Economy & business — Topics

2 Sep 2019

Monies Wrongly Credited into Bank Accounts

Er Dr Lee Bee Wah asked if there is a rise in cases of money wrongly credited to bank accounts and whether banks are required to freeze and return such funds.
Tharman Shanmugaratnam responded that erroneous transfers are rare, banks assist by contacting the recipient’s bank for a refund, and retaining mistaken funds is an offence; however, banks are not required to automatically freeze or return money to prevent abuse.
The Monetary Authority of Singapore (MAS) guidelines emphasize consumer responsibility for accurate payments, banks’ duty to assist, and the need to report fraud to police promptly.
MAS and the industry will continue to work on raising consumer awareness to minimize wrongful e-payments, similar to the approach for cheques.

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2 Sep 2019

Upcoming Increase in Subsidies for Pre-school Education

Desmond Choo and Liang Eng Hwa questioned how the Ministry will prevent pre-school operators from raising fees in response to increased subsidies, thus negating the benefit to parents.
Desmond Lee explained that Anchor and Partner Operators are subject to fee caps maintained since 2014 and 2016, with moderate adjustments allowed for sustainability, while private and not-for-profit operators set fees flexibly but must announce increases in advance.
The Ministry is expanding affordable pre-school options, aiming for 8 in 10 places to be in government-supported schools by 2025, with plans to lower fee caps further so parents pay near primary school fees before subsidies.

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2 Sep 2019

CareShield Life and Long-Term Care Bill

The CareShield Life scheme aims to provide universal, basic long-term care coverage for Singaporeans, with a focus on inclusiveness, affordability, and sustainability, and will be auto-enrolled for those born in 1980 or later while remaining optional for older cohorts.
Premiums are kept affordable through government subsidies, the use of MediSave, and early enrollment at age 30, but the scheme's design—including gender-differentiated premiums based on actuarial data—sparked debate on equity, with the Senior Minister of State emphasizing that gender-neutral premiums could lead to adverse selection and risk pool imbalances.
The government has established safeguards such as the CareShield Life Council for oversight, provisions for additional premium support for those in genuine need, and measures to prevent fraud and ensure transparency in claims and fund management.

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2 Sep 2019

CareShield Life and Long-Term Care Bill

The CareShield Life and Long-Term Care Bill establishes a mandatory long-term care insurance scheme for Singaporeans born from 1980, providing lifelong cash payouts for severe disability, while older cohorts can opt in, with government subsidies and support funds to ensure affordability and inclusivity.
The bill transfers ElderShield from private insurers to government administration, introduces MediSave withdrawals for long-term care, and creates new assistance schemes like ElderFund for low-income severely disabled individuals.
Key concerns raised include the adequacy of the $600 monthly payout, the strict three-ADL eligibility criterion, gender-based premiums, data privacy, and the need for better public education and streamlined application processes for long-term care support.

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2 Sep 2019

Income Tax (Amendment) Bill

The Income Tax (Amendment) Bill was introduced to amend the Income Tax Act and related provisions in the Stamp Duties Act.
The Second Minister for Finance, Mr Lawrence Wong, presented the bill and indicated it received the President's recommendation.
The bill was read for the first time and scheduled for a second reading at the next parliamentary sitting.

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2 Sep 2019

Hiring, Developing and Strengthening Singaporean Core

Patrick Tay questioned the need for the Tech@SG programme, which helps tech firms hire foreign talent, amid efforts to strengthen the Singaporean core, while Minister Chan Chun Sing defended it as essential to build a critical mass of tech talent and stay competitive globally, emphasizing local development efforts like TeSA and IHL courses.
Chan highlighted that global tech talent shortages mean Singapore must complement local talent with foreign experts to meet demand from growing tech firms, citing examples like Alibaba and Mastercard, and argued that past successes in semiconductors show such strategies can eventually benefit Singaporeans.
Tay raised follow-up questions on safeguards for Singaporean PMEs, including compliance with the Fair Consideration Framework and use of capability transfer programmes, to which Chan confirmed these measures are in place and stressed the need to support fast-growing sectors without capping top opportunities.
Chan stated that Tech@SG could be considered for other sectors like finance if they face similar talent shortages, but clarified the focus is on highly skilled roles managing global teams, not routine positions, and drew parallels to how Singapore built its financial sector by initially bringing in global expertise.
In response to Pritam Singh’s query on leadership development, Chan affirmed that the government plans to progressively localise expertise in tech as it did in finance, ensuring Singaporeans learn from global talent and gain leadership opportunities over time.

