Economy & business — Topics

5 Oct 2020

Enhancing Singapore's Regional Trade Hub Status

The Ministry plans to maintain Singapore’s reliability as a trusted trade node by keeping ports open, facilitating essential business travel, and working with partners to reduce trade barriers such as non-tariff measures on essential goods.
Singapore will strengthen both physical and digital connectivity through enhanced air and sea port links and initiatives like digitalPORT@SG, as well as Digital Economy Agreements to enable seamless cross-border digital trade.
The focus will be on innovation, digitalisation, productivity improvements, and workforce upskilling to build core capabilities that sustain Singapore’s competitiveness as a preferred business hub.

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5 Oct 2020

Process for Determining and Reviewing Investable Products in CPF Investment Scheme

The CPF Investment Scheme allows members to invest in a limited range of products to protect retirement savings, while offering options like bonds, unit trusts, and shares.
Approved investment products are selected based on criteria such as performance benchmarks and expense ratios, with managed funds required to be in the top 25th percentile and meet cost caps.
The CPF Board continuously reviews the list of approved products to balance flexibility for diversification with safeguards for members' interests.
Members cannot invest in unapproved products through CPFIS, as the scheme is designed to manage risk given varying member knowledge and market options.
The rationale for restrictions is to prevent excessive risk to retirement funds, given that CPF offers risk-free interest and members have differing financial understanding.

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5 Oct 2020

Per-flight Environmental Tax and Retaining Pilot’s Skills Via Flight Simulators Instead of Launching "Flights to Nowhere"

Assoc Prof Jamus Jerome Lim questioned whether a per-flight environmental tax should be imposed on SIA's "flights to nowhere" and proposed that pilots retain skills via simulators instead, with salaries supplemented by a government subsidy to cover environmental costs.
Ong Ye Kung acknowledged the questions and indicated he would respond during the 6 October 2020 Parliament sitting.
The debate highlighted concerns about the environmental impact of unnecessary flights and alternative methods for maintaining pilot proficiency without physical flights.

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5 Oct 2020

Trends of Healthcare Charges Due to Greater Access to Insurance that Reduces Individual Cost-sharing Burden

Between 2017 and 2019, average inpatient bill sizes in private healthcare settings grew by about 7% annually, roughly double the 3.4% growth for unsubsidised patients in public "A" wards, while day surgery bills in the private setting grew 4.3% compared to 0.6% for public unsubsidised patients.
Government subsidies of up to 80% for Singapore Citizens and Permanent Residents in public healthcare institutions make direct charge comparisons with private providers less meaningful.
Some insurance products, like Integrated Plan riders with full coverage, have contributed to higher growth in private sector bills by reducing cost-sharing, potentially leading to over-utilisation and rising costs.
In 2018, the Ministry introduced a minimum co-payment requirement for new IP riders to preserve the co-payment principle and mitigate over-utilisation, with measures expected to take time to show effects.
Stakeholders, including patients and medical practitioners, are urged to exercise responsibility in choosing and recommending appropriate and necessary care.

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5 Oct 2020

Take-up Rate of Point-to-Point Support Package by Private Hire Car Operators

The Point-to-Point Support Package (PPSP) has disbursed over $300 million across three tranches, with three private hire car operators—Grab, Gojek, and Ryde—participating in the first tranche by contributing over $20 million in commission rebates.
These operators have since stopped matching government assistance in subsequent tranches, but the Ministry of Transport notes this is not faulted, as the package was designed as government assistance, and operators are still helping disburse Special Relief Fund payouts to drivers.
As of 30 September, the government has disbursed approximately $45 million to Grab drivers, $8 million to Gojek drivers, and about $60,000 to Ryde drivers through the Special Relief Fund.
The debate did not explicitly state reasons provided by private hire car operators who chose not to participate in the PPSP, focusing instead on the participation and disbursement details.

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5 Oct 2020

Number of Families Helped by KiFAS Grants and Proposal for Extension of the Scheme

Ms He Ting Ru asked about the number of Singaporean families eligible for and receiving Kindergarten Fee Assistance Scheme (KiFAS) over the last five years and whether the scheme would be extended to all eligible families regardless of childcare provider.
Minister Masagos Zulkifli explained that KiFAS is a means-tested subsidy for families with children in half-day kindergartens run by Anchor Operators or MOE, with eligibility based on household income, and noted that the income ceiling and subsidies were raised in 2020, increasing the number of children receiving KiFAS from an average of 9,000 to 12,000 annually.
The Minister emphasized that the government prioritizes affordability in full-day childcare centres, which serve most children, and that childcare subsidies are available for all ECDA-licensed centres, with additional means-tested subsidies and plans to lower fee caps.
It was highlighted that over 85% of Singaporean children in preschool attend either childcare centres or Anchor Operator/MOE kindergartens, most receiving subsidies, and that additional support like Baby Bonus and CDA grants help offset fees.
The government is committed to doubling preschool spending to over $2 billion annually in the coming years to improve quality, affordability, and accessibility for all children.

