Economy & business — Topics

1 Oct 2018

Monopolising of Hospital Cleaning Contracts

Zainal Sapari asked the Minister for Health about the number of cleaning service providers contracted by hospitals under the Ministry and how the Ministry prevents monopolisation by ensuring opportunities for other cleaning companies.
Gan Kim Yong stated that the three public healthcare clusters (NUHS, NHG, and SingHealth) are served by four different cleaning providers.
The Ministry uses an open tender process where all cleaning companies can bid for consolidated contracts or sub-components, allowing smaller and newer vendors to participate.
Tenders are evaluated on both price and quality to ensure cleaning providers meet healthcare institutions' requirements cost-effectively.

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1 Oct 2018

Variable Capital Companies Bill

The Variable Capital Companies (VCC) Bill aims to enhance Singapore’s competitiveness as a fund management hub by introducing a flexible corporate structure that allows funds to issue and redeem shares without shareholder approval and use capital to pay dividends.
Members expressed support but raised concerns about operational flexibility, sub-fund legal identity, and potential risks, including systemic volatility, misconduct, and reputational damage, while seeking clarifications on tax incentives, investor safeguards, and talent development.
The Second Minister confirmed that VCCs will access existing tax incentives, sub-funds will be segregated without separate legal identity to balance efficiency and creditor protection, and AML/CFT requirements will be enforced to safeguard Singapore’s reputation.

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1 Oct 2018

Variable Capital Companies Bill

The Variable Capital Companies Bill introduces a new corporate structure tailored for investment funds, designed to strengthen Singapore's position as a leading Asian fund management and domiciliation hub.
The VCC framework allows for flexible capital management, dividend payments from capital, and the use of umbrella structures with sub-funds, catering to both traditional and alternative fund strategies.
The Bill includes regulatory safeguards such as mandatory MAS-regulated fund managers, board director duties, financial statement audits, and segregation of sub-fund assets to protect investors and creditors.
VCCs are expected to attract fund domiciliation to Singapore, generating economic benefits, creating jobs in service sectors, and supporting the growth of the financial industry.

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1 Oct 2018

Insolvency, Restructuring and Dissolution Bill

The bill consolidates Singapore's corporate and personal insolvency laws into a single statute to improve clarity and efficiency, while establishing a new licensing regime for insolvency practitioners to raise professional standards.
Key enhancements to debt restructuring include restricting ipso facto clauses to prevent contract termination solely due to insolvency proceedings, introducing creditor-approved judicial management, and allowing third-party funding for legal actions by judicial managers or liquidators.
The debate highlighted concerns about protecting employees' wage claims in insolvency, with assurances that their priority remains unchanged, and emphasized balancing creditor interests with the goal of strengthening Singapore as an international debt restructuring hub.

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1 Oct 2018

Electricity (Amendment) Bill

The Bill updates the Electricity Act to enhance the security, reliability, and competitiveness of electricity supplies, including allowing EMA to direct connections between licensees for network expansion and clarifying the right of small consumers to revert to regulated tariffs.
It strengthens protection of critical infrastructure and safety by rationalizing offences, increasing penalties for damaging electricity infrastructure, and expanding enforcement against unlicensed electrical work.
The amendments align procedural and technical provisions with the Gas Act for consistency, such as enabling EMA to issue anti-competitive guidelines and harmonizing controls on ownership of electricity licensees.
During the debate, a Member raised concerns about centralised grid vulnerabilities and suggested exploring micro-grids and better public communication during outages; the Ministry responded by highlighting ongoing micro-grid tests and cybersecurity measures.
The Ministry also addressed questions on electricity retail competition, assuring that consumers, including seniors, are supported with advisory services and can choose to remain with the regulated tariff if they prefer.

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1 Oct 2018

Gas (Amendment) Bill

The Bill updates the Gas Act to enhance gas supply security, safety regulation, and protection of critical infrastructure, including allowing EMA to direct measures during severe gas shortages and expanding offences for damaging gas pipelines.
Amendments aim to facilitate competition in the gas market by enabling EMA to issue anti-competitive practice guidelines and clarify procedural provisions, such as appeal processes and cost recovery.
The debate highlighted Singapore's heavy reliance on imported natural gas, the need for diversification including LNG, and efforts to build energy resilience, sustainability through solar PV, and public preparedness for disruptions.

