Economy & business — Topics

28 Feb 2019

Committee of Supply - Head M (Ministry of Finance)

The Ministry of Finance emphasized fiscal sustainability, noting that spending growth—especially in healthcare and infrastructure—has outpaced revenue growth over the past decade, with increasing reliance on Net Investment Returns Contribution (NIRC) to balance budgets.
Members raised concerns about fiscal resilience and equity, suggesting alternative revenue sources such as taxes on e-commerce, carbon, and sugar, and proposing adjustments to tax reliefs for retirement savings to better support lower- and middle-income households.
The government outlined measures to ensure value-for-money in public spending, including stricter project reviews for infrastructure and IT, promoting innovation in procurement, and supporting businesses through simplified regulations and digital services.

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28 Feb 2019

Estimates Of Expenditure For The Financial Year 1 April 2019 to 31 March 2020

The Chairman outlined the procedure for debating the FY2019–2020 Estimates, noting 505 amendments and the strict timing rules for discussions.
The session began with Head U (Prime Minister’s Office), and Mr Patrick Tay was called to speak on it.
The debate was part of the Committee of Supply's first allotted day, with the Chairman emphasizing adherence to time limits for all speakers.

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28 Feb 2019

Debate on Annual Budget Statement

The budget debate highlighted Singapore’s focus on long-term planning, with strong support for initiatives like the Merdeka Generation Package to address healthcare costs for seniors and investments in economic transformation, education, and workforce reskilling.
Security and geopolitical risks were emphasized, including threats from rising nationalism, cyber-attacks, and regional tensions, with a call for sustained defence spending and multi-lateral cooperation.
The Minister for Finance outlined the "Singapore way" of people-centric, adaptive, and partnership-driven governance, defending fiscal prudence, the use of reserves, and the need for future revenue measures like the GST hike to fund structural needs.

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27 Feb 2019

Debate on Annual Budget Statement

The debate centered on the government's fiscal strategy to address long-term challenges such as ageing, inequality, and economic transformation, with support for the Merdeka Generation Package and measures to uplift low-wage workers through enhanced Workfare Income Supplement.
Members raised concerns about the reduction of the Dependency Ratio Ceiling for the services sector, particularly its impact on the care industry, and called for more support for businesses and workers adapting to economic changes.
Several MPs emphasized the need for stronger social policies, including improved mental health support, better healthcare accessibility, and more equitable distribution of resources, while urging the government to balance fiscal prudence with spending needs.

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26 Feb 2019

Debate on Annual Budget Statement

The Senior Minister of State emphasized that Singapore's healthcare system already provides structural subsidies, such as universal polyclinic subsidies, MediShield Life, CareShield Life, and CHAS enhancements, which are not cohort-based but designed to benefit all Singaporeans, with means-testing to support lower and middle-income groups.
He defended the Pioneer and Merdeka Generation Packages as additional tributes funded by budget surpluses to show appreciation for seniors' contributions, rejecting the Workers' Party's characterization of them as politically motivated and explaining that surpluses are accumulated during a government term before being set aside for such packages.
The Minister criticized the opposition for politicizing the packages while simultaneously calling for more government support, arguing that such criticism is contradictory and undermines the government's long-term financial planning for both current and future generations.

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26 Feb 2019

Debate on Annual Budget Statement

Dennis Tan expressed concerns that the diesel tax increase, while aimed at environmental resilience, could hurt economic resilience by raising transportation and business costs without providing immediate alternatives for switching to electric or hybrid vehicles.
He also questioned the resilience of Singapore’s aerospace and maritime sectors, citing risks from airspace reclaims by Malaysia and Indonesia, as well as ongoing maritime disputes, which could affect Changi Airport’s future and port operations.
Tan emphasized the need for security resiliency by ensuring national service personnel remain confident and motivated, given the conscript nature of the SAF.
In his Mandarin address, he proposed five measures to help seniors age with independence, including auto-enrolment in healthcare subsidies, raising retirement ages, and enhancing CPF flexibility for older workers and women.
Chee Hong Tat defended the tightening of the Dependency Ratio Ceiling and S Pass sub-ceiling for the Services sector as necessary to moderate foreign worker growth and protect local employment, while highlighting government support for productivity improvements and enterprise transformation.

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26 Feb 2019

Debate on Annual Budget Statement

The Budget was debated with a focus on transforming Singapore’s economy through enhanced support for enterprises, including new initiatives like Scale-Up SG and the Enterprise Financing Scheme to help businesses scale and access funding, alongside tighter foreign worker quotas to incentivise productivity and workforce restructuring.
Significant emphasis was placed on supporting workers through expanded programmes like the Professional Conversion Programme and Career Support Scheme, with enhanced Workfare Income Supplement for low-wage workers, and a call to make such support permanent to ensure job security amid economic changes.
The Merdeka Generation Package and healthcare enhancements, such as expanded CHAS coverage, were highlighted as key measures to strengthen social safety nets, though some members raised concerns about long-term fiscal sustainability and inter-generational equity.
Debates also covered the need for lifelong learning, workplace safety, and support for freelancers and gig economy workers, with calls for better alignment of training with industry needs and more inclusive policies for older and low-income workers.

