Economy & business — Topics

2 Nov 2020

Disbursement of $55 Million to Arts Sector since Its Announcement in March 2020

Edwin Tong reported that of the $55 million announced in March 2020, the funds have been disbursed through several grant schemes including the ACRP Operating Grant, Capability Development Scheme for the Arts, and Digitalisation Fund, generating over 10,000 work and training opportunities and supporting nearly 1,200 digitalization projects.
The initiatives also provided rental waivers and venue hire subsidies to help arts organizations manage costs, with the ACRP Operating Grant expected to benefit over 300 organizations.
No specific timeline was provided for the disbursement of the remaining funds, but the minister outlined the overall goal to safeguard livelihoods, retain talent, and position the sector for post-COVID recovery.

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2 Nov 2020

Review of CPF Basic Retirement Sum Requirements in Light of Economic Crisis Caused by COVID-19 Pandemic

Gerald Giam questioned whether the CPF Basic Retirement Sum (BRS) requirements for those turning 55 in 2021 or later should be reviewed due to the COVID-19 economic crisis affecting CPF contributions.
Mrs Josephine Teo explained that the BRS is based on long-term expenditure needs of lower-middle retiree households and is not adjusted for short-term fluctuations, while emphasizing government support for employment and cash flow during the pandemic.
The government has provided various measures like the Jobs Support Scheme, COVID-19 Support Grant, and mortgage relief to help Singaporeans during the crisis, and will continue reviewing the BRS with long-term retirement needs in mind.

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2 Nov 2020

Amount of Late Payment Interest Collected by CPF Board to Date since Inception

Ms Hazel Poa asked for the amount of late payment interest collected by the CPF Board each year from 2009 to 2019, since inception, and in 2020 to date.
Mrs Josephine Teo explained that a 1.5% per month late payment interest is charged on employers, with collected funds used to cover employee interest losses and partial recovery costs.
The late payment interest as a percentage of CPF contributions has remained around 0.05 to 0.06% over the past decade, including the first half of 2020.
The CPF Board publishes annual reports detailing the amount of late payment interest collected each year.
The CPF Board provides case-by-case assistance to employers facing difficulties making timely contributions during economic downturns.

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2 Nov 2020

Impact of COVID-19 Pandemic on CPF Members' Investment Portfolios and Plans to Review List of Investment :Products under CPF Investment Scheme

The Ministry of Manpower explained that CPFIS allows members to invest for higher returns but emphasized that higher-risk products like hedge funds are excluded, with fees reduced to enhance returns.
COVID-19 market volatility caused a 12.96% drop in Q1 2020 for CPFIS-invested products, followed by an 11.58% rebound in Q2 2020, highlighting risks that investments may underperform depending on timing and selection.
The list of CPFIS products is reviewed regularly to ensure relevance and member protection, with safeguards in place but no guarantees of investment success.
The Ministry noted that CPFIS is suited for knowledgeable and risk-tolerant members, supported by tools like the Self-Awareness Questionnaire introduced in 2018 to assess readiness.

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2 Nov 2020

Evaluation Criteria for Joint Industry Projects Called by Maritime and Port Authority of Singapore for Resilient and Competitive Maritime Sector Post-COVID-19

The Maritime and Port Authority of Singapore and the Singapore Shipping Association called for joint industry projects to build a resilient and competitive maritime sector post-COVID-19.
Eligibility criteria for applicants include being incorporated in Singapore, having at least two industry partners, and carrying out the project in Singapore.
Evaluation criteria for projects are relevance and impact to the industry, innovation and differentiation, capability development in Singapore, local value capture, and team competency.
A committee comprising MPA officers and industry experts is evaluating qualified projects, with results to be announced in November 2020.
The open call for proposals ran from 26 May to 31 July, seeking projects that address COVID-19 challenges to enhance maritime resilience and competitiveness.

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2 Nov 2020

Factors Pushing Up Motorcycle COE Prices in Last Few Months and Cooling Measures to Ensure Affordability for Lower Income Group

Joan Pereira asked the Minister for Transport about factors driving recent motorcycle COE price increases and whether cooling measures will be considered to keep it affordable for lower-income groups.
Ong Ye Kung explained that motorcycle COE prices are influenced by supply and demand, with supply affected by a 0% vehicle growth rate since 2018 and pent-up demand from COVID-19 bidding suspensions.
The Ministry frontloaded accumulated COEs from April-June 2020 and is distributing the rest over the next nine months, noting prices have stabilized but remain higher than pre-COVID levels.
The Ministry acknowledges motorcycles are vital for lower-income Singaporeans and have lower taxes compared to cars, and will continue monitoring the situation without committing to cooling measures.

