Economy & business — Topics

5 Jun 2020

Review of Convertible Bonds for Retail Investors

Assoc Prof Walter Theseira asked whether MAS will review the issuance, marketing, sale, or trading of convertible bonds to retail investors due to their complexity and risks.
Tharman Shanmugaratnam, for the Prime Minister, outlined MAS's approach to empowering investors and ensuring safeguards like suitability assessments, risk explanations, and advice for complex products.
Convertible bonds are currently considered non-complex and well-understood by most retail investors, but MAS is reviewing newer, non-conventional variants with features like no fixed maturity or trigger-based conversion.
MAS plans to issue a public consultation by year-end to reassess the classification of these products and other hybrid securities.

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5 Jun 2020

One-off Extension of Hospitalisation Insurance Policies to Cover Elective Surgeries Postponed due to COVID-19

Sylvia Lim asked whether the Government would advise insurers to extend hospitalisation policies to cover elective surgeries postponed due to COVID-19 circuit breaker restrictions.
The Prime Minister responded that elective surgeries were deferred from February but are now resuming for higher-need patients, with postponement not affecting MediShield Life coverage.
Integrated Shield Plans and other private health policies are typically renewed annually, so coverage is generally unaffected, but MAS expects insurers to treat customers fairly if postponement was solely due to COVID-19.
Policyholders unable to renew policies can discuss claims with insurers, appeal via MPs, or approach MAS directly if disputes arise.
The Government emphasised that MediShield Life and most private policies remain valid despite surgery deferrals, with mechanisms in place to address exceptional cases.

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5 Jun 2020

Applications Received and Approved for Self-employed Income Relief Scheme

Mr Leon Perera asked how many applications from self-employed adults below 37 were received and approved under the Self-Employed Person Income Relief Scheme (SIRS).
Minister Josephine Teo stated that over 100,000 self-employed persons aged 37 and above received SIRS support automatically through prior eligibility assessments without applying.
For those below 37, NTUC received 20,500 eligible applications and processed payments, while 9,100 incomplete applications await further assessment.

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5 Jun 2020

COVID-19 (Temporary Measures) (Amendment) Bill

The COVID-19 (Temporary Measures) (Amendment) Bill mandates landlords to provide rental waivers and pass on government assistance to eligible SME tenants, including sub-tenants and licensees, with additional waivers of two months for commercial properties and one month for industrial and office properties, targeting those with at least a 35% revenue drop.
The Bill allows SMEs to defer payment of rental arrears from February to October 2020, with repayments starting in November at a capped interest rate of 3% per annum, and includes provisions for landlords facing financial hardship to apply for reduced obligations.
The legislation addresses other issues such as relief for tenants unable to vacate premises due to COVID-19, caps on late payment interest, and support for REITs and landlords through measures like loan deferments and adjustments to financial covenants, with details to be specified in subsidiary legislation.

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5 Jun 2020

COVID-19 (Temporary Measures) (Amendment) Bill

The Minister for Law explained that the Bill intervenes in rental contracts to provide cash flow relief for SMEs, citing the unprecedented economic shock from COVID-19 and the need to safeguard businesses’ viability and the broader economy.
The amendment extends the legal circuit breaker by deferring rent obligations, offering rent waivers or deferrals for SMEs with turnover reductions of over 35%, and allowing deferred repayments over 24 months interest-free.
The rationale emphasizes fair sharing of burdens among the government, landlords, and tenants, with the government having provided substantial support, and highlights global precedents from Australia and Germany to justify the intervention.
The Bill aims to prevent SME failures that could destabilize the economy, given SMEs’ significant contribution to GDP and employment, and addresses uneven landlord concessions that risk tenant insolvency.
Eligibility targets SMEs in commercial, industrial, or office sectors with annual turnover not exceeding S$100 million and experiencing a significant revenue decline due to the pandemic.

