Economy & business — Topics

11 May 2021

Breakdown of Net Investment Returns and Net Investment Income Components in Contributions to Government Budgets

From FY2016 to FY2020, the Net Investment Returns Contribution (NIRC) to the Government’s Budget was at the maximum 50% allowed under the Constitution, combining Net Investment Income (NII) and Net Investment Returns (NIR).
For FY2021, the Government again plans to take the maximum 50% of NII and NIR due to the expected overall Budget deficit.
The absolute NIRC amount is determined by both the smoothed net asset base and the expected long-term rate of return, with the exact FY2021 breakdown not yet available as it requires further calculation and presidential approval.

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10 May 2021

Clarification by Deputy Prime Minister

Deputy Prime Minister Heng Swee Keat clarified that the classification of infrastructure expenditures aligns with international standards set by the IMF, not solely the Ministry of Finance's discretion.
He emphasized that Singapore's Reserves Protection Framework and IMF guidelines dictate how certain expenditures are counted or excluded from available revenue.
The correction was made to ensure accuracy in the record regarding the Second Reading of the Significant Infrastructure Government Loan Bill.
Heng explained the need for the clarification to uphold transparency and adherence to agreed international accounting practices.
The debate highlighted the importance of following globally recognized standards in managing government revenues and expenditures.

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10 May 2021

Renewal of S Passes for Companies where Quota was Reduced Due to COVID-19 Pandemic Restrictions

Mr Sitoh Yih Pin asked if companies can renew S Passes even when their quota is reduced due to workforce drops from COVID-19 restrictions.
The Minister explained that quotas are reduced based on total workforce numbers, including employees on payroll or with valid passes, but not those with in-principle approval who haven't arrived.
MOM may grant time-limited extensions for existing passes on appeal, provided there are valid reasons and short-term assurances.
Companies needing support can apply for the Lean Enterprise Development Scheme while transitioning to a leaner workforce.
The response emphasizes fairness and consistency in applying quota rules across all employers.

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10 May 2021

Incentive Programmes Offered to Public Transport Companies for Reliability

The Rail Reliability Incentive (RRI) is a temporary grant from 2020 to 2023 that rewards rail operators for meeting performance targets, such as achieving a Mean Kilometres Between Failure (MKBF) of at least 500,000, with full incentives for reaching 1 million MKBF or better.
Incentives are tied to performance standards, with financial penalties for breaches, and in 2023, SMRT and SBST received the full RRI amounting to $173 million, based on a rate of 0.3 cents per place-kilometre and proportionate to operating capacity.
The government also established the Rail Manpower Development Incentive (RMDI) to support workforce upskilling, with over 1,300 workers trained to date, and created the Singapore Rail Academy to enhance rail workforce capabilities.

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10 May 2021

Breakdown of Funds Allocated to Casework, Group Work and Community Work in Family Service Centres in Past Five Years

Louis Ng Kok Kwang asked the Minister for Social and Family Development for the amount and percentage of funds allocated to casework, group work, and community work in Family Service Centres each year over the past five years.
The Minister stated that funding for casework is based on the number and complexity of cases, with additional funding provided for group and community work, but no readily available data exists on individual allocations as centres may internally re-allocate funds based on needs.
The total funding to Family Service Centres increased from $84.3 million in 2016 to $114.7 million in 2020, driven by more cases, additional centres, and higher funding norms.

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10 May 2021

Impact on Singapore's Imports and Exports and Supply Chain Disruption due to Blockage of Suez Canal

The blockage of the Suez Canal in March 2021 disrupted global shipping, but Singapore’s multi-prong strategy of stockpiling, diversifying sources, and local production helped mitigate the immediate impact on imports and exports.
Businesses drew down buffer stocks, used alternative freight options, and tapped alternate supply sources, though no critical supplies were significantly delayed due to these measures.
The incident has longer-term implications, exacerbating existing shipping challenges like vessel capacity constraints and port congestion, which may increase future shipping costs and pressure on global supply chains.

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10 May 2021

State Expenditure Budgeted to Support World Economic Forum Special Annual Meeting

Leon Perera asked the Minister for Trade and Industry about the state expenditure budgeted for the World Economic Forum Special Annual Meeting.
Chan Chun Sing highlighted Singapore's upcoming hosting of the event in August and its role in reinforcing Singapore's position as a top MICE destination.
He noted that safety and security measures are being coordinated with the Forum, but specific costs will only be finalized closer to the event date.

