Economy & business — Topics

6 Nov 2017

Opportunities for Local Enterprises in Government Tenders

In 2015 and 2016, over 80% of government contracts were awarded to SMEs, with about 90% of these going to locally-owned SMEs, making up roughly half the total contract value.
The government provides free access to GeBIZ for procurement opportunities, uses platforms like GeBIZ Mall for direct purchases, and holds outreach events like the Government Procurement Fair for SMEs.
Targeted industry support includes the IMDA Accreditation@IMDA programme, which has helped accredited suppliers win over 120 government contracts, and Gov-PACT, which offers up to 70% funding for innovative SME proposals.
Government agencies actively identify problem statements for innovation through Gov-PACT, allowing local SMEs to co-create and prototype solutions, building their track record as reference customers.
Additional SME support beyond procurement includes capability development, financing access, and workforce skills training.

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6 Nov 2017

Central Provident Fund (Amendment) Bill

The bill amends the CPF Act to allow more members to transfer savings to their parents and grandparents by using their property charge to meet the Full Retirement Sum requirement, thereby increasing eligibility from 20% to 30% of members.
It updates the benchmark for Retirement Sum exemptions from the Retirement Sum Scheme to the CPF LIFE payout, which is expected to allow more members with private annuities to qualify for exemption.
The bill streamlines administration by moving computational details for voluntary CPF top-up limits from the main Act to regulations, clarifying the legal framework without changing the actual limits.
During the debate, MPs raised concerns about retirement adequacy, the impact of longer lifespans and smaller families, and the need for better public education and advisory services to help members make informed choices.
The Second Minister clarified that transferred CPF monies are safeguarded and can be refunded if not used, while highlighting existing support schemes and outreach efforts to improve CPF understanding among members.

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6 Nov 2017

Moneylenders (Amendment) Bill

The bill amends the Moneylenders Act to update regulatory provisions, presented by the Senior Minister of State for Law on behalf of the Minister for Law.
It underwent the First Reading and was scheduled for a Second Reading in the next parliamentary sitting, with the process recorded for printing.
The amendment aims to refine legal frameworks governing moneylending operations in Singapore.

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6 Nov 2017

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

The Minister for Trade and Industry (Trade) introduced the Payment and Settlement Systems (Finality and Netting) (Amendment) Bill to update the existing Act.
The bill aims to amend the Payment and Settlement Systems (Finality and Netting) Act (Chapter 231 of the 2003 Revised Edition).
The bill was presented, read for the first time, and scheduled for a second reading at the next parliamentary sitting.

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6 Nov 2017

Fundamentals of Recent Spate of En Bloc Property Sales

Dr Lim Wee Kiak asked about the drivers behind the recent surge in en bloc sales, whether the government should increase land sales to meet developer demand, and the impact on the property market outlook for the next six months.
Minister Lawrence Wong attributed the rise in en bloc sales to developers replenishing land banks due to falling unsold units and owners monetizing ageing properties, adding that new supply from these sales will be considered in future Government Land Sales (GLS) programmes.
The minister explained that high en bloc bids may not necessarily lead to higher future prices due to demand-supply conditions and the Additional Buyer’s Stamp Duty (ABSD) framework, and noted that new supply from redeveloped sites will moderate prices over time.
The government will continue monitoring the market closely and take appropriate actions to maintain stability, with details of the first half of 2018 GLS programme to be announced by year-end.
Dr Lim expressed concern about the sustainability of the en bloc trend and potential bubble formation, asking if cooling measures would be considered, to which the minister reassured ongoing vigilance and market moderation mechanisms.

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6 Nov 2017

Car Growth Policy's Impact on E-commerce Industry and Commercial Motorcycles

Desmond Choo raised concerns about the zero car and motorcycle growth policy affecting the e-commerce industry and suggested a separate COE category for commercial motorcycles.
The Senior Minister of State explained that while car growth is frozen, commercial vehicles retain a 0.25% growth rate, and a separate motorcycle COE category is not split further to avoid price volatility.
The Ministry acknowledged land constraints but highlighted measures like the Urban Logistics Task Force and federated locker network to support e-commerce efficiency.
Leon Perera proposed accelerating drone deployment for urban logistics to reduce road demand, and the Ministry agreed to explore innovative solutions like drones.
The Ministry committed to reviewing vehicle growth rates in the future to balance economic needs like e-commerce with land and infrastructure limitations.

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6 Nov 2017

Impact of Zero Car Growth Policy on COE Prices

The Ministry of Transport clarified that reducing the vehicle growth rate to zero from February 2018 is not expected to significantly affect COE prices, as quotas are primarily driven by vehicle deregistrations rather than new growth.
The government highlighted substantial investments in public transport, including expanding the rail network and bus services, to reduce the need for car ownership and manage increased passenger loads.
Officials stated that while the COE system is imperfect, it remains the fairest method to allocate scarce vehicle ownership resources, and they are not considering subsidies or rebates for specific groups.
The Ministry explained that foreign-registered vehicles are managed through the Vehicle Entry Permit to equalize costs with local vehicles, and they will provide data on multi-car ownership in a follow-up.

