Economy & business — Topics

5 Oct 2020

Actions to Correct Lapses in Administration of Enterprise Development Grant

Mr Pritam Singh queried the number of companies that have received the Enterprise Development Grant (EDG), actions to ensure compliance with the 30% local shareholding criterion, and whether grants are clawed back when shareholding changes before project completion.
The Minister of State responded that nearly 5,000 EDG projects have been supported as of September 2020, with checks performed during approval and conditions requiring recipients to report changes, leading to withholding or clawback of grants if breaches occur.
In the specific case mentioned in the Auditor-General’s Report, no disbursement was made, the company was placed on a watchlist for stricter scrutiny, and Enterprise Singapore is implementing additional checks and exploring tools like data analytics to improve compliance.

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5 Oct 2020

Investigation into Possible Subletting of JTC Premises to 26,000 Business Entities Without JTC's Approval

Mr. Louis Chua raised concerns from the Auditor-General’s Report about 26,000 potential cases of unauthorised subletting of JTC premises, seeking updates on investigations and penalties.
The Second Minister for Trade and Industry confirmed that JTC is investigating the 26,000 entities, with 15,000 largely not involving subletting losses and 400 confirmed cases of unauthorised subletting, with investigations to complete by the first half of 2021.
Enforcement actions for confirmed cases may include financial recovery of sublet fees and legal action for repossession, with JTC strengthening its processes and using data analytics to improve detection.
JTC has increased inspections and spot checks since 2019, with the Minister noting efforts to balance enforcement with encouraging new business start-ups.

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4 Sep 2020

Clarification by Deputy Prime Minister and Minister for Finance

Deputy Prime Minister Heng Swee Keat provided data on the Jobs Support Scheme, noting that over $16 billion had been disbursed to more than 150,000 employers, supporting over two million local workers' wages.
He clarified that $10.5 billion of the JSS payouts went to SMEs, representing 73% of the local workers supported.
The correction was made to a previous statement, as the original amount for SME payouts was inaccurately stated as $15.5 billion.

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4 Sep 2020

Employment Rate and Redundancy Rate of Jobs Support Scheme Recipient Firms in March 2020 versus Currently

Employment fell by 2.7% in JSS-receiving firms between March and June 2020, while firms that declined JSS saw a 0.6% increase in employment during the same period.
The retrenchment rate in JSS-receiving firms was 3.1 per 1,000 in Q2 2020, higher than the 1.8 per 1,000 rate in firms that declined JSS payouts.
Over 150,000 employers received JSS support, with nearly 600 declining or returning payouts, indicating these firms were less severely impacted by COVID-19 and had less need to reduce their workforce.

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4 Sep 2020

Take-up Rate of SG United Traineeships Across Sectors and Need to Raise Awareness

Over 1,000 fresh graduates have taken up traineeships, primarily in growth sectors like ICT, Media, Professional Services, and Financial Services, with more placements expected as the selection process continues.
Outreach efforts are being expanded through partnerships with educational institutions and digital media to raise awareness among fresh graduates about the traineeship programme.
Traineeships do not automatically convert to permanent jobs, but companies are encouraged to hire trainees based on fit and business needs, supported by incentives like the Jobs Growth Incentive.
For trainees not retained, the experience builds industry-relevant skills and credentials, with continued government support for job searches through career matching services.

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4 Sep 2020

Firms under Fair Consideration Framework Watchlist

There are currently about 400 firms on the Fair Consideration Framework Watchlist due to high foreign PMET ratios or nationality concentration, with their Employment Pass applications affected and engagement by TAFEP to improve HR practices.
The Ministry will not name firms or withdraw government grants and tax incentives, as this could hinder local hiring efforts and is counter-productive, with most firms exiting the watchlist within a year after engagement.
For uncooperative firms, work pass privileges remain suspended, and plans include proactive engagement with more companies and collaboration with economic agencies and the HR community to strengthen the Singaporean core.

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4 Sep 2020

Unprofitable Bus Services as of July 2020

As of July 2020, all public bus services in Singapore generated fare revenues that could not cover their operating costs due to the drop in commuter numbers from COVID-19.
Prior to COVID-19, 345 out of 356 public bus services were unprofitable and required an annual government subsidy of about $1 billion.
The government provides subsidies to support these unprofitable bus services to maintain service standards and frequencies.

