Economy & business

Here are three concise bullet points summarizing the debate:

• The government strongly defended Singapore's foreign talent policy and FTAs, stating that CECA does not allow a "free flow" of foreign professionals and that the government retains full control over work pass approvals, while noting that local PMET jobs have grown significantly more than foreign PMET roles.
• Opposition members, particularly PSP's Leong Mun Wai, raised concerns about job displacement and underemployment, calling for greater transparency, more data on foreign worker impacts, and tighter controls, while the Workers' Party proposed amendments to enhance accountability and proactive information release.
• The debate highlighted public anxiety over job security and immigration, with calls for stronger anti-discrimination laws, skills transfer initiatives, and a more transparent, data-driven approach to foreign manpower policies to balance economic growth with protecting Singaporean workers' livelihoods.

• Leong Mun Wai argued that Singaporeans face widespread anxiety over jobs and livelihoods due to foreign talent policies and trade agreements like CECA, emphasizing that the issue is about economic fairness, not racism.
• He criticized the government for failing to manage the quality, number, and concentration of foreign work pass holders, leading to job displacement and underemployment among Singaporeans, especially PMETs.
• The PSP proposed concrete measures including raising qualifying salaries for Employment Passes and S Passes, imposing a levy, capping single-nationality workers, and reducing permanent residency grants to work pass holders.
• Leong highlighted data gaps and policy misalignment across ministries, calling for urgent action to restore balance in the job market and support displaced Singaporeans.
• He urged the debate to lead to tangible reforms rather than repeating past discussions, stressing the need for a compassionate approach to protect Singaporean families and future generations.

• The Minister emphasized that Singapore must remain open and connected to the global economy to create good jobs and sustain prosperity, while managing foreign manpower and upskilling Singaporeans.
• He rejected the alternative Motion by the PSP as misleading and populist, warning that blaming foreigners and free trade agreements like CECA risks stirring racism and xenophobia.
• The Government outlined its multi-pronged approach: adjusting work pass criteria, enshrining fair employment practices in law, and expanding support for displaced workers through SkillsFuture and industry transformation.
• Data showed the policies have succeeded, with rising incomes, more local PMET jobs, and low unemployment, and the Minister challenged the PSP to offer concrete alternatives instead of anti-foreign rhetoric.
• He appealed for a constructive debate that strengthens Singapore’s social cohesion and economic resilience, rather than exploiting anxieties for political gain.

• The COVID-19 (Temporary Measures) (Amendment No 4) Bill introduces a mandatory two-week rental waiver for eligible SMEs and non-profit tenants in private commercial properties, aimed at alleviating rental burdens during the Phase Two (Heightened Alert) restrictions.
• The waiver framework requires tenants to meet specific criteria, including a 20% revenue drop compared to a reference period, and involves a notice and declaration process; landlords can offset existing assistance and apply for hardship exemptions.
• Amendments also address administrative changes to construction contract adjustments under Part 10A, while discussions highlighted concerns over documentation burdens for small businesses and broader market rental pressures for SMEs.

• The government is expanding the Progressive Wage Model to new sectors and introducing a Local Qualifying Salary requirement, ensuring all local workers in firms hiring foreigners earn at least $1,400 monthly, which is expected to uplift about 77% of lower-wage employees.
• To manage sustainability and costs, the government will provide transitional support to employers, maintain Workfare income supplements, and encourage firm-level productivity improvements through grants and tripartite negotiations, while urging consumers to accept reasonable price increases.
• The measure aims to cover 94% of lower-wage workers over time, with safeguards to prevent opportunistic profiteering, though microbusinesses with under 10 workers are exempt to avoid disruption, and the Local Qualifying Salary will be reviewed periodically based on economic conditions.

• As of 31 May 2021, over 75,000 small and medium enterprises have adopted digital solutions under the Industry Digital Plans through the SMEs Go Digital programme.
• Since 2016, more than 117,000 individuals have been trained in digital skills like AI, cloud computing, and cybersecurity under the TechSkills Accelerator initiative aligned with the IDPs.
• 18 Industry Digital Plans have been launched since 2017 for 16 of the 23 Industry Transformation Maps sectors, with plans to develop IDPs for all sectors in the future.

