Economy & business — Topics

3 Sep 2019

Investment in Amaravati City Following Change in Stance of government of India

Leon Perera asked if the Singapore government would continue encouraging investment in the Amaravati city project after the Indian government changed its stance on funding.
The minister confirmed that a Singapore consortium was initially selected to develop Amaravati through a joint venture, but the new state government is reviewing the project and Indian support has been withdrawn.
The minister stated that detailed investment figures are commercially confidential and that the Singapore government has not provided any subsidies or grants for the project.

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3 Sep 2019

Foreign Domestic Workers Borrowing from Licensed Moneylenders

Mr Louis Ng asked about the time foreign domestic workers (FDWs) take before taking their first loan and the reasons for the rise in borrowing, prompting the Ministry to provide median timelines from loan records and outline supply and demand factors like targeted advertising and peer recommendations.
The Ministry highlighted that most FDWs borrow after working in Singapore for several years, with recent measures such as stricter loan caps, self-exclusion frameworks, and advertising bans aimed at reducing risky borrowing, though they acknowledge some FDWs borrow for genuine needs like family emergencies.
Mr Ng expressed concern that blocking licensed lending might push FDWs to unlicensed lenders, and the Ministry responded by sharing data showing a sharp spike in borrowing from 2017 onward, confirming that while some borrow for urgent needs, others do so for non-essential items, and they are encouraging better financial planning and support from employers and NGOs.

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3 Sep 2019

Size and Usage of Endowment Funds of Autonomous Universities in Past Five Years

The Minister for Education provided the endowment fund sizes of the six Autonomous Universities at the end of Financial Year 2017, noting that these and reserve amounts are detailed in their public financial reports, with endowments used primarily to support operating expenditures, bursaries, scholarships, student enrichment programmes, research, and professorships.
A Member sought clarification on the correlation between the size of endowment funds and the amount of bursaries and scholarships awarded, questioning whether larger reserves directly translate to more financial aid, which the Minister said requires detailed breakdowns to compare accurately.
The Minister stated there is currently no cap on the size of endowment funds for Autonomous Universities, as their accumulated amounts are not excessive compared to international institutions, and the government encourages donations that are well-utilized.
A Nominated Member raised concerns about equity, noting that wealthier universities can offer more resources to students, but the Minister highlighted that the government provides higher matching rates for newer universities to support their endowment growth.
The Minister emphasized that the government does not aim to enforce aggressive redistribution of endowment funds, as donations are voluntary and reflect donor trust in specific institutions and causes.

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3 Sep 2019

Programmes to Support Companies to Adopt More Age-friendly Work Practices

The government has supported over 1,800 companies through the WorkPro Job Redesign Grant since 2013, benefiting around 20,000 older workers, while many other companies have implemented age-friendly practices like flexible work arrangements and well-being programmes.
Training rates for older workers aged 50 to 64 have increased from 26% in 2015 to 40% in 2018, supported by schemes like the SkillsFuture Mid-Career Enhanced Subsidy offering up to 90% funding for eligible courses.
Over 90% of eligible local workers aged 62 and above who wish to continue working are offered re-employment, with similar high rates for those aged 63 to 67, and most retain the same wages during re-employment.
The Tripartite Workgroup on Older Workers recommends broader job redesign across organisations and structured career planning to help older workers stay relevant, moving beyond task-specific interventions.
The government continues to encourage companies to create age-friendly workplaces and support older workers’ skills upgrading to enable longer, more productive careers.

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3 Sep 2019

SMEs, Regional Headquarters and Workforce Averting Side Effects of US-China Trade Standoff

The Minister emphasized that Singapore's strategy to counter global uncertainties, including US-China tensions, rests on three pillars: diversifying markets, supply chains, and product mix; investing in innovation to build real capabilities rather than just capacity; and focusing on training for both workers and management teams.
He highlighted the importance of expanding free trade agreements and reducing non-tariff barriers, while also fostering regional innovation pacts and start-up ecosystems to leverage ASEAN's collective market of 600 million people.
On innovation, the Minister acknowledged the ongoing challenge of translating research into enterprise, stressing the need for environments where scientists and entrepreneurs collaborate and for continuous funding support from start-up to listing stage.
In response to supplementary questions, he confirmed ongoing efforts to secure post-Brexit trade arrangements with the UK and to enable cross-border innovation for multinational corporations, while noting that no country is ever fully satisfied with its innovation progress and must always strive to improve.

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3 Sep 2019

Tapping Past Reserves for Land Reclamation Works

Assoc Prof Walter Theseira questioned how past reserves would be used for land reclamation in climate change measures and the roles of the President and Parliament.
The Second Minister for Finance explained that land reclamation costs can be funded from past reserves, which is a conversion of assets to state land, not a drawdown, and involves annual parliamentary approval.
The Minister clarified that this approach is already in place under the Reserves Protection Framework, with the President involved in oversight.
Assoc Prof Theseira sought confirmation that reclamation costs would consistently come from past reserves without affecting current taxes, which the Minister affirmed as the current policy.

