Economy & business — Topics

15 Oct 2020

Impact of Fall in Government Revenue on Decisions on Infrastructure Projects and Borrowings

Murali Pillai asked whether the expected fall in government revenue due to economic contraction will lead to delays or cancellations of committed major infrastructure projects, and if so, for details.
He also inquired if the government anticipates increased borrowings or bond issuances to fund these infrastructure investments.
The Second Minister for Finance requested to address the question in the Deputy Prime Minister's round-up speech, which was approved by the Speaker.

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14 Oct 2020

Requests for Deferment of Loan Payment Received by HDB since Start of Circuit Breaker Period and Proportion Approved

Ms Ng Ling Ling asked how many HDB loan deferment requests were received and approved since the start of the circuit breaker period due to rising unemployment.
Minister Desmond Lee stated that HDB provides holistic financial counselling and does not track specific deferment requests, but assisted around 2,500 households from April to August 2020.
Of those assisted, 864 households deferred loan payments and 277 reduced their payments, with the situation being monitored for future adjustments.

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14 Oct 2020

Number of Rejected Applications for COVID-19 Support Grant due to Income Criterion

Ms Ng Ling Ling asked how many COVID-19 Support Grant applications were rejected due to prior household income exceeding $10,000 or per capita income exceeding $3,100, despite a significant income drop of more than 30% and meeting other criteria.
Minister Masagos Zulkifli stated that as of 27 September 2020, about 133,000 applications were received, with over 83,000 approved, 46,000 rejected, and 4,000 pending.
Of the 46,000 rejected applicants, around 2,500 were turned down primarily because prior household income exceeded $10,000 or per capita income exceeded $3,100, though some may have also failed other eligibility criteria.
The Ministry does not have a further breakdown of the 2,500 figure, but applicants can appeal via the ComCare Call Hotline or Social Service Offices, which assess cases individually and may show flexibility in extenuating circumstances.

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14 Oct 2020

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

The government outlined a strategy to emerge stronger by reallocating development funds to finance continued COVID-19 support while maintaining fiscal prudence, with a record deficit projected for the fiscal year.
Intensified efforts were emphasized to aid job seekers, particularly mid-career professionals, through expanded job centers and workforce transition programs, as sectors face permanent changes and economic scarring.
Singapore's recovery strategy focuses on becoming a Global-Asia node for technology and innovation, requiring investments in digital infrastructure, inclusive growth, and continuous workforce upskilling to secure long-term competitiveness.

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14 Oct 2020

Third Supplementary Supply and Budget Adjustments (FY 2020) Bill

The bill authorizes additional spending from the Consolidated Fund for FY2020 (April 1, 2020 to March 31, 2021) while reducing certain appropriations due to changing needs.
It was recommended by the President and presented by the Second Minister for Finance, Ms Indranee Rajah, following standard legislative procedures.
The bill will be read a second time after the conclusion of proceedings on the Third Supplementary Estimates of Expenditure for FY2020/21.

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14 Oct 2020

Companies Who Reduce Headcount of Existing Employees While Leveraging JGI to Recruit New Workers

Mr Murali Pillai questioned the safeguards against companies reducing existing headcount while using the Jobs Growth Initiative (JGI) to hire new workers, potentially resulting in no net job growth.
The Minister for Manpower explained that JGI eligibility requires firms to increase their local workforce from August 2020 levels, and payouts stop if headcount falls below that baseline or if new hires do not meet minimum wage criteria.
To address valid employee departures like retirements, JGI payouts are reduced proportionally based on the number of existing employees who leave after the scheme starts, balancing firm flexibility with incentives to retain workers.
The Inland Revenue Authority of Singapore employs data analytics and a dedicated review team to detect and prevent abuse, with serious consequences including police investigation for any malpractices.
The overall approach aims to ensure JGI supports meaningful job growth while preventing gaming of the system, without imposing rigid conditions that could hinder firm operations.

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14 Oct 2020

Keeping Singapore's Workforce Competitive In Light of Remote Workers From the Region Willing to Work For Less Pay

The government acknowledges that remote working trends and lower-cost regional workers pose competitive challenges, emphasizing that Singapore must continue to transform its economy toward higher-value industries and productivity to stay relevant.
SkillsFuture and career conversion programs are highlighted as key initiatives to upskill Singaporeans, ensuring they remain competitive in a global talent marketplace.
Labour laws are continuously reviewed with tripartite partners to address the impacts of remote work, and the government collaborates with the Labour Movement to support job matching and skills development.
The response stresses that while remote work may shift some activities abroad, Singapore’s focus remains on creating a conducive business environment and growing new job opportunities locally.
The conversation underscores that ongoing efforts in economic transformation, workforce reskilling, and policy adaptation are essential to protect Singapore’s workforce and tax base amid global shifts.

