Economy & business — Topics

11 May 2021

Current Total Value of Government-owned Land That Can Be Sold for Development

Leong Mun Wai asked the Deputy Prime Minister and Minister for Finance for the current total value of government-owned land that can be sold for development.
Heng Swee Keat explained that state land is sold based on the Government’s development plans, which range from short-term land sale programmes to long-term planning that adapts to evolving population and economic needs.
He stated that calculating the total value of such land is not meaningful due to the dynamic nature of planning, but the Government maintains a listing of physical assets, including land, as part of reserves information provided to the President under the Reserves Protection Framework.

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11 May 2021

Profile of and Support for Zakat Beneficiaries

MUIS collected an average of $47.4 million in zakat annually from 2018 to 2020, disbursing over 95% to eight categories of beneficiaries (asnaf) with the balance held as cash reserves.
Financial assistance for the poor and needy (fakir miskin) and those in debt (gharimin) is provided to households with per-capita income of $400 or less, benefiting about 7,000 households yearly and accounting for over 45% of total zakat.
Bankrupt individuals are not specifically assisted under zakat categories but are referred to external organizations like the Debt Advisory Centre by AMP, Credit Counselling Singapore, and the Legal Aid Bureau.
The appointment of amils (zakat administrators) is authorized yearly by the Zakat & Fitrah Committee, with centres required to submit applications, train officers, undergo audits, and with online collection expanding amil roles to include religious guidance and zakat calculation support.

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11 May 2021

Foreign Direct Investments in Singapore in Recent Years and Creation of Jobs from these Investments

Singapore attracted $17.2 billion in Fixed Asset Investments in 2020 and $2.8 billion in the first quarter of 2021.
Of the $62.1 billion in investments attracted over the last five years, $43.3 billion (70%) was realized in the past three years.
The investments are expected to create an estimated 112,100 new jobs when fully implemented.

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11 May 2021

Transparency of Third Party Administrator Fee Arrangements in Singapore

Dr Tan Yia Swam asked whether Third Party Administrator (TPA) companies should be directly regulated, how transparency of TPA fee arrangements can be enhanced beyond current medical council guidelines, and whether financial relationships between TPAs and insurers should be regulated.
The Minister for Health stated that MOH prioritizes regulating direct healthcare providers, as TPAs do not provide direct patient care, and currently relies on guidelines under the Private Hospitals and Medical Clinics Act and the Singapore Medical Council’s Ethical Code to ensure fee transparency and prevent improper fee arrangements.
The Minister added that future regulations under the Healthcare Services Act will require itemised billing to distinctly list TPA fees, improving transparency, and that MOH is reviewing TPA practices and will consider stricter regulation if evidence of patient risks emerges.

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11 May 2021

Measures to Prevent Young or Compulsive Buyers from Taking on Too Much Debt via Purchases on Digital Platforms

Miss Cheryl Chan asked for measures to prevent young or compulsive buyers from accumulating debt through Buy Now, Pay Later (BNPL) platforms, including income verification and a centralized system to track credit use.
The Prime Minister’s representative noted that BNPL schemes are currently outside financial regulations but that authorities are studying if oversight is needed, considering existing safeguards like caps on small purchases and late fees.
The government is examining risk management practices and may implement proportionate regulation to address excessive borrowing while preserving the convenience of BNPL services.

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11 May 2021

Funds Allocated to The Arts and Measures to Protect Arts Economy and Jobs

The government allocates approximately $450 million annually to the arts, with funds distributed across visual, performing, and literary arts based on their presence in the ecosystem, and support provided to organisations of all sizes through grants, commissions, and infrastructure.
The arts sector contributed 0.4% to Singapore’s GDP in 2018 and provided about 26,000 jobs in 2019, with economic value-added growing steadily from $1.5 billion to $1.8 billion between 2013 and 2018.
To protect arts jobs and the economy, the government introduced the Arts and Culture Resilience Package, enhanced with $20 million to bring total COVID-19 support to $75 million, alongside skill development schemes and partnerships to encourage private donations.
Funding and support also extend to national cultural institutions and initiatives that profile Singapore’s arts internationally, build new capabilities, and enhance audience engagement, with arts attendance and cultural appreciation reaching record highs in 2019.
The government emphasises a holistic, partnership-driven approach involving public, private, and people sectors to sustain a vibrant arts landscape that contributes to society beyond economic metrics.