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26 Feb 2019

Supplementary Supply (FY 2018) Bill

The supplementary supply bill seeks additional funds to cover extra government spending for the fiscal year 2018/2019.
Finance Minister Heng Swee Keat presented the bill, with the President’s recommendation signified, and it underwent its first reading.
The bill’s second reading is scheduled after the conclusion of the FY2019/20 Estimates of Expenditure proceedings and will be printed.

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26 Feb 2019

Supply BIll

The Supply Bill authorizes the withdrawal of funds from the Consolidated and Development Funds to cover government spending for the 2019–2020 financial year.
The Bill was presented by Finance Minister Heng Swee Keat and received the President's recommendation as required.
It underwent its First Reading and will be read a second time after the Estimates of Expenditure debates conclude.
The Bill's purpose is to legally enable the government to execute its approved budget for the fiscal year.

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18 Feb 2019

Annual Budget Statement

The Minister for Finance outlined a strategic budget focused on safeguarding Singapore’s security and sovereignty amid global uncertainties, committing about 30% of expenditure to defence, diplomacy, and cyber security, while urging national unity and vigilance against evolving threats.
Economic transformation measures include support for enterprises and workers through industry transformation maps, enhanced financing schemes, and tighter foreign workforce policies in services to drive productivity, with $4.6 billion allocated over three years for capability-building and job initiatives.
Social policies emphasize caring for an ageing population, with a Merdeka Generation Package offering lifelong healthcare benefits and a $6.1 billion fund, alongside enhanced Workfare support and a new $5.1 billion Long-Term Care Support Fund for CareShield Life subsidies.
Climate change and infrastructure resilience are prioritized, with plans for long-term investments in sustainability, zero-waste initiatives, and coastal protection, alongside fiscal measures like diesel tax adjustments to promote greener practices.
The budget maintains fiscal discipline with a projected deficit, funded by past reserves, and sets out a fair, progressive tax system while preparing for a future GST increase, ensuring intergenerational equity and sustainable growth.

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18 Feb 2019

Requirement for Shared Bicycle Service Operator’s Financial Viability for Licensing Application

Assoc Prof Walter Theseira asked whether the government considers an operator's financial ability to meet obligations when granting or cancelling licenses, and if funds from security deposits and fees can be used for claims by vendors, employees, or the public.
The Senior Minister of State for Transport confirmed that under the Parking Places Act, any remaining funds after license cancellation are not available for private claims and are forfeited to the Consolidated Fund.
The government is monitoring the new licensing regime, which primarily addresses parking issues, and may consider adjustments to better protect stakeholders like employees and commuters in the future.

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18 Feb 2019

Number of Recipients and Income Criteria for Silver Support Scheme

The Silver Support Scheme targets the bottom 20% of elderly Singaporeans aged 65 and above, with possible support extending to the next 10%, providing quarterly cash payouts of $300 to $750 based on HDB flat type.
From 2016 to 2019, 33,000 initial recipients became ineligible (14,000 passed away, 18,000 incomes rose), while 42,000 new recipients were assessed eligible, leading to a net increase and total annual payouts exceeding $330 million.
The government will periodically review the scheme to ensure it supports low-income elderly with little family support and assesses appeals case-by-case, including reconsidering sibling income in household means-testing if circumstances warrant.

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18 Feb 2019

Requirement for Shared Bicycle Service Operator’s Financial Viability for Licensing Application

The Land Transport Authority reviews audited financial statements of shared bicycle operators to assess their financial viability before granting full licences.
Security deposits and licence fees are strictly used for regulatory purposes, such as ensuring compliance, covering unpaid penalties, or meeting disposal costs, and are not available to settle private debts.
Vendors, employees, and consumers seeking unpaid claims must pursue civil courts or other dispute resolution channels rather than relying on the licensing framework for repayment.

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18 Feb 2019

Jobs Lost to Technologies and Automation Versus Jobs Created

Miss Cheng Li Hui asked if the Ministry tracks jobs lost to technology and automation versus jobs created.
The Minister replied that there is no standard method to measure such job impacts directly or indirectly.
Singapore monitors overall employment, which grew by about 40,000 in 2018, excluding foreign domestic workers.
The technology-intensive Infocomm and Media sector showed strong growth despite industry transformations.

