Economy & business — Topics

8 Jan 2018

Timeline and Plan for Launching of GPFirst Scheme Nationally

The Ministry of Health announced that the GPFirst pilot scheme, which started at Changi General Hospital in 2014, will be extended to more public hospitals in 2018 as part of a national rollout plan.
The pilot involved an investment of about $1 million in 2016 to cover subsidies, GP engagement, and publicity, resulting in reduced emergency department cases and cost savings for patients and hospitals.
The scheme provides a $50 subsidy for patients referred from GPs to the emergency department, lowering patient costs compared to direct ED visits and allowing EDs to focus on critical cases.
The Ministry concluded that the benefits of the pilot justified the costs, and the national expansion will involve establishing GP partnerships and promoting public awareness.
While the projected annual cost and average benefit per beneficiary were not specified, the pilot demonstrated overall cost-effectiveness and patient savings.

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8 Jan 2018

Incentives for Extension of Employment Contracts to Elderly Workers

The Ministry of Manpower noted that over 98% of eligible employees aged 62 were offered re-employment since 2012, with low dispute rates, and highlighted incentives like the Special Employment Credit, reduced CPF contributions, and WorkPro funding to support hiring older workers.
The Ministry outlined initiatives such as the Adapt and Grow programme, Career Support Programme, and Professional Conversion Programmes to improve the employability of workers aged 60 and above, citing a 3.3% unemployment rate for this group in June 2017.
The Ministry reported an increase in the employment rate for residents aged 55–64 from 61.2% in 2011 to 67.3% in 2016, ranking Singapore ninth among 35 OECD countries, and emphasized continued collaboration with tripartite partners to enhance opportunities for older workers.

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8 Jan 2018

Breakdown of Annual Financial Savings or Assets Owned by Singaporean Households and Individuals from 2013 to 2017

Leon Perera requested a breakdown of financial savings or assets owned by Singaporean households and individuals from 2013 to 2017, divided by mean, median, 10th percentile, and 90th percentile.
Lim Hng Kiang provided the aggregate level of financial assets for Singapore’s household sector over the past five years in a table but noted that data for different income percentiles is unavailable.
The response clarified that only overall household financial asset data is accessible, not detailed percentile-based statistics for individuals or households.

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8 Jan 2018

Average Savings Rate per Income Group in Last 10 Years

Gan Thiam Poh inquired about the average savings rates per income group in Singapore over the past decade, but the Minister for Trade and Industry noted that such detailed data by income group is unavailable.
The government instead provided aggregate household financial assets data, which includes items like currency, deposits, shares, CPF balances, and pension funds, showing a steady increase from $584.3 billion to $1.13 trillion between 2007 and 2017.
The response highlighted that while overall household financial assets have grown, specific savings rates per income group are not tracked or published by the authorities.

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8 Jan 2018

Alleged Roles of Singapore Banks in "The Russian Laundromat" Money-laundering Scheme

Sylvia Lim asked the Prime Minister whether Singapore authorities are investigating the alleged roles of Singapore banks in the "Russian Laundromat" money-laundering scheme, which reportedly involved the flow of US$77 million into Singapore.
Tharman Shanmugaratnam, responding for the Prime Minister, noted that the Monetary Authority of Singapore's probe is ongoing but has not yet found evidence of major lapses in anti-money laundering controls at local banks, and that banks had taken appropriate measures where suspicious activities were detected.
He emphasized Singapore’s robust anti-money laundering regime, the requirement for financial institutions to conduct customer due diligence and report suspicious transactions, and the importance of international cooperation in tackling cross-border money laundering.

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8 Jan 2018

Ensuring Strong Governance for Government Funds and Grants

Zaqy Mohamad inquired about the robustness of the Government's funding and grant governance and potential measures for improvement.
Heng Swee Keat affirmed Singapore's sound governance system, highlighting the use of KPIs, regular reviews, and value-for-money assessments to ensure effective spending.
He detailed existing safeguards such as internal audits, rigorous approval processes for major expenditures, independent audits, and fraud detection systems.
The Government promotes best practices through learning platforms and guides, with a continuous commitment to strengthen financial governance and risk management.
Overall, the system is deemed effective, with ongoing efforts to enhance governance across all government-administered schemes.