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11 May 2021

Complaints of Pressure Sale Tactics at Hair and Beauty Salons

The Minister reported that 157 complaints about pressure sales tactics in hair and beauty salons were received in the past year, with about half involving salons in HDB heartlands.
Under the Consumer Protection (Fair Trading) Act, such tactics are prohibited, and CASE can seek voluntary compliance agreements and compensation for affected consumers, while CCCS can pursue court injunctions against persistent offenders.
CASE conducts public education, especially for seniors, and maintains a consumer advisory and listing of salons with known aggressive tactics, alongside industry accreditation schemes for ethical practices.
The government remains committed to safeguarding consumer interests, particularly for vulnerable groups, through collaboration with CASE and CCCS.

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11 May 2021

Support for Companies Affected by Restrictions on Travellers from India

The recent border restrictions on India are expected to significantly impact the supply of migrant workers for the Construction, Marine, and Process sectors, leading to project delays and potential job losses.
The government has allowed construction firms to source workers from alternative countries like China and is introducing temporary measures to ease entry and certification requirements.
Additional support includes extensions of time for public sector projects, financial compensation for delays, increased foreign worker levy rebates, and legislation to adjust contract sums for rising manpower costs.
Authorities will continue to engage firms and explore further measures to help the sectors cope, while pushing for long-term productivity improvements to reduce reliance on migrant workers.

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11 May 2021

Measure of Willingness to Pay Higher Prices for Services by Progressive Wage Model Sectors

Raj Joshua Thomas asked the Ministry for Manpower to study if service buyers are willing to pay higher prices for services from PWM sectors amid economic uncertainty and to assess the impact on SME service providers unable to pass on increased costs.
Josephine Teo responded that PWM wage increases are decided by tripartite cluster committees, which consider firm and buyer views on economic conditions, and emphasized that wage increases for lower-wage workers should not be postponed despite economic challenges.
She highlighted that in security, cleaning, and landscape sectors, contract values have increased, showing firms can pass on higher wage costs, and non-compliant firms risk losing their licenses.

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11 May 2021

Government Spend on Preventive Care as a Proportion of Overall Spending on Healthcare Expenditure

In 2020 and 2021, the government allocated about 5% of MOH’s non-COVID-19 budget ($590 million and $720 million respectively) to preventive healthcare, funding initiatives like public education, health screenings, and food reformulation.
Key performance indicators include monitoring disease prevalence and disability-adjusted life years, which have improved since 1990, alongside tracking lifestyle risk factors such as physical activity, diet, and smoking rates.
Programmatic outcomes show positive trends, such as increased market share for healthier food choices, higher participation in physical activity challenges, and expanded workplace health programs, though challenges like obesity and diabetes persist.

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11 May 2021

Proposal for Flexibility on Additional Buyer's Stamp Duty for Divorcees Buying Another Property before Final Court Ruling

Member Henry Kwek proposed allowing divorcees to buy a new property without Additional Buyer’s Stamp Duty (ABSD) before a final court ruling, provided they dispose of the existing property within a court-set timeframe.
Minister Heng Swee Keat explained that ABSD aims to moderate demand and ensure a stable property market, applying to all second-property purchases by Singaporeans regardless of eventual sale of the first.
An ABSD refund concession exists only for married Singaporean couples who sell their first property within six months of buying a second, reflecting changing family needs.
The Minister emphasized that this exception is not extended to other groups, including divorcees, to maintain the overall objective of controlling property demand.
Buyers seeking to avoid higher ABSD are advised to sell their first property before purchasing a second one.

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11 May 2021

Update on Findings and Lessons Learnt from Erroneous $370 Million Payout from Jobs Support Scheme

The erroneous $370 million payout from the Jobs Support Scheme was caused by incorrect tagging of businesses' reopening dates during the circuit breaker period, primarily affecting firms supporting construction projects but not directly involved, with about 5,400 businesses overpaid and 1,100 underpaid.
The overpayments were detected by IRAS during regular checks in November 2020, and rectification actions are underway, with over $250 million recovered through automatic offsets and an additional $83 million secured from larger firms, with full recovery expected by December 2021.
Businesses facing cashflow difficulties due to the recovery can seek assistance, such as instalment payment options or Enterprise Singapore's temporary bridging loan programme.
Lessons learned include instituting additional checks and automated processes for compiling reopening dates, engaging external auditors, and strengthening inter-agency coordination to prevent similar errors in the future.

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11 May 2021

Move Towards Complete Paperless Processes and Transactions with Businesses and Public Sector Agencies

The government has amended the Electronic Transactions Act to support digitalisation and aims for nearly all government transactions to be completed digitally, while maintaining non-digital options for accessibility.
Initiatives like SMEs Go Digital, InvoiceNow, and IMDA’s Grow Digital and TradeTrust are helping businesses adopt digital solutions and access global markets, with efforts to equip citizens, including seniors and hawkers, with digital skills.
The move to paperless processes is aligned with the Singapore Green Plan, as it reduces paper use and physical travel, supporting sustainable development.