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1 Oct 2018

Goods and Services Tax (Amendment) Bill

The Goods and Services Tax (Amendment) Bill was introduced to amend the Goods and Services Tax Act and make a consequential amendment to the Income Tax Act.
The Bill was presented by the Second Minister for Finance, Mr Lawrence Wong, with the recommendation of the President signified.
The Bill was read for the first time and scheduled for a second reading at the next available parliamentary sitting.

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1 Oct 2018

Developers (Anti-Money Laundering and Terrorism Financing) Bill

The Developers (Anti-Money Laundering and Terrorism Financing) Bill was presented by Minister for National Development Mr Lawrence Wong and read for the first time in Parliament.
The Bill aims to amend the Housing Developers (Control and Licensing) Act and the Sale of Commercial Properties Act to implement certain recommendations from the Financial Action Task Force.
The Bill was scheduled for a second reading at the next available parliamentary sitting and ordered to be printed.

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1 Oct 2018

Impact of Hike in Water Prices on Overall Consumption Patterns

The Minister stated that water prices are raised to reflect scarcity and rising costs, which supports financial sustainability and encourages conservation.
Household water consumption in Singapore has decreased, attributed to both price adjustments and ongoing water conservation measures like efficiency standards and labelling schemes.
The government is expanding efforts such as mandatory water efficiency labelling, phasing out inefficient appliances, and installing smart devices in homes to further reduce water usage.

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1 Oct 2018

Audits on Social Enterprises Managing Hawker Centres to Prevent Charging of Hidden Fees

The Ministry stated that the National Environment Agency (NEA) audits social enterprises managing hawker centres to ensure transparency and that all mandatory charges are declared upfront, with any new charges requiring NEA approval.
The Ministry highlighted benefits of these social enterprises, such as introducing affordable meal options, improving hygiene and vibrancy, and supporting new hawkers through training programs.
Concerns about optional fees and stallholder profitability were addressed, with the Ministry noting that optional charges are not mandatory, place managers monitor centres regularly, and operators bear rental risks.
The Ministry is not considering rental subsidies at this time, emphasizing that stallholders enter agreements with full knowledge of costs, while keeping a close watch on the sustainability of hawker centres.
Social enterprises are deemed sustainable as they meet key performance indicators, with the government refining the management model to balance affordability for hawkers and food quality for patrons.

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1 Oct 2018

Considerations for Singapore’s Agreement to Malaysia’s Request to Postpone High-Speed Rail Project

Singapore agreed to Malaysia’s request to suspend the High-Speed Rail project for two years until May 2020 in the spirit of bilateral cooperation, though it could have enforced the original agreement and sought compensation.
The suspension will push the project’s completion to 2031 and incur abortive costs of S$15 million, which Malaysia will reimburse by January 2019.
If Malaysia does not resume the project by May 2020, it will be deemed terminated, and Malaysia must reimburse Singapore for all project implementation costs incurred up to the suspension.
Singapore remains open to discussions with Malaysia on reducing costs during the suspension but is not obliged to accept any proposed changes.
Staff working on the HSR project will be redeployed to other MRT-related projects in Singapore during the suspension to utilize their skills.

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10 Sep 2018

Stakeholders Registered under SG Enable or Have Employment Programmes for Special Needs Adults

SG Enable and its partners have collaborated with over 1,000 employers to hire persons with disabilities, offering advisory services, training, job placement, and support.
The government provides financial incentives like the Special Employment Credit and grants under the Open Door Programme to assist employers in hiring and integrating persons with disabilities.
Initiatives such as the annual Inclusive Business Forum and the Enabling Employers Network aim to share best practices and encourage more inclusive hiring.
Efforts are underway under the Third Enabling Masterplan to enhance job opportunities, refine training programs, and collaborate with industry leaders.
MSF continues to work with partners to expand employer participation and improve workplace adaptations for persons with disabilities.

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10 Sep 2018

Take-up Rate for Aircraft Leasing Scheme

Mr Dennis Tan Lip Fong asked the Ministry for Trade and Industry about the current take-up rate of the Aircraft Leasing Scheme, the participation of top companies, and how Singapore’s scheme compares to rivals like Hong Kong and Ireland.
The Ministry explained that Singapore’s competitiveness stems from its network of tax agreements, strong financial ecosystem, and established aviation industry, with the scheme being one of several tools to grow the sector.
Eight of the top 10 aircraft leasing companies operate in Singapore, though the scheme is optional and companies vary in size and business model, with all required to comply with local accounting and tax rules.
Singapore is recognised as a leading global aircraft leasing hub alongside Ireland, but faces regional competition from cities aiming to capture Asia’s growing air travel demand.