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4 Sep 2020

Statistics and Outcome of Applications for COVID-19 Support Grant

As of 16 August 2020, about 115,000 individuals applied for the COVID-19 Support Grant, with approximately 65,000 approved, 41,000 rejected, and 9,000 still being processed.
Rejected applications were mostly due to not meeting eligibility criteria for salary loss, job loss, no-pay leave, or not being an employee, accounting for nearly three-quarters of unsuccessful cases.
Other reasons for rejection included unverifiable employment details and failure to meet Annual Property Value and household income criteria.
About 8,000 appeals were received, with approximately 7,500 approved, as special circumstances were considered during the appeal process.

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4 Sep 2020

Cost of Living During COVID-19 and Measures to Monitor and Manage Situation

The Consumer Price Index-All Items declined by 0.2% year-on-year from January to July 2020, driven by lower costs in education, electricity, outpatient services, and petrol, though food prices increased.
The government acknowledges that cost of living remains a concern for Singaporeans affected by employment losses or wage cuts during the COVID-19 economic downturn.
Several support measures have been rolled out, including the Care and Support Package, COVID-19 Support Grant, and SG United Jobs and Skills Package.
The government continues to monitor the situation closely and is prepared to provide additional support if necessary.

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4 Sep 2020

Number of Banks Involved in Administration of Government-assisted Schemes

Don Wee asked the Minister for Trade and Industry about the number of banks involved in administering government-assisted schemes like the Temporary Bridging Loan.
Chan Chun Sing responded that Enterprise Singapore collaborates with 18 Participating Financial Institutions, including banks, finance companies, and leasing companies, for such schemes.
The full list of these institutions is available on Enterprise Singapore's website.
The response clarified that the term "banks" in the question is part of a broader group of financial institutions involved.

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4 Sep 2020

Plans to Increase Awareness Among Merchants who Adopt Cashless Payments on Payment Verification and Possible Scams

The Minister confirmed that the government has been promoting cashless payments through initiatives like the unified SGQR code and the Hawkers Go Digital programme to support merchants in adopting digital payments.
Merchants are encouraged to stay vigilant, keep devices updated, and maintain password secrecy to protect against payment scams, while payment systems have built-in verification and safeguards.
To address concerns about scams, the SG Digital Office deployed Digital Ambassadors to guide stallholders, and NETS provides tools like the NETSBiz App with real-time transaction notifications and support to help merchants verify payments.

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4 Sep 2020

Take-up and Split of Loan Capital SMEs and Large Firms, Interest Rates Paid by Banks and Expected Repayment Period for Banks

The Temporary Bridging Loan Programme supported $13.1 billion in loans to 16,349 companies as of 31 August 2020, with 99.7% being SMEs and 0.3% larger firms.
The Government's loan capital for these loans carries an interest rate of 1.9% per annum without collateral, and the repayment period for banks is tied to the loan tenure, up to five years.
Most TBLP loans are drawing capital from the MAS SGD Facility for ESG Loans, which charges 0.1% per annum for up to two years but requires collateral, and PFIs have lowered interest rates for borrowers to a range of 1.5% to 3.0% per annum.

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4 Sep 2020

Review of Personal Income Tax Reliefs vis-a-vis Dependant's Income Threshold and Child's NS Allowances Since 2010

Patrick Tay Teck Guan requested a review of the personal income tax reliefs regarding the $4,000 dependant’s income threshold and child NS allowances that have not been updated since 2010.
Heng Swee Keat explained that tax reliefs like Parent Relief, Spouse Relief, and Qualifying Child Relief are designed to support taxpayers caring for dependants who are handicapped or have no income, with the $4,000 threshold accommodating incidental income.
The government acknowledged the need to keep the tax system relevant and effective, indicating ongoing reviews of personal income tax reliefs while maintaining the current dependant income threshold.

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4 Sep 2020

Data on Retiree Landlords Dependent on Rental Incomes of Their Commercial Units and Further Grants to Cover Them Beyond Rental Relief Framework

Ng Ling Ling asked if the Ministry has data on retiree landlords dependent on rental income from small commercial units for living expenses and whether further grants beyond the one-month waiver can cover them under the Rental Relief Framework.
Heng Swee Keat explained that the Rental Relief Framework shares rental obligations between the Government, landlords, and SME tenants, with landlords facing financial hardship able to apply to halve their waiver obligations, and about 3,000 landlords (over 65% aged 62+) may qualify.
As of 30 August 2020, 455 applications were received for rental relief, and landlords with cash flow difficulties can defer mortgage payments and extend loan tenure to ease financial strain.
The Government balances the needs of landlords and tenants and will monitor the situation to make adjustments as needed.

