Economy & business — Topics

9 Jul 2018

Impact of Grab-Uber Proposed Takeover

The Grab-Uber merger affected 300 Uber employees with paid leave and compensation, and Grab took over contracts for 300 to 400 contract workers.
Over 9,000 Uber drivers joined Grab, while Workforce Singapore and NTUC are helping the remaining drivers find new employment and resolve contractual issues.
The Ministry of Transport and Land Transport Authority are monitoring the sector and will intervene to ensure fair competition and prevent market dominance.

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9 Jul 2018

Boosting Competitiveness of Singapore as Aircraft Leasing Hub

Dennis Tan asked the Ministry of Trade and Industry for an update on measures to enhance Singapore’s competitiveness as an aircraft leasing hub compared to Hong Kong and Ireland.
Singapore, holding a 20% global market share and hosting eight of the top ten leasing companies, leverages its extensive tax treaties, strong financial and professional services ecosystem, and aviation infrastructure, supported by schemes like the Aircraft Leasing Scheme and Industry Transformation Maps.
While Ireland leads globally with a 65% share and Hong Kong aims to grow to 18%, Singapore is committed to nurturing its aviation, aerospace, and financial sectors to sustain its position as Asia’s premier aircraft leasing hub.

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9 Jul 2018

Marketing Scams Targeting Senior Citizens

Dr. Lee Bee Wah asked whether the Ministry of Trade and Industry would investigate vendors using "freebie" bags to market to seniors and review legal loopholes with other agencies.
Minister Chan Chun Sing highlighted that consumers can report deceptive practices to CASE, which is supported by the Consumer Protection (Fair Trading) Act to address false claims and pressure selling.
The government encourages seniors to verify supplier reputations and examine products before purchasing, while CASE continues outreach to educate on sales tactics.

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9 Jul 2018

Consumption Rate of Pioneer Generation Fund

Azmoon Ahmad asked about the annual consumption rate, number of individuals served, and the expected lifespan of the $8 billion Pioneer Generation Fund since March 2015.
Heng Swee Keat responded that about 450,000 Pioneers have benefited, with over $1.3 billion disbursed as of May 2018, averaging around $430 million annually.
The remaining fund balance is approximately $7.2 billion, including interest, and it is expected to be sufficient for the full cost of the Pioneer Generation Package over time.
Financial statements are presented in Parliament and available online, with the fund's adequacy based on current estimates and accumulated interest.

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9 Jul 2018

Deposit Insurance and Policy Owners' Protection Schemes (Amendment) Bill

The Minister for Education moved the second reading of the Deposit Insurance and Policy Owners' Protection Schemes (Amendment) Bill, highlighting key enhancements to strengthen depositor and policy owner protection, facilitate efficient compensation payouts, and align the schemes with international standards.
The Bill proposes increasing the Deposit Insurance coverage from S$50,000 to S$75,000 to fully cover about 91% of insured depositors, raising annual premiums to support this, and introducing operational improvements such as voluntary winding up as a trigger for compensation.
Members of Parliament raised questions on cost implications, public education, and administrative changes, with the Minister clarifying that cost increases are minimal, stress-testing is not required due to conservative investments, and audits are conducted under the Companies Act rather than by the Auditor-General’s Office.

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9 Jul 2018

Intellectual Property (Border Enforcement) Bill

The bill enhances Singapore’s border enforcement regime to meet EUSFTA obligations, expanding seizure powers for suspected infringing goods to include exports and registered designs, and standardising procedures across IP Acts.
Customs gains powers to obtain and provide limited information to IP rights holders for infringement actions, with safeguards like security deposits and confidentiality rules to prevent abuse.
Implementation will be phased to align with EUSFTA ratification, with customs training and operational adjustments ensuring effective enforcement while balancing trade efficiency and IP protection.

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9 Jul 2018

Customs (Amendment) Bill

The Bill broadens the definition of “motor fuel” to include diesel, clarifies special tax calculations for vehicles, and allows Customs officers discretion on the three-quarter tank rule for certain vehicles.
It extends the time limits for recovering short-levied or erroneously refunded duties and for claiming refunds from one to five years, aligning with other tax laws and improving operational efficiency.
The Bill removes the need for ministerial approval for the Director-General of Customs to delegate powers, streamlining administrative processes.
It provides legal clarity on duties for goods used in Free Trade Zones and clarifies the reimposition of duties when exemptions cease.
The amendments support recent fuel tax changes, enhance enforcement capabilities, and ensure the Customs Act remains up-to-date.

