Economy & business — Topics

10 May 2021

Allocation of Electric Vehicle Charging Stations amongst Suppliers

Abdul Samad asked how EV charging stations will be allocated among suppliers and whether local companies will get a larger share to ensure infrastructure stability and grid reliability.
Ong Ye Kung responded that the government will issue fair and transparent tenders for charging points in public carparks, which will host most of Singapore's stations.
He emphasized that the provision of charging points in any tender will stay within local power capacity, with electrical upgrades handled by the winning tenderer.
LTA has launched a Request-for-Information to gather industry input on structuring private sector participation in the EV charging network.

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10 May 2021

Rationale for Annual Additional Flat Component in Electric Car Road Tax

The Annual Additional Flat Component (AAFC) for electric vehicles was introduced as an interim measure to approximate equal treatment between electric and non-electric vehicles, since electric vehicles are exempt from fuel excise duty.
The rationale for the AAFC is part of broader vehicle measures designed to control congestion through regulating vehicle ownership and usage, which is a key aspect of sustainable development.
The Ministry for Transport is studying different approaches and options for distance-based charging that is fuel-independent as a potential future alternative to the current flat component.

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10 May 2021

Progress of Project Ubin Which Uses Blockchain and Distributed Ledger Technology for Clearing and Settlement of Payments

Project Ubin demonstrated the feasibility of using blockchain for real-time, multi-currency cross-border payments, with industry partners now building on its success through initiatives like Partior and Project Dunbar.
MAS has issued a wholesale CBDC for interbank use but remains undecided on a retail CBDC due to potential impacts on banks' deposits and lending, with ongoing studies to evaluate costs and benefits.
MAS is monitoring the rapid growth of decentralized finance (DeFi) but notes that its viability and risks are not yet proven, and the authority is assessing its potential for broader application.

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10 May 2021

Impact of US Proposal for Global Minimum Corporate Tax Rate on Singapore

The US proposal to impose a 21% minimum effective tax on its multinationals could lead to top-up tax being paid in the US if their Singapore operations face a lower rate, affecting all sectors including regional HQs.
Singapore, as part of the Inclusive Framework on BEPS, is discussing an international agreement on a minimum tax, but the final rules are not settled, so the net fiscal impact on Singapore remains uncertain.
The government will continue to strengthen Singapore's business environment and capabilities while adjusting its tax system in consultation with industry, guided by principles of international standards, safeguarding taxing rights, and minimising compliance burdens for businesses.

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10 May 2021

Effectiveness of Incubation Stall Programme in Building Up Hawker Numbers and Culture in Singapore

Since its launch in 2018, 34 aspiring hawkers have enrolled in the Incubation Stall Programme (ISP), with 16 completing it and eight becoming full-fledged hawkers, while 10 are ongoing and eight did not complete.
The ISP provides subsidised rentals and has been enhanced based on feedback, including extended rental discounts to help hawkers build clientele and stabilise operations.
Success in the hawker trade depends on culinary and business skills, with ISP participants required to pass a food tasting and develop a feasible business plan.
Additional support, such as the Hawkers’ Development Programme, offers apprenticeships with veteran hawkers and mentorship to further aid aspiring hawkers.
Lessons from failed ventures and programme refinements aim to better support hawker sustainability and culture in Singapore.

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10 May 2021

Hawkers who have Benefited from Hawkers' Productivity Grant

Mohd Fahmi Aliman asked the Minister for Sustainability and the Environment about the number of hawkers who have benefited from the Hawkers’ Productivity Grant since its inception.
Grace Fu Hai Yien explained that the grant was launched in October 2017 to co-fund kitchen automation equipment for cooked food stallholders, and was expanded in 2020 to include market stalls and service innovation equipment.
Under the grant, qualifying stallholders can claim 80% of equipment costs up to S$5,000 per equipment, and can submit multiple claims.
Since inception, the National Environment Agency has approved 1,072 applications under the grant, benefiting 651 hawkers.

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10 May 2021

Interest-free Deferments of Student Loan Repayments During Pandemic

Henry Kwek proposed that the Ministry of Education collaborate with tertiary institutions and banks to offer interest-free deferments of up to 24 months for student loan repayments for graduates struggling to find good jobs.
Lawrence Wong stated that the Ministry had already suspended loan repayments and interest accrual for government-funded loans from June 2020 to May 2021 as part of COVID-19 support measures.
He noted that traineeship programmes and job placement efforts had helped graduates secure employment, but the government remains vigilant and will consider further assistance if economic uncertainties persist.