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14 Oct 2020

Rationale to Link Workfare Special Payment to MediSave Contributions

MP Carrie Tan questioned the rationale of requiring up-to-date MediSave contributions for Workfare Special Payment eligibility, citing cashflow difficulties, and asked for data on affected workers and removal of the criterion.
Second Minister Lawrence Wong explained that CPF contributions are central to Singapore’s social security and that self-employed persons have deadlines to declare income and make MediSave contributions, with 600 having arrears over $3,000.
The Minister acknowledged challenges, noted CPF Board provides instalment plans, and said appeals would be considered for those on payment plans who miss deadlines, while highlighting other immediate support schemes.
MP Jamus Lim asked if Workfare payouts increased during COVID due to reduced demand for services, and the Minister responded that while data isn’t available, payouts likely rose and overall support for lower-wage workers has increased.

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14 Oct 2020

Pricing Policy of HDB's BTO Flats

Gan Thiam Poh questioned HDB's BTO pricing policy, including its use of average mean income over market price, differences between mature and non-mature estates, and plans to address pent-up demand from high resale prices.
The Minister explained that HDB prices BTO flats at a significant subsidy below market value, offers an Enhanced CPF Housing Grant of up to $80,000, and maintains a consistent pricing approach across estate types, keeping prices under five times median income.
He noted that only 0.3% of resale transactions this year exceeded $1 million, representing a small minority, and the government monitors the market to ensure affordability and adjusts BTO supply based on demand.

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14 Oct 2020

Basis for Latest Increase in Electricity Tariffs and Gas Prices

The increase in electricity tariffs and gas prices is primarily driven by a rebound in global fuel prices, which have risen by 46.6% in the third quarter of 2020 compared to their lows in April 2020, though current tariffs remain among the lowest since January 2018.
Household electricity and gas consumption increased by 16% and 34% respectively from April to July 2020 due to more time spent at home during the circuit breaker period, with 53% of households affected by the new tariffs while 47% are unaffected due to switching to the Open Electricity Market.
The government is actively promoting alternative energy sources like solar power, aiming to increase solar capacity five-fold by 2030, and has provided extensive financial support through rebates and credits to help households manage utility costs, especially for lower-income groups.

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6 Oct 2020

Strategy to Attract International Pharmaceutical Companies to Locate Vaccine Manufacturing Plants in Singapore

The Singapore government is actively engaging global pharmaceutical companies to establish vaccine manufacturing plants in the country by leveraging its skilled talent, R&D commitment, and global connectivity.
The strategy includes building up local SMEs by partnering them with global firms, marketing their products internationally, and facilitating R&D and technology adoption to support vaccine production.
Local companies are already contributing to the pandemic response through diagnostics, vaccine development, and immune response research, with continued efforts to maintain the innovation ecosystem for future opportunities.

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6 Oct 2020

Final Cost of Revamp of National Archives Building and Amount of Budget Overrun

The revamp of the National Archives building had an original budget of $37 million, with the restoration and construction works originally projected at $20.53 million but finalised at $22.25 million due to unanticipated structural and site issues.
Despite the $1.72 million increase in construction costs, the overall project was completed within the $37 million budget without requiring additional funding.
The National Library Board has addressed the lapses highlighted by the Auditor-General for FY2019/20 by conducting an internal review and tightening procurement and contract management processes.

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6 Oct 2020

Available COVID-19 Related Legislations Allowing Companies to Seek Recourse for Payments being Withheld

The COVID-19 (Temporary Measures) Act 2020 does not address disputes over the interpretation of contracts; such disagreements should be resolved through usual legal or alternative dispute resolution mechanisms.
The Act initially provided temporary relief by imposing a moratorium on legal proceedings for contracts breached materially due to COVID-19, helping businesses unable to fulfil obligations.
Subsequent amendments introduced a rental relief framework for SMEs and non-profits, and additional targeted relief for sectors affected by delays or breaches in construction or supply contracts.

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6 Oct 2020

Help for Individuals Facing Property Loan, Credit and Insurance Premium Payment Problems from Continued Economic Uncertainties

Financial institutions received 38,900 applications for property loan repayment deferments by end-August 2020, approving over 90% of them, which covered over 26,000 residential loans amounting to almost $20 billion.
For unsecured credit, over 8,100 conversions were approved under the Special Financial Relief Programme (SFRP), affecting more than $200 million in debt, with average individual savings of about $5,400 in interest compared to rolling over credit card debt.
Insurance premium deferment applications received 32,700 for life and health insurance (90% approved) and over 1,300 for flexible general insurance instalments (90% approved), covering more than $66 million in premiums.
MAS announced on 5 October 2020 that support measures would be extended, allowing property loan borrowers to apply for reduced instalments pegged at 60% of original payments and extending the unsecured credit conversion period to 30 June 2021.

