Economy & business — Topics

2 Nov 2020

Temasek Holdings' Influence on SIA Over Its Practice of Fuel Hedging

Leon Perera asked whether the Government would use its shareholder influence over Temasek Holdings to require Singapore Airlines to review its fuel hedging practices.
Heng Swee Keat reiterated that the Government maintains an arm’s-length relationship with its investment entities and does not direct or influence their commercial or operational decisions.
This principle applies to Temasek Holdings and its portfolio companies, including Singapore Airlines.

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2 Nov 2020

Development of E-sports and Gaming Industries in Singapore

There are approximately 190 game development and publishing companies operating in Singapore, including local players like SEA Group and multinationals such as Ubisoft.
The industry is expected to require about 2,700 info-communications and media professionals over the next two years to support growth in roles such as Software Programmer, Games Producer, and Project Manager.
Initiatives like DigiPen (Singapore) and IMDA's partnerships with companies are being used to train local talent for e-sports and gaming jobs, including plans to develop 500 Data/Business Analysts, Engineers, and other professionals with SEA Group.

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2 Nov 2020

Rationale for Shareholding Threshold to Qualify SMEs for Grants

The 30% local shareholding threshold for SME grants like the Productivity Solutions Grant and Enterprise Development Grant is set to ensure support is directed toward Singapore companies undergoing transformation and improving productivity.
Enterprise Singapore may consider exceptional cases based on factors such as the company's local employment and strategic importance to the economy, even if the shareholding criterion is not fully met.
The Ministry of Trade and Industry conducts periodic reviews of the shareholding threshold to ensure it remains appropriate and aligned with economic objectives.

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2 Nov 2020

Review on Social Benefits for Lower and Middle Income Households

The Government is committed to building a caring and inclusive society, with social expenditure tripled over 15 years, and a system where lower- and middle-income households receive significantly more in transfers and subsidies than the taxes they pay.
Comprehensive support is provided across education, work, housing, retirement, healthcare, and social assistance, including heavily subsidised education, wage uplift schemes like Workfare, housing subsidies up to $160,000, and healthcare subsidies of up to 80% for hospitalisations.
During COVID-19, unprecedented relief measures were rolled out, including the Care and Support Package, targeted grants for unemployed or income-loss households, and Grocery Vouchers for lower-income households.
The Government regularly reviews social policies, such as enhancing the Silver Support Scheme and forming a Tripartite Workgroup on Lower Wage Workers, to ensure inclusivity and address evolving needs.
Overall, the system redistributes wealth so that those with less receive more, with the bottom 20% of households receiving nearly 30% of benefits while contributing less than 10% of taxes.

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2 Nov 2020

Affordable and Comprehensive Insurance Coverage for Foreign Workers

Leon Perera proposed mandating more comprehensive insurance for migrant workers and providing subsidies to help employers afford it.
The Ministry of Manpower requires employers to provide at least $15,000 annual medical coverage, with 95% of bills falling below this amount in recent years.
The Ministry is developing an insurance program to help manage large medical expenses while balancing coverage and cost without relying on tax-funded subsidies.

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2 Nov 2020

Steering Companies Towards Automation Due to Reduced Inflow of Foreign Labour

The Government provides grants, tax, and loan support, such as the Automation Support Package and Productivity Solutions Grant, to help companies adopt automation.
Companies can access advisory services like the e-Adviser for Government Assistance and SME Centres to identify automation opportunities and implement solutions effectively.
For more complex projects, government agencies will collaborate with businesses to set project milestones and timelines aligned with long-term growth goals.

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2 Nov 2020

Managing Demand in Construction Sector Caused by Project Delays

Liang Eng Hwa asked about the current state of construction demand, project delays, capacity recovery, and whether there is enough capacity to meet backlogged demand.
Desmond Lee responded that construction demand is projected to be lower this year, but recovery is expected in 2021 with support from public sector projects and government measures like the Jobs Support Scheme and foreign worker levy waivers.
The government is working with industry groups to help migrant workers stay employed and is selectively allowing more work pass holders to return, while also studying ways to facilitate more entry with public health safeguards.
Efforts are ongoing to support the sector through the pandemic and encourage transformation to reduce reliance on low-cost manpower.

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2 Nov 2020

Supply Disruptions Due to Increased COVID-19 Cases and Movement Control Order in Malaysia

Desmond Choo questioned the impact of Malaysia’s rising COVID-19 cases and Movement Control Order on Singapore’s supply of goods and services and the Ministry’s preparedness for disruptions since the pandemic began.
Chan Chun Sing explained that Malaysia’s Conditional Movement Control Order does not affect logistics, so goods and services flow between the two countries remains smooth.
Both countries have a mutual interest in maintaining supply chain functionality to ensure essential supplies and minimize business disruptions.
Singapore has strengthened resilience through strategies like stockpiling essential items, diversifying import sources, and boosting local production.
The Ministry is working closely with companies on business continuity plans and thanked everyone for their support during this period.

