Economy & business — Topics

15 Jan 2019

Link Between Size of Endowment Funds and Differences in Student Educational Resources, Expenditure and Opportunities

Assoc Prof Walter Theseira questioned whether the Ministry has studied how larger endowment funds at older autonomous universities affect student resources, expenditure, and opportunities, and asked about measures to help newer universities build endowments and ensure endowment differences do not unduly impact education quality.
The Senior Parliamentary Secretary explained that endowment sizes vary due to fundraising ability, investment returns, and institutional age, but government funding remains the primary source, with all Singaporean students receiving around 75% subsidies and additional support like enhanced matching grants for newer universities.
The response emphasized continuous government financial and other support for all autonomous universities to provide the best education, including seed funding and more generous matching grants for newer institutions to build their endowments.
Assoc Prof Walter Theseira noted significant endowment disparities, such as NUS's $4 billion versus SUSS's $400 million, and suggested the Ministry monitor how endowments are used for teaching and research, and consider this when granting operating funds to prevent disproportionate access or quality.
The Senior Parliamentary Secretary affirmed that the Ministry monitors these issues closely through regular engagement with universities, especially newer ones, to ensure long-term development and equitable educational experiences for all students.

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15 Jan 2019

Impact of Causeway Jams on Businesses in Singapore

Leon Perera questioned the extent of impact from recent Causeway jams on Singapore businesses and asked about measures to reduce future jams and their effects.
The Minister for Trade and Industry stated that businesses and agencies work together to diversify supply chains, hold buffer stocks, and time deliveries to avoid peak periods, minimizing disruptions from jams.
The minister noted that while jams may delay deliveries, no major business disruptions have been reported, and companies can use alternative routes or reserve stocks if needed.
The government will continue monitoring the situation and collaborate with businesses to enhance supply chain resilience against various risks, including Causeway jams.

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15 Jan 2019

Percentage of Land Cost in Actual Prices of BTO Flats Constructed in 2016 and 2017

The Minister for National Development stated that for BTO flats built in 2016 and 2017, land cost accounted for about 60% of the total development cost across all flat types.
This percentage was consistent for 3-room, 4-room, and 5-room flats, though it can vary by project due to specific site, design, and market conditions.
The Minister clarified that HDB treats land purchases like any other developer, with land sales benchmarked by the Chief Valuer and proceeds going to past Reserves.
The overall cost of building HDB flats is not fully covered by sale prices to keep public housing affordable, resulting in an average annual deficit of about $1.14 billion for HDB’s Home Ownership Programme from FY2015 to FY2017.

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15 Jan 2019

Proposal to Promote Use of Generic Drugs in Public Healthcare Institutions

MOH promotes generic drug use in public institutions by maintaining a cost-effective drug basket, implementing automatic substitution and monitoring, with generic usage rising from 87% in 2013 to 99% in 2017.
The Senior Minister of State noted that retail pharmacy offerings are a business decision, but efforts are underway to encourage group purchasing in the private sector to reduce costs.
Mr. Leon Perera raised concerns about pricing transparency and suggested an online resource for patients to compare drug costs, which the Minister agreed to check.

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15 Jan 2019

Review MediShield Life's Claim Limits to Address Gaps

The Ministry of Health explained that MediShield Life is part of a broader financing framework that includes subsidies, MediSave, and MediFund to keep healthcare affordable, noting that while claim limits are necessary to keep premiums reasonable, they will be reviewed more regularly (every three years) to address gaps like the recent low payout case, which was attributed to a complex procedure and high charges, though MediSave covered the patient's out-of-pocket cost.
MPs raised concerns about the adequacy of MediShield Life coverage, especially for elderly patients and complex procedures, suggesting reviews of hospital charges, more frequent adjustments to claim limits, and greater transparency on premiums and reserves to ensure public confidence and affordability.
The Minister acknowledged the need to monitor and manage healthcare costs, including considering technological advances like day surgeries in claim limit reviews, and assured that financial assistance schemes like MediFund are available, while emphasizing that the entire financing framework works together to provide holistic coverage and sustainability.

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14 Jan 2019

Impact of Progressive Wage Model on Number of Persons Employed in Cleaning, Security and Landscape Sectors

Mrs Josephine Teo explained that the Progressive Wage Model was introduced to raise wages for local workers in the cleaning, security, and landscape sectors by providing a clear progression ladder based on skills, productivity, and job responsibilities.
She noted that changes in local employment numbers in these sectors are influenced by multiple factors beyond the PWM, such as the economy, technology adoption, business process improvements, and foreign worker policies, making it difficult to attribute employment shifts solely to the PWM.
The Minister highlighted that since the PWM’s implementation, workers in these sectors have experienced significant real wage growth, with median gross wages increasing between 16% and 36% from 2011 to 2016.
She added that during this period, local unemployment rates remained low at around 3%, and employment rates stayed healthy at about 80%.

