Economy & business — Topics

10 Sep 2018

Possible Adverse Economic and Psychological Impact of Move to Cashless Society

Sylvia Lim asked about the potential negative economic and psychological effects of moving to a cashless society on specific groups, while the Prime Minister's representative clarified that Singapore does not aim to be fully cashless and cash will remain in use for the foreseeable future.
The government highlighted the growing adoption of e-payments, noting that over 80% of Singaporeans use them and over a million have signed up for PayNow, with benefits such as increased convenience for consumers and reduced cash handling costs for businesses.
Infrastructure like FAST, PayNow, and a standardised QR code has been developed to support e-payments, though the full benefits are still emerging as solutions proliferate and become more user-friendly.
Efforts are being made to educate the public, including seniors and workers, through programs by government agencies, banks, and community volunteers to ensure everyone can benefit from digital payments.

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10 Sep 2018

Amount Spent by HDB in Upgrading Programme for Homeowners in 2017 Compared to 2007

In FY2017, HDB spent about $590 million on upgrading programmes, compared to about $580 million in FY2007.
Approximately 253,000 flats have benefited from the Main Upgrading Programme and Home Improvement Programme (HIP), with an additional 230,000 flats eligible for HIP extension.
Upgrading works, such as lift upgrades and amenities, enhance living convenience and vibrancy, while HIP subsidises maintenance to help maintain flat values as they age.

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10 Sep 2018

Regulation of CareShield Life under Insurance Act to Protect Premiums Collected and Payouts Claimed

CareShield Life will not be subject to the Insurance Act as it will be administered by the Government, but it will follow similar regulatory standards for solvency set by the Monetary Authority of Singapore.
The Government will enact new legislation to create a CareShield Life Fund, which will hold all premiums and investment returns, be audited annually, and be used solely for policyholders.
An independent council will be established to advise on and recommend adjustments to premiums and payouts based on actuarial soundness, ensuring the scheme’s long-term sustainability.
The new legislation aims to ensure proper governance and transparency, with financial accounts made public to account for all monies collected and paid out.

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10 Sep 2018

Scams Deceiving Businesses into Signing Contracts with Companies Purporting to be Authorised Government Agencies or Company Registrars

The Government, through ACRA, takes firm action against companies that impersonate official agencies and has investigated seven entities in the past six years for failing to display proper registration details, which can lead to fines.
Businesses are advised to remain vigilant, verify any unsolicited correspondence using ACRA’s free online search tool, and carefully review terms before signing any agreements.
ACRA and CASE provide an online guide with a checklist to help businesses identify scams and conduct background checks, and victims should report suspected fraud to ACRA and the Police.

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10 Sep 2018

Singaporean Long-term Care Workers' Salary and Career Prospects

The debate highlights that only about 40% of long-term care workers are Singaporeans, with a higher local presence in home and centre-based care compared to residential facilities.
The Ministry of Health and the Agency for Integrated Care are enhancing career prospects and salaries through training subsidies, scholarships, and grants for skills development.
Over $200 million was extended between 2012 and 2017 to raise salaries, leading to a 30% average increase for local workers in supported providers.
Efforts include supporting process improvements, technology adoption, and developing a Healthcare Skills Framework to guide career progression.
The government plans to continue collaborating with providers to improve opportunities and regularly review salaries for long-term care workers.

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10 Sep 2018

Impact on Local Businesses and SMEs of Singaporeans and PRs Shopping in Malaysia

The Minister noted the lack of official data on overseas spending by Singaporeans and Permanent Residents but highlighted that local retailers face competition from overseas and online shopping, which benefits consumers.
Competition from abroad and online platforms encourages Singaporean businesses to enhance their offerings through better value, quality, and service, as seen in the growth of tourist shopping spending in Singapore.
Some SMEs, like the homegrown brand Commune, are innovating with creative marketing and experiential retail strategies to improve customer engagement and stay competitive.
The government emphasized that competition drives economic growth by pushing businesses to improve capabilities and explore overseas markets, strengthening Singapore’s overall economy.