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10 May 2021

Marketers Facing Industry Level Sanctions for Breaching Guidelines on Interactive Marketing Communications and Social Media and Measures to Better Protect Consumer Interests

Raeesah Khan asked the Minister for Communications and Information whether the Ministry tracks marketers facing industry sanctions for breaching the 2016 Guidelines on Interactive Marketing Communications and Social Media, how many breaches have occurred, and if legislation or policies will be introduced to improve ad transparency and consumer protection.
S Iswaran stated that from August 2016 to 2020, ASAS recorded 10 breaches by seven marketers, mainly for non-disclosure of sponsored content, and that the industry is self-regulated under SCAP, with false claims prohibited under the CPFTA.
The Minister noted that ASAS is reviewing SCAP to align with international standards, and the Ministry will continue engaging ASAS to safeguard consumer interests and ensure guidelines remain relevant.

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10 May 2021

Complaints of Cheating, Fraud and Other Crimes in Connection with Investments in Cryptocurrencies Lodged with Police in Past Three Years and Amounts Involved

Murali Pillai asked the Minister for Home Affairs for the number of complaints and total losses related to cryptocurrency investment crimes lodged with police in the past three years.
K Shanmugam responded that between 2018 and 2020, police received 533 reports of cheating, fraud, or other crimes connected to cryptocurrency investments.
During the same period, victims lost approximately $29 million to such cases.

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10 May 2021

Flexibility by Commissioner of Stamp Duties to Remit Additional Buyer's Stamp Duty Payable by Individuals Acquiring a Partial Interest in Residential Property in Last Two Years

Sylvia Lim asked whether the Commissioner of Stamp Duties had remitted Additional Buyer's Stamp Duty (ABSD) for individuals acquiring partial interests in residential properties due to family changes like a co-owner’s death in the past two years.
Heng Swee Keat confirmed that ABSD is not payable when a partial interest is acquired due to a co-owner’s death, but generally applies in other cases of partial interest acquisition.
The Minister noted that remissions of ABSD for taxpayers in extenuating circumstances are granted on a case-by-case basis by the Minister for Finance and the Commissioner of Stamp Duties.

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10 May 2021

Processes in Place to Ensure Fair Consideration for Small and Medium-sized Law Firms in Litigation, Negotiation and Contract Reviews

Leon Perera asked the government about its use of small and medium-sized law firms for legal work and the processes ensuring their fair consideration.
The Attorney-General’s Chambers acts as the government’s main legal advisor, but external legal services are procured when specific expertise is needed.
Over the past five years, about one-third of government legal service contracts were awarded to small and medium-sized law firms with up to 30 lawyers.
Government agencies follow principles of transparency, open competition, and value for money, awarding contracts to firms that best meet requirements and cost-effectiveness.
Selection criteria are specified upfront in each tender or quotation request to ensure fair consideration.

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10 May 2021

Estimated Amount of Each Type of Tax Paid by Pass Holders and Other Foreigners Working or Living in Singapore in Last Five Years

Leong Mun Wai asked for the estimated amount of each type of tax paid by various foreign pass holders in Singapore over the last five years.
Heng Swee Keat explained that the tax system is progressive and does not differentiate by nationality, so detailed breakdowns by pass type are not available, but provided general figures such as foreigners contributing about $3.7 billion annually in personal income tax.
He noted that foreigners account for over 40% of net GST borne by households and individuals, and around 16% of Additional Buyer’s Stamp Duty revenue, averaging $174 million per year.
The Minister emphasized that property taxes are progressive, with foreign buyers subject to higher rates, but most properties are owned by locals.
The response highlighted that tax revenue benefits Singaporeans through subsidies in education, healthcare, and housing.

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10 May 2021

Defaults in Car Loan Payments in Past 12 Months

Melvin Yong asked the Prime Minister for the number of car loan defaults over the past 12 months, how many involved used cars, and whether the government would outlaw overtrade practices in used car sales.
Tharman, speaking for the Prime Minister, reported that in 2020, 64 borrowers defaulted on car loans, with 23 of those defaults involving used cars, representing default rates of 0.03% and 0.01% respectively.
The response highlighted existing safeguards, including financial institutions checking car valuations and borrower creditworthiness, and MAS collaborating with agencies to monitor financing practices while considering additional measures to promote financial prudence.
Consumers were urged to be cautious of overtrade offers and to assess their financial situation before committing to car purchases to ensure long-term affordability.

