Economy & business — Topics

2 Oct 2017

Affordability of Daycare Centres for Persons with Special Needs

Desmond Choo asked the Ministry for Social and Family Development how it ensures daycare centres for persons with special needs remain affordable.
Desmond Lee stated there are 26 Day Activity Centres operated by voluntary welfare organisations, with fees set by them but moderated through government measures.
MSF revises operating subsidies annually to keep pace with inflation, means-tests subsidies for lower-income families, and issues guidelines to prevent sharp fee hikes.
Additional support comes from government grants like the Community Silver Trust, which matches donations to VWOs, and MSF continues to monitor fees for funded programmes.

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2 Oct 2017

Automatic Filing of Tax Returns for Drivers of Private Hire Vehicles

IRAS is actively discussing with Uber and Grab to obtain drivers' data to automatically pre-fill tax returns, aiming to finalize the arrangement as soon as possible.
Tax deductions for car-related expenses, including purchase costs, are not allowed for ride-hailing drivers due to national policy on curbing car population, consistent with treatment for all taxpayers.
Drivers can claim deductions for other allowable expenses such as commissions to operators, administrative charges, and a proportion of mobile phone expenses used for work.

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2 Oct 2017

Efforts to Help Freelancers and Workers in Gig Economy with Medical and Retirement Adequacy

The Ministry of Manpower explained that gig economy workers can be employees or self-employed, with employees and employers required to make CPF contributions for healthcare and retirement, and lower-income employees eligible for Workfare top-ups.
Self-employed persons must make mandatory MediSave contributions for healthcare and can voluntarily top up their Special and Retirement Accounts for retirement, with tax relief and potential Workfare top-ups available for lower-income freelancers.
A tripartite workgroup has been formed to study and address key issues faced by self-employed persons, including healthcare and retirement adequacy, and will provide updates after consulting stakeholders.

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2 Oct 2017

Income Tax (Amendment) Bill

The Income Tax (Amendment) Bill introduces several tax measures, including an enhanced Corporate Income Tax rebate for 2017-2018, a Personal Income Tax rebate for 2017, and simplified tax deductions for R&D under cost-sharing agreements.
A new mandatory requirement for businesses with over $10 million in revenue to maintain Transfer Pricing Documentation (TPD) is introduced to align with international tax standards and deter profit-shifting, with fines for non-compliance.
The maximum voluntary employer contribution to employees' MediSave accounts is increased, allowing higher tax deductions and exemptions, encouraging more support for employees' healthcare savings.
Several members supported the bill but suggested additional tax rebates for vulnerable groups, such as caregivers, and adjustments to parental and course fee reliefs to better reflect rising costs and changing family needs.
The government acknowledged feedback and noted that outreach efforts will be enhanced to encourage employers to voluntarily contribute to MediSave accounts, while penalties for TPD non-compliance are deemed appropriate and may be monitored for future adjustments.

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2 Oct 2017

Property Tax (Amendment) Bill

The Property Tax (Amendment) Bill introduces changes to streamline the Valuation Review Board appeals process, enhance information-gathering powers for tax compliance, and implement an opt-out system for digital tax notices to support Singapore's Smart Nation initiative.
Concerns were raised by MPs about the opt-out approach for digital notices, including risks for elderly or less IT-savvy taxpayers, potential issues with missed notices, and the need for inclusive alternatives such as multilingual options and non-digital opt-out methods.
The government clarified a phased rollout for digital notices, starting with tech-ready individuals and excluding vulnerable groups, while assuring that notices are accessible via a secure portal to prevent fraud and that hardcopy options remain available for those who opt out.

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2 Oct 2017

Goods and Services Tax (Amendment) Bill

The Bill introduces customer accounting for specified supplies like mobile phones and software to prevent GST fraud by shifting the responsibility to account for tax to the buyer.
It mandates electronic record-keeping and additional invoice details for selected businesses based on risk assessment to improve audit capabilities and compliance.
The monthly penalty for late GST return submission will now start immediately after the due date, removing the previous one-month grace period to encourage timely filing.
Digital tax notices will be implemented on an opt-out basis to support Smart Nation goals, with safeguards for SMEs and less tech-savvy users through outreach and alternative options.
Amendments aim to ease business compliance and clarify existing legislation, with feedback from public consultations incorporated into the final Bill.