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5 Jun 2020

Second Supplementary Supply (FY 2020) Bill

The Second Supplementary Supply (FY 2020) Bill was introduced to provide additional funds for expenditures exceeding the amounts already authorized by the Supply Act 2020 and the Revised Supplementary Supply Act 2020.
The additional sums were approved in the Second Supplementary Estimates of Expenditure for the financial year 1 April 2020 to 31 March 2021, as outlined in Paper Cmd 28 of 2020.
The Bill was moved for Second Reading by the Second Minister for Finance, Ms Indranee Rajah, and was agreed to by the House.
The Bill was subsequently read a Third Time and passed without opposition.

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5 Jun 2020

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

Nominated Members raised concerns about financial support for migrant spouses, mental health support during COVID-19, and the criteria for COVID-19 Support Grants, with ministers explaining existing schemes and flexibility for hardship cases.
The government defended the $285 million allocation for promising start-ups, highlighting co-investment via convertible bonds to sustain innovation and private-sector alignment during economic uncertainty.
Debates addressed disparities between support for employees and self-employed persons, with assurances on fair access, protection against JSS abuse, and efforts to promote workplace mental well-being and flexible work arrangements.

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5 Jun 2020

Government's Plans In Our Continuing Fight Against COVID-19 Pandemic

The Deputy Prime Minister outlined Singapore's comprehensive fiscal response, committing nearly $100 billion (about 20% of GDP) across four budgets to support jobs, businesses, and public health during the COVID-19 crisis, funded partly by drawing on past reserves.
The government emphasized prioritizing job retention and creation through measures like the Jobs Support Scheme and a new National Jobs Council, while accelerating economic transformation and digitalization to prepare for a post-pandemic world.
Singapore's approach is characterized by prudence and social solidarity, using reserves strategically to avoid debt and ensure equitable support, with a focus on emerging stronger by leveraging unity, resilience, and community efforts.

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5 Jun 2020

Government's Plans in Our Continuing Fight Against COVID-19 Pandemic

The government's $33 billion Fortitude Budget, drawing from national reserves, focuses on saving jobs, supporting businesses, and aiding vulnerable groups through wage support, rental relief, and targeted grants, with a heavy emphasis on upskilling and creating new employment opportunities for mid-career and fresh graduate workers.
Parliamentarians urged enhanced digital transformation support, particularly for SMEs and hawkers, to accelerate e-payment adoption and help them pivot online, while also calling for more flexible and targeted aid to ensure businesses are genuinely impacted before receiving support.
Several MPs raised concerns for specific groups, including working parents struggling with childcare during home-based learning, persons with disabilities needing better digital access, and the sports and fitness industry, urging the government to address these gaps to ensure an inclusive recovery.

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5 Jun 2020

Industries that Businesses and Workforce should Pivot to Post-COVID-19

The post-COVID-19 environment will reshape global supply chains, accelerate digitalisation, and shift travel and consumption patterns, requiring businesses and workers to adapt.
Key growth areas include healthcare, online retail, and financial services, driven by changed consumer preferences and Asia's rising middle class.
Manufacturing and logistics should pivot to new global supply chains, leveraging Singapore's strengths in trust, quality, and connectivity, especially in biomedical and precision engineering.
The digital economy will become more salient, with technology adoption transforming traditional industries and creating opportunities for expanded markets and tele-services.
Singapore must reinvent itself by staying open to global trade and talent, strengthening its hub status, and supporting businesses and workers through transformation and skills training.

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5 Jun 2020

Number of Business Closures and Formations since Start of Circuit Breaker

During the circuit breaker period in April 2020, about 3,800 new businesses were formed, which was significantly lower than the average, while the number of business closures was around 3,800, comparable to historical averages.
The government expects business formations to remain subdued and closures to potentially increase for the rest of 2020, with sectors like retail, food services, wholesale trade, air transport, and tourism being severely impacted, while biomedical manufacturing and information and communications are expected to grow.
To mitigate job losses, the National Jobs Council aims to support nearly 100,000 job seekers through initiatives like the SGUnited Jobs and Skills Package, which includes expanding job opportunities and providing traineeships.
Investment commitments to Singapore reached $13 billion from January to April 2020, with the government expressing confidence that a resilient and united response to the crisis will continue to attract investments and create jobs, particularly in growing sectors like agri-tech, biomedical, e-commerce, and finance.

