Economy & business — Topics

13 Sep 2021

Landlords in Arrears of Mortgage Payments Since Start of COVID-19 Pandemic

The Prime Minister, represented by Tharman Shanmugaratnam, highlighted that financial relief measures, such as deferrals of loan repayments, have been provided by banks to support landlords and businesses during the pandemic.
Data shows that the number of landlords seeking assistance for non-residential property loans has significantly decreased, with fewer than 650 applications received in the first seven months of this year.
The government stated that existing relief measures, including lower interest rates for floating-rate mortgages and refinancing options, are adequate to support the reduced number of landlords facing financial difficulties.

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13 Sep 2021

Increase of HDB Loan Tenure In View of Delays in Construction of HDB Flats and Rise in HDB Resale Prices

Murali Pillai proposed increasing the HDB loan tenure from 25 to 30 years to address housing affordability amid construction delays and rising resale prices.
Desmond Lee explained that the current 25-year limit promotes financial prudence, noting that a longer tenure could increase total interest paid and potentially fuel resale market prices.
He highlighted existing support measures, such as housing grants of up to $160,000 for eligible first-timer families, to keep resale flats affordable.
HDB is on track to launch about 17,000 BTO flats this year, exceeding previous years' launches, with additional supply from balance flats and open bookings.
The government will continue monitoring the market to ensure public housing remains affordable and accessible for Singaporeans.

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13 Sep 2021

Proposal for New Category of COEs for Motorcycles Used for Delivery Work

Chong Kee Hiong proposed a new COE category for delivery motorcycles or an increased quota to address rising prices.
S Iswaran explained that COE prices are driven by demand and supply, noting a temporary supply increase followed by a drop, which together with high demand led to higher prices.
He cautioned that splitting the motorcycle COE quota could distort the market and conflicted with vehicle-light, green environment goals.
The government highlighted existing subsidies for motorcycles and the difficulty of implementing targeted subsidies for delivery riders in the gig economy.
LTA is monitoring the market for any undesirable bidding behavior, with only a few exercises held since supply adjustments.

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13 Sep 2021

Proposal for Interest-free Financial Support to Singaporeans Pursuing Degrees at PSB Academy

Abdul Samad asked the Minister for Education whether interest-free financial support will be provided to Singaporeans studying at PSB Academy.
PSB Academy is a Private Education Institution and not part of the public education system, so it does not receive Government funding.
The Government has not extended Government-funded loans to students of Private Education Institutions.
Students at PEIs can apply for financial assistance from the institutions themselves or use education loans from commercial banks.

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13 Sep 2021

Public Consultation for Review on Carbon Tax

Louis Ng Kok Kwang asked if there would be public consultation on the review of the carbon tax.
Lawrence Wong confirmed that the review of the post-2023 carbon tax level and trajectory is underway, with outcomes to be announced in Budget 2022.
He stated that the government will engage widely, including seeking public views, as part of the review process.
The transition to a sustainable future involves trade-offs but also opportunities for innovation and growth.
The government will continue to support Singaporeans and businesses through this transition.

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13 Sep 2021

Enhancing Employment Opportunities and Training for Individuals with Autism and Intellectual Disability

The government supports employers through the Enabling Employment Credit (EEC) to provide wage offsets for hiring persons with disabilities, and the Open Door Programme (ODP) offers job placement, support services, and training grants with 95% course subsidies and allowances.
New programs like Place and Train, Attach and Train, and Skills Development Programmes launched amid COVID-19 provide 90% course fee subsidies and salary support to enhance training and employment opportunities for persons with disabilities.
The Jobs Growth Incentive (JGI) offers higher support of up to $54,000 per hire for employers hiring persons with disabilities, and initiatives like the President’s Challenge and Enabling Mark accreditation promote inclusive hiring and recognize best practices.
The government is implementing recommendations from the Third Enabling Masterplan to better prepare special education students for employment, create new job opportunities, and support skills upgrading for persons with disabilities.
Efforts will continue to monitor existing measures and explore enhancements for lifelong learning and employment through the Enabling Masterplan 2030.

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13 Sep 2021

Development of Space Industry Given Potential Economic and Strategic Value to Singapore

The Government plans to grow Singapore's space industry, which currently employs over 1,500 professionals, by supporting local enterprises in innovation and scaling, as demonstrated by startups like Zero Error Systems and AddValue Innovation securing funding and partnerships with established space players.
A second strategy focuses on inspiring future generations through space-based STEM education, including outreach programs like the Space Explorers' Network to engage students and prepare them for opportunities in the sector.
The third strategy involves strengthening international collaboration through partnerships and participation in forums like the UN Committee on the Peaceful Uses of Outer Space, including joining the Space Climate Observatory and a Letter of Intent with the UAE Space Agency.
The government emphasizes a collective effort across the private sector, research institutions, and educational institutions to build a robust space ecosystem for economic and strategic benefits.
Space technology is highlighted as integral to daily life in Singapore, supporting everything from ride-hailing apps to in-flight communications, underscoring its broader utility and growth potential.