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10 May 2021

Median and Mean Amounts Paid Out Erroneously under Jobs Support Scheme and Recovery Efforts

The median overpaid amount under the Jobs Support Scheme was $3,300, with a mean of $69,000 per firm.
IRAS will offset excess payments against future JSS payouts and inform businesses of any outstanding amounts after the final payout.
Businesses facing cash flow difficulties can request instalment payment arrangements for repayment.
No firms that received erroneous payments have been wound up to date, according to current records.

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10 May 2021

Recovery of Erroneous $370 million Jobs Support Scheme Payouts

Gerald Giam Yean Song asked about the recovery of the erroneous $370 million Jobs Support Scheme payouts, specifically the amount recovered, installment options for companies that used the money, and actions if firms refuse to pay back.
Chan Chun Sing responded that $250 million (68%) had been recovered by early May 2021, with commitments for another $83 million (22%) from larger firms.
He noted that businesses facing cashflow difficulties could seek assistance and installment payment arrangements would be available.

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10 May 2021

Reasons for Wrongful $370 million Jobs Support Scheme Payouts

Hazel Poa questioned the Minister for Trade and Industry about the causes of the wrongful $370 million Jobs Support Scheme payouts.
Chan Chun Sing explained that the errors stemmed from incorrect tagging of business re-opening dates during the computation of JSS payouts.
He noted that the errors occurred due to the use of existing systems and manual processes to approve business re-openings at short notice.
The inaccuracies in re-opening dates directly led to the incorrect JSS payout amounts.

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10 May 2021

Measures to Ensure Accurate Disbursement of Funds for Support Schemes

The government outlined multiple checks across the design, implementation, and post-disbursement stages to ensure accurate fund disbursement, including internal and external audits, data analytics, and an anti-gaming system.
An error in re-opening date data caused overpayments in the Jobs Support Scheme, foreign worker levy waiver, and rebate; the issue was detected through post-disbursement checks and queries, prompting remedial actions and process improvements.
Lessons from the incident led to additional safeguards, such as automated coding of re-opening dates, external verification, and heightened internal audits for all COVID-19 support schemes.
Oversight rests with scheme owners and implementing agencies like IRAS and CPFB, with accountability at the Ministry of Finance and relevant ministries.
The government acknowledged the unprecedented crisis context, committed to transparency, and emphasized continuous strengthening of processes to prevent recurrence.

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10 May 2021

Rationale for Excluding Heavy Goods Vehicles and Very Heavy Goods Vehicles from Commercial Vehicle Emissions Scheme

The CVES provides incentives for cleaner light commercial vehicles and surcharges for pollutive ones, targeting Light Goods Vehicles (LGVs) up to 3,500 kg due to market availability of cleaner alternatives.
Heavy Goods Vehicles (HGVs) and Very Heavy Goods Vehicles (VHGVs) are excluded because cleaner, market-ready alternatives for these categories are currently limited, which would reduce the scheme's effectiveness.
The Ministry will continue monitoring market availability of cleaner HGV and VHGV models and consider expanding the CVES to include more commercial vehicles in the future.

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10 May 2021

Plans to Promote Homegrown Innovation under Research, Innovation and Enterprise Plan 2025

The Research, Innovation and Enterprise (RIE) Plan 2025 builds on past investments to position Singapore as an innovation-led, sustainable economy, with initiatives like the Enterprise Sustainability Programme and enhanced Investment Allowance for Emissions Reduction to support companies in developing green capabilities.
Efforts are underway to strengthen technology translation through platforms such as environmental and food innovation centres, while global partnerships and networks are being expanded to provide Singapore companies access to international markets and expertise.
Progress includes establishing Singapore as a global hydro hub, funding over 30 sustainable food projects under RIE 2020, and generating industry-research collaboration in low-carbon energy technologies like hydrogen and carbon capture.

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10 May 2021

Extension of Working Mother Child Relief to Unmarried Working Mothers

Shawn Huang Wei Zhong asked whether the Working Mother Child Relief (WMCR) can be extended to unmarried working mothers to reduce their income tax.
Heng Swee Keat highlighted that Singaporean children receive substantial benefits regardless of parents' marital status, including Child Development Account, MediSave Grant, education subsidies, and healthcare support.
He noted that working mothers of all marital statuses are entitled to 16-week maternity leave, paid childcare leave, and concessionary foreign domestic worker levy.
The WMCR is currently only for married, divorced, or widowed mothers, as it aims to support parenthood within marriage and reflect societal norms.
The government will continue reviewing tax policies while considering prevailing societal norms and needs.