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10 May 2021

Regulatory Guidelines in Classifying Third Party Administrator Costs in Financial Returns Lodged by Accident and Health Insurance Companies with MAS

Dr Tan Yia Swam asked whether there are regulatory guidelines for classifying third party administrator (TPA) costs in financial returns submitted by accident and health insurers to MAS, and if so, whether these costs are treated as management expenses or part of gross claims settled.
Insurers must classify TPA expenses directly linked to claims paid, such as claims administration fees per processed claim, as part of gross claims settled in their submissions to MAS.
Other TPA-related expenses, such as ongoing panel management fees, must be classified as management expenses.
External auditors verify compliance with these requirements, and MAS will take action on any non-compliance.

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10 May 2021

Measures to Limit Exposure of Retail Investors in Trading and Investments in Crypto Assets

The Monetary Authority of Singapore (MAS) cautions that cryptocurrencies are highly risky and speculative, and advises retail investors to verify entity credentials and consult the MAS Investor Alert List before trading.
MoneySense, Singapore’s national financial education program, runs campaigns to educate the public on spotting red flags like promises of quick profits in crypto-related investment scams.
Individuals facing financial distress from crypto losses can seek support from the National CARE Hotline, with referrals to services like Credit Counselling Singapore for debt management assistance.

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10 May 2021

Extension of Code of Conduct for Leasing of Retail Premises to Other Commercial Leases

Raj Joshua Thomas asked whether the Code of Conduct for Leasing of Retail Premises would be extended to other commercial leases like offices and industrial spaces, if there is a timeline for this, and if legislation would be introduced to enforce the Code.
Chan Chun Sing responded that the Code was an industry-led effort specific to retail, F&B, and lifestyle sectors facing challenges like e-commerce competition, and that other industries have unique circumstances making the Code less applicable to them.
The Government accepted the industry’s recommendation to enact legislation making the Code mandatory for all retail tenancies, with landlord and tenant associations pledging to adopt it from 1 June 2021.
There was no indication of plans to extend the Code to non-retail commercial leases or introduce broader legislation beyond the retail sector.

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10 May 2021

Audits to Ensure Jobs Support Scheme Payouts Have Not Been Made to “Phantom” Workers

The Government takes a serious view of attempts to defraud the Jobs Support Scheme (JSS), such as paying CPF contributions for "phantom" employees to claim payouts.
IRAS has a robust anti-gaming framework to detect abuse, requiring authentication of CPF contributions for high-risk cases and reporting strong evidence to the Commercial Affairs Department for investigation.
Over 5,000 employers have been reviewed, leading to the denial of about $28 million in payouts for over 1,000 employers due to suspected abuse and the referral of 10 employers to CAD.
Penalties for JSS abuse are severe, with offenders facing up to 10 years of imprisonment and fines under the Penal Code.

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10 May 2021

Factors to Determine Basic Rail Reliability and Financial Penalties for MRT Operators

The Rail Reliability Incentive (RRI) is a temporary grant from 2020-2023 to financially support operators who meet performance targets on reliability, safety, and operations, with full grant eligibility at 1 million train-kilometre Mean Kilometres Between Failure (MKBF) or better.
LTA imposes financial penalties on operators for breaching performance standards, while both SMRT and SBST received the full RRI of $173 million last year for achieving over 1 million MKBF, with disbursement based on operating capacity.
Reliability targets are determined by factors like MKBF, operational performance, and safety requirements, and the government has also introduced initiatives like the Rail Manpower Development Incentive and Singapore Rail Academy to build core technical capabilities within operators.

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10 May 2021

Enterprise Singapore's Power to Recall Products with Safety Risks

Gerald Giam asked whether Enterprise Singapore can recall products that pose safety risks, what measures exist if not, and what factors guide recall decisions.
Chan Chun Sing stated that Enterprise Singapore can require suppliers to recall Registered Controlled Goods, such as certain electrical appliances and refrigerators, if they are unsafe under the Consumer Protection Act.
Recalls may be triggered for issues like uncertified modifications, incorrect testing, or other risks to public safety, and the supply of unsafe goods can be disallowed after investigation.

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10 May 2021

Mosques Facing Financial Difficulties Due to COVID-19 Pandemic

The Minister reported that mosques' financial situation is stable despite a drop in physical donations during circuit breaker, with online fundraising via OurMasjid.SG raising about $5.2 million by March 2021.
MUIS and the Government provided support through grants for safe resumption expenses like temperature screening and SafeEntry equipment, plus wage support via the Jobs Support Scheme totaling $9.9 million in 2020.
The mosque cluster system enabled mutual support, and increased physical donations after resumption of services have helped offset reduced income, though levels remain below pre-pandemic.
MUIS will continue working with mosques to ensure financial stability and adequate resources during the pandemic, encouraging continued community donations online.
The response addressed the question about the number of mosques facing financial difficulties, but specific figures were not provided in the debate.

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