Economy & business — Topics

26 Jul 2021

Companies' Compliance with Code of Corporate Governance

Mr Chua Kheng Wee Louis asked about compliance with the Code of Corporate Governance, specifically Provision 8.1(a) and (b), and whether MAS plans to mandate compliance.
The Prime Minister explained that the Code operates on a "comply or explain" basis, and while SGX reviews disclosures, 46% of listed companies in 2019 disclosed CEO and director remuneration, and 72% disclosed top management remuneration in bands.
Companies that did not comply cited reasons such as confidentiality, potential poaching, and staff morale, and future surveys will assess compliance further.

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26 Jul 2021

Data on HDB Flat Transactions Affected by Ethnic Integration Policy and Help for Flat Sellers or Buyers Impacted by Policy

Members of Parliament raised questions about the financial impact of the Ethnic Integration Policy (EIP) on HDB flat sellers, particularly minorities, and suggested measures like discounts on resale levies, subsidies to attract buyers, and risk-pooling mechanisms to mitigate losses from selling below market value due to EIP constraints.
The Minister explained that while the EIP aims to maintain racial diversity, it can reduce the buyer pool for some sellers, potentially leading to lower prices or longer sale periods, though the exact financial impact is difficult to quantify due to other market factors.
The government is reviewing suggestions to help affected sellers, emphasizing that any measures must apply to all races and address unintended EIP effects, while also exercising flexibility on a case-by-case basis, such as granting more time to sell or waiving EIP limits in exceptional circumstances.

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26 Jul 2021

Reasons for Unsuccessful Six-month Trial of On-demand Public Buses in Joo Koon, Marina-Downtown and Central Business District to Bedok/Tampines

The six-month on-demand bus trial failed because of low ridership, with usage ranging from 14% to 27% of scheduled bus services.
Such services require high public subsidies to be viable, diverting resources from more widely beneficial options like feeder buses.
New towns like Tengah will instead get planned feeder bus services to connect to the rail network, such as the future Jurong Region Line.
The Ministry is open to exploring proposals from service providers to improve first-and-last mile connectivity in new towns.

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26 Jul 2021

Update on Introduction and Rollout of EV Common Charger Grant

The EV Common Charger Grant will open for applications on 29 July 2021 to co-fund the installation of up to 2,000 chargers at private residences like condominiums, with 50% reimbursement capped at S$4,000 per charger.
Eligible developments can benefit from the grant for up to 1% of their residential parking lots, with applications to be submitted through the Government’s Business Grants Portal.
The Ministry of Transport will monitor the grant's take-up and effectiveness and consider extending it based on need in the future.

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26 Jul 2021

Applications for Digital Token Service Provider Licence

Louis Chua Kheng Wee asked for statistics on digital payment token service provider licence applications, including breakdowns by status, exemptions, and average exemption duration.
Tharman Shanmugaratnam, speaking for the Prime Minister, stated that around 90 entities operate under exemption, with over 480 total applications received and 170 for digital payment token services, of which 30 were withdrawn and two rejected.
MAS has not yet issued any licences for digital payment token services but is closely scrutinizing applications for compliance with anti-money laundering and technology risk standards.

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26 Jul 2021

Regulation of Micro-investment Products

Micro-investment products with low minimum amounts are aimed at retail investors and are subject to MAS regulation covering suitability, fair dealing, disclosures, and asset segregation.
As of end-2020, these products held about $3.4 billion in assets, representing less than 3% of retail funds, but interest is growing.
MAS promotes education through MoneySense, offering resources and events to help investors understand product features, risks, and the importance of dealing with regulated entities.

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26 Jul 2021

Rising Prices of Vegetables and Fresh Produce Imported from Malaysia

Minister Gan Kim Yong noted that while the CPI for leafy and fruit vegetables saw a minimal increase of under 1% in June 2021, likely due to Malaysia's Enhanced Movement Control Orders and seasonal weather affecting supply, Singapore has been diversifying import sources to stabilize prices.
The government provides support through ComCare assistance from Social Service Offices for low-income households to cover daily living expenses including food.
Additional one-off measures, such as the Budget 2020 Grocery Vouchers Scheme, have been introduced to help families manage household costs during economic uncertainty.

