awareness on Importance of Cybersecurity among SMEs

More than 5,000 SMEs have used IMDA's pre-approved cybersecurity solutions under the SMEs Go Digital programme since its 2017 launch.
The Cyber Security Agency of Singapore (CSA) is developing enterprise toolkits tailored for SMEs to promote good cybersecurity practices, set for launch later this month.
CSA is also creating a SG Cyber Safe Trustmark to help customers identify enterprises with strong cybersecurity measures.
The government encourages all SMEs to utilize these initiatives to enhance their cybersecurity posture.

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4 Oct 2021

Proposal to Provide Rental Rebates Support to Small Landlords Who Depend on Rental Income for Their Livelihood

Christopher de Souza asked if rental rebates could be extended to small landlords who rely on rental income for their livelihood.
Lawrence Wong explained that the government balances support for both tenants and landlords, requiring landlords to give a two-week rent waiver to eligible tenants severely affected by the pandemic.
The government allows landlords facing genuine hardship to apply for exemptions from the rental waiver, which are assessed case-by-case.
Landlords experiencing cashflow issues due to the waiver can seek assistance and loan restructuring from local banks.

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4 Oct 2021

Proposal for Supermarkets to Ensure Consistency between Posted and Barcoded Prices and Code of Practice to offer Product at Discounted Posted Price

Assoc Prof Jamus Jerome Lim asked if supermarkets must ensure consistency between posted and scanned prices and if a code of practice exists to offer products at discounted posted prices as in other countries.
Gan Kim Yong stated that under the Consumer Protection (Fair Trading) Act, deliberate false advertising can be investigated by CCCS as an unfair practice, but genuine mistakes are not penalised.
Consumers can seek help from CASE or the Small Claims Tribunal for disputes, and businesses are guided by CCCS’s Price Transparency Guidelines to ensure accurate pricing and minimise issues.

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4 Oct 2021

Measures to Assist Ex-convicts and Prisoners Due to Be Released to Open Bank Accounts to Receive Wages or Financial Assistance

Since 2015, the Singapore Prison Service has partnered with POSB to help ex-offenders open bank accounts using a discharge letter listing selected branches, with service charges waived for a year if they present the letter plus an employment referral from Yellow Ribbon Singapore or a job offer.
Yellow Ribbon Singapore works with employers to provide alternative wage arrangements, such as cash cheques in the first month, to ensure ex-offenders without bank accounts can still receive their wages while they set up an account.
Ex-offenders released from prison can seek interim financial assistance at Family Resource Centres, which disburse cash, vouchers, or EZ Link cards and refer them to Social Service Offices for further help, including guidance on opening a bank account.

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4 Oct 2021

Volume and Value of Cashless Payments by Platforms and Updates on Progress and Sign Up Rate for Singapore Quick Response Code in Last Three Years

In the last three years, PayNow and PayNow Corporate showed strong growth with doubled transaction value and volume in 2020 and robust growth in early 2021, while credit/debit card transactions remained stable and digital wallet use increased.
The Singapore Quick Response Code (SGQR) expanded from about 42,000 merchant acceptance points in 2019 to at least 260,000 points today, covering around 75% of merchants in Singapore.
Over 150,000 merchants across various sectors, including hawker stalls, now accept SGQR, with the Hawkers Go Digital initiative promoting adoption in heartlands.
In August 2021 alone, 11,600 stallholders in hawker centres, coffee shops, and canteens made nearly two million e-payment transactions worth $18.3 million, with over 94% via SGQR.
The government has established an interoperable infrastructure to enable multiple payment providers to offer safe, simple, and secure e-payment solutions, with continued efforts to drive convenient and low-cost payments.

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4 Oct 2021

Protection for Bank Customers against Attacks Which Hijack Messages or Passwords and Misrepresent Banks

Joan Pereira asked the Prime Minister about protections for bank customers against sophisticated attacks that hijack messages or passwords or misrepresent banks, as well as measures customers can take to safeguard their credentials and how to identify trustworthy online services.
Tharman Shanmugaratnam, responding for the Prime Minister, indicated that the question would be addressed in his reply to a subsequent question filed by Dr Tan Wu Meng.

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4 Oct 2021

Review of Support for Hawkers to Enable Them to be COVID-19-resilient beyond One-off Relief Packages

The government will review SafeEntry access control and reduced seating capacities at hawker centres based on the prevailing COVID-19 situation, rather than making them permanent features.
The National Environment Agency is implementing programmes such as the Hawker Centres Transformation Programme and the Hawker Centre Toilet Improvement Programme to improve ventilation, spacing, and hygiene in hawker centres.
An Alliance for Action has been formed to help hawkers increase their online presence and pilot initiatives like Digital Support for Hawkers groups and a 'Common Acquirer' model for food delivery.
These measures aim to make hawker centres more resilient to public health risks and support hawkers in adapting to a post-pandemic landscape, reducing the need for continual one-off relief packages.

