Economy & business — Topics

26 Mar 2020

Message from the President

The President has given in-principle support for a draw on past reserves to fund a substantial second COVID-19 assistance package, citing an unprecedented global crisis that necessitates swift and significant government intervention.
The decision follows careful deliberation with the Council of Presidential Advisers and a review of the government's process, with the President emphasizing the need to support businesses and workers during this severe economic downturn.
The President urges Parliament to debate the proposed measures rigorously, noting that the draw will only proceed after parliamentary approval and further presidential scrutiny, while expressing confidence in Singapore's collective resilience.

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26 Mar 2020

Supplementary Supply (FY 2020) Bill

The Supplementary Supply (FY 2020) Bill was introduced to provide additional funding for government expenditure during the 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.
The bill was read for the first time and scheduled for a second reading after the conclusion of the Supplementary Estimates of Expenditure proceedings for FY2020/21.

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26 Mar 2020

Goods and Services Tax Voucher Fund (Amendment) Bill

The Goods and Services Tax Voucher Fund is being amended to broaden its purpose beyond assisting only the less well-off, allowing it to fund the Assurance Package that cushions the impact of the upcoming GST hike for all Singaporeans during the transition period.
The amendment also expands the forms of support to include grants-in-aid, which can be used to help parents or guardians defray expenses for infants and children under their care.
Several members raised concerns, including suggestions to exempt essential items from GST, the exclusion of migrant workers from receiving GST Vouchers, and questions about whether the Fund’s focus on cash relief for low-income households would be diluted.
The Minister reiterated that the Government remains committed to enhancing the permanent GST Voucher scheme for lower and middle-income households, while prioritizing citizens for transition support and noting that migrant workers’ needs should be addressed through other means.
The Bill was passed after the debate, with the Committee of the Whole House considering and approving it without amendments.

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26 Mar 2020

Economic Expansion Incentives (Relief from Income Tax) (Amendment) Bill

The bill introduces a framework to allow the transfer of Pioneer and Development awards between companies during mergers or restructuring, treating the transferee's award as a continuation of the transferor's.
It extends the Investment Allowance scheme to corporate partnerships and includes submarine cable systems landing in Singapore to strengthen digital connectivity.
The government confirms that carbon emissions and sustainability are considered in awarding tax incentives, aligning with national climate goals while balancing economic and job creation objectives.

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25 Mar 2020

Breakdown on Number of Persons Above Age 65 Receiving CPF Transfers from Their Child in Last Three Years

The number of persons above age 65 receiving CPF transfers from their children increased to about 17,800 in 2019, with over $169 million received.
Cash top-ups were more popular than CPF transfers, and female recipients received larger amounts than male recipients.
Children earning less tended to top up more in cash compared to those earning higher incomes.
From 2021 to 2025, the government will introduce the Matched Retirement Savings Scheme to match cash top-ups up to $600 annually.
The Minister provided tables detailing the breakdown by age, gender, income, and transfer modes but did not supply all requested yearly data.

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25 Mar 2020

Breakdown by Gender and Current Employment Status of Singaporeans Eligible for Budget 2020 Matched Retirement Savings Scheme and Average and Median Balances in CPF Accounts

About 435,000 Singaporeans aged 55 to 70 are eligible for the Matched Retirement Savings Scheme (MRSS), which aims to help those who have not met the CPF Basic Retirement Sum save more for retirement.
Roughly half are active CPF contributors, with slightly more women than men; among them, women have lower average and median CPF balances ($108,000 and $90,000) compared to men ($146,000 and $133,000).
About one-third are inactive contributors, likely caregivers, with 2.5 times as many women as men; women in this group have lower average and median balances ($60,000 and $39,000) than men ($96,000 and $63,000).
Around 20% are self-employed persons (SEPs), with twice as many men as women; women SEPs have lower average and median balances ($72,000 and $48,000) compared to men ($113,000 and $88,000).