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10 Sep 2018

Impact of Rise of Factoryless Goods producing Firms on Singapore's Economic Competitiveness and Exports

Chan Chun Sing noted that Factoryless Goods Producing Firms (FGPFs) contribute to higher-value manufacturing, adding 5.2% to the sector's value-added despite being only 0.5% of firms in 2016.
FGPFs create skilled, well-paying jobs, accounting for about 2,700 manufacturing jobs in 2016, with two-thirds held by Singaporeans and 80% being high-skill positions.
These firms collaborate with local manufacturers on R&D and advanced processes, strengthening Singapore's manufacturing capabilities and competitiveness.
The government plans to attract investments in both production and related services while helping local firms move into higher-value manufacturing activities.

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10 Sep 2018

Alleged Improper Transfer of S$10 Million to oBike Hong Kong

Dennis Tan Lip Fong inquired if the Commercial Affairs Department will investigate former oBike Singapore directors and management over an alleged improper transfer of S$10 million collected from customers as prepayment to oBike Hong Kong.
K Shanmugam confirmed that the Police are investigating oBike Singapore for misappropriation of funds but cannot provide further details as the investigation is ongoing.

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10 Sep 2018

E-commerce Scams in Online Marketplaces

The Minister acknowledged that a minority of e-commerce scams are solved, with low prosecution rates, largely due to overseas syndicates and the anonymity of the internet.
The Ministry is collaborating with online platforms to implement protective measures, including user advisories on risk minimization and the use of secured payment systems.
Platforms like Carousell have introduced features such as CarouPay, an escrow system that releases payment only after buyers confirm receipt of items.

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10 Sep 2018

Mechanisms to Ensure Affordability of School Bus Services to all School-going Children

Schools use a competitive bidding process to select bus operators, with fare competitiveness as a key factor, enhanced since 2015 to include more operators.
Government measures like COE exemptions and road tax rebates help lower operators’ costs, enabling more competitive fares.
MOE provides a transport subsidy covering 50% of monthly bus fares for primary students on the Financial Assistance Scheme since April 2015.
Approximately 3,600 primary students currently benefit from MOE’s transport subsidy.

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10 Sep 2018

Jobs Created by New Firms in Last Five Years

Between 2012 and 2016, young firms created an average of over 106,000 jobs annually, making up nearly 90% of the 120,000 jobs created each year.
The jobs from these young firms are concentrated in high-growth sectors such as wholesale trade, manufacturing, information and communications, and finance and insurance, which offer wages above the economy-wide average.
The government is committed to partnering with industry and stakeholders to foster entrepreneurship and attract new investments to sustain job creation.

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10 Sep 2018

New Sectors Considered for Implementation of Progressive Wage Model

Leon Perera asked the Minister for Manpower about new sectors beyond security, cleaning, and landscaping being considered for the Progressive Wage Model (PWM), and whether it will be implemented in the eldercare sector.
Josephine Teo stated that PWM has improved wages for over 70,000 resident workers in existing sectors and is being developed through tripartite negotiations, with plans to expand voluntarily to sectors like bus captains, baggage handlers, and lift services.
For the eldercare sector, the Ministry of Health has supported wage increases and training, and will study with tripartite partners whether to introduce a PWM.

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10 Sep 2018

Update on Progress of Industry Transformation Maps for Precision Engineering and Electronics Industries

The Precision Engineering and Electronics Industry Transformation Maps (ITMs), launched in 2016 and 2017 respectively, are being implemented in collaboration with industry, unions, and educational institutions to transform the sectors through growth, diversification, and capability deepening.
Key initiatives include establishing Model Factories to help SMEs adopt advanced technologies and fostering collaborations between multinational companies and SMEs, which has supported over 15 electronics startups and featured seven at the Consumer Electronics Show 2018.
The ITMs have also focused on workforce development, rolling out Skills Frameworks and leadership programs like the Semiconductor Leadership Accelerator, which has trained about 40 Singaporean professionals.
The Singapore Smart Industry Readiness Index has been deployed to assist companies in adopting Industry 4.0 technologies, with over 170 funded assessments awarded, 40% to SMEs and more than a third to Precision Engineering and Electronics companies.
The ITMs are reviewed continually based on industry feedback and economic conditions, with ongoing collaboration with tripartite partners to support the transformation journey.