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4 Oct 2021

Breakdown of Revenues, Profits and Effective Tax Rates of SMEs in Last 10 Years

Minister Lawrence Wong provided IRAS data from YA 2010 to 2019 showing that total revenues for all profitable companies rose from S$1.8 trillion to S$3.8 trillion, with pre-tax profits growing from S$195 billion to S$593 billion, while chargeable income increased from S$79 billion to S$168 billion and corporate income tax paid grew from S$9.8 billion to S$15.0 billion, resulting in an average effective tax rate (ETR) falling from 5.1% to 4.3%.
For SMEs (revenue up to S$100 million) with positive profits, revenues increased from S$297 billion to S$402 billion, pre-tax profits from S$65 billion to S$116 billion, chargeable income from S$27 billion to S$37 billion, and taxes paid from S$3.6 billion to S$4.5 billion, with the average ETR declining slightly from 4.9% to 4.2%.
For non-SMEs (revenue over S$100 million) with positive profits, revenues surged from S$1.5 trillion to S$3.4 trillion, pre-tax profits from S$130 billion to S$477 billion, chargeable income from S$52 billion to S$131 billion, and taxes paid from S$6.2 billion to S$10.4 billion, while the average ETR decreased modestly from 10.8% to 10.0%.
The average effective tax rate was calculated as a simple arithmetic mean of each company's effective tax rate for their respective years, based on chargeable income before adjustments for group relief, loss carry-back, and tax exemption schemes.

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4 Oct 2021

Proposal for Tiering of COEs for Motorcycles of Different Engine Capacities

Abdul Samad proposed tiering motorcycle COEs by engine capacity, specifically for 200cc and below, to address affordability concerns.
S Iswaran explained that splitting the small motorcycle COE quota into tiers could create volatility in prices due to even smaller sub-categories.
The Minister acknowledged the concerns over high motorcycle COE prices and stated that the Land Transport Authority is monitoring the situation and will respond if necessary.

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4 Oct 2021

Exposure of Singapore-based Financial Companies to Chinese Property Developer Evergrande's Debt Crisis

The Singapore banking system has limited exposure to the Chinese property sector, with direct exposures to the sector constituting less than 1% of non-bank loans and exposures to Singapore developers with Chinese operations making up a further 2.5% of loans.
Singapore property developers derive about 30% of their aggregate revenues from China, but their median interest cover ratio is more than three times, indicating some financial resilience.
Authorities are monitoring potential indirect effects, as a slowdown in China's real estate sector could dampen GDP growth and impact regional economic stability, with MAS and MTI watching for spillover effects on Singapore.

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4 Oct 2021

Managing Maid Agency Fees and Other Fees Related to Hiring of Foreign Domestic Helpers

Darryl David asked whether there are plans to regulate maid agency fees and other related costs for hiring foreign domestic helpers.
The Ministry of Manpower (MOM) noted a general increase in fees during COVID-19 due to additional costs and reduced business volume but does not regulate these fees.
MOM highlighted that over 900 active agencies provide sufficient competition, encouraging employers to compare prices and services.
Agencies are required to give a clear fee breakdown, and action will be taken against those misrepresenting regulatory costs.
The government currently relies on market competition rather than direct fee regulation.

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4 Oct 2021

Food Poisoning Involving Home-based Businesses and Measures to Support and License Them

Ms Foo Mee Har asked for statistics on the number of home-based food businesses, their growth trend, and proposed tailored licensing to support their sustainable growth.
Mr Melvin Yong Yik Chye inquired about the annual number of food poisoning cases linked to these businesses over the past five years and the hygiene standards imposed on them.
Minister Grace Fu explained that home-based food businesses operate under HDB/URA schemes with scale limitations, are not required to be licensed due to low risk, but must comply with food safety laws, with average cases under five per year.
The Singapore Food Agency is considering making it mandatory for home-based food business owners to complete food safety training and certification to improve standards.
Businesses wishing to expand beyond home operations are advised to set up licensed food premises outside their homes.

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4 Oct 2021

Effect of Port Closures in China on Inflow of Raw Materials to Region

Ms Poh Li San inquired about the impact of China's port closures on raw material shipments for Singapore's construction and electronics sectors, effects on economic growth and inflation, and potential government assistance.
Minister Gan Kim Yong stated that the closures at Yantian and Ningbo-Zhoushan ports were temporary and accounted for 8% of Singapore's imports from China, but no supply chain disruptions were reported.
The Minister noted that companies have improved business continuity plans since COVID-19, expecting limited impact on Singapore's GDP growth and inflation.
The government plans to collaborate with industry partners to enhance supply chain risk management and mitigate future disruptions.

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4 Oct 2021

Current Wage for Singaporeans to Acquire a Decent Living for Themselves

The government is committed to supporting Singaporeans' ability to achieve a decent living through a targeted and holistic approach, including enhanced social safety nets and subsidies in housing, healthcare, and education.
Key strategies to uplift lower-wage workers include extending the Progressive Wage Model to more sectors, enhancing the Workfare Income Supplement, and enforcing the Local Qualifying Salary to ensure a minimum monthly income.
Comprehensive family support is provided through enhanced Marriage and Parenthood packages, including increased Baby Bonus and Child Development Account benefits, as well as affordable preschool access for low-income families.
The government regularly reviews assistance criteria, such as ComCare, based on statistical data and stakeholder input, and encourages community outreach to connect those in need with available support.

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