Economy & business — Topics

4 Jun 2020

Updated Budget Deficit Forecast for FY 2020/2021 after Budget and Supplementary Budget Announcements

The overall budget deficit for FY2020 is projected at $74.3 billion, which is 15.4% of GDP.
Up to $52 billion will be drawn from past reserves to fund COVID-19 response measures, including $31 billion from the Fortitude Budget and $21 billion from earlier packages.
An additional $22 billion in loan capital, expected to be repaid in the future, is part of the COVID-19 package, while the remainder is funded using current reserves and accumulated surplus from the current government term.
The government emphasized that past reserves enable Singapore to respond confidently to the crisis due to long-term fiscal prudence.

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4 Jun 2020

Extension of Wage Subsidies under Jobs Support Scheme to Shareholder-directors with Assessable Incomes not Exceeding $150,000

Lim Biow Chuan proposed extending the Jobs Support Scheme wage subsidies to shareholder-directors with assessable incomes up to $150,000.
Heng Swee Keat explained that the current $100,000 income threshold targets those needing more support and covers about 50,000 shareholder-directors.
Heng noted that shareholder-directors slightly above the threshold or facing income drops can appeal to IRAS for case-by-case consideration.
He added that all shareholder-directors already receive JSS payouts for local employee wages and benefit from other business support measures.

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4 Jun 2020

Structure of Rental Contracts for Taxis, Private Hire Cars and Limousines

Assoc Prof Walter Theseira raised concerns about the structure of taxi, private-hire car, and limousine rental contracts, including duration, fees, early termination penalties, and whether they expose drivers to excessive risk during demand downturns like COVID-19.
Khaw Boon Wan explained that the rental market offers diverse contract options tailored to different driver preferences, with varying trade-offs between flexibility and cost, and noted that some drivers are employed directly by operators.
The government has introduced support schemes such as the Special Relief Fund and Self-Employed Person Income Relief Scheme to help drivers cope with reduced income during the pandemic.
Fleet owners have also offered rental reductions and flexibility on arrears or early vehicle returns to assist drivers amid the crisis.
Both speakers emphasized the need for a balanced, competitive rental market that supports drivers’ livelihoods while maintaining long-term industry resilience.

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4 Jun 2020

Government's Plans in our Continued Fight against COVID-19 Pandemic

The Minister highlighted the government's comprehensive push towards digitalization and job creation, including enhanced TechSkills Accelerator programs, Digital Resilience Bonuses for SMEs, and digital inclusion initiatives for hawkers and seniors, emphasizing that leaving no one behind is key to emerging stronger from the pandemic.
Miss Cheryl Chan stressed the need for a whole-of-society approach, pointing out practical challenges in business reopening phases and advocating for greater industry collaboration and mindset shifts to adapt to the new normal, while supporting the Fortitude Budget.
Mr Saktiandi Supaat raised concerns about support for affected workers and small landlords, suggested exploring borrowing options to manage fiscal reserves, and emphasized the importance of digital inclusion and self-sufficiency to prevent long-term economic scarring and inequality.

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4 Jun 2020

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

The Fortitude Budget provides unprecedented fiscal support of nearly $100 billion to safeguard lives and livelihoods, drawing on past reserves to help businesses and individuals through the COVID-19 crisis.
A major focus is on jobs, with the SGUnited Jobs and Skills Package aiming to create about 100,000 opportunities through jobs, traineeships, and training to support workers, especially mid-career PMETs and fresh graduates.
The debate highlighted the need for a whole-of-society effort, including tripartite partnerships and digital transformation, to address blind spots such as the disproportionate impact on women and seniors, and to prepare for a post-pandemic economy.

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4 Jun 2020

Second Supplementary Supply (FY 2020) Bill

The Second Supplementary Supply (FY 2020) Bill was introduced to provide additional funding for Singapore’s financial year from 1 April 2020 to 31 March 2021.
The Bill was presented by the Second Minister for Finance, Ms Indranee Rajah, following the President’s recommendation.
It underwent its First Reading and was scheduled for Second Reading after the conclusion of the Second Supplementary Estimates of Expenditure proceedings.

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4 Jun 2020

Applications for Notifications for Relief under COVID-19 (Temporary Measures) Act

The Ministry reported 3,943 online Notifications for Relief under the COVID-19 (Temporary Measures) Act by 29 May 2020, with the majority related to hire-purchase agreements and non-residential property leases.
The Senior Minister of State encouraged parties to reach fair and reasonable solutions, noting the Act’s aim to assist those impacted by COVID-19, and highlighted efforts to refer unresolved cases to mediation or other agencies like ESG.
Mr Liang Eng Hwa asked about further assistance for unresolved cases and increased awareness of the relief measures, which the Ministry agreed to address through public education and supplementary notices.