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2 Sep 2019

Statistics on Employment of Persons with Disabilities

The Minister of State for Manpower shared that the resident employment rate for persons with disabilities (PwDs) aged 15–64 is 28.6%, with higher rates for those aged 40–49 and lower rates for those aged 65 and above, while the main employing sectors are community, social, personal services, food services, administrative support, and manufacturing.
Government support schemes like the Special Employment Credit, Open Door Programme, Career Trial, Workfare Income Supplement, and Workfare Training Support have helped over 5,700 employers hire more than 8,600 PwDs, with ongoing initiatives such as job redesign guides and a new workgroup to enhance employment pathways.
A member’s query about a 5% employment rate was addressed by clarifying that it was based on outdated, composite data, while current data from the Comprehensive Labour Force Survey is more accurate; suggestions for enhanced tax incentives, affirmative action, and a one-stop employment portal were noted for further study.

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6 Aug 2019

Average Per-undergraduate Student Annual Expenditure on Teaching and Education Services

Assoc Prof Walter Theseira asked for the average per-undergraduate student annual expenditure on teaching and educational services by faculty and source for autonomous universities.
MOE funds universities based on per-student cost norms for similar courses rather than varying grants by actual expenditure, to encourage cost discipline.
Government grants remain the primary funding source, with students paying about 25% of education costs and endowment income supplementing funding.
Expenditure varies by faculty and course, such as higher costs for law programs due to better faculty ratios and for lab-based courses like computing and engineering.

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6 Aug 2019

Percentage of Households Switching Suppliers in Open Electricity Market

About 34% of households had switched to electricity retailers other than SP by end-June 2019 since the Open Electricity Market launch.
The switching process is designed to be simple and accessible via multiple channels, with 98% of switchers finding it easy.
Consumer safeguards are in place, including dispute resolution through CASE or the Small Claims Tribunal.
The Energy Market Authority is committed to ongoing improvements with SP Group and retailers to enhance consumer experience.

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6 Aug 2019

Number of Free Trade Agreements and Studies on Their Economic and Social Benefits

Singapore currently has 24 Free Trade Agreements, with the EU-Singapore FTA expected to come into force by the end of 2019, and additional agreements under negotiation including the RCEP, Eurasian Economic Union, MERCOSUR, and the Pacific Alliance.
A Ministry of Trade and Industry study found that Singapore’s domestic exports to FTA partners increased by an average of 18% two years after an agreement took effect and a further 16% in the third year, with new deals like the CPTPP and EUSFTA potentially boosting GDP by up to 0.2% and 0.35% respectively.
FTAs provide businesses with preferential market access, lower tariffs, fewer service sector restrictions, and stronger investment protection, while also establishing common enforceable rules for areas like intellectual property and e-commerce to support innovation and digital services.
The Ministry regularly reviews and upgrades FTAs to adapt to changing economic conditions, such as the November 2018 upgrade with China that enhanced investment protection and access to legal, maritime, and construction sectors, as well as new digital economy agreements with Chile, New Zealand, and Australia.

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6 Aug 2019

Consideration to Make Government Financial Statements Available Online

Pritam Singh asked if Government Financial Statements could be made available online and why they currently are not, while Heng Swee Keat explained that these statements are prepared annually for submission to the President and Parliament, with physical access available in the Parliament Library and Lee Kong Chian Reference Library.
Heng noted that the Ministry of Finance extracts and publishes relevant information from the Financial Statements in the Budget Book and online documents to make them easier for the public to understand.
He confirmed that the government will continue to review and update how it releases and publishes information on government accounts.

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6 Aug 2019

Findings from Project to Measure Singapore’s Carbon Footprint

The five-year study from 2013 to 2018 by the National Parks Board found that Singapore's Land Use, Land-Use Change and Forestry sector accounts for about 0.1% of net greenhouse gas emissions, with nature reserves and urban trees serving as key carbon sinks.
The carbon tax of $5 per tonne, effective January this year, covers about 80% of Singapore’s greenhouse gas emissions and is intended as an economy-wide price signal to incentivize reductions, with the government prepared to spend more than the estimated $1 billion collected over five years to support industry transition.
The carbon footprint of Changi Terminal 5 has not yet been determined as it remains in the design stage, but solutions to improve its energy efficiency are being explored by Changi Airport Group and its consultants.

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6 Aug 2019

Reason for Low Take-up Rate of Business and Institution of Public Character Partnership Scheme that Recognise Employee Volunteering Hours

The low take-up rate of the Business and Institution of a Public Character Partnership Scheme (BIPS) is primarily due to low awareness among businesses and IPCs, and administrative complexity in claiming tax deductions.
The government will raise awareness by promoting BIPS through NVPC and Commissioner of Charities' platforms, and simplify administrative processes by introducing fixed man-hour rate claims from the Year of Assessment 2020.
The Ministry will consider Ms. Ong's suggestion to include assets like charitable spaces in BIPS during its review to further encourage tripartite partnerships and corporate giving.