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26 Jul 2021

Supplementary Supply and Budget Adjustments (FY 2021) Bill

The Bill authorises supplementary funding from the Consolidated Fund to cover additional government spending for the financial year 2021/22.
It also reduces certain appropriations from both the Consolidated Fund and the Development Fund due to changing fiscal needs.
The proposal was presented by the Second Minister for Finance, received presidential recommendation, and is scheduled for a second reading after the Supplementary Estimates are concluded.

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26 Jul 2021

Support Measures for Phase Two (Heightened Alert)

The government announced enhanced support measures for businesses and workers affected by the Phase Two (Heightened Alert) restrictions, including higher and extended wage support through the Jobs Support Scheme, additional rental relief, and cash assistance for hawkers and drivers.
Funding for the $1.1 billion package will come from budget reallocations and a previously set aside buffer, without drawing on past reserves, keeping the overall fiscal deficit unchanged at $11 billion for FY2021.
The measures aim to mitigate the prolonged impact of safe management restrictions while maintaining the economic recovery trajectory, with GDP growth projected to remain at 4% to 6% for the year, though external uncertainties like the Delta variant pose risks.

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26 Jul 2021

Fifth Update on Whole-of-Government Responses to COVID-19

The Multi-Ministry Task Force explained that the recent return to Phase Two (Heightened Alert) was a necessary, temporary measure to slow community transmission from the KTV and Jurong Fishery Port clusters, protect vulnerable unvaccinated seniors, and buy time to increase vaccination rates before resuming a controlled reopening.
Ministers outlined a roadmap to transition to living with COVID-19 as an endemic disease, with a progressive, step-by-step easing of restrictions starting from early August, contingent on vaccination coverage and hospitalization rates, and including differentiated measures for vaccinated versus unvaccinated individuals.
The government affirmed its commitment to supporting affected businesses and workers through additional financial aid while encouraging economic transformation and gradual reopening of borders for vaccinated travelers, alongside enhanced safety measures for high-risk settings like markets and ports.

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26 Jul 2021

Measures to Transit COVID-19-related Short-term Contract Workers into Permanent Jobs

Over 15,000 workers were placed in short-term COVID-19 public sector roles, with about 30% temporarily redeployed from their original jobs and the rest assisted by job-matching services like Workforce Singapore and e2i to find new opportunities.
The government has extended the Jobs Growth Incentive to support employers hiring job seekers, with career conversion programmes offering wage and training support, and capacity for 10,000 places this year.
MP Sharael Taha suggested additional training grants to help temporary workers translate pandemic experience into permanent roles, and the Minister encouraged employers to leverage existing schemes and consider broader hiring and upskilling to transition workers into growth sectors like wholesale trade, finance, and infocomm.

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26 Jul 2021

COVID-19 Impact on Construction Costs and Estate Upgrading and Greening Plans

Construction costs in Singapore increased due to the COVID-19 pandemic, driven by higher foreign manpower costs from border measures, additional costs and reduced productivity from safe management measures, and rising material prices, though government support packages and legislative reliefs have mitigated some impacts.
Public sector construction and upgrading projects, including public housing, have seen higher tender prices, but the government will not pass these cost increases to flat buyers and is working to keep projects on track while ensuring quality and safety.
The demand for green buildings remains steady, as the cost premium for green certification is small relative to overall costs, and the government is committed to achieving its Singapore Green Plan 2030 targets, with the overall progress on track despite some potential delays.

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26 Jul 2021

Help for Individuals Affected by Bank-related Cyber Scams or Unauthorised Bank Transactions

The Minister confirmed that consumers are generally protected from financial losses due to unauthorised transactions if they act responsibly, with liability caps for card transactions and non-card e-payments, and banks are offering interim support like waived fees during investigations.
In cases where neither the consumer nor the bank is at fault—such as when victims claim they did not divulge OTPs—authorities are investigating specific incidents, and MAS is reviewing the framework to clarify responsibilities, with an aim to complete this by year-end.
MAS has directed financial institutions to enhance vigilance and consumer awareness, implement additional safeguards, and consider partial waivers for disputed amounts based on individual circumstances, while legislative changes are being considered as part of the holistic review.

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6 Jul 2021

Data on Employment under India-Singapore Comprehensive Economic Cooperation Agreement and Breakdown on Labour Force Statistics according to Standard Occupational Classification 2020 Level

Assoc Prof Jamus Jerome Lim posed multiple questions about visa data under the India-Singapore Comprehensive Economic Cooperation Agreement and labour force statistics broken down by occupation.
The Minister for Manpower responded that the queries had already been addressed in Ministerial Statements from 6 July 2021, referencing an official report on Free Trade Agreements and Foreign Manpower.
No new data or breakdowns were provided in the exchange, with the response directing attention to previously released ministerial statements.
The debate highlighted parliamentary interest in tracking employment trends related to the agreement and occupational classification changes.