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14 Jan 2019

Number of Subsidised and Non-subsidised F&B Stalls in Hawker Centres and Average Rent Paid in Past 12 Months

The Minister reported there are over 6,000 cooked food stalls across 114 government-owned hawker centres, with about 40% (2,294) paying subsidised rent.
Subsidised stall rents are set at either $192 or $320 per month, based on the extent of upgrading works completed under the Hawker Centres Upgrading Programme.
Non-subsidised cooked food stalls paid an average rent of about $1,300 per month as of November 2018.

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14 Jan 2019

HDB Lessees Currently Servicing HDB Loans, Fixed-rate Bank Loans and Floating Rate Bank Loans

The Minister provided statistics on HDB flat owners servicing mortgages, including the number of borrowers by flat size for HDB loans and loans from financial institutions, and noted that 65% of borrowers took HDB loans while 35% took loans from banks, with most now on fixed-rate packages to reduce interest rate vulnerability.
Average monthly instalments for HDB loans were listed by flat size, along with the proportion of households paying fully via CPF, fully in cash, or using a combination, highlighting that concessionary HDB loans offer interest rate stability.
The Minister outlined government measures to manage interest rate risks, such as mortgage servicing ratio caps, loan fact sheets, and stress tests, which indicate that most HDB owners’ mortgage payments are expected to remain manageable under severe stress scenarios.

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14 Jan 2019

Communique Issued at G20 Summit in Buenos Aires on 1 December 2018

Sylvia Lim questioned the extent of the Government's agreement with the G20 communique's statement that the multilateral trading system is falling short and requires WTO reforms to improve its functioning.
Chan Chun Sing affirmed Singapore's support for the G20 Leaders' Declaration, emphasizing commitment to a rules-based international order and the need for accelerated WTO reforms to address evolving trade realities.
Singapore highlights WTO achievements like the Trade Facilitation Agreement and the Information Technology Agreement expansion while actively driving initiatives such as the WTO Joint Statement on E-Commerce to update trade rules for the digital economy.
As a small, trade-dependent economy, Singapore stresses the importance of WTO effectiveness, participates in reform discussions in Geneva and plurilaterally, and contributes to strengthening the multilateral trading system.

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14 Jan 2019

Ensuring Singapore's Food Security for Key Agricultural Products

The government employs a multi-pronged approach to food security, including diversifying import sources from around 180 countries and accrediting new suppliers like farms in Thailand for eggs.
Local agriculture is being transformed through the Farm Transformation Map, tendering new land for productivity, and enhancing funding support for advanced technology to boost domestic production.
Local farms are encouraged to internationalise, such as Apollo Aquaculture expanding to Brunei, to secure additional food supply chains back to Singapore.
A new Singapore Food Agency is being established to consolidate food-related work, with legislation to require importers to adopt preventive strategies against supply disruptions.
These strategies have strengthened food security and maintained affordability, as evidenced by Singapore ranking as the most food-secure country globally.

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14 Jan 2019

Calculation of CPF Ordinary Account Interest Rate

Assoc Prof Walter Theseira questioned whether the CPF OA interest rate calculation, based on indicative bank fixed deposit and savings rates, accurately reflects actual market deposit rates, considering banks' bonus interest schemes, and asked if the Ministry would study alternative methods to reflect average weighted interest rates and their impact on retirement adequacy.
Mrs Josephine Teo explained that CPF interest rates are pegged to comparable market investments, with the OA rate set at the higher of a three-month average of major local banks' rates or the legislated minimum 2.5% per annum, noting that the current computed rate is 0.4%, so the OA rate remains at 2.5%.
She added that banks' bonus rates are not comparable to CPF rates due to conditions like spending or salary credits and caps, making them non-uniform, and suggested members could transfer OA savings to the Special Account for higher interest rates of 4% to 6% per annum, citing significant transfers in 2017.

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14 Jan 2019

Factors that Caused Recent Increase in Price of Eggs

The Minister explained that egg prices are influenced by import prices, exchange rates, logistics costs, and supplier profit margins.
He outlined a multi-pronged strategy involving supply diversification, a stable Singapore dollar, and a competitive market to prevent profiteering.
Egg import prices from some sources rose up to 50% between June and November 2018, while others saw declines, leading to a local retail price increase of about 4%.
No evidence was found to conclude that anti-competitive practices caused the price rise, and any evidence should be reported to the relevant authorities for investigation.

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14 Jan 2019

Considerations for Award of Contract to School Bus Operators and Proposal for Fee Guideline

Schools select school bus operators through a competitive bidding process, considering factors like fare competitiveness, the operator's track record, and ability to meet school-specific needs such as bus capacity and route coverage.
The Ministry of Education enhances the bidding process to encourage more competitive offers and publishes contracted fares on its website as a reference for schools.
The Ministry does not plan to issue a fee guideline, as school bus services are customized and market-driven; instead, it focuses on measures to help operators lower costs for competitive fares.

