Economy & business — Topics

11 Jul 2018

Government Approval for Industry-changing Mergers and Acquisitions before Announcement

Leon Perera questioned whether the Competition and Consumer Commission of Singapore (CCCS) should mandate prior approval for mergers that substantially change market share to prevent market confusion and job disruption, referencing similar mandatory regimes in the US and EU.
The Senior Parliamentary Secretary explained that Singapore uses a voluntary notification system, like the UK, Australia, and New Zealand, which balances regulation and pro-business goals by allowing self-assessment and efficient resource use by CCCS, while still enabling investigations and remedies for anti-competitive mergers after the fact.
In response to concerns about risks and costs from unwinding mergers post-announcement, the official noted that even mandatory notification jurisdictions face non-compliance, and CCCS has powers to impose interim measures to protect public interest during investigations.
Leon Perera suggested that mandatory notification with high thresholds could address compliance costs, but the reply emphasized that voluntary systems align with other jurisdictions and that competition authorities must always address unnotified anti-competitive mergers.
The debate highlighted differing views on regulatory approaches, with a focus on balancing efficiency, business impact, and the ability to correct anti-competitive outcomes after mergers are announced.

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11 Jul 2018

Wage Growth Moving in Tandem with Productivity Gains

Real wage growth has recently outpaced productivity, particularly in domestically-oriented sectors like Construction and Other Services, while outward-oriented sectors such as Manufacturing and Finance have seen more aligned growth.
The government is implementing sector-specific strategies, including Industry Transformation Maps and targeted grants, to boost productivity and ensure wage gains are shared with workers through schemes like the Inclusive Growth Programme and Progressive Wage Model.
Concerns about wage stagnation, especially in lower-wage sectors, are being addressed through reskilling initiatives, job redesign grants, and expanding the Progressive Wage Model to sectors like F&B.
Growth sectors like wholesale trade, logistics, and precision engineering are expected to offer more competitive wages and job opportunities in the next few years.

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10 Jul 2018

Foreign Manpower Requests Approved for Companies Not Meeting Minimum Salary or Quota Requirements

In each of the past five years, about 400 enterprises annually received exceptions to hire foreign manpower without meeting standard salary or quota requirements, representing 0.5% of all work pass employers.
Exceptions are granted based on assessments by economic agencies like EDB, EnterpriseSG, and IMDA, for purposes such as implementing productivity projects, transferring specialist capabilities, or supporting early-stage startups with non-cash remuneration structures.
The Ministry ensures a level playing field by consistently applying the same criteria and considerations to any enterprise that provides similar justifications for flexibility.

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10 Jul 2018

Breakdown on Disbursement of Agriculture Productivity Fund to Companies

Over $13 million has been awarded to 74 farms from the Agriculture Productivity Fund to date, with over $7 million disbursed.
Local enterprises received more than 90% of the funding disbursed.
Fourteen of the farms supported are vertical or indoor farming operations.
Agri-Food and Veterinary Authority account managers will continue to assist farmers in transforming their operations with the fund’s support.

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10 Jul 2018

Statistics on Stamp Duty and Property Tax Collected from Purchase and Sale of Properties from 2015 to 2017

In the first five months of 2018, Singapore collected about $2.2 billion in stamp duty and about $2.2 billion in property tax.
Stamp duty collection saw a decrease of 6.2% in 2015, followed by increases of 14.2% in 2016 and 45.9% in 2017.
Property tax collection increased by 4.2% in 2015, decreased by 1.3% in 2016, and rose by 0.4% in 2017.
Stamp duty from property transactions accounted for the majority of total stamp duty collection.
The data is published monthly by the Singapore Department of Statistics as part of the Government's operating revenue.

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10 Jul 2018

Update on Current Status of Malaysia-Singapore High-Speed Rail Project

The Malaysia-Singapore High-Speed Rail project is currently postponed, with Singapore awaiting a more definite conclusion from Malaysia.
Singapore is incurring costs related to project preparatory works and contractual obligations during the postponement period.
Local companies and employees involved in the project are facing uncertainty and potential disruptions due to the postponement.
The Ministry of Transport is engaging with Malaysia and taking steps to protect Singapore's interests while working towards a favourable outcome.

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10 Jul 2018

Support for Non-profit Organisations Promoting Lifelong Employability of Seniors

The government funds continuing education and training programmes for seniors through initiatives like the SkillsFuture Mid-Career Enhanced Subsidy, which includes pre-approved courses from non-profit organizations such as Tsao Foundation's Hua Mei Training Academy.
The Ministry of Manpower promotes progressive workplace practices for seniors through partnerships with entities like the Singapore National Employers Federation, offering grants like WorkPro to redesign jobs and support older workers' productivity.
MOM implements direct employability measures for older workers, including the Special Employment Credit Scheme for wage offsets, the Adapt and Grow initiative for job search support, and Professional Conversion Programmes with salary assistance to address skills and wage mismatches.
Non-profit organizations partnering with the government receive funding support, exemplified by assistance to Fei Yue Family Service Centre for running the Family Central's Elder Education Department to promote lifelong learning for seniors.