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8 Jan 2018

Enforcement of Anti-money Laundering and Counter-terrorism Financing Laws on Bitcoin Currency

Foo Mee Har questioned the regulatory tools available for enforcing anti-money laundering and counter-terrorism financing laws on bitcoin transactions where traditional oversight mechanisms are insufficient.
Tharman Shanmugaratnam clarified that Singapore's laws treat bitcoin and other virtual currencies the same as fiat currency for anti-money laundering and counter-terrorism financing purposes, with financial institutions and agencies subject to the same reporting and investigative requirements.
MAS acknowledged challenges in enforcing these laws due to the anonymous nature of virtual currencies but plans to impose anti-money laundering and counter-terrorism financing requirements on intermediaries facilitating fiat-to-virtual currency exchanges through a proposed Payment Services Bill.
MAS is monitoring the evolving virtual currency space, studying international approaches, and aims to balance innovation with risk mitigation, particularly regarding money laundering and terrorism financing.

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8 Jan 2018

Returns from Government Investment in Biotechnology Industry

The Singapore government invested approximately $7.3 billion in the Biomedical Sciences (BMS) sector between 2006 and 2015, which catalyzed $13.7 billion in private sector investments.
The BMS sector now contributes about $26 billion in manufacturing output, representing 4% of Singapore’s GDP, and employs over 25,000 people.
Sustained investments have strengthened Singapore’s BMS ecosystem, leading to the incorporation of at least 48 local biotech firms from 2010 to 2016 and notable successes such as Tessa Therapeutics’ global partnership and Phase III cancer therapy trial.
The government acknowledges the long gestation periods for BMS investments and commits to continued investment to grow talent, deepen capabilities, and support the sector’s growth.

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8 Jan 2018

Effectiveness of Workfare Training Support Scheme in Encouraging Workers to Upskill

The Workfare Training Support (WTS) scheme provides substantial subsidies, training allowances, and cash awards to encourage low-wage Singaporeans to upskill, with over 270,000 unique workers benefiting since 2010.
WTS complements SkillsFuture by offering higher subsidies (up to 95% of course fees) for eligible workers, alongside support for employers and trainees without employer backing.
Additional measures like Progressive Wage Models and the Inclusive Growth Programme work alongside WTS to create clear career pathways and share productivity gains with low-wage workers.

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8 Jan 2018

Central Procurement for Common Essentials across Public Hospitals

A central Group Procurement Office has been in place since 2001 to achieve economies of scale, covering about 90% of standard drugs and 60% of non-standard drugs, as well as surgical supplies and contract services across public healthcare clusters.
Procurement services have been extended to community hospitals and nursing homes, and IT system purchases are centrally coordinated to secure volume discounts and consolidate data centres for greater efficiency.
The government will continue to seek further efficiencies and cost reductions through bulk purchasing and central procurement to pass savings on to patients.

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8 Jan 2018

Review Qualification Criteria for Grandparent Caregiver Relief Claims

Zainal Sapari proposed revising the Grandparent Caregiver Relief eligibility to include caregivers with income below a threshold, those spending majority of time on caregiving, and those caring for children up to 16 years old.
Heng Swee Keat explained the relief is for working mothers whose parents or grandparents care for Singaporean children aged 12 or below.
The relief requires the grandparent caregiver to be non-working due to the young age of children needing adult supervision.
The current criteria focus on young children and non-working caregivers, differing from the proposed revisions.

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8 Jan 2018

Increasing Income Threshold Qualification for Parent Relief Claims

Zainal Sapari proposed raising the $4,000 annual income threshold for Parent Relief claims to help seniors qualify while working part-time.
Heng Swee Keat explained that tax reliefs like Parent Relief are meant for dependants who are handicapped or have no income, with the $4,000 threshold balancing support for those with incidental income.
Heng noted that other measures already support senior employment, including the Special Employment Credit, WorkPro, and Workfare Income Supplement.

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8 Jan 2018

Impact of Impending US Tax Cuts on Singapore's Economy

Mr Gan Thiam Poh and Mr Liang Eng Hwa inquired about the potential impact of proposed US tax cuts on Singapore's economy and its appeal to foreign investment.
Finance Minister Heng Swee Keat noted that while the US tax reform may boost its competitiveness, companies evaluate multiple factors beyond tax rates, such as business environment and market access.
He highlighted that Singapore's existing corporate and personal tax rates remain internationally competitive but emphasized the need to enhance non-tax advantages.
The minister stressed the importance of maintaining a pro-business climate, strengthening global and ASEAN connectivity, and deepening industry and workforce capabilities.
The overall response underscored that Singapore must continuously build on its strategic strengths to remain relevant amid global tax competition.

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8 Jan 2018

Moneylenders (Amendment) Bill

The Bill introduces an aggregate loan cap for licensed moneylenders to prevent over-borrowing, setting a $3,000 limit for low-income individuals and a six-times monthly income cap for others, while enhancing the Moneylenders Credit Bureau for better credit assessment.
It strengthens regulation by expanding the Registrar’s powers to exclude unfit individuals from the industry, tightening license requirements, and making it an offence to breach loan term caps, with penalties including fines and imprisonment.
Amendments aim to professionalize the industry by requiring moneylenders to be companies with a minimum paid-up capital and to submit annual audited accounts, alongside efforts to support debt restructuring and public education on financial management.