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2 Nov 2020

Take-up Rate of Households Switching Over to Open Electricity Market

Mr Chua Kheng Wee Louis asked how the Ministry intends to encourage the remaining 53% of households to switch to the Open Electricity Market for potential savings and lower price volatility, and whether any target take-up rate has been set.
Minister Chan Chun Sing reported that 48% of households had switched to the Open Electricity Market as of end-September 2020, which is higher than initial switch rates in other jurisdictions, but the Energy Market Authority has not set a target take-up rate because consumer needs vary and retail prices can fluctuate.
The Energy Market Authority focuses on raising awareness and educating consumers through tools like online price comparisons, mandatory fact sheets, and regular satisfaction surveys to help them make informed decisions about switching.

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2 Nov 2020

Singapore's Participation in the Growth of the Guangdong-Hong Kong-Macau Greater Bay Area and Shenzhen Cluster

Desmond Choo asked how Singapore and its companies can participate in the growth of the Guangdong-Hong Kong-Macau Greater Bay Area and Shenzhen cluster given China's launch of the blueprint and Shenzhen's greater autonomy.
Chan Chun Sing outlined opportunities for Singapore companies through existing government platforms and projects, including cooperation in trade, smart cities, finance, talent, innovation, and intellectual property.
Examples include the annual Singapore-Guangdong Collaboration Council meetings, the China-Singapore Guangzhou Knowledge City, and the Singapore-China (Shenzhen) Smart City Initiative to support SMEs and collaboration.
Singapore companies are encouraged to leverage these networks and platforms to capture new opportunities in the Greater Bay Area and Shenzhen.

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2 Nov 2020

Annual Revenue Generated and Value Added per Worker in Cleaning and Landscape Sectors

Mr Mohd Fahmi Aliman asked the Minister for Trade and Industry for the annual revenue and value added per worker in the cleaning and landscape sectors from 2014 to 2019.
The cleaning sector generated an average annual revenue of $2.1 billion and a value added per worker of $23,300 during that period.
The landscape sector generated an average annual revenue of $0.5 billion and a value added per worker of $24,500 in the same timeframe.
Yearly data for both sectors were provided in Tables 1 and 2.
The figures are based on nominal terms and averages over the six-year span.

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2 Nov 2020

Tax on Plastic Packaging Products in View of Negative Environmental Impact

Don Wee asked whether the Ministry would consider taxing plastic packaging due to its environmental impact.
Grace Fu responded that addressing packaging waste is a priority and Singapore is introducing an Extended Producer Responsibility (EPR) framework by 2025.
The Ministry is studying various EPR approaches, noting that some jurisdictions use taxes, while others impose take-back obligations or recycling targets to ensure better waste recovery outcomes.
Compared to taxes, the EPR approaches provide more certainty, incentivize reduction in packaging use, and improve recycling infrastructure, aligning with circular economy goals.
The EPR framework details are still being developed and will be shared when ready.

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2 Nov 2020

Amount Spent on Developing SafeEntry System, TraceTogether App and TraceTogether Tokens

Ms He Ting Ru asked the Ministry of Health about the spending on developing SafeEntry, the TraceTogether app, and TraceTogether tokens, including production and distribution, as well as any future funding allocations.
Minister Gan Kim Yong stated that $5.2 million was spent on SafeEntry, $2.4 million on the TraceTogether app, and $6.2 million on TraceTogether tokens for development and procurement as of September 2020.
The Minister noted that these digital tools have improved contact tracing, reducing the time to identify close contacts from four days to less than two days, which helps limit COVID-19 spread.
The Ministry plans to continue investing in enhancing SafeEntry and TraceTogether, including improving check-in convenience and acquiring more tokens, with future costs depending on the number of residents needing tokens.

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2 Nov 2020

Projected Costs of Primary and Secondary Healthcare Services for Next Five Years

Shawn Huang Wei Zhong asked the Minister for Health about projected costs for primary and secondary healthcare over the next five years and plans to manage rising medical expenses.
From 2012 to 2017, healthcare spending grew at 11% annually due to aging population, medical advances, and rising operational costs.
MOH is implementing strategies to shift care to the community, enhance chronic disease management through schemes like CHAS and Primary Care Networks, and promote preventive health.
Measures include expanding subsidies, controlling drug costs via ALPS, increasing MediSave withdrawal limits, and introducing fee benchmarks for healthcare providers.
The government emphasizes that staying healthy and personal responsibility are key to controlling long-term healthcare costs.

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2 Nov 2020

Allow Usage for MediSave for Certain Treatments at Selected Traditional Chinese Medicine

Miss Rachel Ong inquired whether seniors could use MediSave for approved treatments at selected Traditional Chinese Medicine (TCM) clinics and, if not, the reasons for the refusal.
Health Minister Gan Kim Yong explained that MediSave is intended for basic healthcare needs and to prevent premature depletion of funds, and while coverage for mainstream treatments has expanded, further extension requires careful consideration.
The Ministry supports TCM through funding for professional development, digitalisation, and clinic upgrades, and encourages charitable TCM clinics to provide affordable services.
The government will continue reviewing financing schemes to ensure seniors can access necessary care regardless of their ability to pay.

