Economy & business — Topics

27 Jul 2021

Progress on Construction and Operation of Tuas Mega Port and Strategic Adjustments Made for Post-COVID-19

The construction of Tuas Port continues safely amid COVID-19, with Phase 1 reclamation on track for completion by 2027 to support 21 berths handling 20 million TEUs annually, and PSA set to operationalize the first two berths by year-end.
Tuas Port is designed to handle future mega vessels, integrate with Tuas industrial logistics, and aim for a 65 million TEU capacity by the 2040s, becoming the world’s largest fully automated container terminal.
COVID-19 has prompted supply chain resilience strategies, with PSA expanding into cargo solutions and Tuas Port’s modular design allowing flexible construction staging to adapt to demand changes.
The Port of Singapore has maintained competitiveness, with a 5% container throughput increase in the first half of the year and a focus on digitalization, automation, and value-added services to support global supply chains.

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27 Jul 2021

Requirement for Digital Full Banks to Provide Basic Banking Accounts and Other Financial Services

Murali Pillai asked if the Monetary Authority of Singapore (MAS) will require digital full banks to provide basic banking accounts and other financial services to unbanked and underbanked Singaporean adults to enhance financial inclusion.
Tharman Shanmugaratnam, speaking for the Prime Minister, noted that major retail banks already offer low-cost basic accounts under a consumer banking code, and digital full banks are expected to make similar commitments, with nearly all adult Singaporeans having bank accounts and recent surveys showing high banking access.
The response highlighted that innovations like MyInfo have reduced barriers to account opening, and digital banks are expected to leverage technology to offer lower-cost products and reach underserved segments, while MAS will continue exploring ways to ensure financial inclusion.

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27 Jul 2021

Access to Bank Accounts that Had Been Frozen due to Alleged Scams

Dennis Tan asked whether persons whose bank accounts were frozen due to receiving funds from alleged scam suspects could access their accounts for living expenses or legitimate GIRO payments.
K Shanmugam explained that police freeze such accounts to prevent outflow of suspected criminal proceeds and must obtain a court order before restoring access, due to competing claims on the money.
He noted that account holders can apply to the courts under Section 35(8) of the Criminal Procedure Code to withdraw funds for basic expenses like food, rent, medicine, and utility charges.

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27 Jul 2021

Supplementary Supply and Budget Adjustments (FY 2021) Bill

The Second Minister for Finance introduced the Supplementary Supply and Budget Adjustments Bill for FY 2021 to authorize additional government expenditures and reduce certain appropriations, as permitted by the Constitution.
The supplementary funds had already been approved by Parliament through the Supplementary Main Estimates of Expenditure for the financial year from 1 April 2021 to 31 March 2022.
The Bill was read a second time and agreed to by the House, followed by a third reading and passage into law.

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27 Jul 2021

Supplementary Estimates of Expenditure for the Financial Year 1 April 2021 to 31 March 2022

The Ministry of Sustainability and the Environment received a $23 million increase in funding to support hawker stallholders during heightened COVID-19 safe management measures.
The Financial Transfers head was increased by $680 million to provide support for affected businesses and individuals through the Jobs Support Scheme and rental relief.
The Ministry of Transport's appropriation was reduced by $131 million due to under-utilization of funds from COVID-19 disruptions, resulting in no additional funding being approved for that head.

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27 Jul 2021

Amendments to Supplementary Estimates of Expenditure for FY2021/2022

The Leader of the House moved a motion to amend the Supplementary Estimates for FY2021/2022 to increase allocations for support measures tied to recent COVID-19 restrictions.
The amendments are necessary to provide additional support for workers and businesses following the reversion to Phase Two (Heightened Alert) restrictions.
The motion seeks approval to take the amendments in the Committee of Supply under specific heads of expenditure, with general assent from Members.

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27 Jul 2021

Support Measures for Phase Two (Heightened Alert) and Phase Three (Heightened Alert), and Support Measures for Phase Two (Heightened Alert)

The Minister explained that sudden COVID-19 restrictions were necessary due to unexpected clusters like KTV and Jurong Fishery Port, which threatened unvaccinated seniors and could overwhelm healthcare; future easing depends on stable hospitalisation and ICU cases, with reviews planned for September when 80% vaccination is targeted.
Immediate support measures for Phase Two and Three (Heightened Alert) cost over $2 billion, focusing on cash flow for businesses via schemes like JSS and rental relief, with flexibility for appeals and case-by-case assessments to assist affected sectors and workers.
Long-term plans include shifting from relief to building a vibrant economy, fairer society, and greener nation through Industry Transformation Maps, jobs reskilling, enhanced social safety nets, and sustainability investments, funded by sustainable fiscal strategies including the planned GST increase with offsets for lower-income households.

