Economy & business — Topics

12 Feb 2019

Study on Retail Electricity Market Liberalisation’s Benefits to Households

The Ministry confirmed that studies and international reviews were conducted before implementing the Open Electricity Market (OEM) to ensure households benefit from greater choice, competitive pricing, and innovative offers without compromising supply reliability.
Data shows that households switching under OEM receive electricity rates about 20% to 30% lower than the previous regulated tariff, with increasing switch rates across rollout zones, indicating growing consumer uptake.
The regulated tariff from SP Group reflects long-term infrastructure costs and is benchmarked internationally, while retailer prices fluctuate with market conditions; consumers can switch back to SP if needed.
The government opted for an opt-in rather than opt-out approach, emphasizing consumer education and active choice to allow households to select plans that best meet their needs over time.

Summary written by AI

Overview Original source

11 Feb 2019

Status of Social Enterprises in 2018

Ms Anthea Ong queried the number of social enterprises (SEs) in 2018, how many had revenues above $150,000, were over three years old, and their impact on the social sector.
Minister Desmond Lee reported that as of 31 March 2018, raiSE had 336 SE members, with 92 having annual revenue of at least $200,000 and 148 registered or incorporated in 2015 or earlier.
SEs bridge the gap between charities and for-profit companies by providing business solutions to social needs, fostering innovation and consultancy in the social service sector.
In the 2017 financial year, 120 raiSE members employed 869 disadvantaged and needy beneficiaries, highlighting SEs' role in creating employment opportunities.

Summary written by AI

Overview Original source

11 Feb 2019

Study on Greater Flexibility for Monthly CPF Payouts

Assoc Prof Walter Theseira inquired whether the Ministry of Manpower has studied allowing greater flexibility for CPF members to tailor their monthly payouts, such as deferring portions, to match changing financial needs in retirement.
Mrs Josephine Teo highlighted that the CPF system already offers flexibility through options like higher RA top-ups, delayed payouts, and the CPF LIFE Escalating Plan, which adjusts payouts based on individual needs.
The Ministry emphasized the need to balance flexibility for diverse retirement needs with maintaining a simple and adequate CPF system, encouraging members to consult the CPF Board for personalized advice.

Summary written by AI

Overview Original source

11 Feb 2019

CPF Withdrawals for Annual Premiums of Endowment Policies Going Back to CPF upon Maturity

Patrick Tay asked if CPF members aged 55 and above can withdraw from their CPF accounts to pay annual premiums for endowment policies that will return funds to CPF upon maturity.
Josephine Teo explained that such endowment policies were sold under the CPF Investment Scheme before 2001 and that members aged 55 and above can continue paying premiums from their Ordinary Account after meeting the Full or Basic Retirement Sum requirements.
She added that for members who have not set aside the required Retirement Sum, the CPF Board will consider allowing premium payments on a case-by-case basis.

Summary written by AI

Overview Original source

11 Feb 2019

Unusual Divergence in Price Trends for Private Homes and HDB Resale Flats in 2018

The Minister acknowledged that divergence between private home and HDB resale price indices occurred, including between Q2 2017 and Q3 2018, driven by euphoric sentiment in the private property market.
He attributed the divergence to unsustainable price increases in private homes, which prompted the introduction of cooling measures in July 2018.
The Minister stated that the government will continue to monitor both markets to ensure stability and sustainability.
He did not directly address whether leasehold decay concerns contributed to the divergence or whether it is a cause for concern if unaddressed.
Both indices are confirmed to track all transactions in their respective markets, with convergence generally expected due to shared underlying factors.

Summary written by AI

Overview Original source

11 Feb 2019

Impact of No-deal Brexit on Singapore and Effect of Brexit on EU-Singapore Free Trade Agreement

Singapore faces limited direct trade disruption with the UK under a no-deal Brexit, as current WTO terms would apply, but broader global supply chain and sentiment impacts could indirectly affect growth.
The EU-Singapore Free Trade Agreement (EUSFTA) ratification is on track and unaffected by Brexit, with implementation possible under an implementation period if the UK agrees on a withdrawal with the EU.
Singapore is preparing for all Brexit scenarios, including working with UK agencies and helping businesses navigate potential disruptions, while exploring a future bilateral trade agreement with the UK based on EUSFTA principles.
The Minister highlighted that the UK remains a key economic partner for Singapore, with substantial trade and investment links across sectors such as pharmaceuticals, professional services, and consumer goods.
Government agencies like MTI and Enterprise Singapore are coordinating to support Singaporean companies with near-term issues, such as shipment delays and talent supply, in case of a no-deal Brexit.

Summary written by AI

Overview Original source

11 Feb 2019

Encouraging Employment of ITE Graduates in Energy and Petrochemical Sector

Mr Saktiandi Supaat asked about the employment rates of ITE graduates in the energy and petrochemical sector, the accessibility of internships, collaboration between government agencies and ITE, and the enrolment status of SMU's International Trading Institute courses.
Minister Ong Ye Kung reported that six in 10 ITE graduates from relevant courses are in full-time permanent employment, with six in 10 in jobs related to their studies, and noted that ITE collaborates with industry and government agencies, requires internships, and regularly updates its curriculum.
The Minister highlighted an example of ITE's Chemical Process Technology certificate being developed with the Economic Development Board and industry partners, and mentioned that over 740 students have enrolled in SMU's International Trading and Maritime Business Operations courses since 2006.

