Economy & business — Topics

8 Jul 2019

Risks to Singapore Economy Given Present External Uncertainty

The Minister for Trade and Industry stated that global economic uncertainties, including the US-China trade war and technology restrictions, have weakened external demand, particularly affecting Singapore’s electronics, precision engineering, and wholesale trade sectors, though pockets of strength remain in information communications, health, and construction.
Singapore’s strategy focuses on three prongs: strengthening economic fundamentals such as political stability and connectivity; refreshing offerings through industry transformation, new sectors like agri-tech and precision medicine, and supporting company scale-up; and promoting a conducive global business environment through digital trade initiatives and strengthening trade partnerships like RCEP.
In response to concerns about rising economic nationalism and reliance on the traditional export model, the government emphasized enhancing company capabilities, expanding Singapore’s global footprint via firms like PSA, and judiciously managing reserves to support growth beyond conventional GDP drivers.

Summary written by AI

Overview Original source

8 Jul 2019

Sustainability of Rail Reliability Levels

Singapore’s MRT system has improved reliability to a world-class level, with the network achieving over 950,000 train-km between failures, a seven-fold improvement since 2015, but sustaining this requires significant ongoing investment and funding.
The government has spent billions on asset ownership and subsidies, with annual operating subsidies expected to reach nearly $1 billion over the next five years, as fare revenue alone cannot cover the high costs of intensified maintenance.
There is a need for disciplined fare adjustments under the existing formula to ensure financial sustainability, with reviews considered to reflect higher operating costs and maintain service quality without over-relying on taxpayer funds.

Summary written by AI

Overview Original source

8 May 2019

Oversight of Payment Services Firms that Promote a Selected E-currency Proprietary Token

Assoc Prof Walter Theseira asked whether MAS is monitoring firms promoting proprietary e-currency tokens not linked to Singapore dollars, their compliance with the Payment Services Act, and what measures MAS will take to address risks.
The Prime Minister responded that the Act regulates payment services, distinguishing e-money (pegged to currency) from digital payment tokens (DPTs), with DPTs not requiring safeguarding of customer funds.
MAS focuses on anti-money laundering for DPTs but does not provide the same consumer protections as for e-money, warning the public of value loss risks.
DPT service providers must be licensed and make clear disclosures to customers, with MAS consulting on requirements and issuing advisories to highlight risks.
MAS is closely monitoring the sector to ensure the regulatory framework remains effective amid the nascent stage of DPT services.

Summary written by AI

Overview Original source

8 May 2019

Remuneration Cap for Key Management Staff of Fifth Schedule Companies like GIC and Temasek Holdings

The Government does not impose a remuneration cap on key management staff at GIC and Temasek, as their boards independently set pay based on performance and industry benchmarks to attract talent and encourage prudent risk-taking.
The Finance Ministry does not disclose specific remuneration packages for top executives, focusing instead on holding boards accountable for the entities' long-term performance and overall returns.
Both GIC and Temasek use a performance-based remuneration system that includes long-term incentives, with their annual reports showing creditable performance under challenging market conditions.

Summary written by AI

Overview Original source

8 May 2019

Living in Private Properties but with No Declared Income

About 164,000 adult Singaporean citizens live in private properties and have no declared income, falling into groups with no income, non-taxable income, or taxable income below the filing threshold.
The government uses broad-based schemes like GST Vouchers and healthcare subsidies, which mainly target lower-income households in HDB flats, leaving some private property residents feeling excluded despite having low or no income.
Officials acknowledge the challenge of identifying those in genuine need within the private property group and encourage applications for assistance, noting that specific schemes like the Pioneer and Merdeka Generation Packages apply regardless of property type.
The debate highlighted concerns about equity, as some private property residents with modest incomes feel disadvantaged compared to HDB dwellers who receive more benefits, despite the former's contributions to the nation.