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6 Nov 2017

Career Enhancement for PMETs with Government Schemes

The Minister outlined a four-pronged strategy to enhance PMET careers: economic transformation, lifelong learning via SkillsFuture, the Adapt and Grow initiative, and tighter rules on foreign PMETs to improve local-foreign complementarity, reporting positive outcomes in productivity, PMET employment share, and median income growth.
The government is aligning Professional Conversion Programs with Industry Transformation Maps to target growth sectors like finance and infocomm, offering higher wage support for mid-career PMETs, and has helped about 10,000 local PMETs secure jobs through Adapt and Grow programs in the first eight months of the year.
While acknowledging ongoing challenges like job-skills mismatches and the need for employer and worker adaptability, the government is expanding support through tripartite partnerships, retrenchment task forces, and the Lean Enterprise Development scheme to help PMETs transition into better jobs.

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3 Oct 2017

Terms for Extension of Formula One Singapore Grand Prix

Miss Cheng Li Hui inquired about the terms of the four-year extension for the Formula One Singapore Grand Prix and whether the benefits were evaluated against inconveniences to drivers and retailers.
Minister S Iswaran stated that the exact terms are confidential, but the extension from 2018 to 2021 was decided after weighing national benefits and costs, including over 450,000 international visitors and $1.4 billion in tourism receipts.
The race has generated local business opportunities, with 90% of works subcontracted to Singapore companies, and boosted Singapore's global image, though the government aims to reduce organizing costs to $135 million annually.
Inconveniences to drivers and retailers are acknowledged, with measures like halving road closure days and launching the Grand Prix Season Singapore to mitigate impacts and enhance the event experience.
The government will continue working with stakeholders to balance the race's benefits with public inconveniences during the extension period.

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3 Oct 2017

Use/Investment of Cryptocurrencies

The government is aware of the limited but growing use of cryptocurrencies in Singapore, with only about 20 retailers accepting Bitcoin, and is monitoring them through the Monetary Authority of Singapore (MAS) without regulating the currencies themselves but focusing on related activities like money laundering and fundraising.
MAS has clarified that initial coin offerings (ICOs) structured as securities must comply with existing securities laws and anti-money laundering rules, and the authority is considering more targeted legislation if needed, while also publishing consumer advisories to highlight investment risks.
The financial industry's direct use of cryptocurrencies for payments is not significant, with trading primarily for speculation, and the government emphasizes the lack of legal tender status and the importance of public awareness about potential scams.

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3 Oct 2017

Big Data Sandbox for Singapore

The Minister outlined government efforts like the SMEs Go Digital programme and the Data Innovation Programme Office to help businesses, especially SMEs, adopt data analytics and AI, noting that many local companies have yet to do so due to a lack of awareness, expertise, or concerns about data regulations.
The Minister highlighted the success of Poh Kim video retailer, which used video analytics to increase revenue by 10%, and emphasized that the government is working to make digital solutions more accessible and subsidised for SMEs.
The Minister clarified that the regulatory sandbox for personal data sharing, under the Personal Data Protection Act, aims to provide clarity and exemptions for businesses, and details on the big data sandbox will be announced once ready.
Saktiandi Supaat sought more details on the big data sandbox progress, the exchangeable business intelligence from digital solutions, and potential cost impacts for SMEs, to which the Minister responded that updates would come later and reassured that costs are being managed through subsidies.
The debate underscored the government's role in reducing barriers to data adoption, promoting collaboration among businesses, and ensuring that traditional SMEs can integrate big data to stay competitive and profitable.

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3 Oct 2017

Compulsory Neo-natal Insurance for IVF

Louis Ng asked whether neo-natal insurance for IVF should be made compulsory at the point of a positive pregnancy test rather than at embryo transfer.
The Ministry of Health explained that requiring insurance at IVF enrollment keeps premiums affordable due to a larger risk pool, while deferring it to pregnancy could raise premiums due to a smaller risk pool.
The Ministry is currently reviewing the policy but did not specify a timeframe.
Only one insurance provider (Great Eastern) offers the neo-natal insurance, and the Ministry sees no need for more providers due to the small policy pool, though it will review this if necessary.

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3 Oct 2017

Grant for Companies to Offset Cost of Hiring Temporary Staff for Pregnant Employees

Louis Ng proposed a grant for companies to offset costs of hiring temporary staff for pregnant employees until their child turns two years old.
The Second Minister for Manpower highlighted the Work-Life Grant as a flexible support measure for family-friendly workplaces, noting its broad use and high company participation.
Louis Ng emphasized the need for more support beyond maternity leave and requested a study on workplace discrimination against pregnant employees.
The Minister cited examples of companies using creative solutions like temporary contracts and technology to support pregnant workers, advocating for company-specific approaches.
The Minister offered to collaborate on a study of workplace discrimination if there is interest from relevant parties.

