Economy & business — Topics

3 Feb 2020

Update on Drawdown of $200 Million Bicentennial Community Fund Set Up Last Year to Match Donations to Institutions of a Public Character

Murali Pillai asked for an update on the drawdown of the $200 million Bicentennial Community Fund set up to match donations to Institutions of a Public Character (IPCs).
The fund, which runs from April 2019 to March 2020, provides dollar-for-dollar matching for donations up to $400,000 per IPC and is administered by the National Volunteer & Philanthropy Centre.
About 63% of IPCs have applied, with an estimated 70% utilisation of the fund as applications are still open until March 2020, and remaining IPCs are encouraged to apply and donors to continue supporting causes.

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3 Feb 2020

Breakdown of Government Expenditure on Long-Term Care Services in FY2017 and FY2018

In FY2017, the Government’s operating expenditure on long-term care services was about $580 million, with approximately 60% allocated to residential care (nursing homes and inpatient hospices) and the remainder for home and centre-based services, including support schemes.
About 14,100 people used nursing home services and 1,300 used inpatient hospice services in FY2017, while 29,700 used home and centre-based care services.
Of these users, approximately 90% were aged 60 and above.
Detailed breakdowns for FY2018 or specific expenditure figures for day care centres and formal homecare services were not provided in the response.

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3 Feb 2020

Projected Impact on Price of Treated Water for Local Consumption after 2022

Png Eng Huat asked about the projected impact on the price of treated water for local consumption after 2022, in light of Malaysia's plan to reduce Johor's dependency on Singapore's supply.
Masagos Zulkifli B M M responded that the future price of water will depend on all relevant factors at the time and noted that Malaysia has not formally notified Singapore of any reduction in demand.
The minister stated that it is premature to answer the question due to the lack of official notification from Malaysia.

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3 Feb 2020

Financial Literacy of Adults in Singapore and Trend in Past Decade

The government reports that Singaporeans' understanding of basic financial concepts has improved over the past decade, with a growing recognition of the link between risk and return, though many still feel uninformed about investing and delay planning for their future.
Initiatives like the MoneySense program take a multi-pronged approach to raise financial literacy across different life stages, helping citizens make prudent decisions on savings, investments, insurance, and retirement while avoiding scams.
Digital finance offers benefits like greater convenience and accessibility but also exposes consumers to higher-risk products, requiring stronger financial literacy and updated regulations to manage cybersecurity and consumer protection.
The Monetary Authority of Singapore has been evolving policies for e-payments, digital investment advisory, and the upcoming digital bank licenses to promote innovation while ensuring fair, ethical, and transparent use of data and technology.

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3 Feb 2020

Plans to Reduce Greenhouse Emissions from Oil Refining Industry

The Minister outlined Singapore’s commitment under the Paris Agreement to reduce emissions intensity by 36% from 2005 levels by 2030, with the oil refining and petrochemicals sector identified as a major source of industrial emissions.
The Government has implemented a carbon tax on large emitters, starting at $5 per tCO2e from 2019 and planned to increase to $10–15 by 2030, alongside mandatory energy efficiency measures under the Energy Conservation Act since 2013.
Oil refineries in Singapore are supported to adopt sustainable practices, including the establishment of co-generation plants to improve energy efficiency, with increased government funding of up to 50% for qualifying energy-efficient technologies.
The Minister emphasized that reducing greenhouse gas emissions requires collective effort from industries and the public, including saving electricity, using public transport, and reducing waste.

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3 Feb 2020

Effect of Slowdown in China's Economic Growth on Singapore's Economy, Job Situation and Investments

Chan Chun Sing noted that while China's 6.1% growth is its lowest in 30 years, it remains higher than global averages and its slowdown is part of a maturing, consumption-led shift, with 2020 growth projected at 6.0% and some downside risks from the coronavirus.
The near-term impact on Singapore's economy and jobs is expected to be limited due to diversified trade, with China accounting for 13.4% of total trade compared to other partners like Malaysia and the US, and the government will continue to balance economic relations.
Singapore will deepen ties with China through initiatives like the China-Singapore Free Trade Agreement Upgrade and the Belt and Road Initiative, including the Chongqing Connectivity Project, while leveraging its financial hub role for sustainable BRI projects.
To diversify exposure, Singapore will expand its network of 25 Free Trade Agreements covering over 85% of global GDP, pursue new FTAs with regions like Eurasia and South America, and enhance support for companies entering overseas markets through digital economy partnerships and advisory services.

