Economy & business — Topics

1 Feb 2021

President's Concurrence with Resolution on Government Securities

The President concurred on 25 January 2021 with a parliamentary resolution passed on 5 January 2021 to authorize additional borrowing through Government Securities.
The resolution, under Article 144(1)(a) of the Constitution and the Government Securities Act, allows the Minister for Finance to borrow up to S$270 billion more.
This brings the total authorized borrowing limit to S$960 billion.
The borrowing is to be conducted by issuing Government Securities in Singapore.

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5 Jan 2021

Average Breakdown of Income in Terms of Wage Earnings Only versus Workfare Income Supplement

Assoc Prof Jamus Jerome Lim asked the Minister for Manpower about the share and average breakdown of income from wages alone versus Workfare Income Supplement (WIS) for Singaporeans earning below $1,300 per month.
Mrs Josephine Teo stated that nearly 8 in 10 low-wage workers aged 35 and above receive WIS, with ineligibility based on property holdings or spousal income exceeding thresholds.
WIS payouts vary by age and salary, with recipients earning an average of $1,300 monthly; older workers see significant boosts, such as a 26% income increase for those aged 60 and above from a $4,000 annual payout.
For younger age groups, annual WIS payouts range from $1,700 to $2,500, providing income top-ups of 11% to 16% on average.
The scheme aims to support lower-wage workers with limited family resources by encouraging regular work and CPF savings.

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5 Jan 2021

Help for Mature Workers Transitioning to Another Industry and Tackling Unemployment after Removal of Jobs Support Scheme

The government has introduced enhanced support for mature workers through the SGUnited Jobs and Skills Package and the SkillsFuture Mid-Career Support Package, offering higher wage subsidies and training credits to help them transition to new industries.
The Jobs Growth Incentive provides 50% wage support for hiring mature local workers, double that for younger hires, to encourage employers to consider their valuable experience and skills.
For aviation and tourism sectors affected by the removal of the Jobs Support Scheme, targeted measures like the Enhanced Aviation Support Package and tourism initiatives aim to preserve jobs and facilitate reskilling for new roles.
Workforce Singapore has expanded career matching and coaching services, including online platforms and physical centres, to assist mature jobseekers in finding new opportunities.
The government is reviewing further extensions of support and promoting job redesign and digital reskilling programs to help workers adapt to evolving industry needs.

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5 Jan 2021

Breakdown by Flat Type of Households Still Buying Electricity from SP Group

Gerald Giam asked for a breakdown by flat type of households still buying electricity from SP Group at the regulated tariff and for EMA's market research on why households have not switched to a retailer in the Open Electricity Market.
Chan Chun Sing stated that EMA has conducted surveys showing most consumers who switched did so for cost savings, while those who did not switch cited comfort with SP and lack of awareness or trust in new retailers.
EMA will continue to educate consumers about the Open Electricity Market to help them make informed choices about electricity plans.

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5 Jan 2021

Classifying Moneychanging Business as Tier 1 Sector under Travel and Tourism

Assoc Prof Jamus Jerome Lim asked if the moneychanging business could be included as a Tier 1 sector under travel and tourism due to COVID-19 impacts.
Heng Swee Keat clarified that licensed moneychangers deriving over two-thirds of revenue from money-changing services are already classified as Tier 1 under the Jobs Support Scheme.
This classification recognizes their heavy reliance on travel and tourism, with eligibility details available on the Inland Revenue Authority of Singapore’s website.

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5 Jan 2021

Number of Applications to Temporarily Reduce Residential, Commercial and Industrial Property Loan Repayments under MAS Relief Scheme

As of end-November 2020, financial institutions received 2,070 applications for temporary loan repayment reductions under the MAS relief scheme.
Of the 1,590 applications processed, 85% were approved, with most rejections due to applicants not meeting the income impact eligibility criterion.
The income criterion ensures individuals only opt for longer repayment periods if truly necessary, as it increases interest costs, but financial institutions still review cases and offer alternatives.

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5 Jan 2021

PayNow Collaboration with Thailand's Promptpay

The collaboration between PayNow and Thailand's PromptPay will allow registered users in Singapore and Thailand to send money directly to each other using just a mobile phone number, similar to domestic PayNow transfers.
QR code payments are not part of the current PayNow-PromptPay collaboration, so there is no immediate confusion for consumers regarding QR codes for cross-border payments.
If QR payments are added in the future, MAS will clearly communicate how they differ from existing QR schemes like PayNow QR and NETS QR to avoid consumer confusion.