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25 Mar 2020

Impact of Plunge in Crude Oil Rates on Retail Prices at Petrol Pumps

Er Dr Lee Bee Wah questioned whether retail petrol prices reflect the recent plunge in crude oil rates and if measures are needed to ensure companies adjust prices accordingly.
The Senior Parliamentary Secretary explained that petrol prices are influenced by multiple costs and taxes, and noted that a 26-cent drop in crude oil led to a 20-cent fall in retail prices, reflecting over three-quarters pass-through, which aligns with typical market behavior.
Dr Tan Wu Meng clarified that price pass-through for increases and decreases is similar, but upward adjustments take slightly longer, while downward adjustments occur faster, countering perceptions of lagging decreases.
The government highlighted efforts to empower consumers through CASE's Fuel Kaki website, which compares effective petrol prices including discounts, to foster competitive markets and informed choices.
Er Dr Lee Bee Wah expressed concerns about limited competition among oil companies and suggested the need for regulatory intervention, while the government emphasized ongoing support for consumer empowerment and market competitiveness.

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25 Mar 2020

Alternate Long-term Plans for SMEs with Factories in China

Saktiandi Supaat inquired about the number of local SME factories in specific Chinese provinces, the need for relocation due to supply chain changes, and available assistance for relocation, to which the Senior Minister of State responded that while specific factory data is unavailable, SMEs can use financing schemes and grants for relocation or market exploration.
The government acknowledged that businesses must make their own commercial decisions on relocation but noted China's stabilizing economy and support measures, while emphasizing the importance of supply chain resilience in light of the pandemic and trade tensions.
The debate highlighted the need for SMEs to review their supply chains to reduce over-concentration in single markets and to transform operations, with the government committed to helping companies emerge stronger through productivity, technology adoption, and strategic reviews.

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25 Mar 2020

Impact of COVID-19 on Singapore International Festival of Arts 2020

The National Arts Council decided to cancel SIFA 2020 to prioritize safety amid COVID-19, planning instead for a 2021 festival and supporting local arts groups with digital initiatives like webcasts and behind-the-scenes content.
The government highlighted financial support for the arts community through the Stabilisation and Support Package and Capability Development Scheme for the Arts, encouraging digital presentations to engage audiences during the pandemic.
Suggestions for a #SGUnited Digital Arts Festival, increased local artist engagement in future SIFAs, and encouraging ticket refunds as donations via platforms like Giving.sg were acknowledged for further consideration.

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6 Mar 2020

Supplementary Supply (FY2019) Bill

The Second Minister for Finance introduced the Supplementary Supply (FY2019) Bill to authorize additional government spending for the financial year ending March 2020.
The Bill was based on Constitutional provisions and approved Supplementary Estimates for expenditures exceeding the original Supply Act 2019.
The Bill was moved for its Second and Third Readings and passed by the Parliament after unanimous agreement.

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6 Mar 2020

Supply Bill

The Second Minister for Finance introduced the Supply Bill to provide legislative approval for government expenditures from the Consolidated Fund and Development Fund for the financial year 1 April 2020 to 31 March 2021, as outlined in the Schedule and previously approved in the Main and Development Estimates.
The Bill specifies the Heads of Expenditure and sums to be incurred for each Head, empowering the Minister to issue warrants for authorized spending within the allocated amounts.
The Bill was read a second and third time, with both motions agreed to, and was subsequently passed by the House.

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6 Mar 2020

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

The debate focused on the Estimates of Expenditure for the financial year 1 April 2020 to 31 March 2021, initiated under the Committee of Supply on its 6th allotted day.
Procedural matters were addressed, with the Speaker in the Chair overseeing the consideration of the expenditure estimates.
The debate was structured around the parliamentary process for reviewing and approving government spending for the specified financial year.

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5 Mar 2020

Plans to Expand Green Bond Grant Scheme with Stricter Regulations

Louis Ng Kok Kwang asked whether there are plans to expand the Green Bond Grant Scheme with stricter regulations to ensure adherence to eligible expenses.
The scheme has evolved since its launch, including lowering the minimum issuance size and expanding its scope to include social and sustainability bonds, while requiring issuers to follow internationally accepted principles and obtain independent external reviews to prevent greenwashing.
MAS is considering a new grant scheme for green and sustainability-linked loans to support SMEs, with plans to adjust minimum loan amounts to better meet their needs.