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2 Oct 2017

Breakdown of Annual Foreign Worker Levies Collected

Louis Ng Kok Kwang asked for the annual breakdown of foreign worker levies collected since 2012 and whether part of these levies could be used to subsidize households needing foreign domestic workers (FDWs) or provide financial assistance to FDWs in exceptional circumstances.
Lim Swee Say stated that FDW levies, like other government revenues, go into the Consolidated Fund to fund all government expenditures, including assistance schemes like the FDW Grant for eligible households with family members needing permanent help with daily activities.
The FDW Grant provides $120 per month to offset FDW hiring costs for means-tested households, benefiting over 17,000 since 2012, and households with children, elderly, or those needing help with daily activities receive a concessionary FDW levy rate of $60 instead of the full $265 rate.
For FDWs needing financial assistance, the government supports NGOs like the Centre for Domestic Employees, which provide humanitarian aid, rather than offering direct government financial assistance.

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2 Oct 2017

Auto Inclusion, Application and Funding for Adapt and Grow Schemes

Patrick Tay asked if the Adapt and Grow schemes, like the Career Support Programme, could be automatically included, applied for, and funded for employers instead of requiring manual applications.
Lim Swee Say explained that most jobseekers and employers find matches through agencies, ads, and networks, and Adapt and Grow schemes are meant for targeted help for those with skills or wage mismatches.
Lim Swee Say noted that these schemes offer training and wage support to help mature or long-term unemployed jobseekers and employers bridge gaps, but auto-approaches would require more public funding and weaken targeted assistance.

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2 Oct 2017

Opening of Artic and Other Regional Trade and Connectivity Routes

Desmond Choo asked how Singapore is repositioning for new trade routes like the Arctic and how PSA must transform, while Khaw Boon Wan noted it is too early to assess the Arctic route's impact due to its current low commercial viability, limited seasonal use, and logistical challenges.
Singapore is prioritizing its port competitiveness by developing the new Tuas Terminal to handle up to 65-metre TEUs, ensuring capacity for future container shipping needs.
The Maritime and Port Authority and PSA are investing in technology, such as automated crane systems at Pasir Panjang Terminal, to boost efficiency, reliability, and safety.
The government will monitor global trends and collaborate with industry partners to maintain Singapore's status as a global hub port and maritime center.

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2 Oct 2017

Prevalence of Cryptocurrency in Singapore

Cryptocurrency use in Singapore is not prevalent, with only about 20 retailers accepting Bitcoin and low trading volumes compared to other countries, primarily for speculative purposes.
The Monetary Authority of Singapore (MAS) does not regulate cryptocurrencies as legal tender but oversees activities like anti-money laundering and terrorist financing risks through a new payment services framework.
For Initial Coin Offerings (ICOs), MAS requires tokens structured as securities to comply with existing securities laws, including prospectus registration and licensing, while monitoring for potential need of targeted legislation.
MAS and the Commercial Affairs Department have issued advisories to warn consumers about the high risks and scams associated with virtual currency investments.

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2 Oct 2017

Regulating Transaction Fees and Platform Rental Fees Charged by Cashless E-payment Platform Providers

Assoc Prof Daniel Goh asked whether the government will cap transaction and platform rental fees charged by cashless e-payment providers to speed up adoption by SMEs and consumers.
Tharman, speaking for the Prime Minister, explained that the government is promoting e-payment through a multi-pronged approach, including infrastructure, convenience, standards like SGQR, and driving adoption, while keeping costs low through competition and open architecture.
He noted that MAS has helped develop low-cost solutions like PayNow and NETS Pay, and that the government is studying the experience of other jurisdictions before deciding on regulating e-payment fees.

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2 Oct 2017

Progress of EntrePass Scheme

The EntrePass scheme, introduced in 2003, has approved over 7,000 applications from foreign entrepreneurs across diverse sectors, creating about 15,000 jobs for locals.
The scheme has been enhanced to broaden evaluation criteria, allow a year for exploration before company setup, and extend pass validity to two years to attract more global talent.
Additional initiatives like Startup SG and the Action Community for Entrepreneurship International Centre are in place to support and anchor promising startups in Singapore.

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2 Oct 2017

Relevance of Annual Great Singapore Sale Given Popularity of Online Shopping

Melvin Yong questioned whether the Great Singapore Sale (GSS) remains relevant amid the rise of online shopping, prompting a response from Minister S Iswaran.
The GSS must evolve to adapt to changing consumer preferences and the growing prominence of e-commerce, as part of the broader Retail Industry Transformation Map.
The GSS is enhancing its online presence through initiatives like the GoSpree app, which offers exclusive deals and geo-tagged alerts to reach tech-savvy shoppers.
Future plans include leveraging technology to expand consumer outreach and reinventing the GSS as a lifestyle event that collaborates with dining and entertainment sectors.

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