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9 Jul 2018

Singapore Tourism (Cess Collection) (Amendment) Bill

The Singapore Tourism (Cess Collection) Act is being updated to clarify cess rules, ensure consistent taxation for strategic tourism events like the Formula One Grand Prix, and extend cess collection to other business models, though no immediate expansions are planned.
The amendments aim to align administrative requirements with GST standards, such as increasing record retention to five years and empowering authorities to collect information for cess policy and enforcement.
A government minister highlighted that cess from hotels during the F1 race has averaged $13 million annually, supplemented the Tourism Development Fund, and contributed to $1.4 billion in tourism receipts over a decade.
A non-constituency member suggested ringfencing cess collection in the Tourism Development Fund and using it to support affected businesses, and the government confirmed the F1 race brings net benefits despite costs and inconveniences.
The debate concluded with support for the bill, emphasizing fair burden-sharing for event benefits and ongoing industry consultation for any future cess changes.

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9 Jul 2018

Companies (Amendment) Bill

The Companies (Amendment) Bill was introduced to update the Companies Act (Chapter 50 of the 2006 Revised Edition).
The bill was presented by the Second Minister for Finance, Ms Indranee Rajah.
The bill was read for the first time and scheduled for a second reading in the next sitting of Parliament.

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9 Jul 2018

Unconsumed Funds in Respect of oBike's Exit from Singapore

oBike’s sudden exit from Singapore inconvenienced many users, prompting the Minister to outline that oBike is responsible for refunding deposits and removing its bicycles, with LTA and CASE overseeing the process.
The government introduced a new licensing regime under the Parking Places Act to regulate bicycle-sharing operators, aiming to internalize social costs and reduce indiscriminate parking, with the regime to kick in by October 2018.
Affected consumers are advised to file Proofs of Debt with the liquidator FTI Consulting, and LTA will study the need for security deposits or bonds if operators require them under the new licensing regime.

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9 Jul 2018

Impact of US-China Trade War on Singapore

The US-China trade war poses direct and indirect risks to Singapore’s economy through higher tariffs, supply chain disruptions, and potential global slowdown, with direct tariffs affecting only 0.1% of domestic exports but indirect impacts through global value chains.
Singapore’s diversified trade networks and FTAs provide resilience, allowing companies to seek alternative markets and suppliers, while economic agencies monitor impacts and support affected businesses.
The conflict pressures global free trade norms and multilateralism, but Singapore remains committed to WTO rules and expanding its FTA network, including CPTPP and RCEP, to safeguard growth and job creation.

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9 Jul 2018

Capital Reserve in PUB's Accounts

The Minister clarified that PUB’s $5.3 billion Capital Reserve is not surplus cash but is already invested in water infrastructure assets like plants and pipelines, and PUB has borrowed to fund further investments.
PUB will invest $4 billion in water infrastructure from FY2017 to FY2021 and more beyond, funded through a mix of accumulated surpluses, borrowings, and government grants for drainage and sewage systems.
The government finances part of the water system via grants to ease consumer burden, while water tariffs cover operational costs, but PUB’s Capital Reserve does not represent idle funds available for price reductions.

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9 Jul 2018

Short- and Longer-term Impact of Cancellation of High Speed Rail Project on Singapore Government’s Revenues and Expenditures

The Second Minister for Finance Lawrence Wong emphasized that Singapore has not received official confirmation from Malaysia on the HSR project's status and will continue to meet legal obligations, with potential compensation if terminated, but noted the GST increase is unrelated to HSR and driven by structural spending needs like healthcare.
Wong explained that infrastructure projects like HSR are financed through borrowing or dedicated funds, not recurrent revenues, and revealing costs before tender completion is avoided to prevent impacting bidding strategies.
In response to Pritam Singh’s query on Net Investment Returns Contribution (NIRC), Wong clarified that NIRC is a separate budget revenue source and not tied to HSR financing, with expenditures rising regardless due to ageing population and social spending.

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9 Jul 2018

Update on Kuala Lumpur-Singapore High Speed Rail Project

Malaysian leaders have indicated they may terminate the Kuala Lumpur-Singapore High Speed Rail (HSR) project, but Singapore has not received an official notice, leaving Singapore to continue incurring costs under the binding bilateral agreement.
Singapore has already spent over S$250 million on the HSR project, with ongoing monthly expenses of over S$6 million, and expects to spend at least S$40 million more by end-2018 if the project is delayed.
The Minister emphasized that if Malaysia terminates the project, Singapore would seek compensation for incurred costs in accordance with the bilateral agreement and international law, not as a penalty but for actual expenditures.
Regarding the Johor Bahru-Singapore Rapid Transit System Link, Malaysia has not officially confirmed its intentions, but the project’s joint venture company deadline was missed, potentially requiring an open tender.
Singapore continues to press Malaysia for official clarification on both projects to minimize wasted expenses and allow bidders and stakeholders to make informed decisions.