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13 Sep 2021

Impact of COVID-19 Pandemic on Fundraising for Charities

The COVID-19 pandemic disrupted charity operations, causing cancellations of fundraising events and reduced volunteer opportunities, even as demand for social and health services increased, leading to uneven donation distribution across sectors despite overall resilience and adaptation through online fundraising.
Tax-deductible donations to IPCs remained stable at around $1.01 billion in 2020 compared to $1.02 billion in 2019, while online platforms like Giving.sg saw donations surge to $102 million, a 155% increase, driven largely by growth in social welfare, health, and community sectors.
The government introduced multiple initiatives to support charities, including extended tax deductions, matching grant programmes, and digital transformation resources, alongside ground-up efforts like the #GiveYour600 campaign and the Singapore Strong Fund to encourage giving and address pandemic needs.
Efforts such as the #SGUnited Portal, Invictus Fund, and Tech-and-Go! hub were launched to centralize donation opportunities, marshal private donations, and accelerate digitalisation, aiming to enhance fundraising capabilities and ensure funds reach sectors most affected by the pandemic.
Charities are urged to leverage available grants and digital tools to transform operations and adapt to the new normal, with continued government partnership to help them emerge stronger and promote more equitable and effective charitable giving in the future.

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13 Sep 2021

Impact of COVID-19-related Port Closures on Global Maritime Industry Outlook

The Minister assessed that the global maritime outlook remains fluid due to evolving COVID-19 containment measures, which have caused port closures, congestion, and vessel delays worldwide, exacerbating pre-existing capacity constraints.
Singapore’s port operations and logistics sector faced disruptions from upstream congestion and unscheduled vessel arrivals, but diversified supply chains and limited port closures in key Chinese ports (e.g., Shenzhen and Ningbo) prevented significant direct impact.
PSA, with support from the Maritime and Port Authority and unions, implemented measures like expanded berths, additional workers, and digital tools such as Portnet to manage surges and maintain reliability.
These efforts ensured Singapore’s container throughput grew compared to 2020 and 2019, reinforcing its position as a resilient global transshipment hub despite ongoing global disruptions.

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13 Sep 2021

Ensuring HDB Resale Market Remains Affordable to Aspiring Home Owners

Xie Yao Quan questioned whether the HDB resale market remains affordable for aspiring homeowners.
Desmond Lee attributed recent price increases to higher demand and low interest rates, but affirmed that resale flats remain affordable with a stable mortgage servicing ratio of 23% over the past three years.
First-time buyers typically have little to no cash outlay, as mortgages can be paid using CPF contributions, supported by housing grants of up to $160,000.
The government will continue monitoring market conditions to ensure affordable public housing for Singaporeans.

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13 Sep 2021

Proposal for Sale Price of HDB Flats to be Set at a Level of Not More Than Four Times the Average Annual Income of Applicants

Gan Thiam Poh asked if the government will cap the sale price of HDB flats at no more than four times the average annual income of applicants.
Desmond Lee affirmed the government's commitment to affordable public housing, noting that new BTO flats are priced below market rates and enhanced CPF grants provide significant support.
He stated that in 2020, BTO flats in non-mature estates were priced at about five times or less of the median income of first-timer families, with monthly mortgage payments typically below a quarter of household income.
The government will continue prioritizing affordability in HDB pricing and offers a variety of flat types to meet different needs, urging buyers to make financially prudent choices.

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13 Sep 2021

Financial Viability of HDB BTO Contractors and Assistance for Subcontractors in Greatearth’s Public Projects

The government is working with Greatearth’s liquidators to appoint new contractors to complete the five affected HDB BTO projects and is facilitating discussions between new main contractors and existing subcontractors to help them continue their work.
HDB is providing affected flat buyers with updates on revised completion dates and offers case-by-case assistance, including temporary housing options, waiver of forfeiture fees, and flexible cancellation policies for those choosing to purchase resale flats.
HDB has implemented extensive support measures for contractors, including co-sharing increased foreign manpower and operating costs, providing substantial advance payments, extending steel price protection, and supplying additional concreting materials to help them cope with COVID-19-related challenges.