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2 Oct 2017

Travel Agents (Amendment) Bill

The Travel Agents (Amendment) Bill was presented by the Senior Minister of State for Trade and Industry on behalf of the Minister for Trade and Industry.
The Bill seeks to amend the Travel Agents Act and make a related amendment to the Singapore Tourism Board Act.
The Bill was read the first time and scheduled for a second reading at the next parliamentary sitting.

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2 Oct 2017

Streamlining Grants, Funding Support and Assistance Schemes with Merger of SPRING Singapore and IE Singapore

The Minister confirmed that the merger of SPRING Singapore and IE Singapore into Enterprise Singapore aims to streamline grants and support schemes, with efforts like the Business Grants Portal already simplifying applications.
SMEs will experience no disruption during the transition, as they can continue applying for grants through existing agencies and SME Centres, which will remain accessible.
Enterprise Singapore will enhance integrated support for capability building and overseas market access, with account management expected to become more efficient through a single point of contact.

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2 Oct 2017

Singapore-based Companies that have Invested in Government's Overseas Industrial Park Projects

The Ministry for Trade and Industry highlighted that over 340 Singapore companies, including SMEs and MNCs, have invested in G-to-G overseas industrial parks like the Suzhou Industrial Park, with cumulative investments reaching S$9.4 billion, and noted spin-off benefits such as increased R&D and job creation in Singapore, as exemplified by companies like PatSnap.
For the Tianjin Eco-City, 42 Singapore companies have registered with over S$220 million in capital, and while the Minister does not have exact SME proportions, he estimates it aligns with the Suzhou pattern of around 70% SMEs, driven by larger opportunities from G-to-G projects.
The Minister emphasized that these overseas investments help Singapore companies grow beyond the domestic market, develop capabilities, and create positive feedback loops for the local economy, with agencies tracking benefits through key performance indicators like grants and job creation.

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2 Oct 2017

Encouraging Production Companies to Use Facilities at Mediapolis@one-north

The Senior Minister of State outlined that Mediapolis@one-north is a vibrant media cluster with privately owned facilities like Infinite Studios, which have been used for major local and Hollywood productions, and IMDA's PIXEL Studios provides shared facilities and incubation for digital content creators and game startups.
IMDA offers free access to PIXEL Studios' facilities for independent creators, resulting in positive industry response with dozens of productions, and organizes over 150 events attended by more than 4,200 participants to support skill development and networking.
The Singapore Film Commission has established a Filming Friendly Zone in one-north, easing location filming permissions for small productions through agreements with building owners to facilitate easier access to filming sites.

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11 Sep 2017

Update on Sungei Road Flea Market Vendors

The Minister reported that nearly 80 vendors from the Sungei Road Hawking Zone have received government assistance, including rental subsidies and training, to adjust after the zone's closure.
More than 30 vendors have taken up lock-up stalls in hawker centres, with only one relinquishing their stall due to merchandise unsuitability, while 27 others have moved to existing flea markets.
For the 11 original permit holders, four have accepted lock-up stalls at subsidised rentals, and the government continues to provide job placement and financial aid to those in need.

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11 Sep 2017

Factors Influencing Rental Cost of Hawker Stalls

Hawker stall rental costs are influenced by factors such as location, stall size, condition of the hawker centre, potential business volume, and previous tender amounts.
Tender applicants are evaluated not only on the bid amount but also on whether their proposed food aligns with the stall's designated trade, with criteria including food type, quality, price, and online presence.
Government measures since 2012, such as disallowing stall subletting and removing reserve rents, have helped keep most hawker stalls affordable, with over 85% renting at under $1,500 per month.
At Yishun Park Hawker Centre, higher bid amounts reflect its status as a new centre managed on a not-for-profit basis, with rents comparable to other new centres and selection based on food quality, affordability, and productivity ideas.

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11 Sep 2017

Assistance to Arts Groups to Cope with Rising Rental and Maintenance Cost

The National Arts Council offers two main schemes—the Arts Housing Scheme and the Framework for Arts Spaces—that provide significant rental subsidies, with tenants paying only 10–20% of already reduced rates set by the Singapore Land Authority.
Maintenance costs are kept low through subsidised service charges and sinking fund contributions that have remained unchanged for years, with the council providing top-ups when needed to cover upkeep.
To address high demand exceeding supply, NAC works with community partners to free up alternative spaces, such as housing arts groups at Our Tampines Hub, while ensuring fair access for all artists and groups.

