Economy & business — Topics

16 Feb 2021

Increase in and Safeguarding against Securities Trading Fueled by Online Discussions and Social Media Chat Groups

The Minister stated there is no evidence of significant increases in securities trading fueled by online discussions in Singapore, but authorities remain vigilant, citing safeguards like market transparency, circuit breakers, and enforcement against misconduct to prevent scenarios like "pump and dump" or "short and distort."
MAS and SGX RegCo have issued advisories to investors about risks from online forums, emphasizing measures such as trade alerts, publication of short positions, and temporary trading suspensions to curb disorderly price movements.
In response to concerns about short squeezes, the Minister noted lower short positions in Singapore compared to the U.S., attributing this to investor culture, high disclosure standards, and the absence of certain riskier financial instruments, alongside existing safeguards.
On platforms like Robinhood, the Minister emphasized that controlling online platforms is challenging, but a robust regulatory regime focused on transparency and market efficiency is key to preventing market disruptions.
Both speakers affirmed ongoing vigilance and the use of current measures to protect the securities market, while acknowledging lessons from international events to refine local safeguards.

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2 Feb 2021

Land Cost in FY2019/2020 and Breakdown of Payment to SLA, Government Organisations and Private Entities.

Hazel Poa asked the Minister for National Development for the amount HDB paid for land cost in FY2019/2020 and a breakdown of payments to SLA, other government organisations, and private entities.
Desmond Lee stated that HDB only purchases land from the Singapore Land Authority (SLA) for public housing developments.
In FY2019/2020, HDB paid SLA approximately $3.2 billion for State Land, as detailed in HDB’s annual financial statements available on its website.
No payments were made to other government organisations or private entities for land in that fiscal year.
The response clarifies that all land costs for HDB public housing are directed solely to SLA.

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2 Feb 2021

Reason for Difference in Amounts Disbursed in ComCare Fund Annual Report FY2019 and Financial Statement in Annual Report

The $151.42 million disbursed in FY2019 was fully accounted for, with $68.8 million funded by ComCare Fund interest income and $82.6 million covered by MSF's budget.
The Financial Statement as at 31 March 2020 reflects the Fund's state at that date, not the full-year disbursement.
The difference arises because the Financial Statement only shows the portion funded by the Fund, not the total disbursement.
The Financial Statement is for FYE March 2020, not 2019, as it presents the Fund's position at the end of the financial year.

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2 Feb 2021

Defaults by Borrowers on Enterprise Singapore-supported Loans Introduced in 2020

Ms He Ting Ru inquired about defaults on Enterprise Singapore-supported loans introduced in 2020 and the number of cases.
Minister Chan Chun Sing reported that 26 loans were in default as of 31 December 2020.
These defaults represent 0.1% of the over 29,000 loans supported under the schemes introduced in 2020.

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2 Feb 2021

Efforts to Diversify Food Supplies to Ensure Price Stability of Goods over Chinese New Year Period Due to Disruptions from Movement Control Order and Floods in Malaysia

The Minister acknowledged disruptions from Malaysia's Movement Control Order 2.0 and monsoon floods affecting vegetable prices, while noting the government is monitoring logistics impacts.
A multi-pronged strategy was outlined, including advance planning by retailers to stock alternative produce from various source countries to ensure availability over Chinese New Year.
Singapore continues to diversify food imports from over 170 countries, such as eggs from Ukraine, frozen shrimp from Saudi Arabia, and vegetables from China, to mitigate supply risks.
The government seeks public understanding as extraordinary times may lead to minor disruptions or price volatility despite efforts to protect essential food supplies and maintain stability.

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2 Feb 2021

Impact on Jobs and Trades with Shift Away from Fossil Fuel and Traditional Automotive Industries

Minister Chan Chun Sing stated that the shift to low emissions mobility is not expected to cause significant job losses in Singapore, as the petrochemical industry remains relevant for various products and the specialty chemicals sector continues to grow in demand across Asia.
Existing transport and maintenance workers are adapting to hybrid and electrified platforms, with the government supporting skill upgrades through initiatives like the Singapore Motor Workshop Association training facility to maintain electric vehicle components and charging systems.
Singapore is actively growing the EV industry by attracting investments from companies like Hyundai, Borgwarner, Continental, and Infineon, which are expected to create job opportunities in advanced manufacturing, R&D, design, and software engineering.
Government agencies will collaborate with companies, training providers, and unions to prepare Singaporeans for new roles in the transitioning mobility sector, ensuring a skilled workforce for the future.