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10 May 2021

Rise in Property Prices Over Past 12 Months

Lim Biow Chuan asked whether the recent rise in property prices aligns with government expectations and if measures are being considered to prevent a property bubble.
Desmond Lee confirmed that price increases since Q2 2020 reflect strong demand and low interest rates, with the government aiming for a stable market in line with economic fundamentals.
The government will monitor conditions and adjust future land sales and BTO flat supply to meet occupation demand.

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10 May 2021

Land Betterment Charge Bill

The Land Betterment Charge (LBC) Bill consolidates three existing land-related charges—Development Charge, Temporary Development Levy, and Differential Premium—into a single tax to be collected by the Singapore Land Authority, simplifying administration for landowners and developers.
The LBC will be charged at 70% of the increase in land value from chargeable consents, with a 100% rate in specific cases such as changes to restrictive covenants, and the rate will be set via regulations and periodically reviewed.
The bill allows for concessionary relief to encourage planning objectives like conservation, sustainable development, and construction productivity, with exemptions and deferments granted at the Minister’s discretion, subject to parliamentary notification.

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10 May 2021

Significant Infrastructure Government Loan Bill

The Government introduced the Significant Infrastructure Government Loan Bill (SINGA) to borrow up to $90 billion over 15 years for nationally significant infrastructure projects costing at least $4 billion, arguing this spreads costs fairly across generations while maintaining fiscal prudence.
The borrowing framework includes safeguards such as a $5 billion annual interest cost cap, rigorous project selection processes, and depreciation over 50–70 years to ensure intergenerational equity and protect Singapore’s AAA credit rating.
Debates highlighted concerns about expanding borrowing to “soft infrastructure” like healthcare or education, with the Government rejecting this as unsustainable, stressing that recurrent spending should be funded by recurrent revenue, not debt.
The Government will issue SGS (Infrastructure) bonds, including green bonds for qualifying projects, to finance infrastructure without affecting existing statutory board borrowings, while maintaining Singapore’s strong net asset position.
Parliamentary exchanges questioned fiscal transparency and expenditure projections, but the Government defended its adherence to international standards and declined to provide detailed long-term forecasts due to unpredictability of crises like COVID-19.

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10 May 2021

Significant Infrastructure Government Loan Bill

The debate centered on the Significant Infrastructure Government Loan Bill, with concerns about borrowing costs and the risk of interest rates rising amid economic recovery or inflation, but confidence in the bill given current low rates and safeguards in place.
Speakers highlighted that the differential between interest rates and GDP growth (r minus g) is crucial, arguing that borrowing for productivity-boosting infrastructure can improve debt dynamics and even lower debt-to-GDP ratios in the long term, while noting refinancing risks.
The bill enables capitalization of expenditures, freeing up recurrent budget for areas like welfare, healthcare, and education, with an emphasis on fiscal prudence, responsibility, and fairness in managing national infrastructure investments.

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10 May 2021

Significant Infrastructure Government Loan Bill

The government proposes the Significant Infrastructure Government Loan Act (SINGA) to borrow up to $90 billion for major, long-term infrastructure projects like new MRT lines and coastal protection, spreading costs across generations to ensure intergenerational equity and fiscal efficiency.
Strict safeguards are included, such as a $4 billion minimum project cost, a 50-year useful life requirement, and an annual interest cap of $5 billion, to ensure borrowing is prudent and focused on nationally significant assets.
Most members support the bill as a necessary response to upcoming infrastructure needs and low interest rates, though some seek clarifications on interest thresholds, project selection, and potential impacts on future generations.

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10 May 2021

Restructuring in the Local News Media

The Government supports SPH’s proposal to restructure its media business into a Company Limited by Guarantee to ensure its long-term sustainability, citing the global decline in traditional media revenue and the need for digital transformation.
The new CLG structure will allow the media business to operate on commercial principles while reinvesting surpluses, with the Government committing to provide funding support for digital innovation and capability development.
The Minister emphasized that the restructuring will preserve editorial independence and high journalistic standards, with safeguards under the Newspaper and Printing Presses Act to maintain trust and avoid political interference.

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