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6 Jul 2021

Proposal to Subsidise Hospitalisation Costs for Birth Deliveries up to C-class Ward Rates in Public Hospitals for First Two Children of Each Singaporean Family

Zhulkarnain Abdul Rahim proposed subsidising hospitalisation costs for birth deliveries up to C-class ward rates in public hospitals for the first two children of each Singaporean family, regardless of delivery location.
Ong Ye Kung explained that while government subsidies of up to 80% are available for inpatient treatment in B2 or C wards of public hospitals, subsidies are means-tested and not extended to A or B1 wards or private hospitals, including for maternity services.
All Singaporeans can use the MediSave Maternity Package to offset delivery costs, with daily hospital charge limits and procedure-based withdrawal limits for normal or complicated deliveries.
Additional support for children includes a $4,000 MediSave Grant for newborns, free childhood vaccinations and screenings, and Baby Bonus Cash Gift plus Government contributions to Child Development Account savings as part of the Marriage and Parenthood Package.

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6 Jul 2021

Migration of Wakaf Haji Pitchay Meerah Hussain to 11 Beach Road

The Minister reported that 11 Beach Road is a six-storey commercial property with a land area of 714 square metres and a total lettable area of 3,202 square metres, purchased from collective sale proceeds of 43 wakaf assets.
Income from 11 Beach Road is derived mainly from rental of commercial spaces and is distributed to the 43 wakaf based on their shareholding.
Since the migration, the building has disbursed a total of $23.79 million to the various shareholders.

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6 Jul 2021

Reformation of Global Tax System due to G7 Agreement and Its Impact

The G7 and OECD’s Inclusive Framework are proposing Pillar 1 to reallocate taxing rights to customer markets and Pillar 2 to set a 15% minimum corporate tax for large multinationals, with Singapore actively participating in these discussions.
Singapore’s economy is resilient because it attracts investment through talent, infrastructure, and business environment, not just tax incentives, which will help it manage the global tax reforms.
Implementation will involve multilateral instruments and domestic legislative changes, and Singapore is preparing to capture opportunities and mitigate any potential impacts from the reforms.

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6 Jul 2021

Changes in Highest Personal Income Tax Rate and Corporate Income Tax Rate since 1991 and Changes in Other Taxes

The highest marginal personal income tax rate for tax resident individuals has remained unchanged at 22% since 1991.
The corporate income tax rate has remained unchanged at 17% since 1991.
The GST rate has increased from 3% in 1991 to 9% in 2023, with intermediate rates of 4% (1994), 5% (2002), and 7% (2007).
The water conservation tax rate has increased from 5% in 1991 to 30% in 2023, with intermediate rates of 10% (1991), 20% (1996), and 25% (2000).
Other taxes such as property tax and vehicle-related taxes have seen periodic adjustments, but specific rates and changes since 1991 were not detailed in the debate.

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6 Jul 2021

Government Land Sales Revenues and Investment Receipts Recognised as Revenue

The government does not treat proceeds from land sales as revenue for the budget, as these proceeds are fully allocated to Past Reserves to protect Singapore’s fiscal sustainability.
Investment income from reserves is governed by evolving constitutional frameworks, including the Net Investment Return Contribution which allows spending from expected returns on assets.
Land sales convert physical land assets into financial assets that are invested, with the income generated from these investments contributing to the annual budget.

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6 Jul 2021

State of Implementation of Four Key Strategies of Security Industry Transformation Map

Minister K Shanmugam confirmed that all major initiatives under the Security Industry Transformation Map have been implemented since 2018, with significant progress across its four pillars including technology adoption, regulatory updates, skills investment, and procurement reforms.
The government has introduced new measures such as the Security Agencies Competency Evaluation, refreshed the Skills Framework, and expanded the Progressive Wage Model, resulting in a 36% cumulative wage growth for security officers from 2014 to 2019.
The government is leading the adoption of outcome-based contracts for security services and plans to amend the Private Security Industry Act to enhance protection for officers against abuse while continuing to support job redesign and upskilling initiatives.

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