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2 Nov 2020

Impact of National Wages Council 2020/2021 Guidelines on CPF Contributions on Local Employees

Chua Kheng Wee Louis questioned the potential disproportionate impact on local employees if employers' CPF contributions were reduced, as suggested by the National Wages Council 2020/2021 supplementary guidelines.
Josephine Teo explained that the National Wages Council encouraged employers and employees to collaborate to minimize retrenchments rather than bluntly cutting CPF contributions across the board.
She noted that a blanket reduction in CPF contributions fails to account for the varying circumstances of individual companies and employees, including the complexities of implementing and restoring such cuts.
Teo emphasized that since CPF contributions are only for local workers, cutting them would place the cost reduction burden solely on local employees, rather than applying it to all workers in a firm.
The debate highlighted that the tripartite consensus aimed to avoid disproportionate impacts on local employees by favoring targeted measures over broad CPF reductions.

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2 Nov 2020

Personal Data Protection (Amendment) Bill

The amendments introduce mandatory data breach notifications and increase financial penalties for non-compliance to strengthen organizational accountability and consumer trust.
New provisions expand consumer autonomy, including a data portability obligation and updated rules for unsolicited commercial communications across digital platforms.
The bill clarifies lawful purposes for data use without consent, such as for business improvement and legitimate interests, to support innovation while requiring risk assessments and transparency.

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2 Nov 2020

Payment Services (Amendment) Bill

The Payment Services (Amendment) Bill was introduced to amend the Payment Services Act 2019, with the Minister for Transport presenting it on behalf of the Prime Minister.
The bill underwent its First Reading and was scheduled for a Second Reading at the next parliamentary sitting, with instructions for it to be printed.
The debate focused on legislative updates to the existing payment services framework, reflecting the government’s intent to refine and modernize financial regulations.

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2 Nov 2020

Portion of Average Bill for Surgical Procedure Paid Via MediShield Life and Via Out-of-pocket Payments

The government provides subsidies of up to 80% for surgical procedures, with MediShield Life covering 15–20% and MediSave 5–10% of an average subsidized bill, resulting in about 3% paid out-of-pocket, and most Singaporeans paying $100 or less in cash for subsidized hospitalization.
MediShield Life and MediSave limits are regularly reviewed and recently adjusted to reflect rising costs and procedure complexity, with plans to increase daily ward and treatment claim limits and raise the annual claim limit to $150,000 to better support older patients with large bills.
For outlier cases with high out-of-pocket costs, the Ministry of Health encourages sharing specific details for review and points to MediFund as a safety net for those needing additional financial assistance after subsidies, MediSave, and MediShield Life.

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2 Nov 2020

Adjustments in Medishield Life Premiums Given Difficult Climate

The debate focused on the justification for increasing MediShield Life premiums, citing factors like rising medical costs, higher claims, and benefit enhancements, with the government emphasizing the need for the scheme’s sustainability and solvency.
Ministers explained that premium increases are based on actuarial principles, with subsidies and support schemes (including COVID-19 relief) ensuring affordability, especially for seniors and lower-income households, while transparency was questioned regarding actuarial reports and cost comparisons.
MPs raised concerns about healthcare cost control, premium transparency, and support for vulnerable groups, with the government highlighting existing subsidies, additional assistance for those in hardship, and plans to communicate these measures through community outreach.

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15 Oct 2020

Yearly Loss Ratio of MediShield Life (Basic) in Last Five Years

Mr Gerald Giam Yean Song asked the Minister for Health for the yearly loss ratio of MediShield Life (Basic) over the last five years.
Minister Gan Kim Yong explained that MediShield Life is a not-for-profit, universal scheme designed to be self-sustaining, with premiums used solely for policyholder benefits and administrative costs.
The Minister stated that the Incurred Loss Ratio (ILR) is a more accurate measure than the traditional loss ratio, as it accounts for future claims, long-term treatments, and premium rebates, not just annual claims.
A table was referenced showing premiums collected, claims paid, changes in required reserves, and the ILR since the scheme's launch in November 2015.
The response emphasized that the MediShield Life Fund uses actuarial principles to ensure sustainability and moderate premium increases for older policyholders.

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15 Oct 2020

Third Supplementary Supply and Budget Adjustments (FY 2020) Bill

The Third Supplementary Supply and Budget Adjustments (FY 2020) Bill was introduced to provide additional funding beyond the sums already authorized by the Supply Act 2020, as permitted by the Constitution.
The additional provisions were approved by the House in the Third Supplementary Estimates of Expenditure for the financial year 1 April 2020 to 31 March 2021.
The Bill also sought to reduce certain appropriations for the financial year due to exigencies, balancing additional needs with fiscal prudence.
The Bill was read a second time, considered in Committee without amendments, and subsequently passed by the House.