Summary written by AI

Overview Original source

11 Feb 2019

Facilitating Hassle-free Compensation by Singapore-based Airlines to Travellers for Significant Flight Delays

Murali Pillai inquired whether the Ministry of Transport would consider introducing regulations to enable hassle-free compensation from Singapore airlines to travellers for significant flight delays.
Khaw Boon Wan explained that airlines delay flights to address technical issues or weather safely, and that passenger interests are protected under a national consumer framework through airline Conditions of Carriage, with options for redress via CASE or the Small Claims Tribunal.
The Ministry of Transport will continue to review the adequacy of consumer protection policies in the air transport market.

Summary written by AI

Overview Original source

11 Feb 2019

Promoting Career Opportunities in Energy and Petrochemical Sector

The Energy and Chemicals industry contributes about 3% to Singapore's GDP and employed around 28,000 people in 2017, with a workforce primarily in their 30s and 40s, a 3:1 PMET to non-PMET ratio, and a 2:1 male to female ratio.
The government has developed a Skills Framework for the sector, co-created with industry and training institutions, to outline career pathways and required skills, and is investing in niche training programs like advanced diplomas at polytechnics.
Efforts to attract young Singaporeans include outreach programs such as "Chemical Experience Day" and four SkillsFuture Earn and Learn Programmes, which had placed 134 trainees in 23 companies by December 2018, with continued collaboration among government, industry, and unions to support workforce development.

Summary written by AI

Overview Original source

11 Feb 2019

Visits to Polyclinics by Elderly Persons and Basis for Setting Withdrawal Limits for Healthcare Schemes

Zainal Sapari asked about elderly outpatient clinic visits, the basis for MediSave withdrawal limits of $500 and $200, and whether limits can be raised based on savings.
Gan Kim Yong stated that elderly patients with chronic conditions average six clinic visits per year with $200 bills, while those without average three visits with $60 bills, and that withdrawal limits are reviewed to balance current use and future savings.
The limits are deemed adequate for most, with case-by-case appeals and MediFund referrals available, but higher limits based on savings are cautious due to risks of depleting funds for future needs.

Summary written by AI

Overview Original source

11 Feb 2019

Proposal for Government to Increase Funding for Special Education Schools

Ong Teng Koon proposed increasing government funding for Special Education (SPED) schools to expand means test criteria and help families manage educational expenses for children with special needs.
Ong Ye Kung highlighted that SPED schools already receive significantly higher funding than mainstream schools, with regular reviews and steady increases to address different learning needs and rising costs.
The government subsidizes a substantial proportion of SPED costs, provides a Financial Assistance Scheme covering fees and other expenses, and has revised eligibility criteria to support more low-income families.
Schools can exercise discretion to extend support to families who may not meet formal eligibility criteria, ensuring cost does not hinder access to SPED education.
The government commits to collaborating with voluntary welfare organizations running SPED schools to maintain affordability and accessibility for all students.

Summary written by AI

Overview Original source

11 Feb 2019

Government Support for Employers to Encourage Healthy Lifestyle Activities among Employees

Member Gan Thiam Poh asked the Government to incentivize employers to encourage daily employee exercises for long-term health benefits.
The Government currently supports employers through integrated workplace health initiatives by the Workplace Safety and Health Council and Health Promotion Board, including co-funded exercise programs and corporate components like the National Steps Challenge.
Existing schemes offer co-funding of up to 70% for SMEs and 50% for non-SMEs for approved workplace exercise programs, and the Government will continue reviewing these initiatives.

Summary written by AI

Overview Original source

11 Feb 2019

Profiteering by Scalpers who Resell Tickets for Concerts and Sports Events at High Prices

Mr Ong Teng Koon asked the Minister for Trade and Industry if legislation will be considered to prevent professional scalpers from profiteering on resold event tickets.
Minister Chan Chun Sing stated that there is no general prohibition on resale, with prices determined by willing buyers and sellers, and the government should not set profit margins.
He advised consumers to check terms, compare prices, and verify ticket legitimacy with official organisers to protect themselves.
Consumers can report unfair trading practices to CASE, while the Competition and Consumer Commission and Police can investigate and take action against errant suppliers.
The response emphasises consumer vigilance and existing regulatory avenues rather than new legislation to control resale prices.

Summary written by AI

Overview Original source

11 Feb 2019

Assessment of Singapore Companies' Vulnerability Given China's Weakening Economic Growth

Singapore companies have invested across diverse sectors in China and have adapted their business calculations to China's gradual economic slowdown, which has seen GDP growth ease from 10.6% in 2010 to 6.6% in 2018 with a 6.2% IMF projection for 2019.
Despite headwinds, opportunities remain as China liberalises and pursues regional strategies like the Greater Bay Area and Yangtze River Delta, with provinces such as Guangdong, Jiangsu, and Shanghai maintaining growth rates at or above the national average.
Singapore supports its companies through provincial business councils and the upgraded China-Singapore Free Trade Agreement, which will improve market access when ratified.
Chinese investment in Singapore has grown, reaching S$36.3 billion by end-2017, creating scope for closer partnerships and leveraging networks to tap regional opportunities.