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3 Feb 2020

National Environment Agency (Amendment) Bill

The Bill amends the National Environment Agency Act to expand NEA's borrowing powers beyond current restrictions.
It allows NEA to raise loans from the Government, from other sources with Finance Minister approval, and to make financial agreements for credit facilities.
The amendment aligns NEA's borrowing flexibility with other statutory boards like PUB and HDB to optimize financing costs.
The Bill was read a second time, committed to committee, considered, reported without amendment, and passed by Parliament.

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3 Feb 2020

Geographical Indications (Amendment) Bill

The Bill introduces technical amendments to the Geographical Indications Act to clarify the registration and protection of GI variants, ensuring that multiple forms of a GI can be registered and that opposition or cancellation can target specific variants rather than the entire registration.
It replaces the post-registration Qualification of Rights process with a judicial procedure for Limitation of Scope applications to be heard by the High Court, aiming to better handle global GI disputes and provide clearer, more consistent enforcement.
The amendments seek to streamline GI registry operations, provide greater clarity for traders and producers, and support Singapore’s role as an IP hub, while encouraging local businesses to leverage GIs for product branding and market differentiation.

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3 Feb 2020

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

The Economic Expansion Incentives (Relief from Income Tax) (Amendment) Bill was introduced to amend the existing Act, with the process initiated by the Senior Minister of State for Trade and Industry on behalf of the Minister.
The bill received its First Reading and was scheduled for a Second Reading after the conclusion of the Estimates of Expenditure for FY2020/21, with the President's recommendation signified for the amendment.
The amendment aims to update the Economic Expansion Incentives framework to support continued economic growth and tax relief measures as outlined in the legislative process.

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3 Feb 2020

Amount of Grant and Subsidies Given to PAP Community Foundation for Set-up and Operation of Childcare Centres and Kindergartens

The government provides grants to pre-school operators like the PAP Community Foundation (PCF) under schemes that require fee caps and quality improvements, with funding based on the number of places and services offered.
From 2014 to 2018, the average government grant for each Singapore Citizen child enrolled in PCF Sparkletots was about $3,500 per year, compared to an average of $4,300 across all anchor operators.
The Senior Parliamentary Secretary declined to provide the total grant amount for PCF over the past five years, stating that per-child figures are more meaningful due to varying operator sizes.
A follow-up question was raised about using state-subsidised facilities for political activities like Meet-the-People sessions, but the official referred to previous discussions in Parliament for answers.

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3 Feb 2020

Collection of Carbon Tax and Release of Information for Carbon Tax Collections

Louis Ng Kok Kwang asked about the timeline for collecting carbon tax payments for 2019, the date for publishing the total collected amount, and whether a breakdown by facility would be released.
The Minister confirmed that companies must submit emissions reports by June 2020 and pay the tax by September 2020, with total collections published annually in the Budget Book, but facility-specific data cannot be disclosed due to confidentiality.
Louis Ng argued that public scrutiny of company payments could accelerate climate action, while the Minister emphasized that the carbon tax aims to provide an economy-wide price signal, not to target individual companies.
Louis Ng suggested releasing aggregated data by facility type and size to identify high-emission industries without naming companies, but the Minister noted that the small number of large emitters could make such data too revealing.
The debate centered on balancing transparency with the carbon tax's policy intent, with the government prioritizing sector-level insights over company-specific disclosure.

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6 Jan 2020

Statistics on Adoption of Absentee Payroll under Workfare Training Support Scheme

Over the past five years, an average of about 3,000 companies and 31,000 workers have benefited annually from the absentee payroll funding under the Workfare Training Support Scheme, with an average disbursement of around $6 million per year.
The top industry sectors with the most companies benefiting from the absentee payroll funding are those with a higher proportion of low-wage workers, as detailed in the tables provided.
The Minister for Manpower, Mrs Josephine Teo, responded to Mr Zainal Sapari's query by providing yearly statistics on beneficiaries and disbursements, along with a sectoral breakdown of the companies.

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6 Jan 2020

Annual Funding Provided to MediaCorp for Past Five Years

The government allocated approximately $310 million annually to MediaCorp over the past five years for Public Service Broadcasting, supporting around 3,000 hours of TV programmes yearly across multiple languages and specific radio stations.
This funding aims to develop capabilities and digital platforms to complement PSB programming, with regular reviews to ensure value for money amid changing media consumption habits and increased competition.
MediaCorp is innovating its business model and content offerings to better serve audiences, as the government acknowledges the challenges faced by public service broadcasters globally due to evolving market dynamics.