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5 Oct 2020

Persuading GLCs to Prioritise Singaporean Jobs In Mass Retrenchment Exercises

Sylvia Lim questioned whether the government uses its shareholder influence in Government-linked companies to prioritise Singaporean jobs during mass retrenchments.
Heng Swee Keat explained that GIC and Temasek operate independently from the government, maintaining an arm’s-length relationship and not directing commercial decisions.
The government supports jobs through measures like the Tripartite Advisory, Jobs Support Scheme, and the SGUnited Jobs and Skills Package, aiming to prevent retrenchments and support workers.
Efforts focus on responsible retrenchment, job creation, and upskilling to sustain employment beyond the COVID-19 crisis.
The approach applies across all sectors, not just Government-linked companies, and is designed for both immediate and long-term job security.

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5 Oct 2020

Adoption of Government-wide Digitalisation Initiatives

Digital adoption surged during the pandemic, with significant increases in PayNow registrations, e-invoicing network sign-ups, and SMEs using grants for technology adoption.
The government is investing in innovation, R&D, and workforce development in areas like data, AI, and 5G, while expanding online citizen services such as fully digital school registrations.
Initiatives like the SG Digital Office and various subsidy schemes are supporting vulnerable groups, including seniors, low-income families, and small businesses, to ensure inclusive digital participation.

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5 Oct 2020

Impact of Work-from-Home Trend on Demand for Commercial Rental Property

Sharael Taha asked whether the government studied the impact of work-from-home trends on commercial rental demand and what measures might soften the market impact.
Chan Chun Sing responded that the government has not commissioned a study but is monitoring vacancy rates and rentals closely.
The government plans to calibrate commercial property supply based on changing demand patterns rather than exploring specific softening measures.

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5 Oct 2020

Gap in Digital Talent Supply and Demand

Minister S Iswaran highlighted strong and growing demand for digital tech talent across Singapore’s economy, accelerated by COVID-19 digitalisation, with about 10,000 new tech jobs created annually over the past three years.
The government is addressing immediate gaps by partnering industry to create 6,800 tech jobs, traineeships, and skills opportunities through initiatives like IMDA’s TeSA and WSG’s SGUnited Jobs and Skills.
Over the next three years, local Pre-Employment Training is projected to supply around 20,000 tech graduates, supplemented by at least 6,250 from Continuing Education and Training programmes, including placing 2,500 mid-career professionals aged 40 and above.
Despite current global economic challenges, net job creation in tech roles remains positive, with nearly 10,000 tech job postings reported in mid-September 2020 on WSG’s MyCareersFuture portal.
The government remains committed to building a sustainable digital talent pipeline and urges Singaporeans to actively upskill to participate in the digital economy.

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5 Oct 2020

Expansion of Domestic Waste Recycling Industry

The Ministry acknowledges the need to expand local recycling capabilities and has acted on a 2018 study by the National Environment Agency (NEA) that found it feasible to develop domestic recycling for e-waste and plastics, aligning with the 2019 Zero Waste Masterplan.
Progress includes plans for three new e-waste facilities in the next three years to recycle over 64,000 tonnes annually, along with research collaborations and efforts to develop mechanical and chemical recycling solutions for plastics, including a feasibility study for a pilot Plastic Recovery Facility.
A cost-benefit analysis comparing exporting recyclables versus local processing has not been conducted due to lack of data on how exported waste is handled overseas, but the government is committed to strengthening local recycling capabilities to enhance resource resilience, especially given pandemic-related supply chain vulnerabilities.

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5 Oct 2020

Percentage of Singapore's Recyclable Waste Exported

Over the past five years, Singapore exported 1.44 to 1.89 million tonnes of recyclable waste annually, accounting for 34% to 41% of the total waste recycled each year, with ferrous and non-ferrous metals, paper, and cardboard comprising about 90% of exports in 2019.
Recyclable waste exports are regulated under the Basel Convention, and Singapore companies are reminded of their obligations, though the government cannot track how imported recyclables are processed overseas.
The Ministry recognizes the need to develop local recycling capabilities, including mechanical and chemical recycling for plastics and frameworks for e-waste, to reduce reliance on exports and build a circular economy.