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4 Sep 2020

Number of Adult Singaporeans Not Having a Bank Account and Reasons for Not Having One

Over 98% of adult Singapore residents have bank accounts, with most Solidarity Payment recipients using accounts, though some prefer cash.
Basic Banking Accounts (BBAs) are available from multiple banks at low or no cost, with features like ATM cards and online banking, and fees waived for vulnerable groups.
The unbanked minority may lack awareness or choose not to have accounts, while banks follow MAS expectations to offer accounts, with restrictions only for high-risk cases.
MAS is enhancing financial inclusion efforts, including collaborating with the Ministry of Education to ensure all children have bank accounts.

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4 Sep 2020

Develop Responsible Financing Policies to Address Climate Risks Posed by High Climate-Risk Sectors

Louis Ng Kok Kwang asked about policies MAS is studying to address climate risks in high-risk sectors identified in the 2018 Guidelines and how MAS will collaborate with banks to develop responsible financing policies.
Tharman Shanmugaratnam stated that MAS will issue new supervisory guidance in Q4 2020, requiring banks to implement environmentally responsible financing policies, including board oversight, sector-specific policies for high-risk sectors, and disclosure of environmental risk management.
MAS expects banks to assess exposures, mitigate risks, and work with higher-risk customers to improve sustainability, rather than outrightly disallowing services to climate-risk industries.
MAS is engaging banks on guideline implementation, collaborating with regulators on risk measurement, and promoting best practices in environmental risk management.

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4 Sep 2020

Number of Banks with Qualifying Full Banking Licences Currently Granting Loans to Local Corporations with Turnovers below $10 Million

Five out of nine Qualifying Full Banks in Singapore currently grant loans to local corporations with turnovers below $10 million.
Other Qualifying Full Banks focus on retail banking, wealth management, and services for larger corporates.
The government’s Temporary Bridging Loan Programme, with a 90% risk-share, has increased credit availability for SMEs, with over 80% of loans going to enterprises with turnovers below $10 million.

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4 Sep 2020

Local-Foreign Employment in Local Food Production Sector

The Minister reported that slightly more than half of workers in the local agri-food sector are locals as of June 2020, with most foreign workers in semi-skilled roles due to labour-intensive conventional farming methods.
The Ministry aims to achieve the "30 by 30" goal of producing 30% of nutritional needs locally by 2030 through technological transformation, which will create higher-value jobs requiring skilled workers.
Initiatives like the $63 million Agriculture Productivity Fund and the "30 by 30 Express" Grant Call support farms in adopting new technologies to boost productivity and innovation.
The Ministry collaborates with Institutes of Higher Learning to offer training programmes and internships, such as diplomas in aquaculture technology and the SGUnited Skills programme, to build a pipeline of local talent for the sector.
The overall strategy is to upskill the workforce and attract more Singaporeans into modern farming roles to ensure food security and reduce reliance on foreign labour.

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4 Sep 2020

Cost Savings at Tertiary Institutions Arising from Online Learning

Murali Pillai inquired whether tertiary institutions saved money by moving lessons online and if these savings could be passed to students as tuition fee rebates.
Lawrence Wong acknowledged some cost savings from online learning but highlighted increased expenses in IT upgrades, new tools, safe management, and enhanced cleaning.
Manpower costs remain a significant part of the institutions’ expenses, with staff working harder to adapt curricula and support students during the transition.
Despite mixed cost impacts, the Ministry of Education and institutions decided to freeze tuition fees this year due to the difficult economic situation.
Tuition fees will be reviewed annually to reflect changes in delivery costs while ensuring affordability for students.

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4 Sep 2020

Adoption of Blockchain-based Multi-currency Payments Network

Saktiandi Supaat inquired about the next steps and timeline for a live pilot of a blockchain-based multi-currency payments network following the conclusion of Project Ubin.
Tharman Shanmugaratnam, representing the Prime Minister, explained that Project Ubin, led by the Monetary Authority of Singapore, explored blockchain for efficient payment clearing and settlement, with findings and codes published openly to spur commercial applications.
He noted that over 40 institutions participated, and projects like JPM-Coin emerged from the initiative, with industry interest in developing live multi-currency payment solutions.
The government indicated that announcements on commercial roll-out plans will be made once industry endeavors materialise.
No specific timeline for a pilot launch in Singapore was provided, with the response focusing on ongoing commercial developments.

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