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5 Jun 2020

Procurement Arrangements for Construction of Government Quarantine Facilities, Community Recovery Facilities and Community Care Facilities

The Government used emergency procurement to quickly construct quarantine and care facilities during the COVID-19 pandemic, waiving tenders due to time constraints and focusing on speed to avoid overwhelming the healthcare system.
Accountability measures were applied, including comparisons with market benchmarks and scrutiny of invoices, with some private companies supporting projects on a cost-recovery basis.
Going forward, if conditions stabilize, agencies will consider more open tender processes and broader vendor participation to ensure value for money and support enterprises.
Even under current emergency procurement, agencies already engage multiple vendors and compare quotes where feasible to maintain competition and quality.

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5 Jun 2020

Rules on Loans Extended by Temasek Holdings, GIC or Their Subsidiaries to Large Corporations

Leon Perera asked whether the Government prescribes rules for loans extended by Temasek Holdings, GIC, or their subsidiaries to large corporations, how many such loans go to companies they already invest in versus others, and if the President’s concurrence is required for large loans.
The Second Minister for Finance stated that the Government does not direct individual investment decisions of GIC or Temasek, including loans made in an investment context, and the President’s concurrence is not needed for such decisions, though the Government holds their Boards accountable for performance.
Perera sought transparency on how sovereign wealth funds decide which companies receive support through loans or other instruments, especially in rescue scenarios, given public funds are involved.
The Minister clarified that GIC and Temasek operate under commercial, investment-focused principles and do not provide rescue packages outside their investment mandates, with decisions made by their professionals based on investment policies.

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5 Jun 2020

Government's Procurement of Goods and Services during COVID-19 Pandemic

The Government's default procurement framework uses the GeBIZ platform for open sourcing, but allows limited tenders or direct contracting for urgent needs like public health protection during emergencies such as the COVID-19 pandemic.
Due to the pandemic's urgency, some contracts were issued directly outside GeBIZ to quickly secure essential supplies, with agencies required to evaluate quotes against market benchmarks, and all procurements remain subject to audit and compliance reviews.
The proportion of COVID-19 procurement by dollar value through GeBIZ versus other methods is not yet available as procurement is ongoing, but the Government intends to increase GeBIZ usage as time constraints ease.
The Government will publish summary information on COVID-19 procurement in due course to support market transparency, though the timeline is uncertain due to the evolving nature of the pandemic.
International practices, such as those in Australia, the EU, New Zealand, the UK, and the US, also permit direct contracting in emergencies, aligning with WTO standards and ensuring competitive prices and quality through evaluation processes.

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4 Jun 2020

Measures to Strengthen Singaporean Core in Workforce in Light of Deteriorating Economic Conditions

The government has introduced budget measures such as the Jobs Support Scheme to help businesses retain and retrain local workers, cushioning the labour market despite rising retrenchments in early 2020.
To address weakening labour market conditions, the SGUnited Jobs and Skills Package aims to create 100,000 opportunities, including over 40,000 jobs for locals in sectors like healthcare and early childhood education.
Initiatives like SGUnited Traineeships and enhanced hiring incentives under the SkillsFuture Mid-Career Support Package are designed to boost employability for graduates and mid-career jobseekers.
Foreign workforce policies remain tight, with maintained increases to minimum qualifying salaries, quota cuts for S Pass holders, and strengthened Fair Consideration Framework to ensure local workforce complementarity.
The overall objective is to strengthen the Singaporean core in the workforce, with ongoing efforts to support locals while adapting to current economic challenges.