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11 Sep 2017

Economic Promotion Agencies' Roles as to Industry Sector and Size of Company Supported

Economic promotion agencies like EDB, IE Singapore, and SPRING have historically specialized in supporting different industry sectors and company sizes, with EDB focusing on global investments, IE on trade and internationalization, and SPRING on startups and SMEs.
The government collaborates through platforms like Industry Transformation Maps to integrate efforts across agencies and stakeholders, ensuring tailored support for enterprises’ evolving needs.
The merger of SPRING and IE into Enterprise Singapore aims to combine their strengths to comprehensively support local enterprises in innovation and internationalization, complementing EDB’s role in driving industry and enterprise development.

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11 Sep 2017

Industries Contributing to Positive Increase in Productivity

In 2016, Singapore's labour productivity grew by 1%, reversing the 2015 decline, driven mainly by outward-oriented sectors like Manufacturing and Accommodation, which benefited from stronger external demand and a slowdown in local and foreign workforce growth.
The Manufacturing sector's productivity surged by 7.1% to 8.2%, led by the Electronics and Biomedical Manufacturing clusters, due to robust global demand, while the Accommodation sector saw a 5.6% rise supported by increased visitor arrivals and hotel lettings.
Domestically-oriented sectors experienced a 1.3% decline in productivity, highlighting the contrast between outward and domestic sector performance in 2016.
For 2017, the Ministry of Trade and Industry forecasts economic growth of 2% to 3%, with productivity expected to strengthen further due to continued recovery in external demand.
The overall 2017 productivity outlook is more positive than 2016, reflecting the anticipated uplift from the economic growth forecast.

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11 Sep 2017

Regulation of Quantum and/or Length of Prepayment Schemes Offered by Businesses Identified as Most at Risk of Default

Sitoh Yih Pin asked if there are plans to regulate the quantum and/or length of prepayment schemes for businesses at high risk of default.
S Iswaran responded that broad-based regulations are challenging as they may raise business costs and are not commonly imposed overseas.
The government is studying targeted sector-specific measures to protect consumers from prepayment losses.
The Consumers Association of Singapore (CASE) collaborates with industries to offer accreditation schemes that include prepayment protection.
The overall approach focuses on promoting fair trading and helping consumers make informed decisions about prepayments.

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11 Sep 2017

Moneylenders Recovering Fees and Interests above Principal Sum

The Ministry of Law introduced a cap in 2015 limiting total borrowing costs to 100% of the principal sum, and no licensed moneylender has been found to breach this rule.
To address abusive practices like repeated short-term loans and split loans, the Registry issued Directions in 2016 and 2017 to prohibit such loans for borrowers unable to repay and to stop re-charging administrative fees during loan roll-overs.
The Registry monitors the industry through inspections and investigations, and takes action against errant moneylenders.
Public awareness is raised through media releases, infographics, collaboration with the Moneylenders’ Association, and mandatory disclosures by moneylenders on loan terms and cautionary statements.

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11 Sep 2017

Exclusion of Overtime Pay in Workfare Income Supplement Computation of Monthly Salary

Liang Eng Hwa proposed excluding overtime pay from monthly salary calculations for the Workfare Income Supplement to address irregular allowances and prevent disincentives for overtime work near the $2,000 cut-off.
The Government considered but rejected excluding basic pay, overtime, and bonuses, as total income reflects what supports workers and their families.
Assessing total income ensures fairness in providing WIS support to low-wage workers without incentivizing reduced basic pay or increased overtime.

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11 Sep 2017

Moneylending to Work Permit Holders

Assoc Prof Fatimah Lateef inquired if Work Permit holders can legally borrow from licensed and unlicensed moneylenders.
Lim Swee Say clarified that borrowing from licensed moneylenders is allowed, but it is illegal for moneylenders to operate without a licence.
The public, including Work Permit holders, are advised not to borrow from unlicensed moneylenders for their own protection.
Unlicensed moneylenders face severe penalties, including fines up to $300,000, seven years' imprisonment, and caning.

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11 Sep 2017

Update on Review of Comprehensive Economic Cooperation Agreement with India

The Second Review of the Comprehensive Economic Cooperation Agreement (CECA) with India is ongoing, with both countries working through respective interests such as labour mobility.
Singapore and India regularly engage in discussions to collaborate on issues, including the movement of natural persons, to achieve mutually beneficial outcomes before concluding the review.
Officials have held talks on various bilateral economic topics, including CECA and the movement of professionals, business visitors, and other service providers, to improve mutual understanding and address implementation details.

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