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6 Jan 2020

Regulations Governing Cash Advance Programmes Offered by Employers or Contractors

Leon Perera queried the regulations on employer or contractor cash advance programmes and whether interest rate caps are being considered.
The Minister for Law stated that cash advances between employers and employees are regulated under the Employment Act, allowing salary deductions of up to 25% per month for up to 12 months without interest.
For cash advances between businesses and contractors, these may fall under the Moneylenders Act and require licensing or exemption, with possible interest rate caps imposed by the Ministry.
The Ministry indicated it may grant licences or exemptions for such programmes and set conditions, including interest rate caps, based on the nature and terms of the schemes.

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6 Jan 2020

Update on Senoko Energy's Request for Rescue Package

Assoc Prof Daniel Goh Pei Siong asked the Minister for Trade and Industry whether the government has responded to Senoko Energy's request for a rescue package and if the energy market is in trouble.
Chan Chun Sing stated that Senoko Energy has publicly clarified it does not require a government rescue package and maintains a positive outlook on the local power industry.
The Minister explained that Singapore's electricity market faces excess supply due to cyclical factors, but the Energy Market Authority (EMA) has introduced measures like flexibility for plant retirements, LNG cost reductions, and support schemes to help generators cope.
EMA is also developing long-term initiatives such as a Forward Capacity Market to ensure reliable supply and provide steadier income for generators.
The government emphasized that while EMA supports the market's resilience and competition, it is not responsible for the commercial viability of individual companies.

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6 Jan 2020

Rationale for Imposing Resale Levy on Those Who Previously Purchased Subsidised HDB Flats and Presently Intend to Buy Executive Condominiums

The debate centers on why a resale levy is imposed on former buyers of subsidized HDB flats who now wish to purchase an Executive Condominium (EC).
The Minister explains that ECs, though built by private developers, come with eligibility and ownership restrictions similar to HDB flats, leading to lower land costs and more affordable prices compared to private condos.
Second-time EC buyers benefit from these subsidized prices, so they are subject to a resale levy to ensure a fairer distribution of housing subsidies compared to first-time buyers.
For those who sold their first subsidized flat before May 19, 1997, and did not pay a graded resale levy at the time, the levy is now applied as a premium on the purchase price of their next subsidized HDB flat or new EC unit.

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6 Jan 2020

Billing Arrangements for Customers Who Switch to New Electricity Retailers

Assoc Prof Walter Theseira raised concerns about whether the Energy Market Authority (EMA) monitors electricity retailers to ensure customers understand billing terms, complaints about payment difficulties, lack of uniform payment methods, and how to ensure seamless billing transfers.
Chan Chun Sing explained that EMA requires retailers to provide standardised Fact Sheets on billing and penalties, monitors complaints and satisfaction, and has seen high satisfaction with few payment-related complaints.
Retailers have flexibility in payment methods, with many offering traditional options like GIRO and credit cards, some using PayNow, and others partnering with SP Group for billing, allowing customers to choose what suits them best.

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6 Jan 2020

Timeline and Guidelines for Regulation of Crypto Derivatives Exchanges

Saktiandi Supaat asked if MAS will set a timeline to regulate non-approved exchanges and issue guidelines for financial institutions offering crypto derivatives to retail investors.
Tharman Shanmugaratnam responded that MAS regulates crypto derivatives only on Approved Exchanges, avoiding broader regulation to prevent misleading confidence and wider retail access.
MAS has issued circulars requiring financial institutions to provide risk warnings, limit advertisements, and collect additional margins for retail investors, though these do not cover unregulated overseas platforms.
MAS continues to warn the public about crypto risks, collaborate with media, and monitor evolving international standards through active participation in global discussions.

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6 Jan 2020

Fare Cap on Surge Pricing for Private Hire Car Operators

Mohamed Irshad proposed a fare cap on surge pricing for private hire car operators to control pricing during peak hours.
The Ministry for Transport reviewed the idea but decided against it, emphasizing fare transparency and market-based pricing instead.
The current system requires upfront fare display for bookings and preserves metered taxi options as safeguards for commuters.
Dynamic pricing is defended as necessary to match supply and demand, ensuring ride availability during peak periods.
The regulator, PTC, stated it will not impose fare caps, allowing market forces to determine pricing across diverse service offerings.

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6 Jan 2020

Impact of Recent Sharp Price Increases for Imported Meat, Vegetables and Other Food Items on Local Retail Prices

Food price inflation in Singapore has remained stable, with overall non-cooked food prices rising 1.3% year-on-year over October to November, though vegetable prices increased 2.3% partly due to weather disruptions in Malaysia.
The government mitigates price impacts by diversifying food supply sources and building local capacity where feasible to reduce reliance on any single country.
The government is working with the Consumers Association of Singapore to promote consumer awareness, including through a mobile app that helps compare prices for groceries and cooked food.

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