• Existing cancer patients can claim under the current MediShield Life scheme until the new changes take effect in September 2022.
• The new scheme aims to slow the rise in cancer drug costs by enabling better negotiations with suppliers and promoting cost-effective treatments.
• Savings cannot be accurately estimated if drug prices remain constant, as the changes are expected to reduce prices, with recent reductions already averaging 30% and over 60% for some drugs.

• Dr Shahira Abdullah proposed shifting the COVID-19 Recovery Grant eligibility from a percentage-based income loss model to an absolute loss criterion for low-wage workers.
• The Minister explained that the current percentage-based model (requiring at least 50% income loss) better targets those with lesser means, as it ensures assistance goes to individuals regardless of their pre-loss income level.
• The Minister noted that an absolute loss criterion could be less advantageous for low-wage workers, as higher-income individuals might qualify with a smaller relative loss.
• The government encourages those in need but not meeting CRG criteria to approach Social Service Offices for assessment and potential alternative assistance like ComCare.

• Assoc Prof Jamus Jerome Lim questioned whether China’s ban on for-profit private tuition adversely affected Government investment entity portfolios, how such impact compares to historical losses, and if it would affect the Net Investment Return Contribution.
• Lawrence Wong declined to comment on specific investment exposures, emphasizing that Temasek and GIC assess performance on an overall, long-term portfolio basis with global diversification across geographies and sectors.
• He noted that while Chinese regulatory changes impacted the education sector, such developments are part of investing, and the focus remains on long-term portfolio performance.
• The Net Investment Return Contribution is based on long-term expected returns of the investment entities’ total portfolios, not short-term impacts.
• Overall, the government views the China tuition ban as a sector-specific event within a diversified portfolio, with no direct implication for the long-term investment return outlook.

• The Minister for Finance outlined that public agencies operate under established financial rules and guidelines, with heads of agencies accountable for sound accounting practices and internal controls over payment processes.
• Payment processing is largely automated through electronic invoicing and system controls that match invoices with purchase orders and service receipts, supported by officer verification and performance checks to ensure timeliness and accuracy.
• Agencies use dashboards on financial analytics systems to monitor payment status and benchmark promptness, achieving a 98% prompt payment rate in FY2020, while internal audit and training programs are continuously enhanced to strengthen oversight capabilities.

• Ms He Ting Ru asked the Minister for Education about the budget for creating the New College from the Yale-NUS College and University Scholars Programme merger and how much will be funded by public money.
• Chan Chun Sing stated that NUS has formed a Planning Committee to work out details like curriculum and admissions, with MOE and NUS to discuss funding later based on these plans.
• MOE is committed to supporting the New College and expects its cost per student to be lower than Yale-NUS College due to better economies of scale and resource sharing with NUS.

• Dr Shahira Abdullah proposed that the Ministry of Education increase government bursaries to fully cover tuition fees for low-income part-time students who work to support their families.
• The Minister highlighted that Singaporean part-time students already receive substantial subsidies and enhanced bursaries since 2020, with fees after aid ranging from $140 to $2,300 annually, payable via Post-Secondary Education Account, SkillsFuture Credit, or government loans.
• The government commits to regularly reviewing bursaries to ensure they remain adequate for students' needs.

• Chua Kheng Wee Louis asked for the annual export value and trade balance with the EU for cement, iron and steel, aluminium, fertilisers, and electricity from 2016 to 2020, as well as the impact of the EU’s Carbon Border Adjustment Mechanism (CBAM) and Singapore’s plans in response.
• Gan Kim Yong explained that CBAM targets five sectors—cement, iron and steel, aluminium, fertilisers, and electricity—with a transitional reporting period from 2023 to 2025 and full implementation from 2026.
• He noted that the impact on Singapore’s domestic exports to the EU is limited, with affected products making up only 0.08% (about S$14 million) of the average S$19 billion annual domestic exports from 2016 to 2020.
• Gan emphasized that Singapore supports multilateral climate action and expects CBAM to be applied in a non-discriminatory, WTO-consistent manner, while engaging the EU to ensure trade relations remain strong.
• He added that the government will assist companies in using the EU-Singapore Free Trade Agreement and navigating CBAM requirements, while maintaining close dialogue with EU counterparts.

