Economy & business — Topics

1 Aug 2017

Plans for ASEAN to Execute Multilateral Approach in China's One Belt One Road Initiative

Dennis Tan Lip Fong inquired whether ASEAN plans to adopt a multilateral approach to engage with China's Belt and Road Initiative, complementing existing bilateral engagements.
Vivian Balakrishnan highlighted the potential of the Belt and Road Initiative to enhance connectivity and infrastructure development in Asia, noting Singapore's early support and specific collaborative projects with China.
The Minister emphasized the significant investment needs in Asia and the alignment between the Belt and Road Initiative and ASEAN's Master Plan for Connectivity 2025, indicating ASEAN's interest in exploring synergies.
Singapore, as the Country Coordinator for ASEAN-China Dialogue Relations, is actively consulting with ASEAN member states and China on integrating these initiatives into future cooperation plans.

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1 Aug 2017

Applicants Granted PR Status under EDB's Global Investor Programme

Gan Thiam Poh asked the Minister for Trade and Industry for statistics on the number of applicants granted PR status under the Global Investor Programme (GIP) since its launch, the number of PRs whose status was withdrawn or cancelled, and the number who later obtained citizenship broken down by age group.
The Minister replied that as of June 2017, 1,826 GIP applicants have been granted permanent residency since the programme began in 2004.
Of these, 67 were granted citizenship at ages ranging from 25 to 58 years old.
One GIP investor had their PR status revoked upon review.
The response highlights the scale of the GIP and its outcomes in terms of residency and citizenship grants over the programme’s history.

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1 Aug 2017

Efforts to Catalyse Reverse Mortgages for Private Housing

Financial institutions are permitted to offer reverse mortgages for private housing, though past offerings ceased due to lack of demand, and terms including interest rates are set commercially based on funding costs and credit risk.
The government has introduced measures like exempting certain mortgage equity withdrawal loans from the total debt servicing ratio framework to help retirees monetise their housing assets, with ongoing policy reviews to facilitate such options.
Alternatives to reverse mortgages exist, such as renting out properties or rooms, or using schemes like the HDB Lease Buyback Scheme and Silver Housing Bonus for eligible flat owners.

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1 Aug 2017

Index to Track Business Costs by Category

Kwek Hian Chuan Henry proposed that trade councils and business chambers collaborate with think-tanks to create an annual sectoral business costs index tracking categories like rentals, wages, and raw materials to guide industry transformation policies.
Lim Hng Kiang responded that the government already publishes various business cost data, including the Unit Labour Cost Index, rental indices, and the Unit Business Cost Index for manufacturing and services sectors, through agencies like the Department of Statistics, JTC, and URA.
The government welcomes private sector initiatives, such as the LEAD program, to deepen business trend insights and support industry transformation through research and intelligence projects.

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1 Aug 2017

Use of CPF Funds for Children's Tuition Fees

About 30,000 CPF members used the CPF Education Scheme for children's tuition fees from 2014 to 2016, with 98% of outstanding loans fully repaid.
The Minister explained that children cannot use their own CPF savings to repay education loans, as these funds are reserved for housing, healthcare, and retirement.
Repayment starts one year after graduation, with options for deferment or monthly instalments over up to 12 years for those facing difficulties.

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1 Aug 2017

Cashback Features in Hire-Purchase Schemes

Cedric Foo and Tan Wu Meng raised concerns about hire-purchase schemes with cashback features, questioning if they resemble moneylending and require stricter regulation.
Minister S Iswaran explained that hire-purchase and moneylending are separately regulated, and cashback schemes are commercial arrangements with trade-offs like higher interest rates.
The government encourages consumers to review terms carefully and is raising awareness through MoneySENSE, while closely monitoring and ready to act against irresponsible credit practices.

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1 Aug 2017

Impact of Cessation of Sand Import from Cambodia

Pritam Singh inquired about the impact of Cambodia’s sand export halt, the number of current sand-exporting countries, and annual import volumes from 2007.
Lawrence Wong stated that Singapore ensures supply resilience by sourcing sand commercially from diverse countries and encouraging alternative procurement.
The government is promoting sustainable construction methods, recycling materials, and piloting polder developments to reduce sand reliance.
Sand import volumes fluctuate yearly; in 2016, Singapore imported 35 million tonnes of sand, with such data publicly available.