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2 Nov 2020

Allow More Flexibility on Use of MediSave for Dental Procedures not Involving Surgeries

Christopher de Souza proposed allowing the elderly to use MediSave for non-surgical dental procedures such as dentures and gum disease treatment.
Gan Kim Yong explained that MediSave is primarily for costly medical expenses and noted existing subsidies and flexible use for the elderly, emphasizing the need to balance flexibility with contribution rates.
He highlighted that MediSave can already be used for dental day surgeries, and other measures like CHAS and MediFund help ensure affordability for non-surgical dental care.

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2 Nov 2020

Minimum Income Level for Taxation

Leon Perera inquired about the frequency of revisions to the minimum individual income level for taxation, which has not been updated since 2001, and whether the government would consider raising it due to inflation.
Heng Swee Keat explained that the current tax system exempts the first $20,000 of chargeable income for tax residents, ensuring low- and middle-income earners pay no or low taxes, with about half of workers not paying personal income tax and 80% of those who do pay an effective rate below 4%.
The government conducts periodic reviews of the tax system to ensure it remains competitive, fiscally resilient, and progressive, but did not commit to specific changes to the minimum income level.

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2 Nov 2020

Flexibility to Refinance Private Properties arising Due to Medical Emergencies for Those Aged over 70 Years

Christopher de Souza asked the Prime Minister whether more flexibility could be introduced for individuals over 70 to refinance private properties, especially for medical emergencies or cash flow needs.
Tharman Shanmugaratnam, responding for the Prime Minister, noted existing measures like mortgage equity withdrawal loans not subject to debt servicing limits for loans under 50% of property value, with no age limits set by MAS.
He highlighted that financial institutions still conduct credit assessments and may require joint borrowers or guarantors, with MAS allowing non-owner joint borrowers to facilitate such loans.
The Government encouraged individuals to discuss relief options with financial institutions and mentioned alternative monetisation methods like renting, right-sizing, or the HDB Lease Buyback Scheme.
The Government committed to ongoing reviews to better facilitate housing asset monetisation for retirement needs.

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2 Nov 2020

Cases under Restriction on Re-issue of Option to Purchase for Same Unit to Same Purchaser

The Minister reported that since January 2019, 5,500 private housing units had Options to Purchase (OTPs) re-issued to the same purchasers, with about 70% exercised within an average of less than six months and only 1% lapsing.
From 28 September, URA has prohibited developers from agreeing upfront to re-issue OTPs or re-issuing them to the same purchaser for the same unit within 12 months of the earlier OTP’s expiry, to enhance financial prudence amid economic uncertainties.
To minimise impact, URA will allow developers to honour previous commitments made before the rule change and will grant extensions of OTP validity for purchasers needing more time, avoiding the need for re-issuance.

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2 Nov 2020

Competitive Analysis of Integrated Shield Plan Products

Tan Wu Meng inquired whether the market for Integrated Shield Plan (IP) products has been studied from a competition perspective and if the study considered existing IP insured who wish to change providers.
Gan Kim Yong stated that the IP market has seven insurers with similar offerings and that the Ministry of Health publishes comparisons to aid consumer choice, with premiums and policies set by insurers based on commercial and competitive factors.
He noted that underwriting, exclusions, or premium loading may apply to new or existing policyholders switching insurers, but MediShield Life provides universal coverage for all Singaporeans, including pre-existing conditions.

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2 Nov 2020

Favourable Interest Rates Offered for CPF Savings to Preserve Retirement Adequacy

Foo Mee Har asked whether favourable CPF interest rates will continue to be offered to preserve retirement adequacy amid record low market rates.
Josephine Teo explained that CPF interest rates are pegged to market returns but are kept above the legislated minimum of 2.5% for Ordinary, Special, MediSave, and Retirement Accounts.
The government maintains a floor rate of 4% for Special, MediSave, and Retirement Accounts and provides extra interest on the first $60,000 of combined balances.
Interest rates for Ordinary, Special, and MediSave Accounts are reviewed quarterly, while the Retirement Account rate is reviewed annually, adjusting for market conditions.
The government extended the 4% floor rate for Special, MediSave, and Retirement Accounts until December 2021 to further support retirement savings.

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2 Nov 2020

Breakdown of Consumer Electricity Market Share by Retailer

Leong Mun Wai asked for the breakdown of consumer electricity market share by retailers and SP Group, the percentage of SP Group's supply covered by vesting contracts, and the expiration schedule of those contracts.
As of end-September 2020, 48% of household and 46% of business consumers had switched to retailers, while the rest remained with SP Group on regulated tariffs.
SP Group's electricity supply is fully covered by vesting contracts, with payments passed to generating companies.
These vesting contracts will expire in June 2023, and the Energy Market Authority is studying options for the regulated tariff after expiry.

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