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2 Sep 2019

Operating Expenditures of Libraries in Autonomous Universities and Polytechnics in Last Three Years

Assoc Prof Walter Theseira asked the Minister for Education to provide the operating expenditures of libraries in Autonomous Universities and Polytechnics for the last three years, broken down by electronic database/journal subscription costs, physical book/journal/media acquisition costs, and staff/administration costs.
The Minister responded that library operating expenditures vary across Institutions of Higher Learning based on factors like research volume, academic disciplines, and student and faculty size.
For Polytechnics, library operating expenditures ranged from $1 million to $6 million per year, while for Autonomous Universities, they ranged from $1 million to $32 million per year, representing 1% to 4% of each institution’s total operating expenditure.
Institutions of Higher Learning share resources through inter-library loans and are exploring joint subscriptions to e-resources to enhance access for students.
The Minister provided a table detailing the breakdown of library operating expenditures for Autonomous Universities and Polytechnics over the past three years.

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2 Sep 2019

Exemption of Bankrupt Persons' Income from Creditors' Claims for Use in Insurance Premium Payments for Home Protection and CPF Insurance Schemes

Gan Thiam Poh asked whether bankrupt persons’ income can be exempt from creditors’ claims to prioritize payments for HDB Home Protection Scheme and CPF insurance premiums.
The Minister explained that after bankruptcy, monthly contributions are determined based on income, expenses, and deductibles, which can include insurance premiums.
The Official Assignee or Trustees allow a $1,100 monthly personal deductible and may permit additional amounts for insurance premiums to protect the bankrupt and family.
CPF members may also use their CPF contributions and savings to pay for these insurance premiums where allowed by CPF rules.

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2 Sep 2019

Update on Early Stage Venture Fund Initiative

The Early Stage Venture Fund (ESVF) initiative, launched in 2008, has catalyzed the formation of 10 early-stage venture capital funds and four Corporate Venture Funds, investing in over 60 Singapore-based high-tech startups.
Approximately two-thirds of the startups supported by ESVF have shown significant progress, such as crossing $250,000 in revenue, raising third-party investments, or increasing valuation by at least 20%, with examples including Aslan Pharmaceuticals and De.Mem.
Beyond ESVF, the government has deployed additional schemes like the Technology Incubation Scheme and Disruptive Incubator Scheme, collectively investing in over 400 startups and consolidating support through Startup SG to enhance mentorship, talent, and networks.
The overall Singapore startup ecosystem has grown vibrantly, with venture capital investments increasing from fewer than 70 annually a decade ago to over 350 last year.
The government remains committed to fostering an enabling environment for startups to drive innovation and enterprise in the economy.

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2 Sep 2019

Measures Taken by MAS in View of IMF's Financial Sector Assessment Programme Findings for Singapore

The IMF reaffirmed Singapore's financial sector oversight as among the best globally and found MAS's supervision of key payment systems to be in line with international standards.
In response to the IMF's recommendation, MAS is allocating additional resources to supervise payment systems and enhance its supervisory programme.
MAS is leveraging data analytics and applying appropriate standards to retail payment systems to address evolving systemic risks.
MAS will continue to monitor the payments landscape to ensure its supervisory approaches remain effective.

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2 Sep 2019

Creating Honorary Citizenship for Those Who Have Invested in Singapore and Created Quality Jobs for Singaporeans

Gan Thiam Poh proposed creating honorary citizenship for foreign investors who create quality jobs for Singaporeans, excluding benefits granted to citizens.
The Government already confers the Honorary Citizen Award, the highest national recognition for foreigners with significant contributions and a strong affinity to Singapore.
Honorary Citizens receive privileges like residence and work rights but do not get grants or subsidies available to Singaporeans.
Since 2003, 21 individuals have received the Honorary Citizen Award.

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2 Sep 2019

Steps Taken to Secure and Invest in Singapore's Long Term Food Security

The Singapore Food Agency (SFA) pursues three strategies: diversifying import sources, growing local production, and supporting Singaporean companies to grow overseas.
For import diversification, SFA accredits more farms globally and requires importers of key items like eggs to have contingency plans to mitigate supply disruptions.
To grow local, SFA aims for "30 by 30" — producing 30% of nutritional needs locally by 2030 — using innovative and sustainable technologies, supported by funds like the Agriculture Productivity Fund and the Singapore Food Story R&D Programme.
The government is exploring urban farming in alternative spaces, such as vacant carparks, to bring food production closer to communities and reduce carbon footprint.
SFA also supports overseas expansion of Singaporean companies to overcome local constraints, achieve economies of scale, and lower export prices to Singapore.