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6 Oct 2020

Relief Measures for Individual and SME Borrowers Whose Credit Ratings Are Affected by COVID-19 Pandemic

Member Don Wee asked whether MAS can guide financial institutions not to penalize borrowers for poor 2020 performance and to have credit bureaus rescind adverse records for pandemic-affected individuals.
The Prime Minister, represented by Tharman Shanmugaratnam, stated that MAS has worked with the financial industry since March 2020 to implement relief measures like payment deferrals to help borrowers avoid missed payments and protect their credit standing.
MAS has advised financial institutions to consider relief agreements and revised loan terms when assessing credit, rather than just short-term cash flow problems, to prevent unnecessary credit downgrades.
Borrowers concerned about adverse records are encouraged to contact lenders early to use relief schemes, and those who service revised loans promptly can restore their credit standing over time without restructured loans being reported to credit bureaus.

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6 Oct 2020

Progress Made by Singapore Banks to Combat Money Laundering in Past 10 Years

Singapore banks have strengthened their anti-money laundering controls over the last decade under strict MAS supervision, with suspicious transaction reports increasing from 12,000 in 2010 to 32,000 in 2019.
A significant portion of these reports has proven effective, as 13% of 2019’s suspicious transaction reports directly initiated or supported investigations, including a case that led to the prosecution of an insider fraud involving over $1.9 million.
Singapore’s law enforcement agencies have collaborated extensively with overseas authorities, seizing millions in criminal proceeds and conducting joint operations that disrupted transnational criminal syndicates and led to multiple arrests and extraditions.

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6 Oct 2020

Consumer Protection from Rogue Hair Salons Engaging in Pressure Sales Tactics

The Minister highlighted that the Consumer Protection (Fair Trading) Act prohibits unfair pressure sales tactics and allows consumers to report issues to CASE for advice and redress.
CASE may secure Voluntary Compliance Agreements from offending salons, mandate compensation for affected consumers, and publicly list companies using aggressive tactics.
The Competition and Consumer Commission of Singapore can seek court injunctions against suppliers that persist in unfair practices.
CASE runs consumer education talks for seniors, maintains an advisory website, and collaborates with industry associations on accreditation schemes to promote ethical sales practices.
The government will continue monitoring the situation and work with CASE and CCCS to protect consumers, especially the elderly.

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6 Oct 2020

Number of Persons in Different Age Groups Who Have Received Workfare Income Supplement Payouts

Mr Gan Thiam Poh asked for the annual number of Workfare Income Supplement (WIS) recipients from 2017 to 2019, broken down by age groups (35-40, 41-50, 51-60, and above 60), and whether the WIS amount could be reviewed to increase to one-third of monthly gross income.
From 2017 to 2019, about 400,000 employees and self-employed persons received WIS annually, with specific numbers provided for age groups: around 45,000 aged 35-44, 85,000 aged 45-54, 70,000 aged 55-59, and 195,000 aged 60 and above, plus 3,000 persons with disabilities below age 35.
The Minister stated that WIS has been regularly reviewed since 2007, with qualifying income ceilings and payouts raised four times, including a maximum payout increase of up to 14% from January this year, and reviews will continue to support target groups.

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6 Oct 2020

Facilitate Renewal of Foreign Manpower for Construction Sector Post-COVID-19

Miss Cheryl Chan proposed shortening the man-year entitlement period to two years or less to help construction firms renew foreign workers amid COVID-19 disruptions.
The Ministry of Manpower explained that firms must stay within their man-year entitlements but can hire experienced workers beyond allocations via MYE-waiver, requiring at least three years of construction experience.
Recognizing the pandemic’s impact, the ministry is open to considering case-by-case renewals for workers with less than three years of experience under the MYE-waiver.

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6 Oct 2020

Abuse of Jobs Support Scheme

The Deputy Prime Minister reported that the Jobs Support Scheme has supported wages for over two million local workers across 150,000 businesses, with most employers using it as intended.
A small number of employers have attempted to abuse the scheme, such as by making non-genuine CPF contributions, prompting IRAS to identify 2,200 employers for review and temporarily withhold payouts for some.
IRAS has completed reviews for about half of the flagged cases and referred four employers to the Police for investigation, with penalties under the Penal Code including up to 10 years’ imprisonment and fines for offenders.

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