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10 Jul 2018

Adherence to National Wages Council Guidelines as Qualifying Criterion for Companies to be Eligible for Government Funding

Ms K Thanaletchimi asked if adherence to the National Wages Council (NWC) guidelines should be a qualifying criterion for companies to receive government funding under the Transform and Grow and Adapt and Grow initiatives.
Mrs Josephine Teo explained that the NWC guidelines are voluntarily adopted by companies based on their circumstances, reflecting the tripartite approach that accommodates varying company financial capabilities.
Requiring mandatory adoption of the guidelines for government funding would contradict the existing voluntary framework and the balanced recommendations developed through tripartite consultations.
Outreach efforts by the Singapore National Employers Federation and the National Trades Union Congress are emphasized to promote voluntary adoption of the NWC guidelines instead of making them a mandatory criterion.

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10 Jul 2018

CareShield Life

The CareShield Life scheme, a new universal long-term care insurance plan, will replace ElderShield to provide lifelong cash payouts for Singaporeans who become severely disabled, with future cohorts from 1980 onwards automatically enrolled from age 30 to ensure inclusivity and risk-pooling.
To ensure affordability, the government will provide means-tested premium subsidies of up to 30%, transitional subsidies for the first five years, and additional support for those in financial need, with premiums payable via MediSave and optional upgrades from existing ElderShield policies.
The scheme will be administered by the CPF Board on a not-for-profit basis, overseen by an independent council to set premiums and payouts, and complemented by new measures allowing MediSave withdrawals for long-term care and the ElderFund scheme for low-income severely disabled citizens.

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10 Jul 2018

Rationale for Not Replacing ElderShield with CareShield Life

Several MPs raised concerns about transitioning from ElderShield to CareShield Life, questioning the lack of transitional subsidies, gender-neutral premiums, actuarial transparency, cost-efficiency compared to private insurers, and adequacy of premium support for low-income individuals.
The Minister for Health deferred detailed responses to an upcoming Motion on CareShield Life, indicating that the government would address these issues collectively rather than individually.
Key questions focused on ensuring fair and affordable coverage, transparency in premium calculations, and maintaining or improving cost-efficiency under the government-administered scheme.

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10 Jul 2018

Long-Term Investment Returns of Temasek Holdings and GIC

The Second Minister for Finance stated that Temasek and GIC have delivered positive long-term returns, with Temasek’s portfolio growing from $164 billion in 2007 to $275 billion in 2017 and achieving an annualised nominal shareholder return of 6% over 20 years, while GIC achieved an annualised real return of 3.7% over the same period.
The Net Investment Return Contribution (NIRC) has become a major fiscal resource, totaling about $85 billion from FY2009 to FY2017 and estimated at $15.85 billion for FY2018, making it the single largest source of government revenue.
The Minister clarified that the planned GST increase is not linked to past investment losses, such as those in UBS, Barclays, or Merrill Lynch, and emphasized that the NIRC framework is designed to smooth out investment volatility and provide stable funding for the budget.
The Minister explained that the GST increase is a forward-looking measure to meet future expenditure needs, particularly in healthcare and security, and is not a response to specific investment losses.
While acknowledging near-term challenges like trade tensions, the Minister expressed confidence in the long-term performance of Temasek and GIC, while cautioning against taking their past performance for granted and highlighting the government’s commitment to prudent stewardship of reserves.

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10 Jul 2018

Measures to Mitigate Increasing Cost of Living

The Minister for Trade and Industry outlined that while overall inflation remains low, specific groups like retirees and low-income households face higher cost pressures, and the government has adopted an eight-pronged strategy to manage living costs, including keeping the economy competitive, managing the Singapore dollar’s strength, and promoting market competition.
The government focuses targeted help on those most in need, such as through U-Save rebates and subsidies, while also enabling consumer choice and leveraging social enterprises like NTUC to benchmark prices and provide affordable options, acknowledging the challenge of "higher sticker prices" that may psychologically impact consumers.
During the debate, MPs raised concerns about the sandwich middle-income group, rising food and rental costs, and anti-profiteering, with the Minister responding that strategies like consumer education, wage growth support, and open market initiatives aim to address these issues, while emphasizing the need for a balanced approach to protect consumers without stifling business innovation.