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4 Jun 2020

Help for Employers, Employees and Those Looking for Jobs during COVID-19 Crisis

Multiple MPs raised concerns about job security, fair dismissal practices, salary protection, and support for both local and foreign workers during the COVID-19 crisis, including queries on CPF reductions, retrenchment benefits, and assistance for Singaporeans overseas.
The Minister for Manpower outlined existing measures such as the Jobs Support Scheme, tripartite advisories, and SkillsFuture initiatives, emphasizing fair treatment, communication between employers and employees, and targeted support for affected sectors while cautioning against permanent damage to retirement savings from CPF cuts.
Discussions highlighted the need for proactive skills upgrading, fair recruitment practices, and clear guidelines to prevent disguised retrenchments, with a focus on balancing employer flexibility and worker protections during the economic downturn.

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26 May 2020

Ascertaining Commercial Property Landlords’ Compliance with Requirement to Pass on Full Amount of Rebates to Tenants under COVID-19 Support Measures

Tenants cannot directly obtain property tax rebate information from IRAS, as it is disclosed only to property owners.
Property owners are legally required to provide tenants with the rebate amount upon request, with non-compliance constituting an offence.
Disputes over whether the full rebate has been passed on can be escalated to the Valuation Review Panel for resolution.

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26 May 2020

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

The government announced a $33 billion Fortitude Budget, the fourth in 2020, bringing total pandemic support to nearly $100 billion (about 20% of GDP), with a further draw of $31 billion from past reserves approved by the President.
The budget focuses on protecting jobs through enhancements to the Jobs Support Scheme, a new SGUnited Jobs and Skills Package to create 100,000 opportunities, and significant support for businesses on cash flow, costs, and credit, including rental relief and digital transformation grants.
Additional measures include direct aid for households like a $100 utilities credit and increased support for charities and social service agencies, alongside initiatives to boost digital inclusion for seniors and students to build social resilience.

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26 May 2020

Assistance and Counselling for Payment of Loan Instalments and Other Debt

Mr Kwek Hian Chuan Henry asked whether MAS will proactively monitor banks' housing loan rates to ensure timely and fair downward revisions for borrowers impacted by COVID-19, and whether MAS will help individuals and businesses understand credit restructuring and counselling programmes.
The Minister for Education Ong Ye Kung, responding for the Prime Minister, explained that MAS does not directly set loan rates but expects fair revisions aligned with funding costs, highlighted different loan structures, and noted that borrowers can refinance with relaxed regulatory limits, while over 90% of deferment applications have been approved and credit counselling is available.
Mr Kwek raised concerns about potential defaults after relief measures end and suggested temporary hiring to support Credit Counselling Singapore, while also urging vigilance on bank spreads and board rates; the Minister agreed on considering public service roles and pledged to look into the credit spread issue.

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26 May 2020

Regionalisation of Supply Chains and Impact on Singapore’s Trade and Logistics Sector

The Minister highlighted that the COVID-19 pandemic is accelerating existing trends toward regionalised supply chains, with near-term economic challenges but long-term opportunities for Singapore to strengthen its role as a trusted trade and logistics hub through enhanced connectivity, digital agreements, and regional integration initiatives like RCEP.
The government is supporting companies and workers through measures such as R&D for Industry 4.0 supply chains, digital platforms for SMEs to access overseas markets, and reskilling programmes to prepare for the evolving logistics landscape.
In response to concerns about shorter supply chains and port viability, the Minister assured that regional supply chain shifts can benefit Singapore’s port operations, especially with long-term investments like Tuas Mega Port, and emphasised that diversification away from China is not zero-sum but creates new opportunities for Singapore to leverage its strengths in talent, IP protection, and trusted connectivity.

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26 May 2020

Oligopolistic Behaviour of Major Oil Companies and Realistic Petrol Pump Prices in Singapore

The Ministry of Trade and Industry explained that while global crude oil prices can fall dramatically, retail petrol prices in Singapore are influenced by multiple factors including refining costs, demand shifts for different fuel products, operating expenses, taxes, and discounts, which means lower crude prices do not always lead to immediate or proportional drops at the pump.
Officials noted that Singapore’s petrol market is oligopolistic but studies found no clear evidence of collusion or anti-competitive pricing, and the Competition and Consumer Commission of Singapore continues to monitor the market, while the Fuel Kaki platform helps consumers compare effective prices after discounts and rebates.
Parliament members raised concerns about the slow passthrough of price decreases and called for greater transparency, suggesting a breakdown of cost components, but the Ministry highlighted that existing data shows adjustments are generally symmetric and that providing all cost details may involve commercial sensitivities.
Suggestions to inject more competition into the petrol market, such as allowing white pump operators to sell to the public or revising the three-quarter tank rule for cross-border fuel purchases, were acknowledged but noted to require careful consideration of environmental, safety, and land-use implications.

