The Minister outlined the impact of the Delta variant and Singapore’s calibrated response, including Phase Two and Phase Three (Heightened Alert) measures, which targeted high-risk sectors while allowing most of the economy to operate, leading to a gradual easing of restrictions from mid-June to July 2021.
A $1.2 billion support package was introduced to aid affected businesses and individuals, featuring enhanced Jobs Support Scheme, rental relief, and temporary income support, funded through reallocating existing Budget 2021 resources rather than drawing on past reserves.
Singapore’s fiscal approach emphasizes sustainability, with SMEs receiving targeted support such as extended loan schemes, and the government committed to accelerating vaccinations, reopening borders safely, and investing in digitalization and green initiatives for post-pandemic recovery.

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5 Jul 2021

Impact of G7 Agreement for Global Minimum Corporate Tax Rate on Singapore's Ability to Attract MNCs

The G7 agreement on a global minimum corporate tax rate of 15% under the BEPS 2.0 project introduces uncertainty for Singapore's tax policies and its ability to attract MNCs, with details yet to be finalized.
While there is a risk of firms relocating due to tax changes, Singapore's competitiveness is anchored in non-tax factors such as connectivity, infrastructure, and skilled workforce, and the government is enhancing these areas.
The Ministry of Trade and Industry is actively reviewing strategies, including investing in infrastructure, expanding trade agreements, and supporting productivity and innovation to maintain Singapore's attractiveness to MNCs.
The impact will vary by sector, and the government is engaging stakeholders to formulate a response that minimizes compliance burdens while ensuring tax compliance with new global rules.
Singapore is redoubling efforts to improve its business environment through initiatives like upgrading Industry Transformation Maps to adapt to the new global tax landscape and sustain economic growth.

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5 Jul 2021

Implications for Singapore of G7 Agreement on Global Minimum Corporate Tax Rate

The G7 agreement on a global minimum corporate tax rate of 15% under Pillar Two will apply to large multinational enterprises (MNEs) with global revenues over 750 million euros, potentially affecting Singapore’s corporate tax revenue and limiting the effectiveness of tax incentives; about 1,800 such MNEs operate in Singapore, and many may be affected.
Pillar One will reallocate taxing rights to market jurisdictions, which could reduce Singapore’s tax base as a hub economy, but the government emphasizes participation in international discussions to shape rules, protect sovereign taxing rights, and minimize compliance burdens for businesses.
Singapore will strengthen non-tax competitiveness by investing in workforce skills, enterprise capabilities, infrastructure, and regulatory environment to attract and retain investments, focusing on anchoring substantial economic activities and creating jobs rather than relying on tax benefits.

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11 May 2021

Mr Gan Thiam Poh proposed legislation to classify gig economy workers as employees to ensure they receive benefits like retirement protection, coverage under the Progressive Wage Model, and health insurance.
Minister Josephine Teo noted that gig workers are primarily self-employed and prefer their status, with overseas examples showing mixed results; the government is reviewing how to balance protections with work opportunities and CPF contributions.
The government will work with tripartite partners to assess the feasibility of extending the Progressive Wage Model to gig workers while ensuring they can access existing support schemes like Workfare Income Supplement.

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11 May 2021

Leon Perera questioned the government about data on COVID-19’s impact on Chinatown businesses, the potential use of SingapoRediscovers Vouchers for Chinatown merchants, and how the Chinatown Digitalisation Initiative is expected to help businesses recover.
Chan Chun Sing acknowledged that the pandemic reduced international visitors, affecting Chinatown, and said efforts like Hawker Day Out and cultural events aim to attract locals, with the SingapoRediscovers campaign providing publicity.
He clarified that SingapoRediscovers Vouchers are mainly for tourist-focused businesses like hotels and attractions, but F&B and retail can bundle offers with eligible merchants to qualify.
The Chinatown Digitalisation Initiative supports businesses in building digital presence to attract local and overseas customers, targeting 250 businesses or 25% of Chinatown merchants to adopt digital solutions by April 2022.

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