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13 Sep 2021

Review of Plans for Decarbonisation of Power Grids and Reduction of Carbon Footprint in Data Centres and Industry Sectors

Poh Li San asked the Ministry for Trade and Industry to accelerate decarbonisation by importing more renewable energy and impose stricter carbon emission quotas on high-footprint sectors like petrochemicals, semiconductors, and data centres.
Gan Kim Yong reaffirmed Singapore’s climate commitments, including peaking emissions by 2030 and achieving net zero, and noted plans to quintuple solar capacity by 2030 while exploring imported renewable energy and low-carbon sources like hydrogen.
The government is reviewing the carbon tax trajectory post-2023 and using incentives like the Resource Efficiency Grant for Energy and Energy Efficiency Fund to help companies improve efficiency and adopt cleaner technologies.

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13 Sep 2021

Income Tax (Amendment) Bill

The Income Tax (Amendment) Bill was introduced to amend the Income Tax Act and make related amendments to other Acts, presented by Minister for Finance Mr Lawrence Wong with the President's recommendation.
The bill underwent its first reading and was scheduled for a second reading at the next parliamentary sitting, with the proceedings recorded for printing.
The debate focused on procedural steps for legislative changes to income tax laws, without detailed discussion on specific amendments in the provided excerpts.

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13 Sep 2021

Factors Driving Government's Upward Revision of 2021 GDP Growth to 6% to 7%

The upward revision of Singapore’s 2021 GDP growth forecast to 6–7% was based on stronger-than-expected first-half growth of 7.7% year-on-year, driven by robust performance in outward-oriented sectors like manufacturing and finance, alongside continued global economic recovery despite pandemic risks.
Key drivers include high vaccination rates in major economies enabling reopening, progressive easing of domestic and border restrictions to support consumer-facing sectors and alleviate labour shortages, and sustained health in outward-oriented sectors despite slow recovery in tourism and aviation.
For 2022, the government expects continued economic recovery as global growth remains positive, with the 2022 GDP forecast to be announced in November 2021.

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3 Aug 2021

Number Working in COVID-19-related Short-term Roles Taking up Retraining Programmes and Matched to Other Roles

Over 15,000 workers have been placed into public sector or Government-funded short-term COVID-19 roles under the SGUnited Jobs and Skills Package since the start of the pandemic.
About three in 10 of these workers were temporarily redeployed and are expected to return to their parent companies when demand recovers.
For the remaining workers, job matching services and retraining programmes such as SGUnited Traineeships and Mid-Career Pathways are available to help them transition to other roles.

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3 Aug 2021

Compensation by Government Agencies to Construction Firms for Full Price Fluctuations for Materials Used in Construction Projects

Gerald Giam questioned how the Ministry ensures government agencies fully compensate construction firms for material price fluctuations and whether any shortfalls will be reimbursed.
The Ministry responded that agencies use the Public Sector Standard Conditions of Contract, which includes a fluctuation clause tied to key material price indices like ready-mix concrete and steel rebars.
Government agencies are contractually bound to adjust contract prices based on these indices during projects, addressing price fluctuations.
The response implies that adjustments are made according to the specified indices, but it does not explicitly state whether full compensation or reimbursement of shortfalls is guaranteed.

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3 Aug 2021

Eligibility of Nightlife Businesses Pivoting to Other Industries for Jobs Support Scheme and Funds Disbursed

Nightlife businesses that pivot to other industries are eligible for the Jobs Support Scheme (JSS) if they meet standard criteria such as relevant SSIC classifications and CPF contributions to local employees.
IRAS uses a robust anti-gaming framework with cross-referenced data to verify the number of eligible workers and prevent fraudulent claims, with severe penalties including denial of JSS and criminal investigation for egregious cases.
While breaches of safe management measures alone do not trigger JSS clawbacks, firms convicted of criminal activities will have prior JSS payouts rescinded and future payouts denied; under investigation firms have COVID-19 support payouts withheld pending outcomes.

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3 Aug 2021

High-Risk Industries Allowed to Pivot during COVID-19 Situation and Efforts to Mitigate Risks

Only the nightlife industry was completely disallowed from operating and thus eligible for pivot grants to sectors like F&B or fitness, while other industries could pivot commercially without grants as they remained open.
Companies pivoting to new sectors must comply with the Safe Management Measures and regulatory standards of that sector, with enforcement and penalties for breaches.
The government's mitigation approach focuses on sector-specific compliance and oversight rather than broad restrictions for other high-risk industries.

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3 Aug 2021

Carbon Emission Targets for Companies Owned by Government Investment Entities

The Government does not prescribe, prescribe, or audit specific net carbon emission targets for companies owned by its investment entities like GIC and Temasek, as these entities make independent commercial decisions.
GIC and Temasek integrate sustainability considerations holistically into their investment processes to protect and enhance long-term portfolio value, viewing climate change as a crucial challenge.
Both entities prioritize sustainability as core to their investment strategies, recognizing that strong practices are essential for sustainable returns and that poor practices increase business, reputational, and environmental risks.

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