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2 Feb 2021

Matched Retirement Savings Scheme's Contributions and Limits

Ms. Carrie Tan asked if the Matched Retirement Savings Scheme's government-matched contributions apply to top-ups by non-family members and if tax reliefs for top-ups could be extended to non-related persons.
The Minister for Manpower confirmed that anyone can make cash top-ups under the scheme, with the government matching up to $600 per year for eligible recipients.
Tax relief of up to $7,000 is available for Singapore citizens and permanent residents topping up for loved ones, and employers get tax deductions for topping up on behalf of employees.
Tax reliefs are not available for top-ups from non-related parties, but such contributions can be made through charities with IPC status to qualify for a 250% tax deduction.
The government will continue to review the scheme to ensure its relevance.

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2 Feb 2021

Help for Employers Caught Out by Indonesia's New Zero Placement Fee Policy for Domestic Helpers

The Indonesian government’s zero placement fee policy will require employers to bear costs for new Indonesian domestic helpers, leading to potentially higher service fees from Singapore agencies.
Employers can consider hiring helpers from other countries, with agencies required to provide clear fee breakdowns and advise on suitable options based on cost and preference.
Alternatively, employers may explore part-time help through the Household Services Scheme or seek subsidised caregiving support from agencies like AIC and ECDA.

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2 Feb 2021

Review of India-Singapore Comprehensive Economic Cooperation Agreement Given DBS' Merger with India's Lakshmi Vilas Bank

Leong Mun Wai inquired whether the Ministry of Trade and Industry would seek better terms in the ongoing CECA review following DBS's merger with Lakshmi Vilas Bank.
Chan Chun Sing stated that the CECA review began in September 2018 and is conducted regularly to adapt to changing economic patterns, with reviews not tied to specific commercial deals.
He clarified that the amalgamation of Lakshmi Vilas Bank with DBS Bank India Limited in November 2020 was a commercial decision by DBS.

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2 Feb 2021

MAS' Role in Appointments of Top Leaders at Financial Institutions

The Monetary Authority of Singapore (MAS) requires approval for the appointment of senior managers at financial institutions, ensuring candidates are thoroughly assessed by the board and have no integrity concerns.
MAS supports the development of Singaporean talent in senior roles but avoids protectionist policies, aiming to create opportunities while maintaining global competitiveness.
Imposing nationality restrictions on appointments would disadvantage local financial institutions operating in competitive international markets and is not in the interest of Singaporeans.

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2 Feb 2021

Responsibility for Paying Temporary Development Levy

Gerald Giam asked whether landlords or tenants are responsible for paying the Temporary Development Levy.
Desmond Lee explained that the levy applies when temporary land value enhancement occurs due to Temporary Permission for change-of-use or minor works.
Under the Planning Act, the levy is payable by the owner or the TP applicant, with URA leaving the decision to stakeholders.
The response clarified that URA does not mandate who pays, allowing parties to negotiate the responsibility.

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2 Feb 2021

Measures to Protect Micro SMEs in Landlord-tenant Disputes

The Small Claims Tribunal does not handle non-residential tenancy disputes, so micro SMEs must use State Courts or alternative dispute resolution like mediation, with simplified processes and affordable schemes available to help them navigate without legal representation.
Micro SMEs with limited means can access legal aid through the Legal Aid Bureau on a case-by-case basis, even for commercial matters, and various COVID-19 relief measures like the Rental Relief and Re-Align Frameworks were introduced to support them.
The government is working with industry representatives through the Fair Tenancy Pro Tem Committee to establish fair tenancy practices and improve dispute resolution, while awareness of available support is promoted via multiple platforms, including social media, websites, and community associations.

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1 Feb 2021

Statistics on Number of Companies Rejected by Singapore Business Federation on Usage of SGUnited Traineeship Programmes

The Singapore Business Federation (SBF) screens all applications for the SGUnited Traineeship programmes, rejecting about one in ten applications by end-December 2020 for reasons such as inadequate development plans or unsuitable roles, but there is no quota on the number of trainees a company can hire as long as quality and capacity are maintained.
SBF requires host organisations to sign agreements that include adherence to development plans, submission of monthly progress reports, and acceptance of SBF’s arbitration in disputes, with trainees able to submit feedback or complaints directly to SBF via hotlines, email, or an online whistle-blowing channel.
By end-December 2020, SBF received eight complaint cases, primarily concerning lack of supervision or safety measures, and resolves issues through mediation or, in serious cases, works with MOM and WSG to impose penalties such as rescinding approvals, clawing back grants, or barring organisations from future programmes.

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1 Feb 2021

Additional Surcharge on Certificates of Entitlement for Owners Purchasing Second Vehicle or More

Zhulkarnain Abdul Rahim asked if the Ministry would impose an additional surcharge on Certificates of Entitlement for owners buying a second or subsequent vehicle.
Ong Ye Kung responded that such a surcharge is unlikely to promote cleaner vehicles and would function more as a wealth tax, posing policy challenges.
He noted that second-vehicle buyers might have genuine needs, such as large families, and that loopholes could arise, necessitating complex rules.
The Minister emphasized that general incentives for cleaner vehicles and surcharges for pollutive vehicles are more effective than linking surcharges to vehicle ownership numbers.
He concluded that adding rules for second-vehicle surcharges would complicate the COE system without effectively advancing environmental goals.