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27 Jul 2021

Support Measures for Phase Two (Heightened Alert) and Phase Three (Heightened Alert), and Support Measures for Phase Two (Heightened Alert)

Members called for tailored support for severely hit sectors, urging quick disbursement of rental relief, streamlined SME aid, and specific help for sports and fitness businesses, hawkers, and freelancers to prevent closures and preserve jobs.
Concerns were raised about workplace safety, migrant worker welfare, and mental health, with proposals to review safe management measures, provide childcare and parent-care leave, and destigmatize mental healthcare access.
Parliament emphasized strengthening local workforce capabilities, ensuring fair hiring practices, and preparing for endemic COVID-19 through job transformation, green investments, and clear, trust-based public health guidelines.

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27 Jul 2021

Support Measures for Phase Two (Heightened Alert) and Phase Three (Heightened Alert), and Support Measures for Phase Two (Heightened Alert)

The debate highlighted that businesses, particularly in F&B, retail, and supporting sectors, are severely impacted by the frequent and abrupt changes in COVID-19 restrictions, causing financial distress and operational uncertainty, and there were calls for more targeted and consistent support measures.
Multiple speakers emphasized the need for a clear, transparent roadmap and a public COVID-19 risk index to guide businesses and the public, with suggestions to calibrate measures more precisely, such as differentiating between vaccinated and unvaccinated individuals, to allow for safer reopening.
The discussion also covered broader economic resilience, including the importance of vaccination, the need for better mental health support, and long-term strategies to uplift lower-wage workers, support SMEs, and prepare for a post-pandemic economy.

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27 Jul 2021

Permitting Higher Voluntary Savings Amounts under CPF LIFE

Ms Foo Mee Har proposed allowing higher voluntary savings under CPF LIFE to help PMETs receive retirement payouts closer to their pre-retirement income.
The Minister for Manpower explained that Singaporeans can already access higher retirement payouts via the Enhanced Retirement Sum, deferring payouts till age 70, and the Supplementary Retirement Scheme.
Ms Foo Mee Har highlighted concerns that the current Enhanced Retirement Sum may yield only basic income levels, insufficient against rising costs and investment risks.
The Minister noted that higher caps could disproportionately benefit higher-income members due to guaranteed CPF interest rates, and emphasized ongoing annual reviews of the Enhanced Retirement Sum.
Both sides acknowledged trust in CPF LIFE, with the Ministry indicating longer-term reviews of additional instruments to support retirement savings.

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27 Jul 2021

Plans for Marine and Offshore Engineering Sector, Singapore's Carbon Utilisation and Storage, and Low-carbon Hydrogen Sector

The Minister highlighted Singapore’s approach to advancing low-carbon technologies like CCUS and hydrogen, noting challenges such as the lack of geological storage sites and the nascent state of hydrogen carrier technologies, while emphasizing ongoing research, international partnerships, and a refreshed Industry Transformation Map for the marine sector.
Singapore is exploring hydrogen transport options, including ammonia and liquefied hydrogen, and aims to become a regional hydrogen hub, but commercial viability remains uncertain due to high costs and engineering challenges, with a focus on importing low-carbon hydrogen rather than domestic production.
The government is investing in RD&D projects and testbeds, including a $49 million funding initiative, to improve the feasibility of low-carbon technologies, with plans to leverage Singapore’s existing energy infrastructure for sustainable fuel production and market competitiveness.
Concerns were raised about maintaining Singapore’s competitiveness amid global sustainability standards, and the Minister confirmed the strategy of pivoting the oil and gas sector toward sustainable fuels like aviation biofuels, while monitoring technological developments to capture emerging opportunities.
The Minister stated that while Singapore aims for carbon neutrality in the second half of the century, advancements in hydrogen and CCUS could potentially accelerate this timeline, though current projections remain conservative, and demonstrations in public transport are being considered but face feasibility and cost constraints.

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27 Jul 2021

Impact of Impending Winding Down of Jobs Support Scheme on Retrenchment and Unemployment

The Minister for Manpower acknowledged that the winding down of the Jobs Support Scheme may lead to increased retrenchment and unemployment in the aviation, aerospace, and hospitality sectors due to slow recovery from travel restrictions, but noted that targeted government support like the OneAviation Support Package and SGUnited Jobs and Skills Centres will help companies and workers transition.
Additional measures include the Jobs Growth Incentive for hiring, reskilling programmes, and career matching services to support workers in pivoting to other sectors, with a focus on older workers and students graduating from affected courses.
The government is reviewing further targeted support to preserve core capabilities in impacted sectors and ensure they emerge stronger, while encouraging companies in growth sectors to hire local workers through available subsidies.

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26 Jul 2021

Breakdown by Monthly Salary Bands of Employment Pass Holders Employed in Finance, Infocomm, Professional Services and Other Sectors

Leong Mun Wai requested a detailed breakdown of Employment Pass holders' monthly salaries across finance, infocomm, professional services, and other sectors, divided into seven specific salary bands.
Tan See Leng highlighted that the minimum qualifying salary for Employment Passes starts at $4,500, rising to $5,000 for finance and increasing with age to protect mature workers.
He provided median monthly salaries as of December 2020: around $12,000 in finance, $7,600 in infocomm, $8,800 in professional services, and $7,600 in other sectors.
Tan noted that locals outnumber Employment Pass holders in every salary band and sector, emphasizing that EP holders complement rather than compete with local workers, attracting investment and creating more job opportunities.
The response underscores that EP policies balance protecting local jobs while addressing skill shortages to support economic growth.