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10 Sep 2018

Lowering Cost Burden to Hawker Centre Tenants and Stallholders from Implementation of e-payments and Other Measures

The Government is co-funding up to 70% of the operating costs for productivity initiatives like centralised dishwashing and tray return systems to lower initial costs for stallholders.
NEA provides grants such as the Hawkers’ Productivity Grant, which funds kitchen automation equipment up to $5,000, and has approved 170 applications as of August 2018.
The Government launched a Call-for-Collaboration to promote e-payment solutions, reducing costs for hawkers adopting cashless payments and increasing productivity.
NEA uses procurement best practices, including open tenders and demand aggregation, to optimise cleaning costs while balancing service standards and affordability.
The Government continues to monitor costs and review measures to help stallholders manage business expenses amid rising labour and operational challenges.

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10 Sep 2018

Stamp Duties (Amendment) Bill

The Stamp Duties (Amendment) Bill introduces legislative changes to update the Stamp Duties Act, including providing for stamp duty on electronic records for property and share transfers to align with digitalization efforts.
The Bill allows the Minister to recover interest from taxpayers who fail to comply with remission conditions, such as housing developers granted upfront duty remissions, and includes validation clauses for past disputes.
Amendments are made to section 15 of the Act to provide relief from share duty for certain corporate restructurings, aligning with recent changes to avoid undue duties where there is no change in beneficial interest.
Technical amendments are included to grant the Inland Revenue Authority of Singapore more flexibility in administering the e-stamping system without requiring ministerial approval for each change.
During the debate, a Member raised concerns about blockchain-based proptech startups and the security of electronic records, and the Minister responded that government agencies are reviewing relevant legislation and working with industry to ensure secure digital property transactions.

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10 Sep 2018

Variable Capital Companies Bill

The Variable Capital Companies Bill aims to establish a new corporate structure for investment funds, allowing for flexible capital movements and tailored regulatory requirements.
The Bill was presented by the Second Minister for Finance, Ms Indranee Rajah, and was read for the first time with a second reading scheduled for the next Parliament sitting.
The legislation will provide for the incorporation, operation, and regulation of Variable Capital Companies and include consequential amendments to other Acts.

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10 Sep 2018

Building and Construction Industry Security of Payment (Amendment) Bill

The Minister of State for National Development introduced the Building and Construction Industry Security of Payment (Amendment) Bill to amend the existing Act for faster and more efficient resolution of payment disputes in the construction sector.
The Bill aims to strengthen statutory protection for contractors and subcontractors by ensuring timely payments and clarifying procedures for adjudicating claims.
The legislation was read for the first time and scheduled for a second reading in the next parliamentary sitting, reflecting the government's ongoing efforts to improve industry practices.

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10 Sep 2018

Income Tax (Amendment) Bill

The Income Tax (Amendment) Bill was introduced to amend the Income Tax Act, with the President’s recommendation signified and presented by the Second Minister for Finance.
The bill was read for the first time and scheduled for a second reading at the next sitting of Parliament.
The debate focused on the procedural steps for advancing the bill, including its printing and further parliamentary consideration.

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10 Sep 2018

Insolvency, Restructuring and Dissolution Bill

The bill aims to amend and consolidate laws on company and individual insolvency, receivership, winding up, and the public administration of insolvency.
It provides for the regulation of insolvency practitioners and introduces connected matters, including the repeal of the Bankruptcy Act (Cap 20).
The bill was presented by the Senior Minister of State for Law on behalf of the Minister for Law, read for the first time, and scheduled for a second reading in the next sitting.

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10 Sep 2018

Claims and Payouts under CareShield Life

Gan Thiam Poh proposed allowing CareShield Life payouts for those unable to perform one ADL, receiving a prorated one-third of the monthly benefit, instead of the current requirement of three or more ADLs.
The Senior Minister of State for Health explained that expanding coverage to mild or moderate disabilities would raise premiums significantly, undermining affordability and sustainability, and suggested private supplements or other government schemes for such cases.
Gan Thiam Poh asked if the Ministry could offer an optional payout for one ADL, even with lower benefits or higher premiums, rather than requiring three ADLs.
The Minister responded that premium design would consider such options but noted that ElderShield supplements already provide coverage for fewer than three ADLs.

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