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9 Jul 2018

Workfare Income Supplement Employee-recipients by Age Group

Mr Zainal Sapari asked for the number of Workfare Income Supplement (WIS) employee-recipients and total expenditure by age group from 2015 to 2017, as well as the considerations in determining WIS payouts.
Mrs Josephine Teo provided a table showing the number of employees receiving WIS and the total WIS amount allotted annually for each year from 2015 to 2017, broken down by the four WIS age groups.
WIS is targeted at workers in the bottom 20% by income percentile, with support extended to those up to the 30th percentile, and older employees generally receive higher payouts than younger ones.
The number of WIS recipients fluctuates with income changes, and the scheme undergoes a three-yearly review to ensure over 20% of Singaporean employees remain eligible, with the next review results to be announced in 2019 for 2020 implementation.

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9 Jul 2018

Additional Interest Rates for Low-income Groups' CPF Savings

MP Gan Thiam Poh asked whether the government could give extra interest rates on CPF savings to support low-income groups’ retirement needs.
The Ministry of Manpower explained that CPF already provides a progressive interest structure, giving higher effective rates to members with lower balances through base rates, extra interest on the first $60,000, and additional extra interest for those aged 55 and above.
The government also supports low-wage workers through the Workfare Income Supplement scheme, which includes CPF top-ups, with over $400 million credited into CPF accounts in 2017 alone.

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9 Jul 2018

Estimated Annual Revenue from Imposition of Parking Fees for Teachers in Schools

Leon Perera asked the Ministry of Education for the estimated annual revenue from imposing parking fees on teachers in schools.
Ong Ye Kung responded that the projected revenue from car park charges across 360 primary, secondary, and junior colleges is between $8 million and $10 million per year.
The collected revenue will be retained by the individual schools rather than being pooled at the national level.

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9 Jul 2018

Ensuring Comparable Food Prices at Hawker Stalls and Coffee Shops in New HDB Estates vs-a-vis Those in Mature Estates

The Ministry of the Environment and Water Resources does not regulate food prices but ensures affordable options are available at hawker centres by disallowing stall subletting and removing reserve rent to moderate rentals.
The National Environment Agency (NEA) uses competitive bidding for vacant stalls, with about 40% awarded below 85% of market rent, and promotes productivity measures like centralised dishwashing and e-payments to help hawkers manage costs.
New hawker centres, including those in Sengkang, Tampines, and Sembawang, are required to offer affordable meals, such as the $2.80 local food option at Hawker Centre @ Our Tampines Hub, to support price comparability across estates.

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9 Jul 2018

SMEs' Share of 4.5% Overall Labour Productivity Growth in 2017

The Minister explained that data on SME productivity measured by real value-added per actual hour worked is unavailable due to collection constraints, but estimates show SMEs recorded 3.2% growth in real value-added per worker in 2017, slightly below the overall economy's 3.8% growth.
A sector-by-sector breakdown of SME productivity performance is not available, but the government supports SMEs through initiatives such as SME Centres, Productivity Centres, and the $110 million Productivity Solutions Grant for technology and digital solutions.
The government also works with industry and unions via Industry Transformation Maps across 23 key sectors and supports Trade Associations and Chambers through co-funding under the $115 million Local Enterprise and Association Development programme to drive productivity improvements.

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9 Jul 2018

Payment of SG Bonus

The SG Bonus will be disbursed to all adult Singaporeans at the end of the year.
Individual letters and SMS notifications will be sent in October 2018 to inform citizens about the bonus amount and payment dates.
Citizens using PayNow linked to their NRIC will receive the payout earlier than those using direct bank crediting or cheques.

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9 Jul 2018

Regulating Monopolistic Private Hire Car Market

Miss Cheng Li Hui asked the Minister for Transport about regulating the monopolistic private hire car market after the Grab-Uber merger, its impact on consumers and drivers, and whether the regulatory framework would be expedited.
Khaw Boon Wan stated that the Land Transport Authority is reviewing the regulatory framework for the point-to-point sector to keep the private hire car industry open and contestable, with an announcement expected later this year.
The Competition and Consumer Commission of Singapore has issued a proposed infringement decision to Grab and Uber, including remedies to restore market contestability, and is seeking public feedback on their sufficiency.

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9 Jul 2018

Security Deposit or Performance Bond by Shared Bicycle Operators to Ensure Protection of Deposits or Prepayments Made

Lim Biow Chuan asked if LTA will require shared bicycle operators to provide a security deposit or performance bond to protect user deposits or prepayments.
Khaw Boon Wan responded that LTA will study this need if any operators require user deposits when the licensing regime starts in October, noting that current applicants do not demand deposits.
He explained that LTA has avoided heavy regulation to support industry growth and keep services affordable, focusing instead on managing public disamenies through responsible bicycle management plans.
LTA will monitor and potentially strengthen the licensing regime, while collaborating with agencies like PDPC and CASE on public education to balance industry viability and user interests.

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