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13 Feb 2019

Minimising Risks when SGX-listed Companies Experience Sudden Deterioration in Financial Viability

The government emphasises that regulation focuses on promoting transparency and timely disclosure by SGX-listed companies, rather than preventing business failures, with SGX RegCo monitoring compliance and taking enforcement action for lapses.
SGX RegCo, resourced from existing functions and overseen by an independent board and MAS, uses a risk-based approach and a Fast Track programme to prioritise scrutiny of companies with poor compliance records.
In response to concerns about investigations and penalties, the Minister affirmed that SGX RegCo and MAS take credible allegations seriously, investigate timeliness, impose penalties for non-disclosure, and engage stakeholders, while noting the need for specific examples to address past instances.

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13 Feb 2019

Projected Share of Operating Costs for Thomson-East Coast MRT Line to be Covered by Fare Revenues Versus Government Subsidies

The Minister for Transport outlined the government’s heavy investment in rail infrastructure and asset renewal, noting that operators bear operating and maintenance costs while the Thomson-East Coast Line will have its revenue risk borne by the government during its initial concession period.
Assoc Prof Walter Theseira asked for the projected share of operating costs for the Thomson-East Coast Line to be covered by fares versus subsidies, and inquired about the financial sustainability of existing lines and potential adjustments to the financing model.
The Minister responded that the Thomson-East Coast Line is expected to receive significant subsidies, with fare revenue potentially covering less than half of operating costs in the early years, and acknowledged the need to balance funding between taxpayers, commuters, and operators.
Both speakers discussed the challenges of financing rail reliability improvements, with the Minister emphasizing the multi-year and multi-billion dollar nature of the effort and the need for a fair funding model.
The debate highlighted the complexity of determining the optimal financing model for MRT lines, considering factors like line maturity, market competitiveness, and the need to avoid excessive costs or profiteering.

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13 Feb 2019

Cancellation of Art Stage Singapore Shortly before Opening

Leon Perera questioned the government's support for exhibitors affected by Art Stage Singapore's last-minute cancellation and measures to ensure the future viability of art fairs in Singapore.
Minister Grace Fu explained that while government agencies had supported Art Stage, they do not share commercial risks, and the arts community, including private and non-profit organizations, rallied to support affected exhibitors through alternative events like ARTery.
The Minister reaffirmed Singapore's commitment to being a global hub for Southeast Asian art, highlighting the resilience of the arts ecosystem despite the disappointment of the cancellation.
Leon Perera raised concerns about declining exhibitor numbers and the local collector base, asking if strategies would change, and suggested an early warning system for event cancellations to avoid disruptions.
Minister Fu responded that while the government encourages commercial proposals and monitors market growth, imposing financial disclosures on private organizers is inappropriate, and she remains optimistic about Singapore's art market despite the setback.

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12 Feb 2019

Update on Roadmap and Industry Transformation Map for Singapore's Energy and Chemicals Sector

The Ministry for Trade and Industry provided an update on the Energy and Chemicals Industry Transformation Map (ITM), launched in October 2017, which aims to create 1,400 new jobs and contribute $12.7 billion to Singapore’s GDP by 2025 through transformation and growth strategies.
The sector has made progress, including 10 plants adopting Industrial Internet of Things (IIoT) technologies and five application development centres established to support specialty chemicals innovation, with initiatives like Professional Conversion Programmes reskilling 86 mid-career workers.
The United States is the largest foreign investor in Singapore’s Energy and Chemicals sector, accounting for the majority of net fixed assets, and the government continues to work with tripartite partners to ensure manpower needs are met through advisory committees and training programmes.

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12 Feb 2019

Cost of Ensuring Maritime Safety in Singapore Waters

Gan Thiam Poh queried the total expenditure since Singapore's independence on ensuring safety, security, and environmental control in Tuas South waters.
Khaw Boon Wan explained that multiple agencies coordinate their statutory duties in the waters, making it impossible to isolate a specific cost for Tuas South.
The debate highlighted the complexity of attributing exact financial figures to maritime safety efforts in a single area.

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12 Feb 2019

Approval Rate for HDB Non-concessionary Housing Loans

Ong Teng Koon asked about the approval rate for non-concessionary HDB loans and whether HDB could expand such loans for residents who cannot secure bank financing, while proposing a less risky over-collateralized loan structure.
The Minister for National Development explained that HDB provides up to two concessionary loans and may consider a third on a case-by-case basis, having assisted about 20% of the 4,500 appeals for a third loan in the past year.
He clarified that HDB does not approve a third loan if a commercial bank loan is available, and when applicants cannot get a bank loan, it is typically due to insufficient income to service the debt.
The Minister emphasized that increasing non-concessionary loans is constrained by the need to ensure applicants are not overstretching themselves financially and that they should first build up savings and stable income.

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