Economy & business — Topics

4 May 2020

Better Support for Essential Service Workers Living Outside Dormitories During COVID-19 Outbreak

Denise Phua asked how essential service workers living outside dormitories, like town council cleaners, could be better supported by the government and residents during the COVID-19 outbreak.
Lawrence Wong outlined government support measures such as tax rebates, foreign worker levy waivers, and the Jobs Support Scheme to stabilize businesses and protect workers’ livelihoods.
Employers are legally required to implement safe distancing and provide protective equipment, with tripartite advisories ensuring fair remuneration and sector sustainability.
A reduction in essential workers during the circuit breaker may degrade services, and public understanding is sought to support these efforts.
The government thanked essential service workers and called for public support for their critical contributions during the pandemic.

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4 May 2020

Anticipated and Actual Impact of Circuit Breaker on Economy, Possible Trigger for Another Circuit Breaker and Singapore's Preparedness

The Minister for Trade and Industry explained that the circuit breaker measures significantly disrupted the economy, with initially 80,000 entities and 21% of the workforce operating onsite, later reduced to 45,000 entities and 17% of the workforce, emphasizing the trade-off between public health and economic impact.
He noted that the extent of disruption was anticipated, but necessary to save lives, and stressed that a future circuit breaker could be triggered if virus transmission is not curbed, making it essential for businesses and workers to strictly comply with measures to avoid further restrictions.
Singapore's preparedness for another circuit breaker depends on collective effort from businesses, workers, and the government to keep cases low, with essential firms minimizing onsite workers and implementing safe distancing, as effective compliance can prevent the need for further lockdowns.

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4 May 2020

Interest Rates for Loans Offered to SMEs under Government Risk Sharing Schemes vis-à-vis Commercial Rates

The Ministry highlighted that government-backed loan schemes such as the Temporary Bridging Loan Programme and Enterprise Financing Scheme provided SMEs with interest rates ranging from 2% to 4.5% per annum, significantly lower than the 6% or more typically charged on commercial unsecured working capital loans.
A new MAS SGD Facility was launched to provide banks with funding at 0.1% per annum for two years, which is expected to further reduce interest rates for SMEs to around 2% to 3% for most borrowers.
The Ministry noted that participating financial institutions have committed to passing on these lower rates and that the government will continue monitoring the situation to ensure SMEs' access to financing during the crisis.
The Minister did not directly address the proposal to require banks to set interest rates significantly below commercial rates for high government risk-sharing loans, but emphasized the existing measures and expected rate reductions.

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4 May 2020

Annual Revenue Generated by Private Security Sector and Value-add Per Worker for 2015 to 2018 and Total Industry Revenue of Security Technology Firms for 2018 and 2019

Between 2015 and 2018, the private security industry's annual revenue averaged $2.2 billion.
The average nominal value-added per worker in the private security sector was $38,300 per year from 2015 to 2018.
The total revenue of the security technology industry was $651 million in 2018.
Data for 2019 and part of 2019 for the security technology industry were not provided in the response.

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4 May 2020

Breakdown and Rationale of Funds Allocated for Suicide Prevention Services on Annual Basis

Ms Anthea Ong inquired about the annual funding allocation, breakdown between government-run services and community partners like Samaritans of Singapore (SOS), and the rationale for current funding levels for suicide prevention services.
Minister Gan Kim Yong explained that Singapore uses a multi-prong approach to suicide prevention, with funds allocated for overall mental health rather than specifically for suicide prevention, citing FY18 mental health expenditure of approximately $310 million.
The National Council of Social Service provided $8.7 million for mental health support services and $5.7 million for counselling programmes in FY18, with additional initiatives like the Belle Helpbot to consolidate access to helplines and mental health resources.
The government continues to collaborate with public hospitals, schools, social service agencies, and family service centres to ensure holistic and timely support for mental healthcare needs.