Summary written by AI

Overview Original source

7 May 2019

Proportion of Ministry of Health’s Budget Allocated for Public Acute Hospitals

Assoc Prof Walter Theseira questioned the Minister for Health on the proportion of the Ministry's budget allocated to public acute hospitals, the breakdown between capital and operating costs, and trends over the past five years.
Over the last five years, MOH's total expenditure rose from $4.7 billion in FY12 to $10.2 billion in FY17, with funding to public acute hospitals decreasing from 77% to 66% of the budget.
The decrease in proportion for public acute hospitals is due to increased spending on preventive health, primary care, and intermediate and long-term care.
The allocation for public acute hospitals is about 15% for capital spending and 85% for recurrent operating costs.
The debate highlights shifts in MOH's budget priorities towards broader healthcare needs beyond acute hospital care.

Summary written by AI

Overview Original source

7 May 2019

Potential Job Creation in Electric Cars Industry

The government is developing a smart mobility ecosystem in Singapore through investments in electric vehicle manufacturing and auxiliary technologies, which is expected to create many new jobs across hardware and software sectors.
While exact job numbers cannot be provided, the ecosystem will benefit adjacent industries such as semiconductors, telecommunications, and finance, generating diverse employment opportunities.
Government agencies are collaborating with companies, training providers, and unions to prepare Singaporeans through Industry 4.0 training and AI/data analytics programmes to equip them for these new roles.

Summary written by AI

Overview Original source

6 May 2019

Citizens Earning Less Than $1,300 and $2,000 Per Month from Full-time Work

Assoc Prof Daniel Goh asked the Minister for Manpower in 2018 for the number of full-time working Singapore citizens earning less than $1,300 and less than $2,000 per month.
Mrs Josephine Teo stated that wages have grown at all levels, with real wages at the 20th percentile rising 4.2% annually over the past five years.
The proportion of full-time employed Singapore Residents earning below $1,300 fell to about 5%, with the number dropping by 40% to 97,000.
About 15% earn less than $2,000, with the number declining by 30% over five years to 282,000.
The government supports lower-wage workers through the Workfare Income Supplement Scheme, which benefits over 400,000 workers annually and boosts their incomes by up to 30%.

Summary written by AI

Overview Original source

6 May 2019

More Support for Environmentally Sustainable Projects

Desmond Choo asked how the Ministry for Environment and Water Resources can collaborate with financial institutions to increase support for sustainable projects and reduce exposure to environmentally harmful ones.
The Ministry works with the Monetary Authority of Singapore to promote green financing, raise awareness of environmental risks, and adopt international standards and best practices.
Initiatives include the Association of Banks in Singapore’s Responsible Financing Guidelines, the Singapore Exchange’s sustainability reporting requirements, and a Green Bond Grant Scheme that has supported over $4 billion in green bonds.
Capability-building efforts are underway, such as anchoring ESG research and underwriting teams with insurers to develop innovative sustainable finance products.
The government will continue steering sustainable development efforts, focusing on climate mitigation, adaptation, and resource efficiency for a low-carbon future.

Summary written by AI

Overview Original source

6 May 2019

Competition from China's Plan for Greater Bay Area Project

Singapore views the Greater Bay Area (GBA) development as an opportunity to strengthen its ties and collaboration with key cities like Guangdong, Hong Kong, and Macao, particularly through existing frameworks such as the Singapore-Guangdong Collaboration Council and the China-Singapore Guangzhou Knowledge City.
The government is actively engaged with GBA authorities to foster cooperation in technology innovation, financial services, and digital economy, with initiatives like the ASEAN Smart Cities Network and agreements between the Monetary Authority of Singapore and Hong Kong Monetary Authority.
Singapore continues to bolster its competitiveness by investing in digital economy frameworks, upskilling programs like TechSkills Accelerator, and supporting SMEs' digitalization to ensure its key industries remain relevant and can tap into GBA opportunities while mitigating competitive risks.