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11 May 2021

COVID-19 (Temporary Measures) (Amendment No 3) Bill

The Bill amends the COVID-19 (Temporary Measures) Act to allow contractors to apply for adjustments to contract sums due to increased foreign manpower costs from October 2020 to September 2021, with an assessor determining a just and equitable sharing of these costs among project parties.
The Government has introduced additional support measures, including an Extension of Time for public projects, increased Foreign Worker Levy rebates, and temporary flexibility for Chinese workers to obtain skills certification locally, to address the severe manpower shortage in the construction sector.
Members of Parliament raised concerns about the Bill's impact on BTO flat prices, public expenditure, and the need for longer-term productivity transformation, while also suggesting further measures such as expanding foreign worker sources and enhancing support for contractors.

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11 May 2021

Keeping Grocery Prices Affordable for Singaporeans Given Rising Prices in Global Commodity Markets

The Minister explained that rising global food prices are due to strong demand, tight supply from adverse weather, and export restrictions, which impact Singapore as an open economy that imports most of its food.
The government has diversified food import sources from over 170 countries and maintained supply resilience during crises like COVID-19, helping keep prices competitive.
To support affordability, the government works with cooperatives like NTUC FairPrice on programs such as price freezes on essential house-brand items, and provides targeted financial assistance to low-income households through ComCare schemes.
The government remains committed to protecting essential food supplies and stabilizing prices but acknowledges ongoing volatility from global uncertainties like transportation delays and shipping shortages.

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11 May 2021

Impact of Higher Sea Freight Costs on Exports to Singapore

Rising global sea freight costs are driven by factors like reduced vessel capacity and container shortages, with businesses deciding whether to absorb or pass on these higher costs.
Singapore’s government has implemented strategies to maintain supply chain resilience, including import diversification, local production, and stockpiling, while port charges remain unchanged.
The government is actively working with local businesses and trade associations to manage freight costs and ensure supply continuity, particularly in light of regional disruptions like Malaysia’s movement control order.

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11 May 2021

Ensuring Credibility of Carbon Products to be Traded through Singapore

Singapore is developing a taxonomy and guidelines for carbon credit quality, using technology and partnerships to improve verification and transparency in voluntary carbon markets.
The government supports anchoring carbon services like project development, trading, and financing in Singapore, while working with industry and environmental groups to build a trusted carbon ecosystem.
For carbon-neutral LNG imports, suppliers provide GHG emissions statements and carbon credits are retired from certified projects to offset emissions, though voluntary offsetting is not yet regulated.
The government plans to increase awareness and educate companies to prevent scams and align with the Singapore Green Plan 2030, addressing risks in both compliance and voluntary carbon markets.

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11 May 2021

Review of Singapore's Commitment Towards Net-zero Carbon Target

The Minister affirmed Singapore’s commitment to a net‑zero carbon target, with emissions expected to peak around 2030 and be halved by 2050, underpinned by the Singapore Green Plan 2030 and a carbon tax that will be reviewed post‑2023.
Key strategies include transforming industry and society toward renewable energy and efficiency, investing in low‑carbon technologies such as carbon capture and hydrogen, and fostering international collaboration on carbon markets and regional grids.
In response to a supplementary question on powering the grid and shifting industries, the Minister stated that all options are being considered to ensure resource, economic, and climate resilience while meeting carbon goals.

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11 May 2021

Impact of Restricted Inflow of Foreign Workers on Population and Companies' Operations

Businesses, especially in the construction, marine, and process sectors, have been severely affected by the restricted inflow of foreign workers, leading to manpower shortages that impact their ability to meet commitments.
The government has implemented measures such as increased levy rebates and temporary schemes for workers from alternative countries like China, while also reviewing the extension of In-Principle Approvals and potential refunds for applications.
There is a net outflow of foreign workers from Singapore, with the government managing a balance between controlling COVID-19 risks and addressing industry needs through dynamic entry approvals and support for SMEs.

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11 May 2021

GST Vouchers' Offset of GST Paid by Lower-income Households

The GST Voucher scheme offsets an average of 84% of the annual GST paid by the bottom 20% of households through permanent measures like cash payouts and utilities rebates, with additional one-off payments in 2019 and 2020 further offsetting 33% of GST, resulting in a total offset exceeding the GST payable during those years.
The government is studying enhancements to the permanent GST Voucher scheme to increase the offset for lower and middle-income households, with details to be provided later, aiming to ensure these groups receive more benefits than the taxes they pay.
The GST Voucher scheme targets households with an assessable income below $28,000, which is significantly lower than the median monthly income, to focus support on lower-income groups while addressing broader inequality through a range of social measures.

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