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5 Mar 2020

Committee of Supply Reporting Progress

The Leader of the House moved to report progress and adjourn the session until the next day.
The Chairman consented to the motion, and the formal resolution was passed to report progress and seek leave to sit again.
The Leader of Supply reported that the Committee of Supply had made progress on the 2020/2021 Estimates and requested to resume the next day.
The Speaker approved the report and the adjournment.

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5 Mar 2020

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

The debate on the Estimates of Expenditure for the financial year 1 April 2020 to 31 March 2021 commenced under the Committee of Supply on its 5th allotted day, with Deputy Speaker Mr Charles Chong presiding.
The proceedings were formally initiated with the reading of the order for consideration, marking the start of the detailed review of the government's proposed expenditure for the fiscal year.
The session focused on the procedural aspects of the budget debate, with no substantive policy or expenditure allocations discussed in the initial speeches.

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5 Mar 2020

Goods and Services Tax Voucher Fund (Amendment) Bill

The Goods and Services Tax Voucher Fund (Amendment) Bill was introduced to amend the existing Act governing the GST Voucher scheme.
The bill was presented by the Second Minister for Finance, Mr Lawrence Wong, and received its first reading in Parliament.
The bill is scheduled for its second reading at the next available parliamentary sitting and will be printed for review.

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4 Mar 2020

Measures to Assist Self-Employed Tourist Excursion Bus Owners Impacted by COVID-19

Liang Eng Hwa asked if measures exist to assist self-employed tourist excursion bus owners affected by COVID-19 and if the Point-to-Point Support Package could be extended to them.
Chan Chun Sing stated that the Stabilisation and Support Package provides broad and targeted support, and self-employed tourist bus owners are eligible for the Temporary Bridging Loan Programme and Jobs Support Scheme.
The government is studying additional support for self-employed private hire bus owners who cater to tourist groups based on feedback received.

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4 Mar 2020

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

The Committee of Supply convened on the 4th Allotted Day to deliberate on the Estimates of Expenditure for the financial year 1 April 2020 to 31 March 2021.
Proceedings began with the formal reading of the order for consideration, followed by the seating of the Speaker in the Chair to preside over the debate.
The debate focused on reviewing and approving the proposed government expenditure for the specified financial period.

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4 Mar 2020

Resilience of Singapore's Economy and Supply Chain

Senior Minister of State Chee Hong Tat highlighted that the COVID-19 outbreak has affected Singapore’s tourism, transport, retail, and F&B sectors, but economic diversification across sectors, export markets, and supply sources has bolstered resilience.
The government maintains domestic manufacturing for critical items like masks and noodles, stockpiles essentials such as rice and medical supplies, and encourages companies to diversify supply chains to mitigate disruptions.
Ministers emphasized the importance of avoiding panic buying, practicing proper hygiene, and prioritizing mask usage for frontline workers to manage supply demands during the crisis.
A Member raised concerns about prolonged global shortages and the challenges of diversifying away from single-source countries like China, to which the response stressed the necessity of diversified supply chains despite global interdependencies.
Another Member suggested reviewing Singapore’s 30-30 food security plan to accelerate local production, but the government reaffirmed that while local production is important, diversifying import sources remains key to resilience.

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3 Mar 2020

Salaries of Work Permit Holders since 1990, 2000 and 2019

Minister Teo stated that the median monthly salary of work permit holders (excluding domestic workers) increased by 2.2% annually from 2005 to 2019 in nominal terms, noting pre-2005 data is not directly comparable due to inclusion of higher-skilled workers.
She explained that wages reflect labor market demand and supply and do not necessarily correlate with industry profitability, citing a decline in the Marine Shipyard sector’s net operating surplus of 3.2% annually from 2005 to 2018.
Conversely, the Construction sector saw its net operating surplus grow by 9.3% annually from 2005 to 2017, as both sectors heavily rely on work permit holders.

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