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4 May 2020

Quantum of Wage Subsidies for Service Industries/Companies of Hotels Deriving 100% of Business from Hotels

Gan Thiam Poh asked whether service industries and companies that derive 100% of their business from hotels can receive the same wage subsidy quantum as hotels.
The Ministry of Finance explained that the Jobs Support Scheme provides at least 25% wage support, with higher rates of up to 75% for sectors most affected by COVID-19, such as tourism and aviation.
Firms that are significantly impacted but not automatically eligible can appeal for higher support through IRAS, with each case assessed on its merits.
The government encourages businesses to adapt and diversify their strategies in response to the changing economic landscape.

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4 May 2020

Quantum of Grants Disbursed under Seniors Mobility Fund and Re-Application for Replacement of Mobility Devices

Dr Chia Shi-Lu asked the Ministry of Health for the quantum of grants disbursed under the Seniors Mobility Fund over the past three years and whether seniors could re-apply for replacement mobility devices after they wear out.
Minister Gan Kim Yong stated that $89 million was disbursed in Seniors Mobility Fund subsidies between 2017 and 2019 to support eligible seniors aged 60 and above with assistive devices and home healthcare items.
He noted that subsidies are primarily for the first device, but in exceptional cases where seniors need replacements without financial means, the Agency for Integrated Care can assess and approve such applications case-by-case.

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4 May 2020

Exemption of Listed Developers with Minor Foreign Shareholders from Qualifying Certificate Scheme

The Minister explained that the Qualifying Certificate (QC) scheme, under the Residential Property Act, aims to safeguard residential land for Singaporeans by preventing foreign developers from hoarding or speculating, and that the recent exemption for listed developers with minor foreign shareholders aligns the scheme with the Act’s objectives by treating those with a substantial Singapore connection as local companies.
Exemptions are granted based on strict criteria, including a Singaporean chairperson and board majority, significant Singaporean shareholding, and a track record in Singapore, with developers required to continuously meet these standards and submit annual declarations to retain their status.
The QC regime is not a market control mechanism and complements other measures like Additional Buyer’s Stamp Duty, with safeguards in place to ensure proper land management despite evolving factors such as shareholder structures and stock exchange listings.

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4 May 2020

Singapore’s Plans for Economy as Other Countries Gradually Reopen Their Economies

The government is phasing the reopening of Singapore’s economy in a measured, step-by-step manner, prioritising sectors critical to trade, supply chains, and employment while delaying high-traffic venues until safe measures are in place.
Enhanced health safeguards, including widespread testing, contact tracing technology, and stricter safe management practices for all businesses, will be enforced to protect public health as economic activities resume.
Long-term structural changes to the global economy will require companies to adapt business models and workers to reskill, with new opportunities in sectors like medical services, biotechnology, and online education.
The government will collaborate with trade associations and SMEs to help businesses meet stronger safe management requirements and prepare for gradual reopening.
Despite the challenges, confidence is expressed that Singapore can successfully restructure its economy, drawing on past experience and collective effort from the government, employers, and workers.

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4 May 2020

Extension of Rental Waivers to Sub-tenants and Licensees at Government-owned Properties

Dennis Tan Lip Fong asked whether sub-tenants and licensees of government properties, such as coffeeshop stallholders, could seek rental waivers directly if master tenants did not pass on COVID-19 measures.
Heng Swee Keat explained that the government requires master tenants to pass on at least 80% of rental waivers to eligible sub-tenants, considering costs like maintenance and cleaning.
He noted that the written undertaking is legally enforceable, and agencies can withhold waivers or take tenancy action if not complied with.
Sub-tenants who did not receive the passed-on waivers were advised to notify the landlord agency for enforcement assistance.