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5 Jan 2021

Scarcity of ATMS in Non-mature Estates

MP Don Wee asked MAS to regulate or incentivise banks to install more ATMs in non-mature estates due to scarcity.
The Prime Minister responded that ATM access is generally good, with over 2,660 ATMs and 4,100 cash withdrawal touchpoints across Singapore, including in non-mature estates.
MAS will work with banks to address specific accessibility issues in certain areas and promote awareness of alternative cash withdrawal points.
The government is encouraging a shift to digital payments, noting a 20% decline in cash withdrawals over three years and ongoing support for digital literacy, especially among the elderly.

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5 Jan 2021

Rationale for Spousal Income Criterion in Eligibility Assessment for Workfare Income Supplement

The spousal income criterion was introduced to ensure Workfare targets lower-wage workers with limited household wealth by considering the assessable income of the spouse and properties owned.
The spouse’s assessable income threshold of $70,000 is set significantly above the median to balance inclusivity with targeting support.
Appeals for exceptions, including for estranged spouses, are considered case-by-case with supporting documents from agencies, and exceptions have been made.
The scheme aims to encourage regular work and CPF savings among lower-income Singaporeans with less family support.

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5 Jan 2021

Businesses That Have Tapped Business and IPC Partnership Scheme to Promote Corporate Volunteerism amongst Employees

Murali Pillai asked how many businesses have used the Business and IPC Partnership Scheme (BIPS) to promote corporate volunteerism and whether it will be extended beyond its December 2021 expiry.
Edwin Tong explained BIPS, introduced in 2016, offers a 250% tax deduction for businesses supporting employee volunteering at IPCs and was extended to December 2018, with an average of 37 businesses using it annually from 2016 to 2019.
Enhancements were made in December 2019 to simplify BIPS, including fixed hourly rates for deductions, reduced documentation for small expenses, and streamlined declaration forms to reduce administrative burden.
BIPS has received positive feedback from corporates and IPCs, highlighting benefits like employee well-being, productivity, and effective community service, prompting a review for potential extension beyond December 2021.
The ministry is working with key partners to review BIPS and plans to share more information once the review is complete.

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5 Jan 2021

Cross-subsidisation of MediShield Life Premiums between Private and Public Hospitals

The Ministry balances cross-subsidisation between private and public hospitals by pro-rating private hospital bills to an equivalent public ward level, with the pro-ration factor being lowered from 35% to 25% to better align with cost differences.
There is no cap on administrative costs for private Integrated Shield Plans, as insurers set premiums based on commercial and actuarial considerations, but the government encourages consumers to consider long-term affordability.
To keep MediShield Life premiums affordable, the government is providing about $2.2 billion in subsidies and support over three years, limiting net premium increases to around 10% in the first year, and offering measures like MediSave top-ups and premium deferrals for those affected by COVID-19.

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5 Jan 2021

Treasury Bills

The Second Minister for Finance moved a resolution to raise the borrowing limit for Treasury Bills under the Local Treasury Bills Act by S$45 billion, bringing the total limit to S$105 billion.
The increased ceiling of S$105 billion applies to the outstanding amount of Treasury Bills and is expected to be valid until 2025.
The Minister stated that the rationale for this increase had already been explained during a previous motion concerning the Government Securities Act.
The resolution was passed in accordance with Article 144(1)(a) of the Constitution and section 3(1) of the Local Treasury Bills Act.

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5 Jan 2021

Government Securities

The Second Minister for Finance moved to increase the borrowing limits for Government Securities and Treasury Bills, emphasizing these funds are for market development and CPF investments, not fiscal spending.
Members acknowledged the need to raise the debt ceiling but raised questions on underlying assumptions, potential use of debt for infrastructure, and the impact of negative interest rates.
The Minister clarified that the increases are routine to meet projected demand for government bonds, supported CPF needs, and are not for deficit financing.

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5 Jan 2021

Multimodal Transport Bill

The Multimodal Transport Bill establishes a legal framework for Singapore to ratify the ASEAN Framework Agreement on Multimodal Transport, creating a unified system for goods transport across ASEAN through a single contract and document.
The Bill outlines registration for multimodal transport operators with Singapore’s Competent National Body (the Land Transport Authority), sets liability standards, and requires consignors to accurately declare goods, including dangerous items.
Members of Parliament supported the Bill, raising queries on criteria for operator registration, transparency of insurance details, language of transport documents, and environmental sustainability, with the Ministry providing clarifications and commitments to address these points.