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26 May 2020

Help for Artiste and Arts Groups during COVID-19 Pandemic

The Senior Parliamentary Secretary outlined that artists and arts groups can access broad-based government schemes like the Enhanced Jobs Support Scheme and the COVID-19 Support Grant, while the National Arts Council maintains its funding for major companies and project grants.
A $55 million Arts and Culture Resilience Package (ACRP) is being used to support digital commissions, online performances, and training programs, with allocations tailored to the sector's evolving needs until the end of 2020.
In response to a question about buskers, it was confirmed that NAC is reaching out to them, including through online platforms like *SCAPE to enable performances and maintain audience engagement.

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5 May 2020

Proposal for Relief on Motor Vehicle Depreciation Costs due to Reduced Motor Vehicle Usage

Assoc Prof Walter Theseira proposed extending the validity of COEs, road tax, and motor vehicle licences at no charge to offset reduced vehicle usage due to COVID-19 measures.
Khaw Boon Wan noted that LTA has already implemented relief measures like extending inspection deadlines and suspending ERP charges, but argued that current vehicle licenses remain valid as vehicles are still used for essential purposes.
The government prioritizes fiscal prudence, focusing on broader support measures rather than specific vehicle depreciation relief, given the potential long-term impact of the pandemic.

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5 May 2020

Impact of Safe Distancing Measures on Demand for Public Transport

COVID-19 safe distancing measures caused a sharp drop in public transport demand, with ridership falling by 75% for buses and 84% for trains, and fare revenues decreasing by about 80% compared to pre-pandemic levels.
Public transport operators are facing significant financial stress due to preserved service levels and increased costs for cleaning, staff protection, and compliance with safe distancing measures.
Government relief measures and temporary suspensions like the ERP have provided some cushion, but the long-term financial impact on bus and rail systems remains uncertain and may require adjustments to the public transport financing model.

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5 May 2020

Estate Agents (Amendment) Bill

The Bill amends the Estate Agents Act to align Singapore’s real estate sector with international anti-money laundering standards by making customer due diligence and suspicious transaction reporting statutory duties.
It strengthens the Council for Estate Agencies’ (CEA) disciplinary powers by allowing direct censure and financial penalties for minor breaches, and raises maximum fines to $200,000 for estate agents and $100,000 for salespersons.
The Bill enhances CEA’s investigative powers, including the ability to request electronic documents and computer outputs, and clarifies that investigations can proceed even if a licence or registration is not renewed.
The amendments also improve consumer protection by enabling CEA to publish transaction records on the public register and modernise operational processes, such as electronic service of documents.
The changes are largely non-disruptive to the industry, as the new requirements are already embedded in existing practice guidelines, and aim to deter errant conduct while supporting professional development and consumer education.

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5 May 2020

Greater Flexibility for Disbursement of Government Financial Assistance Funds during COVID-19 Pandemic

The government allocated approximately $240 million for ComCare in FY2020, including an additional $60 million from the Resilience Budget to provide greater flexibility for those affected by COVID-19, with funds being used to increase immediate assistance and extend support durations.
Social Service Offices have exercised flexibility by approving a higher number of applications for ComCare Interim Assistance and providing at least six months of support for new recipients, while automatically extending assistance for existing households to reduce the need for reapplication.
The Minister noted that income eligibility criteria for ComCare are applied flexibly on a case-by-case basis, and complementary schemes like the Temporary Relief Fund and COVID-19 Support Grant are available to help lower and middle-income households; further considerations include defaulting to auto-renewal and six-month assistance periods to streamline support.

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5 May 2020

Closure of Stalls at Hawker Centres due to Drop in Business during COVID-19 Circuit Breaker Period

About 20% to 30% of cooked food stallholders in hawker centres did not operate during the Circuit Breaker due to reduced business, with support provided through rental waivers and subsidies for cleaning services.
The government has introduced initiatives like the Food Delivery Booster Package and a $500 one-off funding to help hawkers adopt food delivery, with 600 applications received and the funding extended until June 2020.
Hawkerring platforms and ground-up initiatives such as Hawkers United are being promoted to provide delivery options, with the government also working to create an information package to guide hawkers on available services.
Long-term plans include engaging food delivery companies to adapt models for hawker centres, offering skills development programmes, and encouraging public support for hawkers through patronage and delivery services.

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4 May 2020

Clarification by Minister of State for Social and Family Development

The Minister of State for Social and Family Development clarified that the Temporary Relief Fund was created to help lower- and middle-income Singapore Citizens and Permanent Residents affected by COVID-19 job or income loss in April 2020, before other support schemes began.
The initial oral statement reported 537,080 applications for the fund, with 3,171 individuals returning payouts.
A subsequent written correction updated the total applications to 594,206 and the number who returned payouts to 3,951.
The correction was made after the Minister's initial reply during Question Time on 4 May 2020.
The Temporary Relief Fund served as a temporary measure before the rollout of the COVID-19 Support Grant and Self-Employed Person Income Relief Scheme.

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