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4 Jun 2020

Payout Conditions on Employers Regarding Leave under Jobs Support Scheme

The Ministry of Manpower confirmed that employers receiving Jobs Support Scheme payouts are not prescribed specific rules on employee leave or no-pay leave, allowing flexibility based on their financial situations.
Employers are encouraged to discuss cost-saving measures like using annual leave or no-pay leave with employees, especially when business is slow, to preserve jobs and prepare for recovery.
If employers face genuine cash flow issues, they may request no-pay leave but must allow employees to seek temporary work elsewhere to supplement their income.
The government will monitor these practices and may withdraw support or suspend work pass privileges for employers who act irresponsibly or unfairly.
Tripartite partners call for open and transparent dialogue between employers and employees to balance immediate cost pressures with long-term job preservation.

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4 Jun 2020

Plans to Reopen Economy in Stages after Circuit Breaker Ends

Singapore will exit the Circuit Breaker on 2 June 2020 and begin a phased reopening of the economy, prioritising sectors like manufacturing and office-based businesses that have lower transmission risks and are key to global supply chains.
Businesses reopening must comply with safe management measures, including enforcing safe distancing, mask-wearing, staggering hours, and allowing maximum work-from-home, with government checks and enforcement to ensure compliance.
If community transmission remains low and stable, subsequent phases will allow more consumer services and fewer restrictions, such as dining-in, though work-from-home will still be encouraged where possible.

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4 Jun 2020

Extending Relief under Part 2 of COVID-19 (Temporary Measures) Act 2020 to Cover Rental Agreements between Vehicle Hire Companies and Private Hire Car Drivers

Patrick Tay asked whether rental agreements between vehicle hire companies and private hire car drivers could be covered under Part 2 of the COVID-19 (Temporary Measures) Act 2020, which provides temporary relief from legal action for contracts affected by the pandemic.
The Minister for Law, K Shanmugam, stated that while the government studied extending relief to these rental agreements, it concluded such legislative intervention is unnecessary for now, as targeted support measures are already in place.
The government has implemented the Point-to-Point Support Package (PPSP) and Self-Employed Person Income Relief Scheme (SIRS), offering cash grants up to $1,300 per month, along with rental waivers, income opportunities, and upskilling support for drivers.
The government continues to work with tripartite partners to provide relief and will monitor the situation, making changes if needed, but does not see a need to extend the Act’s moratorium to rental agreements at this time.

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4 Jun 2020

Total Number of Scam Cases Reported and Accumulated Financial Losses since COVID-19 Pandemic Started and Preventive Action Taken to Protect Senior Citizens from Such Scams

From January to April 2020, 5,425 scam cases were reported with at least $60.4 million in losses, including 394 COVID-19 related scams that cheated at least $1.4 million.
Police have arrested 27 persons involved in scams worth over $484,000 between February and April 2020, with 16 charged in court.
Preventive actions include public education via WhatsApp advisories, community outreach through Residents’ Committees and grassroots volunteers, and the Silver Watch Group initiative to educate senior citizens on scam prevention.

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4 Jun 2020

Average Duration between Grant Application and Notification of Decision for Government’s Business Grant Schemes

Assoc Prof Walter Theseira questioned the average processing times for business grant applications and reimbursement under Enterprise Singapore (ESG), and asked what measures are in place to improve these procedures to support business innovation and cashflow.
Minister Chan Chun Sing explained that processing times depend on project complexity and completeness of submitted information, with average durations of seven weeks for the Enterprise Development Grant (EDG) and four weeks for the Productivity Solutions Grant (PSG) and Market Readiness and Assistance (MRA) schemes.
ESG aims to process applications efficiently while ensuring accountability, and has noted that disbursement of grants typically takes seven to 10 weeks, though it can be as fast as two weeks with complete documentation.
To help businesses manage cashflow, ESG offers flexible, milestone-based disbursements for projects like EDG and plans to adopt PayNow Corporate for faster payments across its grant schemes.
The minister also stated that ESG is open to further suggestions to streamline its application and claims processes to better support companies during challenging times.

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