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10 Sep 2018

Progress in Supporting Singapore Companies Go Regional

The Ministry supports regional expansion through grant schemes like the Market Readiness Assistance and Global Company Partnership, helping over 2,000 companies in 2017 with many expanding within Southeast Asia.
Talent development programmes such as the Youth Talent Initiative and ASEAN Leadership Programme aim to build a workforce with specialised knowledge and networks in regional markets.
Enterprise Singapore facilitates overseas projects and market access, with its network assisting over 450 projects and launching the Plug and Play Network in 2017.
As ASEAN Chair, Singapore signed new agreements on services, trade facilitation, and e-commerce to improve regional connectivity and reduce business costs.
The government remains committed to ongoing support for companies seeking international opportunities, with regular reviews of schemes to provide tailored assistance.

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10 Sep 2018

Pre-ticked Boxes for Purchase of Additional Goods and Services in Online Transactions

Joan Pereira asked whether pre-ticked boxes for additional purchases or consent in online transactions can be made illegal.
Chan Chun Sing stated the government balances pro-enterprise goals with consumer protection, advising consumers to review terms and suppliers to be transparent.
The government noted the suggestion on pre-ticked boxes and will study it further with stakeholder feedback and global best practices.

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10 Sep 2018

Making Union Membership Fees/Dues Tax Deductible or as a Relief

Patrick Tay asked if union membership fees could be made tax deductible or treated as a relief, similar to practices in other countries.
Heng Swee Keat explained that Singapore’s tax rules do not allow deductibility for union fees, consistent with other jurisdictions like Hong Kong, as all expenses are subject to the same tax treatment.
The government acknowledged the importance of unions to Singapore’s tripartism and competitiveness, and will continue supporting them through various grants instead.

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10 Sep 2018

Complaints from Mobile Customers about Being Subscribed to Third-party Services without Their Consent

Joan Pereira raised concerns about mobile customers being subscribed to third-party services without consent, asking about the causes, preventive measures, and support for elderly victims.
S Iswaran explained that complaints often arise from users not reading terms and conditions, and highlighted IMDA’s measures including clearer disclosures, a free PRS barring service that reduced complaints by 80% since 2012, and consumer education efforts.
IMDA intervenes to engage service providers, who may waive charges on goodwill basis, and activates barring services for affected consumers, while urging vigilance in understanding terms before subscribing.

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10 Sep 2018

Annual Average Subsidy Disbursed Per CHAS Cardholder

Assoc Prof Daniel Goh Pei Siong asked for the annual average subsidy per CHAS cardholder since the scheme started and the projected annual expenditure for the next five years.
Minister Gan Kim Yong stated that in 2017, $154 million was disbursed to about 650,000 beneficiaries, averaging over $200 per beneficiary, compared to $13 million in 2012 for 75,000 beneficiaries, averaging about $170 per beneficiary.
The Ministry of Health plans to expand CHAS subsidies to all Singaporeans with chronic conditions, which will increase the total projected subsidies, though specific details are still being worked out.

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10 Sep 2018

Government Contributions or Subsidies for Wages of Long-term Care Workers

Christopher de Souza inquired about increasing government contributions or subsidies for the wages of long-term care workers, including those in voluntary welfare organisations.
The Ministry of Health has provided over $200 million in direct funding to 59 long-term care service providers between 2012 and 2017 to help defray operating costs, including manpower expenses, leading to an average salary increase of about 30% for local workers.
The government also supports skills training, scholarships, grants, productivity improvement, and job redesign initiatives to enhance the value of jobs alongside salary increases.
The Ministry will continue efforts to improve career opportunities in the long-term care sector and regularly review funding support for staff salaries to ensure adequate recognition.

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10 Sep 2018

Reason for Consistently Higher Number of Expired Category D (Motorcycle) COEs

The Minister explained that motorcycle dealers commonly bid for Category D COEs under their names and stockpile Temporary COEs (TCOEs) to facilitate immediate motorcycle delivery, a model that differs from the car trade where TCOEs are only bid upon confirmed demand.
This business model means dealers bear the risk of not using all TCOEs within the six-month validity period, with about 3% of Category D TCOEs expiring over the past three years.
There is no evidence of market speculation causing the higher number of expired Category D COEs.

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