Summary written by AI

Overview Original source

6 May 2019

Recall of Fisher-Price Baby Rocker in US

Rahayu Mahzam questioned whether the recalled Fisher-Price baby rocker was imported into Singapore and asked about the processes and measures for tracking and ensuring the safety of imported infant products.
Chan Chun Sing explained that Enterprise Singapore oversees the safety of general consumer products, including children's items, requiring them to meet international safety standards and conducting post-market monitoring and tests based on risk assessment.
He confirmed that Fisher-Price has issued a global recall of the Rock 'N Play Sleepers, including in Singapore, and that the alert was published on Enterprise Singapore’s website in April 2019.
The minister advised parents to heed the recall, observe product safety labels, use baby rockers only on the floor, and supervise children while ensuring they are properly secured with restraints.
The approach aims to balance consumer safety with market efficiency by allowing products to enter the market quickly while conducting targeted checks and collaborating with suppliers on safety concerns.

Summary written by AI

Overview Original source

6 May 2019

Percentage of Spending on Mental Health, Diabetes and Ageing versus Total Healthcare Spending in 2018 against Amount Budgeted for 2019

Anthea Ong requested the percentage of Singapore’s 2018 actual and 2019 budgeted healthcare spending allocated to mental health, diabetes, and ageing.
For the 2017 financial year, MOH reported that mental health received about 3%, diabetes about 11%, and ageing about 6% of the $8.7 billion operating healthcare expenditure.
The figures reflect subvention to public healthcare institutions and specific programmes but exclude broader initiatives like school counselling, Pioneer/Merdeka Generation funds, and other non-MOH funded ageing programmes.

Summary written by AI

Overview Original source

6 May 2019

Proposal for Anti-scalping Legislation in Singapore to Keep in Check Black Market for Concert Tickets

Ong Teng Koon proposed that the Ministry for Trade and Industry study anti-scalping laws from jurisdictions like Australia, the UK, Hong Kong, Japan, and several US states to protect consumers from market manipulation by ticket scalpers.
Chan Chun Sing responded that Singapore does not prohibit ticket resale, allowing market forces to operate, and emphasised that event organisers can impose their own terms to curb unauthorised sales.
The government encourages consumer vigilance and provides avenues like CASE and the Competition and Consumer Commission for redress against unfair trading practices, while monitoring international developments to adjust policies if needed.

Summary written by AI

Overview Original source

6 May 2019

ACRA’s Oversight of Auditors whose Audit Opinions of Listed Companies Found Wanting

Under the Accountants Act, ACRA’s Public Accountants Oversight Committee inspects public accountants for compliance with Singapore auditing standards and can impose sanctions such as additional inspections, work reviews, service restrictions, or suspension or cancellation of licenses, with disciplinary outcomes published online.
ACRA plans to amend the Accountants Act later this year to expand audit inspections to audit firms and apply sanctions for firms’ lapses, thereby holding them to higher accountability.
While regulatory measures aim to ensure audit quality, ACRA emphasizes that directors, audit committees, management, the accounting profession, and investors all share responsibility in maintaining financial reporting standards and assessing company risks.

Summary written by AI

Overview Original source

6 May 2019

Proportion of Children in Cohort Whose Parents Maximise Co-matching Amount for CDA

The average amount in the Child Development Account for children born in 2006 when they reached age 12 in 2018 was about $3,300, with a median of $500.
Approximately 64% of children in the 2006 cohort had parents who fully maximized the Government co-matching amount for their CDA.
The Ministry noted that parents can already continue saving in the Post-Secondary Education Account to enjoy Government co-matching if they have not reached the co-savings caps in the CDA, addressing the suggestion to extend the CDA closure to age 16.

Summary written by AI

Overview Original source

6 May 2019

Government's Stand on Developers Offering Two-year Deferment Schemes to Home Buyers

The Ministry of National Development does not allow deferred payment schemes for uncompleted private residential properties, only for completed ones, and urges buyers to exercise due diligence.
Buyer and seller stamp duties are based on the date the Sale and Purchase Agreement is executed, not the earlier Option-to-Purchase date under a deferment plan.
Developers must pay stamp duty for unsold units after five years if the Sale and Purchase Agreement is not executed, even if an Option-to-Purchase was obtained.