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18 May 2018

Number of Companies Applying for WorkPro Grants

From 2013 to 2017, over 3,400 companies employing about 368,000 workers have benefited from WorkPro grants.
After the 2016 enhancement, the number of companies benefiting from the Job Redesign Grant increased from about 30 a year to about 440 a year.
WorkPro funding is disbursed only when companies demonstrate positive impact, requiring evaluations for age management and job redesign grants, and formalized flexible work arrangements with usage evidence for work-life grants.

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18 May 2018

Impact of US Tariffs on Singapore Economy

The Minister for Trade and Industry noted that US tariffs on solar panels, washing machines, steel, and aluminium have a limited direct impact on Singapore, as these products made up only 1.4% of Singapore’s domestic exports to the US and 0.09% of total domestic exports worldwide in 2017.
While the tariffs may reduce demand for these products in the US, the overall effect on Singapore’s economy is minimal, though some local companies are affected.
Singapore has raised concerns with US authorities and sought exemptions, emphasizing the importance of a rules-based multilateral trading system and opposing protectionist measures that disrupt global commerce.
As a small and open economy, Singapore will continue to collaborate with trading partners to boost growth and safeguard its trade interests.

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18 May 2018

Review of Economic Restructuring Strategies to Deal with Rapid Change in Technology, Deglobalisation and Protectionism

The Committee on the Future Economy identified global shifts and technological changes, leading to recommendations focused on strengthening enterprise capabilities, building digital skills, and maintaining openness to boost competitiveness.
Industry Transformation Maps were developed for 23 sectors covering 80% of the economy, tailored to specific needs and updated dynamically to respond to economic changes.
Success depends on collective efforts from the government, trade associations, unions, and companies to transform operations, partner each other, and create good jobs.

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18 May 2018

Government Entities Knowingly Investing in Corporations in Businesses Harmful to Health or Environment

Sylvia Lim asked whether the government restricts investments in companies whose main business is harmful to health or the environment, such as tobacco.
Government ministries and statutory boards set up companies for public policy purposes and do not engage in harmful activities.
The government’s main investments are handled by GIC and Temasek, which operate independently and focus on long-term risk-adjusted returns.
GIC and Temasek emphasize sustainability, recognizing that good practices support business and long-term returns while poor practices pose risks.

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18 May 2018

Deducting Expenses from Assessable Income Tax for Taxi Drivers and Private Hire Car Drivers

The Ministry of Finance currently does not allow tax deduction for car-related expenses for private hire car drivers, aligning with longstanding car ownership policies, but allows deduction for non-car-related expenses like operator commissions.
Minister Lawrence Wong acknowledged that the tax policy predates private hire platforms and is being reviewed holistically in conjunction with the Ministry of Transport's regulatory review to ensure relevance.
The review will consider differentiating tax treatment for full-time versus part-time private hire drivers and may tie deductions to minimum mileage thresholds, pending clarity from regulatory updates.
The timeline for the review depends on the parallel work by the Ministry of Transport and Land Transport Authority; announcements will be made once both regulatory and tax treatments are finalized.

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18 May 2018

Impact of US and China Protectionist Measures on Singapore’s Economy

The Minister reported that US and China’s protectionist measures have had limited direct impact on Singapore’s domestic exports, affecting about 0.09% of total exports, but the government is monitoring for indirect effects on companies and workers.
Singapore has expressed concerns to US and Chinese authorities and advocates for restraint to avoid escalating trade tensions that could disrupt global supply chains and affect economies of all sizes.
Patrick Tay highlighted uncertainties faced by professionals and managers working in multinational corporations due to trade tensions, interest rate reviews, and tax changes, urging the government to watch closely and prepare support measures for affected workers.
The Minister emphasized the need to diversify markets to reduce dependency on any single country and is conducting an in-depth study on the long-term implications of an escalating trade war, including direct costs and shifts in global trade flows.
The government is coordinating across agencies and with trade partners to track trends, review economic models, and safeguard Singapore’s economy from ongoing uncertainties.

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