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15 Oct 2020

Third Supplementary Estimates of Expenditure for the Financial Year 1 April 2020 to 31 March 2021

A Non-Constituency Member questioned the need for more COVID-19 quarantine facilities amid declining cases, asking for total expenditure and the portion attributable to foreign workers.
The Minister of State for National Development explained that facilities were critical for breaking the infection cycle, costing about $804 million to-date, with migrant workers forming a sizeable proportion of the expenditure.
The Member withdrew his proposed reduction of $100 for the Ministry of National Development's Head T after the Minister's clarification.
Parliament approved the sum of $4,377,469,000 under the Third Supplementary Estimates for the financial year 2020-2021.
The Committee of Supply's resolutions were reported and agreed to by Parliament.

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15 Oct 2020

Overview of Government's Strategy to Emerge Stronger from the COVID-19 Pandemic

The government has committed around $100 billion across five support packages to help businesses and workers through the pandemic, with a shift from broad-based relief to targeted support for firms in different recovery stages and a focus on job creation over retention.
Vulnerable groups including mid-career professionals, self-employed persons, and low-wage workers are receiving specific assistance through schemes like the Jobs Growth Incentive, Self-Employed Person Income Relief Scheme, and expansion of the Progressive Wage Model.
Singapore's fiscal strategy emphasizes prudence, using past reserves for crisis response without borrowing, while planning for future infrastructure needs and studying the timing of the GST increase alongside measures like the $6 billion Assurance Package to cushion its impact.
The government aims to balance Singapore's dual identity as a global city and a nation by staying open to talent and innovation while building social cohesion, investing in lifelong learning, and supporting households through transfers and vouchers.
Long-term challenges such as an ageing population, global economic volatility, and potential future crises underline the need for sustainable fiscal policies, prudent use of reserves, and continuous economic transformation to emerge stronger from the pandemic.

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15 Oct 2020

Overview of Government’s Strategy to Emerge Stronger from the COVID-19 Pandemic

The debate highlighted the urgent need to address long-term industry disruption and job displacement, with speakers proposing targeted measures such as fixed-term foreign work passes to attract specialized talent while training Singaporeans, enhanced career coaching with transparent KPIs, and proactive job anticipation programs inspired by international models.
MPs emphasized the importance of holistic support for families, including extending the Baby Support Grant to cover more parents, enhancing shared parental leave to promote gender equity, and reducing stress in the education system to encourage higher birth rates.
There was a strong focus on uplifting low-wage workers through the Progressive Wage Model, with the government defending its sectoral approach over a universal minimum wage, while also proposing enhanced support for small and medium enterprises, digital literacy for all ages, and better job matching to reduce unemployment.

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15 Oct 2020

Number of Singaporeans Provided Childcare, Preschool and After-school Care Subsidies

The Ministry provides a universal Basic Subsidy for all Singaporean children in childcare, with working mothers in households earning $12,000 or less eligible for means-tested Additional Subsidies; currently, 103,400 children are in full-day childcare, with 61,500 receiving Additional Subsidies and 9,900 receiving the highest tier.
For kindergartens run by Anchor Operators and MOE, 18,800 children are enrolled, with 12,000 receiving means-tested KiFAS subsidies and 4,300 receiving the highest tier; non-working mothers can access subsidies under special circumstances, such as job-seeking or caring for young or special-needs children.
Student care subsidies under SCFA support 6,600 Singaporean children from households with incomes up to $4,500 monthly, with the highest tier provided to 1,800 children from households earning $1,500 or less; means-testing is used to target resources effectively, and recent enhancements raised income ceilings and subsidy amounts.
The Ministry aims to lower preschool fee caps over the medium term, starting with Partner Operator pre-schools in 2021, and will monitor recent enhancements before reviewing schemes to ensure affordability, especially for lower-income families.
In response to a suggestion for incentives for larger families, the Minister emphasized that subsidies are primarily to ensure access to affordable, quality preschool education, not to encourage more children, and families who do not qualify can appeal for higher subsidies.

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15 Oct 2020

Impact on MediSave Withdrawal Limits When MediShield Life Premium Payments Rise

The Senior Minister of State clarified that MediShield Life premiums are fully payable by MediSave without withdrawal limits, while Integrated Shield Plan premiums are subject to Additional Withdrawal Limits that balance support for premiums with preserving MediSave for basic healthcare needs.
Member Gerald Giam asked if increasing MediShield Life coverage would reduce the need for and cost of Integrated Shield Plans, to which the Minister responded that increased coverage does not necessarily negate the need for private plans due to healthcare inflation and personal preference.
Giam suggested that the government consider having CPF take over standard Integrated Shield Plans for Class B1 coverage to leverage risk pooling and lower premiums, with the Minister noting the suggestion would be considered as part of ongoing reviews but emphasizing the need for MediShield Life to stabilize first.
The Minister highlighted that MediShield Life covers nine out of 10 subsidised healthcare bills, and the additional B1 coverage is a limited enhancement, so market competition and personal choice remain important in the insurance landscape.

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