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14 Jan 2019

Merchant Shipping (Miscellaneous Amendments) Bill

The Bill implements the 1996 Protocol to the 1976 Convention on Limitation of Liability and the 1989 Salvage Convention, updating liability limits and introducing new salvage criteria, including special compensation for environmental protection.
Additional amendments streamline the Singapore Registry of Ships, such as extending Maritime Labour Certificate validity and delegating authority to reduce registration fees, to enhance administrative efficiency and compliance.
A member expressed concern about the delayed adoption of the 1996 Protocol and suggested clarifying the interpretation of "fair rate" in salvage cases to avoid legal ambiguity, but the Minister confirmed industry support and noted that current provisions already allow discretion in salvage awards.
The debate highlighted Singapore's aim to maintain competitiveness as a maritime dispute resolution hub, with the Bill seen as aligning international standards and supporting the sector's economic role.

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14 Jan 2019

Currency (Amendment) Bill

The Bill amends the Currency Act to streamline legal tender limits for coins to a uniform limit of 20 coins per denomination per transaction, making it simpler and easier to remember while preventing abuse with large coin payments.
It introduces provisions to license companies using Intelligent Banknote Neutralisation Systems (IBNS) for cash transport, aiming to deter robberies by damaging notes during theft and free up armed police resources for other operations.
Several MPs raised concerns about the impact on low-income groups, small businesses, and the elderly, but the Minister clarified that the changes are practical and support the move toward cashless payments while preserving cash as an option.

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14 Jan 2019

Payment Services Bill

The Payment Services Bill consolidates two existing acts into a single, forward-looking framework for regulating payment services in Singapore, adopting a modular and risk-based approach that includes a licensing regime with three classes of institutions to cater to different service scales and types.
Key provisions include enhancing consumer and system protections by safeguarding customer monies, imposing anti-money laundering requirements on digital payment token services, and granting MAS powers to ensure interoperability of payment systems to reduce fragmentation.
Members of Parliament raised concerns and sought clarifications on issues such as the regulation of cryptocurrency services, the adequacy of e-wallet caps, financial inclusion for migrant workers, and the balance between innovation and risk, with the Minister affirming the Bill's balanced approach and ongoing industry consultations.

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14 Jan 2019

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

The bill seeks to regulate businesses and intermediaries dealing in precious stones and metals to prevent money laundering and terrorism financing.
It introduces licensing and compliance requirements for persons engaged in regulated dealing, aligning with international standards.
The bill also makes consequential amendments to other existing laws to ensure coherence and effectiveness in enforcement.
It was presented by the Senior Minister of State for Law on behalf of the Minister for Law and read for the first time, with the second reading scheduled for the next sitting.

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14 Jan 2019

Review Qualifying Income and Other Criteria for Workfare Income Supplement Scheme

The Minister of State for Manpower confirmed that the Workfare Income Supplement (WIS) scheme is under regular review, with the qualifying income ceiling last revised in 2017, and that the review will consider recent income increases before announcing updates.
The government highlighted that WIS is part of a broader support framework, with most recipients also receiving additional aid like U-Save rebates, GST vouchers, and medical subsidies, and emphasized a focus on skills upgrading and employment progression over a "living wage" approach.
Officials noted that real wages at the 20th percentile grew faster than the median from 2012 to 2017, and that many WIS recipients own their homes, contrasting with global norms for low-income workers.
Concerns about workers in informal employment were acknowledged, with the government prioritizing their transition to formal work for stability and CPF savings, while directing them to existing support like Social Service Offices and other schemes.
The Minister indicated openness to exploring studies on informal workers but stressed the challenges in assessing their income and the long-term goal of integrating them into the formal workforce for better support and career advancement.

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14 Jan 2019

Progress of Efforts to Uplift Private Security Industry

The government is uplifting the private security industry through the Security Industry Transformation Map, which shifts the model to integrate skilled manpower and technology, with initiatives like outcome-based contracts, digital adoption funding, and enhanced Progressive Wage Model to improve wages and career prospects.
Efforts include removing the overtime exemption by January 2021 to reduce excessive hours, introducing a new Specialist Diploma in Security Consultancy, and enhancing regulations to compound certain conduct breaches with fines, taking a calibrated approach to penalties rather than immediate prosecution.
The government encourages security agencies to move towards shorter shifts where possible, but assessments are case-by-case for incidents like responding to assistance requests, balancing security post duties with prompt response to emergencies.

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20 Nov 2018

Companies that Have Tapped on Lean Enterprise Development Scheme

Since its start in October 2015, over 11,000 enterprises have used the Lean Enterprise Development Scheme, with the Construction, Food Services, and Wholesale Trade sectors being the top three beneficiaries.
The scheme supports a variety of productivity and transformation goals, such as adopting ready solutions, developing customised improvements, or job redesign, and has contributed to Singapore’s productivity and real income growth.
Outcomes are measured through a range of metrics tailored to each enterprise’s transformation needs, and the government continues to work with industries to promote manpower-lean growth and better employment outcomes for Singaporeans.

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