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26 Jul 2021

Review of Current Policy and Introduction of CPF Contribution Scheme to Employment Pass and EntrePass Holders

Gan Thiam Poh questioned if the CPF contribution scheme could be extended to Employment Pass and EntrePass holders.
Manpower Minister Tan See Leng stated that CPF is designed for Singapore Citizens and Permanent Residents, not foreigners, as foreign PMEs are not on a permanent basis.
The Minister clarified that qualifying salaries for Employment Pass holders already account for CPF costs, ensuring a level playing field for Singaporeans.
Foreign PMEs are expected to make their own retirement and financial plans using available products, not rely on CPF.

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26 Jul 2021

Government Expenditure on Each Elderly Person Cared for in Nursing Homes or Other Residential Care Facilities

Ms. Carrie Tan asked the Minister for Health about the monthly and annual government expenditure on each elderly person in nursing homes or other residential care facilities, including staff salaries, hygiene consumables, and other care-related costs.
In 2020, the government provided approximately S$349 million in subsidies to 13,850 nursing home residents.
This amounts to an average of S$2,100 per month or S$25,200 per year spent on each subsidised nursing home resident.

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26 Jul 2021

Number and Percentage of Loss-making Companies and Breakdown of Total Revenues and Taxes Paid by SMEs and Non-SMEs Over Last 10 Years

The Minister for Finance provided data on the number, percentage, revenues, losses, corporate income tax paid, and average effective tax rates for loss-making companies over the last 10 years, broken down by SMEs and non-SMEs.
In both YA 2010 and YA 2019, about 99% of loss-making companies were SMEs, with SMEs generally having lower average effective tax rates than non-SMEs.
The government supports companies, especially SMEs, through measures to improve productivity, innovation, and market access to enhance profitability sustainably.

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26 Jul 2021

Measures to Encourage Singaporeans to Patronise Hawkers and Creation of Platforms to Support Hawkers in Need

Christopher de Souza asked how to continue encouraging Singaporeans to patronise hawkers amid the pandemic and competition from food delivery apps, and whether more platforms can be created to support hawkers in need, especially among young people.
Grace Fu highlighted government support including rental waivers and subsidies for cleaning services, as well as efforts to maintain hygiene standards in hawker centres through increased cleaning and safe management measures by patrons.
NEA has formed an Alliance for Action with stakeholders like IMDA and delivery companies to help hawkers adopt food delivery services and boost their online presence through both digital and offline initiatives.

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26 Jul 2021

Fulfilling Obligations for Mutual Recognition Agreements in Article 7.11 of India-Singapore Comprehensive Economic Cooperation Agreement

The Minister explained that Article 7.11 of the India-Singapore Comprehensive Economic Cooperation Agreement requires professional bodies in sectors like accounting, architecture, and healthcare to negotiate Mutual Recognition Agreements (MRAs) within 12 months of the agreement's entry into force, with delays not constituting a breach of obligations.
One MRA has been concluded for nursing services, allowing equivalent recognition of nursing qualifications from listed Indian and Singaporean schools, subject to passing the Singapore Nursing Board's licensure examination and meeting work pass criteria.
The Minister emphasized that MRAs do not guarantee automatic employment for foreign professionals, as they must still satisfy Singapore’s prevailing work pass requirements.

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26 Jul 2021

Number of Singaporeans Hired by Singapore-Based Companies with Investments in India and Attributable to Signing of India-Singapore Comprehensive Economic Cooperation Agreement

Leong Mun Wai asked how many of the 97,000 locals hired by Singapore-based companies investing in India were new jobs due to CECA versus redesignated existing roles.
Minister Gan Kim Yong stated that the 97,000 figure refers to 2019 and does not include companies trading with India but not invested there.
Gan noted that specific data on job attribution is unavailable because hiring decisions involve multiple factors and job scopes.
He emphasized that Singapore's broader trade policies, including 26 FTAs like CECA, collectively support the business ecosystem and local job creation.
The ecosystem, bolstered by FTAs, helps companies expand internationally, which indirectly sustains and generates local employment.

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26 Jul 2021

Economic Impact on Singapore from Surges in COVID-19 Cases in ASEAN Countries

The Minister for Trade and Industry noted that while ASEAN countries have imposed COVID-19 restrictions, the flow of essential goods to Singapore remains stable and bilateral merchandise trade grew 30.3% in Q2 2021 compared to the previous year.
The restrictions may slow the economic recovery of neighbouring countries, but the overall GDP growth forecast for the region remains positive.
Singapore’s domestic economic recovery is on track, with Q2 2021 GDP growing 14.3% year-on-year and full-year growth projected between 4% and 6%.

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