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4 May 2020

Support For Home-Based Businesses During COVID-19 Circuit Breaker Period

Intan Azura Mokhtar highlighted the economic impact of the circuit breaker ban on home-based businesses (HBBs), noting they lost income and incurred losses from wasted supplies, and proposed allowing contactless deliveries, health logging, and central kitchen options to support them.
Zainal Sapari expressed concern over HBBs' financial distress and sought confirmation that self-employed owners could apply for the Self-Employed Person Income Relief Scheme (SIRS), while urging negotiation between HBBs and customers for refunds.
Minister Masagos Zulkifli explained the government's rationale for the initial ban, citing public health risks, and outlined support measures including the SIRS and COVID-19 Support Grant, while announcing the resumption of food HBBs with restrictions from 12 May.

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4 May 2020

Second Update on Whole-of-Government Response to COVID-19

The government has implemented circuit breaker measures to curb community transmission, with signs of success in reducing daily cases, while also intensifying efforts to control outbreaks among migrant workers in dormitories through testing, medical support, and isolation facilities.
Singapore is rapidly expanding healthcare capacity, including hospital beds, ICU facilities, and community care centers, while ramping up testing and contact tracing capabilities to safely manage a gradual reopening post-circuit breaker.
Support measures for businesses and workers, including wage support and job initiatives, are being deployed alongside dedicated care for migrant workers, with commitments to review pandemic responses and improve standards after the crisis.

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4 May 2020

Impact of Government’s COVID-19 Financing Schemes on Businesses

The government's COVID-19 financing schemes have seen strong uptake, with over 2,500 SME loan applications amounting to S$1.9 billion and an approval rate of 90-95%, while interest rates have been reduced to 2-4.5% from over 6% prior to the schemes.
Some SMEs have expressed concern that interest rates remain higher than expected given the government's 90% risk-share and 0.1% cost of funds, with banks requiring personal guarantees that some business owners find demanding.
The minister clarified that interest rates consist of multiple components beyond just the cost of funds, including credit spread and administrative costs, and that personal guarantees serve as a prudent measure to assess business viability.
Processing times for ESG loans are reported to be between one to eight days, with most taking four to five days, and the government is monitoring the schemes for efficiency.
A member raised that some companies employing many Singaporeans were denied bridging loans due to foreign ownership issues, and the minister invited further details for review.

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4 May 2020

Number of Essential Services Companies Allowed to Operate during COVID-19 Circuit Breaker Period

The Minister reported that during the initial circuit breaker period starting 7 April 2020, about 21% of the workforce operated on-site across approximately 80,000 essential entities, with numbers dropping to 17% of the workforce across around 45,000 entities after enhanced measures on 21 April 2020, excluding telecommuting workers.
The government plans to progressively reopen the economy by prioritizing sectors vital to global supply chains, such as pharmaceuticals, biomedical, electronics, and petrochemicals, as well as key hubs like finance, trade, aviation, and ports, while maintaining safe distancing, hygiene, and cohorting measures for sustainable operations.
To address inconsistencies in how essential businesses are regulated under the tightened circuit breaker, the Minister explained that guidelines aim to minimize social interactions and aggregate essential services, with companies pared down to minimum necessary operations based on demand and efficiency, leading to varying instructions for firms in the same industry.

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4 May 2020

Proposal for Guidelines to be Given to Third Party Food Delivery Companies to Charge F&B Businesses Smaller Commissions

Ms Foo Mee Har proposed that the government consider guidelines or legislation to reduce the high commission rates (30–35%) charged by dominant food delivery platforms like GrabFood, Deliveroo, and foodpanda, arguing that such measures could foster fairer partnerships and provide temporary relief during the pandemic.
The Senior Minister of State for Trade and Industry responded that while acknowledging the burden on restaurants, capping commissions through legislation is a blunt instrument that may have unintended consequences, emphasizing instead the value of market alternatives and co-funded support schemes like the Food Delivery Booster Package to help businesses.
The Minister highlighted existing alternative options for businesses, such as setting up their own online storefronts or using third-party logistics, which can serve as checks against excessive pricing without needing regulation.
Ms Foo Mee Har reiterated her concerns, noting the platforms' market dominance and requesting government monitoring of their size and growth, as well as transparency in fee structures—similar to practices in banking—and temporary commission caps during the pandemic, citing examples from U.S. cities.
The Minister concluded that fostering competition through choice and support is more effective than imposing caps, as it encourages fair practices and allows businesses to select the most suitable delivery model based on their needs and costs.