Summary written by AI

Overview Original source

11 Feb 2019

Precious Stones and Precious Metals (Prevention of Money Laundering and Terrorism Financing) Bill

The Bill establishes a comprehensive anti-money laundering and counter-terrorism financing regime for the precious stones and metals sector, introducing registration, customer due diligence, record-keeping, and reporting requirements to align with international standards.
It addresses gaps identified by the Financial Action Task Force by regulating dealers, intermediaries, and transactions involving asset-backed tokens, while providing a risk-based approach and exemptions for entities already under other regulatory regimes.
The government engaged industry stakeholders in consultations and plans to provide guidance, outreach, and support to help regulated dealers comply, including a transition period and measures to manage compliance costs and protect customer data.

Summary written by AI

Overview Original source

11 Feb 2019

Rental Rates for Hawker Stalls at Centres Managed by NEA and Social Enterprises

The Senior Minister of State reported that hawker stalls in the seven new centres managed by Socially-conscious Enterprises have median rental of $2,000 per month, ranging from $750 to $3,700, comparable to existing centres after accounting for larger stall sizes and better amenities.
Additional operating costs such as Service and Conservancy Charges and table-cleaning fees are similar across both new and existing centres, while new centres offer centralised dishwashing services to reduce manpower and utility expenses for stallholders.
To help manage costs, hawkers in new centres are receiving grants for centralised dishwashing services, with a 50% cost reduction in the first year and 30% in the second year, alongside other variable expenses like utilities and raw materials depending on business type and market conditions.

Summary written by AI

Overview Original source

11 Feb 2019

Safeguards for Employers Who Make Advance Salary Payments for Their Foreign Domestic Workers to Settle Loans

The Ministry of Manpower requires employment agencies to fully disclose fees and refund policies for advance salary payments made by employers to settle foreign domestic workers’ loans, with refunds typically available if the worker leaves early or is repatriated.
MOM inspects agencies, acts on feedback, and has taken action against agencies that fail to state refund policies, while employers can choose agencies that offer customized packages without advance payments.
A suggestion to require bonds for advance payments was noted but needs careful consideration to avoid passing costs to employers, and MOM enforces fee caps and can revoke licenses for non-compliant agencies.
MOM has no jurisdiction over foreign agencies but will investigate local cases and collaborate with embassies to address malpractices at the source.

Summary written by AI

Overview Original source

15 Jan 2019

Supplementary Retirement Scheme

Assoc Prof Walter Theseira requested detailed data from the Minister for Finance on the number of contributors and amounts contributed to the Supplementary Retirement Scheme (SRS) over the last five years, broken down by marginal income tax rate, and asked if the Ministry has studied the determinants of SRS contribution behavior.
Heng Swee Keat explained that the SRS, introduced in 2001, is a tax-incentivized voluntary scheme to complement the Central Provident Fund (CPF), with statistics published annually, noting that about 60% of account holders contribute each year.
Approximately 90% of contributors earn above $80,000 (average marginal tax rate ~15%) and contribute around $14,000 annually, while the remaining 10% earn below $80,000 (average marginal tax rate ~3.2%) and contribute around $9,000 annually, a pattern stable over five years.
The Minister acknowledged that understanding SRS contribution behavior involves complex factors like awareness, income levels, and personal willingness, and the Government will continue studying this with academics and researchers.

Summary written by AI

Overview Original source

15 Jan 2019

Study of Public Preferences for Government Expenditure

Assoc Prof Walter Theseira proposed that the Ministry of Finance study public preferences for government expenditure by allowing income tax filers to hypothetically allocate 10% of their taxes toward specific ministries and publicizing the results to enhance accountability and responsiveness.
Heng Swee Keat acknowledged the importance of understanding public needs for budget allocation, noting existing methods like surveys, feedback channels, and annual Budget feedback exercises such as REACH’s Listening Points.
The Minister highlighted examples of how public feedback influences spending, such as increased social spending reflecting collective aspirations, while balancing resources for defense, law, and infrastructure.
The government plans to continue exploring various ways to understand public preferences and clarify the link between revenue and expenditure.

Summary written by AI

Overview Original source

15 Jan 2019

Income Tax Rate of Employment Pass Holders

Gan Thiam Poh asked if the government would raise income taxes for Employment Pass holders to address rising social costs.
Heng Swee Keat explained that while revenue needs are increasing, the tax system must remain fair and internationally competitive, and Employment Pass holders already pay taxes progressively based on income.
He noted that tax treaties require non-discrimination on nationality, and tax reliefs are designed to support social objectives for residents, especially Singaporeans.
The government uses tax revenues to provide benefits like education, healthcare, and housing subsidies primarily for citizens, which are not available to Employment Pass holders.

Summary written by AI

Overview Original source