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8 Jan 2018

Payment and Settlement Systems (Finality and Netting) (Amendment) Bill

The Minister for Education (Higher Education and Skills) and Second Minister for Defence, Mr Ong Ye Kung, introduced amendments to the Payment and Settlement Systems (Finality and Netting) Act to enhance insolvency protection, clarify designation criteria for critical systems, and strengthen the Monetary Authority of Singapore's administrative powers.
Key amendments include extending insolvency protection for transactions by one business day beyond a participant's insolvency, protecting collateral-based systems, and clarifying that operators acting in good faith are not liable for actions taken in execution of their duties.
MAS studied international practices and conducted consultations to align the amendments with global standards, aiming to maintain Singapore's status as a financial hub and accommodate future payment technologies like blockchain and QR-based solutions.

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8 Jan 2018

Enterprise Singapore Board Bill

The Minister for Trade and Industry (Industry) introduced the Enterprise Singapore Board Bill to establish a new board and repeal the International Enterprise Singapore Board Act and the Standards, Productivity and Innovation Board Act.
The bill includes consequential and related amendments to other existing acts to align with the new framework.
The bill was read for the first time and scheduled for a second reading in the next parliamentary sitting.

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8 Jan 2018

Economic Expansion Incentives (Relief from Income Tax) (Amendment) Bill

The Economic Expansion Incentives (Relief from Income Tax) (Amendment) Bill was introduced by the Minister for Trade and Industry (Trade), Mr Lim Hng Kiang, to amend the existing Act.
The Bill aims to update the economic expansion incentives and tax relief provisions under Chapter 86 of the 2005 Revised Edition.
The amendment was recommended by the President and was read for the first time, with the second reading scheduled for the next parliamentary sitting.

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8 Jan 2018

Fee Benchmarks for Medical Procedures

The Ministry of Health introduced fee benchmarks as part of a broader strategy to manage healthcare costs for an ageing population, with an independent committee advising on their setting using historical data and stakeholder input.
The benchmarks aim to enhance transparency and guide reasonable charging without restricting competition, as doctors can still charge above or below the reference fees, and will be regularly reviewed.
Concerns were raised that benchmarks might cause lower-charging doctors to raise fees, but the Ministry expects most doctors to prioritize patient welfare and hopes the benchmarks will help identify and address overcharging.
The benchmarks will initially cover doctors' fees but may expand to include facility fees and other cost components, with ongoing efforts to improve data presentation and cost-effectiveness in healthcare.
Stakeholder representation, including patient groups through organizations like the Consumers' Association of Singapore, is intended to ensure diverse perspectives, though individual patient representation is not feasible.

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8 Jan 2018

Payment of Fines by Keppel Offshore and Marine to Settle Bribery Probe

The Singapore government coordinated with US and Brazilian authorities in a trilateral resolution where Keppel Offshore and Marine paid a US$422 million penalty for bribery, with Singapore receiving 12.5% of the sum, while emphasizing that each jurisdiction acted under its own domestic laws rather than under a single plea bargain agreement.
Investigations into individuals involved are ongoing and face challenges due to overseas evidence, with the Public Prosecutor set to assess culpability based on factors like knowledge, involvement, and cooperation, and the government defended the company's penalty as substantial while noting past prosecutions of individuals regardless of status.
The government clarified that Temasek, as a minority shareholder, does not interfere in Keppel's day-to-day operations, and that the US$422 million penalty would be paid by Keppel without impacting government finances, while also outlining measures like debarment for corrupt contractors and internal disciplinary actions by Keppel.

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8 Jan 2018

Investigation and Review into Fraudulent Claims for Government Schemes

Patrick Tay and Pritam Singh asked the Minister for Finance for details on recent fraudulent claims in government schemes like the Wage Credit Scheme, countermeasures taken, and whether a full review would be conducted to prevent future breaches.
The Second Minister for Finance confirmed that from 2014 to 2017, IRAS denied or clawed back $5.57 million in Wage Credit payouts across over 1,000 fraudulent cases, using a risk-based approach with upfront checks, analytics, and investigations for high-risk claims, and has prosecuted 14 cases for fraud.
IRAS emphasized that it does not conduct 100% audits due to administrative burden, instead focusing on higher-risk cases for detailed review, with periodic government scheme reviews conducted to ensure relevance and effectiveness.

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