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4 May 2020

Number of Singaporeans and PRs who Have Applied for Temporary Relief Fund for COVID-19 Situation

The Temporary Relief Fund received 537,080 applications from Singaporeans and PRs as at 30 April 2020, with 3,171 individuals having returned their payouts.
Abuse of the fund may be treated as cheating, punishable by up to 10 years' imprisonment, a fine, or both.
Returning funds by end-May 2020 would be considered a mitigating factor in assessing fraudulent claims.

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4 May 2020

Extension of $300 Government Payout to Long-Term Visit Pass Plus Holders who are Spouses of Singaporeans as COVID-19 Measures

Murali Pillai asked whether the $300 Solidarity Payment could be extended to LTVP holders who are spouses of Singaporeans, similar to the extension to LTVP+ holders.
The Deputy Prime Minister explained that while LTVP holders are not eligible for the payment, they can work and receive other household benefits, and families can seek financial assistance through Social Service Offices if needed.
The government aligns support schemes with residential status, and the payment extension to LTVP+ holders was a targeted measure for urgent support during COVID-19, with assurances that no one is denied help due to their status.

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4 May 2020

Rationale for Extending Wage Subsidies under Jobs Support Scheme as COVID-19 Measures to Company Shareholders Employed as Directors

The government extended the Jobs Support Scheme to include shareholder-directors after feedback that their wages, which form a significant part of company wage bills, were previously excluded and they did not qualify for other relief schemes.
This extension aims to help shareholder-directors, especially in smaller companies and start-ups, retain their own livelihoods while supporting their employees during the COVID-19 crisis.
To target support effectively, the wage subsidies are limited to shareholder-directors with assessable incomes not exceeding $100,000 in the Year of Assessment 2019.
The enhancement is expected to benefit around 50,000 shareholder-directors, with payouts including back-payments for those excluded from earlier support.
The policy change reflects a review to address gaps in existing support measures and ensure broader coverage for those affected by the pandemic.

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7 Apr 2020

Cost of Building Cross Island Line and Measures to Ensure Minimal Impact on Central Catchment Nature Reserve and Affordability to Vulnerable Populations

Khaw Boon Wan clarified that the government fully funds the construction of the Cross Island Line (CRL) under the rail financing framework, ensuring commuters do not bear the cost through fares.
He stated that the final cost depends on tender bids and the government does not disclose project budgets to avoid influencing ongoing or future tenders.
For the Central Catchment Nature Reserve section, tender requirements will specify tunnel alignment, depth, and environmental mitigation measures as outlined in the Environmental Monitoring and Management Plan.
The plan was developed through rigorous study and stakeholder consultation, including Nature Groups, as part of the Environmental Impact Assessment.
No specific measures were mentioned for protecting vulnerable populations from affordability issues, as the cost is not passed to commuters via fares.

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7 Apr 2020

COVID-19 (Temporary Measures) Bill

The COVID-19 (Temporary Measures) Bill aims to provide temporary relief for businesses and individuals affected by the pandemic, including preventing legal action for inability to perform contractual obligations and allowing alternative methods for holding meetings.
Key concerns raised included extending relief to security and cleaning firms, ensuring fair application for unions and other organizations, and addressing issues like property tax rebates, rental payments, and arbitration, with ministers clarifying that the Bill will be applied sympathetically but carefully balanced.
The Bill was supported by members, with the Minister committing to consider adding more categories of contracts to the relief measures and to monitor the economic situation while ensuring fairness to both tenants and landlords.

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