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1 Feb 2021

Number of Applications of Asatizah for Financial Assistance under Self-employed Income Relief Scheme

Wan Rizal asked about the number of asatizah applications for the Self-Employed Income Relief Scheme (SIRS), their success rate, and whether rejected applicants can apply for the COVID-19 Recovery Grant (CRG).
330 asatizah applied for SIRS, with 77% approved, 10% pending, and 13% rejected due to not meeting criteria; rejected applicants may apply for CRG and seek help from MUIS.
MUIS has provided additional support, including a $200,000 top-up to Pergas’ Gracious Package, which aided 500 asatizah last year, and continues to assist the asatizah community during COVID-19.

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1 Feb 2021

Breakdown of Amount for Successful Payouts under COVID-19 Support Grant

Assoc Prof Jamus Jerome Lim requested a breakdown of the amount for successful payouts under the COVID-19 Support Grant.
The Ministry of Social and Family Development approved about 97,000 applicants and disbursed around $215 million as of 3 January 2021.
Eligible applicants received up to $800 per month for three months if they lost their job or were on involuntary no-pay leave, and up to $500 per month for three months if they experienced at least a 30% salary loss.
The grant closed on 31 December 2020 and was replaced by the COVID-19 Recovery Grant starting 18 January 2021.

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1 Feb 2021

Pre-emptive Interventions by Competition and Consumer Commission of Singapore against Anti-competitive Mergers in Ride Hailing Industry

Dennis Tan Lip Fong asked the Minister for Trade and Industry about pre-emptive interventions by the Competition and Consumer Commission of Singapore (CCCS) to prevent anti-competitive mergers in the ride-hailing industry, which could harm consumers and drivers.
Businesses must comply with the Competition Act, and the CCCS provides avenues for prior clearance on mergers; if anti-competitive mergers proceed without clearance, the CCCS can impose interim directions, issue remedies, and impose financial penalties to protect public interest.
The ride-hailing industry is also regulated by the Land Transport Authority under the Point-to-Point Transport Industry Act, which requires operators to notify LTA of certain acquisitions; both CCCS and LTA have reminded industry parties of their obligations, and parties have committed to compliance.
The new regulatory framework since October 2020 aims to ensure market contestability by supporting multiple ride-hail operators and enforcing non-exclusivity, allowing drivers to use multiple platforms and reducing entry barriers.
CCCS and LTA will continue to monitor the ride-hailing industry closely to uphold competition and consumer interests.

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1 Feb 2021

Breakdown on Investments Secured by Singapore from 2005-2020

Miss Cheryl Chan requested a detailed breakdown of Singapore's investments from 2005 to 2020, including their annual value-added contribution, yearly job creation, and the percentage of jobs in manufacturing, R&D, and professional services.
Minister Chan Chun Sing provided a table with the requested data and noted an average of 23,000 jobs created annually from these investments.
Of the new jobs, approximately 40% were in manufacturing, 20% in research and development, and 40% in services, including professional services.
The debate focused on tracking the economic impact of secured investments over a 15-year period through quantitative metrics.
The response emphasized the role of these investments in driving job growth across key sectors, particularly emerging industries.

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1 Feb 2021

Targets and Progress of SingapoRediscovers Scheme and Support for Smaller and Less Digitally Literate Merchants

The SingapoRediscovers Scheme currently includes 402 businesses, comprising 37% tours, 11% attractions, and 52% hotels, with no specific revenue size targets as the scheme is open to all eligible licensed tourism businesses.
The scheme supports smaller and less digitally literate merchants by featuring their products on a digital platform with lower commission rates through five authorized booking partners, which also provide assistance in developing digital content and marketing.
Authorized booking partners help businesses without their own booking systems to participate and offer comprehensive marketing plans to reach a wider audience, reducing the need for digital expertise.

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1 Feb 2021

Singapore’s Macro Economic Policy and Development Change in COVID-19 and Post-COVID-19 Economy

The Singapore economy suffered a severe 5.8% contraction in 2020, with a projected recovery in 2021 that is uneven across sectors and not expected to return to pre-COVID levels until the latter half of the year.
The government will fortify Singapore's role in global value chains by focusing on high-value segments in areas like biomedicine and electronics, and forge new digital trade rules to support the growing digital economy.
Strategies include promoting an innovation-led and sustainable economy through R&D investment and establishing a hub for environmental, social, and governance solutions, while continuing to help companies and workers transform and upskill for resilience.

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