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6 Aug 2019

Point-to-Point Passenger Transport Industry Bill

The government introduced the Point-to-Point Passenger Transport Industry Bill to create a unified licensing and regulatory framework for both street-hail (taxis) and ride-hail (private hire cars) services, aiming to enhance safety, protect commuter and driver interests, and foster innovation.
Key measures include licensing ride-hail operators, prohibiting exclusive driver contracts to promote competition, setting safety standards for operators, and empowering the Public Transport Council to regulate fare transparency and prevent fare evasion for both taxis and private hire cars.
Members of Parliament supported the bill but raised concerns about the inconsistency in driver age requirements (30 for taxis vs. 21 for private hire cars), the need for child seats in all point-to-point vehicles, and the potential impact on COE prices due to large fleet operators.

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6 Aug 2019

Assessment of Risk for Unlisted Assets in Portfolios of GIC and Temasek Holdings

Leon Perera questioned how the Government reviews the risk of unlisted assets in GIC and Temasek portfolios and what ensures realistic valuations.
The Second Minister for Finance confirmed that unlisted assets are valued at investment and regularly updated using industry standards and independent audits, with no issues raised by auditors.
Leon Perera suggested publishing conservative cost-based valuations alongside current methods to better reflect realisable value.
The Minister replied that current accounting standards are already conservative, with impairment tests and market tests ensuring reasonable valuations.

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6 Aug 2019

Grants for Fees for Faith-based Pre-schools Run by Non-profit Organisations

Intan Azura Mokhtar asked if the Ministry will provide grants for fees at faith-based pre-schools run by non-profit organisations.
The Senior Parliamentary Secretary explained that various subsidies and funding schemes already support both parents and operators, including faith-affiliated and non-profit pre-schools, through cash gifts, account grants, basic and additional subsidies, and specific development funds.
Mokhtar later suggested expanding the Kindergarten Fee Assistance Scheme to all pre-schools and asked if the Pre-school Opportunity Fund is available to students in faith-based kindergartens.
Assoc Prof Dr Muhammad Faishal Ibrahim confirmed that the Opportunity Fund is accessible to non-AOP pre-schools, including faith-affiliated ones, and noted that the Ministry is reviewing pre-school subsidies while considering the suggestion to expand fee assistance.

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6 Aug 2019

Plans to Support Workers in Economic Slowdown and Effectiveness of Past Plans

The Minister for Manpower outlined that previous downturn measures, such as during the 2008 Global Financial Crisis, helped reduce retrenchments and keep unemployment below 5%, and currently, the government is monitoring the economy and ready to enhance support through initiatives like Adapt and Grow, which includes employment assistance, training programmes, and career facilitation services.
In response to concerns about a prolonged slowdown, the Minister stated it is premature to specify new measures, emphasizing the need to assess whether the slowdown is cyclical or structural, and confirmed that planned reductions in foreign worker quotas for the services sector will proceed to promote sustainable restructuring.
The government has existing supports for older workers, including the Special Employment Credit and job redesign programmes, and is working on additional recommendations from a tripartite group to bolster senior employment amid demographic changes.

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5 Aug 2019

Review of Maximum Age Cap for Coverage under Dependants' Protection Scheme

Dr. Lee Bee Wah questioned when the next review of the DPS maximum age cap will occur and if the Ministry considered that people now start families later and may have dependents at age 60.
Mrs. Josephine Teo explained that DPS coverage up to age 60 balances financial protection with retirement adequacy, as raising the cap would increase premiums and compromise retirement savings.
She noted that after age 60, the need for DPS is lower as most have fewer dependents, and late-starting families can use CPF savings or private insurance for additional coverage.
The Ministry stated it will continue reviewing other aspects of DPS to ensure its relevance to members.

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5 Aug 2019

Support for Professional Conversion Programme and Measures to Help Companies and Employees Vulnerable to Technology Disruption

Over 2,000 companies have participated in the Professional Conversion Programme (PCP) since 2016, placing more than 10,000 individuals in new roles across over 100 programmes in 30 sectors, with plans to expand in growth areas.
The government emphasises that technology disruption primarily changes tasks rather than entire jobs, and actively works with companies to reskill at-risk workers before retrenchment, redeploying about 1,300 workers last year.
Measures include proactive engagement with companies on restructuring plans, offering salary and training support under the Adapt and Grow initiative, and raising awareness to encourage more companies to partner with Workforce Singapore for upskilling.

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5 Aug 2019

Industry or Service Sector Employing Most Number of Senior Workers

In 2018, the Wholesale Trade sector employed the most senior workers (aged 55 and above) with 54,500, representing 23% of its workforce, comparable to the national average of 24%.
The Ministry of Manpower provides support through wage offsets like the Special Employment Credit, job redesign grants, and training programmes to enhance senior workers' employability and encourage retention.
Foreign workforce policies are being calibrated, including reducing Dependency Ratio Ceilings in the Services sector, to ensure Singaporeans, including senior workers, have access to good jobs.
The Tripartite Workgroup on Older Workers is reviewing retirement and re-employment ages, with recommendations expected by September.

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