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5 Jan 2021

Rationale for Support Threshold in Jobs Growth Incentive Scheme

The Jobs Growth Incentive (JGI) provides 50% salary support for hiring mature local workers aged 40 and above, which is double the rate for younger hires, as part of broader efforts like the SkillsFuture Mid-Career Support Package to help them transition careers.
The government is monitoring the JGI's take-up and effectiveness, with a $1 billion budget set aside, but has not set specific numerical targets for mature worker hires, as success is viewed holistically alongside overall employment recovery.
While some parliamentary members suggested increasing the support threshold to 75% to better incentivize hiring mature workers, the Minister emphasized that the JGI is one tool in a wider suite of measures, and adjustments will be considered based on data and economic conditions.

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5 Jan 2021

Payouts under Self-Employed Person Income Relief Scheme Subjected to Clawback

The Ministry of Manpower and NTUC confirmed that SIRS payouts are subject to financial audit, with external auditors appointed and internal audits conducted, revealing that about 0.5% of successful applicants (approximately 1,000 out of 200,000) made erroneous declarations, leading to requests for refunds.
There were known scams where ineligible individuals were encouraged to apply, and such cases have been referred to the Police for investigation, though the exact number of cases referred was not provided in the debate.
The Minister clarified that eligibility was initially assessed based on declarations to ensure timely aid, and while most applicants were valid, some were mistaken about their circumstances; the government is reaching out individually to arrange refunds, and while instalment options were not explicitly mentioned, the approach is to handle cases fairly.

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5 Jan 2021

Rejections of COVID-19 Support Grant Applications Due To Inability to Produce Retrenchment Letters

The Minister confirmed that around 4,000 applications for the COVID-19 Support Grant were rejected due to unverifiable employment details, though no specific count was kept for those rejected solely for lacking retrenchment letters.
The Ministry explained that it uses alternative verification methods like CPF records or contacting employers, and allows appeals where applicants can submit correspondence showing pressure to resign, with a 97% appeal success rate.
Carrie Tan highlighted the plight of low-wage workers who avoid formal retrenchment letters to preserve employer goodwill, urging frontline Social Service Offices to have more discretion to approve cases without requiring a full appeal.
The Minister emphasized accountability for public funds but assured that the SSO’s intent is to help, thoroughly reviewing all evidence, and that the new COVID-19 Recovery Grant will continue similar support with flexibility for document challenges.

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5 Jan 2021

Maintaining Singapore's Energy Supply Reliability

Members of Parliament asked multiple questions about Singapore’s current renewable energy share, plans to import electricity from regional countries, potential participation in projects like Sun Cable, and targets for future energy mixes, expressing concerns about energy security, diversification risks, and tariff impacts.
The Second Minister for Trade and Industry outlined Singapore’s “four switches” strategy: natural gas (95% of current electricity), solar energy (targeting 2 GW by 2030), regional power grids (starting with imports from Malaysia and Laos), and emerging low-carbon technologies like hydrogen, with a net-zero emissions goal by mid-century.
The government emphasized diversifying energy sources to enhance security, welcomed regional imports and projects like Sun Cable subject to reliability and market stability, and indicated future targets and policies would be set as technologies evolve, while addressing concerns about concentration risks and carbon tax impacts.

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4 Jan 2021

Waiver of Foreign Domestic Worker Levies Paid by Employers Due to COVID-19-related Travel Restrictions

Assoc Prof Jamus Jerome Lim asked if the government would waive levies for employers who could not receive their foreign domestic workers (FDWs) or whose FDWs requested early repatriation due to COVID-19 travel restrictions.
Mrs Josephine Teo explained that employers do not pay monthly levies for new FDWs unable to enter Singapore due to travel restrictions and can request levy waivers for FDWs on home leave unable to re-enter.
For FDWs who wish to be repatriated, employers must secure flights before cancelling work permits, after which levy obligations cease; extensions for Special Passes are available if flights are cancelled.
Levies are not payable for FDWs holding Special Passes, and flights to most source countries remain available despite reduced frequency.

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4 Jan 2021

Plans to Re-evaluate Motorcycle COE Regime to Address High COE Prices

Sitoh Yih Pin raised concerns about high motorcycle COE prices affecting livelihoods and questioned the low bid deposit of S$200, which might encourage speculation.
Ong Ye Kung explained that COE prices are driven by supply and demand, with supply constrained by a 0% growth rate since 2018 and adjustments made to ease COVID-19 disruptions.
He noted that recent COE prices have remained stable and that the low bid deposit helps keep costs affordable for lower-income users, while higher deposits could increase buyer prices.
Ong also highlighted that most temporary COEs issued in July 2020 were used for genuine registrations, indicating limited speculative activity in the motorcycle COE market.

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