• The Government employs a multi-pronged approach to manage cost of living pressures, including for low-wage workers, by keeping the economy competitive to create good jobs and sustain income growth through productivity schemes like the Productivity Solutions Grant.
• It promotes competition in markets and diversifies supply sources, such as for food, to prevent sharp price increases and ensure competitive prices for Singaporeans.
• The Government moderates business cost increases by managing domestic supply-side constraints, like ensuring adequate industrial and commercial space, to relieve price and rental pressures that affect consumers.
• Assistance through ComCare continues to be provided to low-income and vulnerable Singaporeans to help with daily living expenses, while policies are monitored and adjusted as needed.

• Minister Gan Kim Yong confirmed that China’s Yantian and Ningbo ports had temporary closures in 2021 due to COVID-19, which affected about 8% of Singapore’s imports from China but did not significantly disrupt Singapore’s economy or supply chains directly.
• The closures created ripple effects in global shipping networks, causing delays that impacted transhipment hubs like Singapore, requiring shippers to re-plan cargo movements.
• The Port of Singapore Authority collaborated with stakeholders to monitor and minimise delays, especially for time-sensitive cargo, to maintain supply chain resilience.
• Businesses were advised to strengthen risk management and continuity plans as such port closures may become more frequent in the future.

• Abdul Samad inquired about the take-up rate of the Productivity Solutions Grant by SMEs and micro SMEs in the 23 Industry Transformation Map sectors and the breakdown of resident workers who saw wage increases due to the grant.
• Gan Kim Yong reported that over 77,000 grants have been taken up since April 2018, with 85% from Industry Transformation Map sectors, and noted that grant recipients are not required to report wage increases.
• As a proxy for wage impact, the real median income of full-time Singaporeans rose by 3.7% per annum from 2016 to 2019, aligned with the introduction of Industry Transformation Maps.

• As of 28 July 2021, there were 26 applications for the Simplified Winding Up Programme (SWUP), with 7 successful, 17 being assessed, and 2 rejected, while no applications were received for the Simplified Debt Restructuring Programme (SDRP).
• The median annual revenue of SWUP applicant companies was $30,000, and the median debt at application was $200,000, with eligibility capped at $10 million in annual sales turnover.
• Both the SWUP and SDRP application periods were extended by 12 months until 28 July 2022 to support financially-distressed micro and small companies.

• The Ministry for Home Affairs has established a Cryptocurrency Task Force since 2018, collaborating with the Monetary Authority of Singapore (MAS), the Association of Crypto Currency Enterprises and Start-ups Singapore (ACCESS), and both local and overseas cryptocurrency exchanges to investigate crimes and improve operational procedures.
• MAS regulates cryptocurrency-related entities under the Payment Services Act, enforcing anti-money laundering and terrorism financing requirements, and advises consumers to verify regulated entities through resources like the Financial Institutions Directory and Investor Alert List.
• Public awareness campaigns by MoneySense and advisories from MAS and the Police focus on educating consumers about the risks of cryptocurrency investments, promoting vigilance, and encouraging checks before investing.
• The Task Force and MAS work together to monitor the cryptocurrency landscape and establish relationships with international law enforcement, industry professionals, and academic experts to combat scams and crimes effectively.

• Ms Tin Pei Ling inquired about the total transaction value of 89 reported fraudulent card transactions from September 2020 to February 2021, where victims claimed they did not perform the transactions nor receive SMS OTPs for authorization.
• Minister K Shanmugam responded that the total transaction value for these 89 reports was $550,500.
• The debate highlighted a specific period of fraudulent activities involving SMS OTPs for card transactions, with victims denying any involvement or receipt of authorization messages.
• The figures indicate a significant financial impact from these fraudulent transactions, as reported to the Ministry of Home Affairs.
• This exchange underscores ongoing concerns about security vulnerabilities in SMS OTP-based authentication methods for card transactions.

• MP Don Wee asked about increasing measures for licensed payment institutions issuing credit/debit cards to children under 16 to prevent misuse for unsavoury purchases or dubious subscriptions.
• The Prime Minister’s representative explained that under-16s typically only receive prepaid cards, which have funding limits and can be managed with parental controls like spending limits and merchant blocks.
• Parents are encouraged to discuss responsible money use with their children and use available card issuer features to guide appropriate spending.