Summary written by AI

Overview Original source

6 May 2019

Average CPF Balance of Persons in Different Income Groups and Proposal to Offer Differentiated CPF Interest Rates

Dr Lim Wee Kiak asked for the average CPF balance across different income percentiles and whether differentiated interest rates could be offered to help lower-balance members grow their savings while reducing rates for high-balance members.
The Ministry of Manpower explained that the CPF system is already progressive, with contribution limits and tiered interest rates that benefit lower-balance members, such as extra interest on the first $60,000 and additional rates for those aged 55 and above.
CPF interest rates vary by account type, with higher rates on Special, Retirement, and MediSave Accounts, and further bonuses applied to the first $60,000 of combined balances, effectively giving higher returns to members with smaller balances.
The Ministry noted that CPF balances differ due to factors like age, income, employment, and withdrawals, and highlighted that over 60% of active members turning 55 in 2018 had met the Basic Retirement Sum, indicating progress toward retirement adequacy.
The debate focused on the existing progressive structure of CPF interest rates and the potential for further differentiation, while emphasizing that current policies already aim to support members with lower balances.

Summary written by AI

Overview Original source

6 May 2019

Pioneer Generation Fund (Amendment) Bill

The Merdeka Generation Package will provide benefits such as $100 PAssion Silver card top-ups, MediSave top-ups, MediShield Life premium subsidies, CHAS clinic subsidies, and a CareShield Life sign-up incentive to support seniors born between 1950 and 1959 in their healthcare and active living.
The Amendment Bill establishes the Merdeka Generation Fund with $6.1 billion set aside, which will be managed separately from the Pioneer Generation Fund and requires annual financial statements and audits for both funds.
Eligibility for the Merdeka Generation Package applies to Singapore citizens born between 1 January 1950 and 31 December 1959, with an appeals process for those born before 1950 who did not receive the Pioneer Generation Package.
Outreach efforts are underway through home visits, community events, workplaces, and media campaigns to ensure eligible seniors are informed and can access the benefits.
The Bill amends the existing Pioneer Generation Fund Act to rename it the "Pioneer Generation and Merdeka Generation Funds Act" and defines the governance, regulations, and benefits for the Merdeka Generation Fund.

Summary written by AI

Overview Original source

6 May 2019

Move to Allow Casino Operators’ to Increase their Approved Gaming Area

The government allows Marina Bay Sands and Resorts World Sentosa to expand their gaming areas to support a larger non-gaming investment package, arguing that gaming revenue makes the integrated resorts commercially viable and will attract more tourists and create jobs.
Ministers state that the land cost for expansion is set by the Chief Valuer at fair market value without a public tender, based on longstanding policy for strategic investments, and project the overall expansion will contribute $500 million annually to the economy.
The government highlights that the problem gambling rate among residents has decreased and that it consulted key stakeholders, including the National Council on Problem Gambling and community groups, before approving the expansion, with commitments to strengthen social safeguards.

Summary written by AI

Overview Original source

6 May 2019

Effectiveness of Annual Casino Entry Fee Paid by Singaporeans and PRs in Preventing Problem Gambling

Alex Yam questioned the effectiveness of the annual casino entry fee for Singaporeans and PRs since its introduction in 2010, asking about total collections, its impact on problem gambling, and whether it should be abolished.
The Second Minister for Home Affairs reported that about $1.3 billion in levies has been collected since 2010, with funds going to social programs, and cited a decline in local casino visitors and reduced problem gambling rates as evidence of effectiveness.
The minister defended retaining the annual levy, noting it caters to higher-income frequent visitors and is part of broader safeguards like visit limits and exclusion orders, which can block access regardless of payment.
Alex Yam argued that problem gambling affects all income levels, so the annual fee should be removed to better combat gambling addiction uniformly, rather than allowing exceptions for wealthier individuals.
Mrs Josephine Teo agreed that safeguards extend beyond levies and that exclusion orders can override any payment, with further discussion expected from the Minister for Social and Family Development.

Summary written by AI

Overview Original source