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5 Oct 2020

Ensuring Government Agencies' Compliance with New Grants Governance Framework

The new Grants Governance Framework consolidates previously scattered guidelines, covers the entire grants lifecycle, and addresses gaps and audit findings to strengthen controls, risk management, and fraud prevention.
To ensure consistent implementation, MOF engaged stakeholders across agencies in developing the framework, communicated it widely, briefed senior management, and established regular audits for compliance.
The framework aims to simplify and standardize grants administration to make it easier for citizens and businesses, especially SMEs, to apply for different grants.

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5 Oct 2020

Streamlining ComCare and COVID-19 Relief Financial Assistance

Miss Cheryl Chan and Ms Foo Mee Har raised questions about potential reductions in ComCare assistance when receiving COVID-19 support grants, and whether ComCare clients could receive both types of aid simultaneously, with Ms Foo also asking about longer-term unemployment support.
Minister Masagos Zulkifli explained that ComCare assistance is automatically extended by six months for existing and new beneficiaries to provide stability, and that ComCare clients are ineligible for the COVID-19 Support Grant to avoid duplication, with adjustments made if they receive other schemes like SIRS.
The Minister noted that ComCare beneficiaries can still access broad-based COVID support like the Care and Support Package and Solidarity Payment, and highlighted the SGUnited Jobs and Skills Package to support jobseekers, with the CSG window extended to December 2020.

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5 Oct 2020

Allocation of COVID-19 Relief Assistance to "Zombie Companies"

Ms Foo Mee Har raised concerns that COVID-19 relief may be supporting "zombie companies," which could hinder the allocation of resources to more productive sectors.
Minister Chan Chun Sing acknowledged that some unviable businesses have temporarily survived on support measures but emphasized the measures' temporary nature and ongoing reviews.
The government categorizes companies into three types: those with growth potential, those temporarily affected but recoverable, and those needing to pivot, with tailored support for each.
For companies in need of pivoting, the government provides support alongside reskilling initiatives for workers, while recognizing that some businesses will eventually have to close.
The overall strategy aims to reallocate labor and skills to growing sectors while preserving capabilities and ensuring fiscal sustainability.

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5 Oct 2020

Support for Local Tavel Agencies and Tourism-related Businesses Amidst COVID-19 Lull

Leon Perera asked how STB supports travel agencies to expand local tours, whether hostels qualify for SingapoRediscovers vouchers, and if the 90% reduction in minimum financial requirements for travel agents would be extended beyond December 2020.
Chan Chun Sing responded that STB has been working with travel agents to promote domestic tourism, approved over 200 tour applications since July, and provided marketing support through initiatives like the Marketing Partnership Programme.
He noted that the minimum financial requirement for travel agents was reduced by 90% until end-2020 due to the pandemic, with plans to extend it if needed, and that STB is reviewing whether hostels with non-communal facilities could be included in the voucher program after safety assessments.

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5 Oct 2020

Proposal to Review Housing Criteria for Support Grants

Sharael Taha asked if the Ministry is reviewing its eligibility criteria for support grants, particularly the use of per capita income of occupants living at a particular address.
Masagos Zulkifli explained that support grants aim to help residents with insufficient savings, assets, or income, using measures like per capita income as proxies for financial need and resilience.
The Ministry regularly reviews eligibility criteria to ensure they meet objectives and target groups, with flexibility applied on a case-by-case basis.
Additional schemes like cash payouts and the Jobs Support Scheme were implemented during the COVID-19 pandemic without means testing to address unprecedented economic impacts.

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5 Oct 2020

Income Tax (Amendment) Bill

The Income Tax (Amendment) Bill was introduced to amend the Income Tax Act and related provisions in the Stamp Duties Act.
The bill was presented by the Second Minister for Finance, Mr Lawrence Wong, and recommended by the President for parliamentary consideration.
It underwent its first reading in Parliament, with the second reading scheduled for the next available sitting.

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5 Oct 2020

Insolvency, Restructuring and Dissolution (Amendment) Bill

The amendment aims to introduce temporary simplified procedures for compromises or arrangements with creditors and winding-up in response to the COVID-19 pandemic.
It grants the authority to exempt individuals from specific criteria related to insolvency practitioners' licences.
The bill was presented by the Second Minister for Law and is scheduled for a second reading in the next parliamentary sitting.

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5 Oct 2020

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

The government will provide continued support for businesses and workers through extended wage subsidies, training packages, and loan programmes to cushion the economic impact of COVID-19, with a focus on hard-hit sectors like aviation and tourism.
Singapore aims to emerge stronger by remaking itself as a Global-Asia node for technology and innovation, enhancing physical and digital connectivity, and investing in research and sustainability to drive future economic growth.
To foster inclusive growth, the government will expand skills upgrading initiatives and the Progressive Wage Model to more sectors, helping workers, especially vulnerable groups, transition to better jobs and raise their wages over time.

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