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2 Sep 2019

Impact to Singapore's Economy in View of Prolonged Social tensions in Hong Kong

Chan Chun Sing highlighted that Hong Kong is a major trading and investment partner for Singapore, with close economic linkages that could transmit disruptions from prolonged social tensions.
While the near-term impact on Singapore’s economy has been limited, sectors like wholesale trade, transportation, storage, and lifestyle retail face greater exposure and potential risks.
Longer-term, sustained instability in Hong Kong may dampen investor confidence and regional economic activities, affecting Singapore’s growth outlook.
Singapore’s economic agencies are monitoring affected businesses and hope for a peaceful resolution to minimize spillover effects.

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2 Sep 2019

Average Savings in Electricity Bills for Households That Switched to Open Electricity Market

Households that switched to a retailer in the Open Electricity Market have saved between 20% to 30% compared to the regulated tariff.
It is too early to determine if the cost savings have led to changes in household electricity consumption patterns since the Open Electricity Market rollout was only completed in May 2019.
The Ministry of Trade and Industry and the Energy Market Authority plan to conduct a study on consumption changes at an appropriate time.

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2 Sep 2019

Strategic Plan to Develop Social Entrepreneurship and Social Enterprises in Singapore and Overseas

MSF established raiSE in 2015 to develop social enterprises, providing grants up to $300,000 and having supported over 120 social enterprises with more than $11 million in funding as of FY2018.
A separate scale-up programme is not planned as social enterprises can already use existing support from raiSE and Enterprise Singapore, which also offers advisory services to navigate resources.
raiSE is building an ecosystem through masterclasses, mentorship, and networking platforms, and is exploring an ASEAN network to help social enterprises access overseas markets.
Social enterprises are distinct from social service agencies, being business entities with social goals, and will continue to be nurtured as such rather than as extensions of non-profits.

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2 Sep 2019

Regulatory Licensing of Point-to-point Transport Sector

Ang Hin Kee inquired whether the Competition and Consumer Commission of Singapore (CCCS) assesses market size and competition among taxi and ride-hail operators under the new regulatory framework.
The Land Transport Authority’s new point-to-point transport framework, effective June 2020, aims to keep the market open and prevent exclusive arrangements that lock drivers into a single operator.
Chan Chun Sing clarified that the framework does not hinder CCCS from monitoring anti-competitive behavior and initiating investigations under the Competition Act.
The government will collaborate with LTA to ensure a level playing field and protect consumer interests in the point-to-point transport sector.

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2 Sep 2019

Measures to Ensure Electricity Retailers Take All Necessary Safeguards to Protect Consumers' Identities

Electricity retailers must comply with the Personal Data Protection Act (PDPA) and the Energy Market Authority’s (EMA) Code of Conduct, which require obtaining consumer consent and implementing reasonable security safeguards, with EMA conducting Mystery Shopper Audits to enforce compliance.
Consumers whose identities are misused or compromised should first approach the retailer to resolve the issue, and they can terminate unauthorized contracts without early termination fees while seeking help from CASE or EMA, which may penalize or suspend non-compliant retailers.
Consumers can report PDPA breaches to the Personal Data Protection Commission (PDPC), and retailers may face financial penalties of up to $1 million for violations.

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2 Sep 2019

Number of Persons with Disabilities Benefitting from Assistive Technology Fund in Past Three Years

Over the past three years, 2,037 persons with disabilities benefited from the Assistive Technology Fund in FY2018, up from 1,450 in FY2016 and 1,808 in FY2017.
A total of $10 million has been disbursed through the Fund over the three-year period.
No appeals have been received for disbursements beyond the $40,000 individual cap under the ATF.
The Fund subsidises devices for rehabilitation, education, employment, early intervention, training, and independent living.
A cross-sectoral workgroup has been established under the 3rd Enabling Masterplan to further explore technology and design for supporting independent living.

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2 Sep 2019

Impact of Surge in Chinese Developers in Residential Property Market in Past Five Years

The Minister noted that the private residential market remained stable overall, with a brief price surge from late 2017 to mid-2018 driven by improved sentiment and aggressive bidding by both local and foreign developers.
Chinese developers accounted for less than 10% of private residential sites sold via government land sales and en-bloc sales during the surge, and their winning bids were comparable to those of other developers.
Construction quality, as measured by the CONQUAS system, has remained high over the past five years, with Chinese developers’ projects scoring similarly to the national average.
The government will continue monitoring the property market and adjust policies as needed to ensure quality housing and market stability.

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2 Sep 2019

Impact of Withdrawal of Market Access Rights to EU on Singapore's Financial Institutions

The European Commission’s decision affects only Credit Rating Agencies in Singapore and does not impact other financial services or investor confidence.
Singapore-based CRAs can continue operating in the EU via the endorsement approach, though equivalence status is no longer granted due to differences in regulatory philosophy between MAS and EU rules.
MAS’s CRA regulations are principles-based and aligned with international standards, while the EU’s are more prescriptive; Singapore maintains broad EU recognition in other financial services.

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