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1 Aug 2017

Breakdown of Programmes that Received Public Service Broadcast Funds

Mr Ganesh Rajaram asked for a breakdown of Public Service Broadcast (PSB) funds given to Mediacorp by programme title and genre for the last financial year, regardless of production source.
The Minister responded that PSB funding in FY16 was about $250 million, supporting around 3,000 hours of locally produced PSB TV programmes.
Approximately 60% of PSB programme funding went to current affairs, info-educational programmes, and documentaries, while 40% funded entertainment programmes like local dramas and variety shows.
PSB funds also supported digital content on platforms like Toggle, such as "Yes Mdm" and "Run Rachael Run," to meet growing online consumption.

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4 Jul 2017

Lapsed Life Insurance Policies/Saving Plans Due to Non-payment of Premiums

In the past six years, about 196,000 life insurance or saving plans were surrendered in 2016, with surrender rates rising slightly from 3.2% to 3.6% between 2011 and 2016, which is comparable to or lower than rates in Hong Kong and the European Union.
Life insurance policies are designed to provide intended benefits only if held for the full term, and rules require agents to conduct proper client needs analysis, including assessing financial ability to commit to premium payments.
The Ministry does not require agents to inform clients about selling policies in the secondary market due to concerns about unrelated parties benefiting from the life insured's death or disability.
Policyholders unable to pay premiums can consider options such as taking a loan against the policy value, surrendering the policy for a sum, or reducing coverage, and should approach insurers or agents for help.

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4 Jul 2017

Protection of Consumers' Interests in Private Hire Car Market

Miss Cheryl Chan questioned how the new decal rule would protect consumers, whether PHC companies should provide driver and car details to LTA, and if there are other enforceable alternatives.
Minister Khaw Boon Wan explained that tamper-evident decals help commuters verify LTA-registered cars and aid enforcement against unregistered services and street-hail pickups.
He noted that decals were chosen over alternatives like special plates for flexibility and ease of implementation, though they must be re-affixed after removal for personal use.
The Minister stated that while owners must maintain driver registers for LTA requests, PHC booking operators like Uber and Grab will face similar requirements soon.

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4 Jul 2017

Complaints against Multi-level Marketing Companies

Ang Wei Neng asked the Minister for Trade and Industry about the number of companies using the multi-level marketing (MLM) model, the adequacy of current laws, and the number of complaints received in the past five years.
The Minister stated that while the MLM Act prohibits certain MLM schemes, exclusions exist for insurance businesses and qualifying master franchise or direct selling schemes, and no specific licence is required for MLM techniques, so no record of such companies is kept.
Over the past five years, CASE received fewer than 10 MLM-related complaints annually, compared to an average of 24,000 total complaints, and there are no plans to review current MLM laws.
The public is advised to exercise due diligence and report suspected illegal MLM schemes to the Commercial Affairs Department.

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4 Jul 2017

Opportunities for Local Businesses in Belt and Road Projects

The Ministry, through IE Singapore, is enhancing capabilities with schemes like the Internationalisation Finance Scheme and the GRIT Programme to support local companies in Belt and Road projects.
ASEAN represents a key addressable market, with Singapore serving as China's largest overseas investment destination within Belt and Road countries in 2016, leveraging complementary strengths in infrastructure and logistics.
The Chongqing Connectivity Initiative is a priority G2G project, facilitating opportunities for Singapore companies in western China through platforms like the Chongqing Logistics Development Platform.
Singapore has actively supported Belt and Road from its start, founding the AIIB and signing recent MOUs to bolster project collaboration with China.
Government agencies continue to connect local firms with Chinese and foreign partners to explore ventures in both Belt and Road and third-party markets.

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4 Jul 2017

Taxes on Loose Tobacco Leaves and Cigarette Paper

Dr Intan Azura Mokhtar questioned if tobacco taxes on loose tobacco leaves and cigarette paper in Singapore are adequate.
Minister Heng Swee Keat outlined Singapore’s multi-pronged strategy, including advertising bans, public place smoking prohibitions, education, cessation services, and taxation.
He noted a 25% excise duty increase on Ang Hoon in 2013, which, alongside other measures, led to a 30% drop in loose tobacco consumption from 2013 to 2016.
The Ministry of Finance will continue collaborating with the Ministry of Health to monitor and apply international best practices for tobacco control.

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4 Jul 2017

Unpaid Income Tax of Deceased Persons

Louis Ng Kok Kwang asked the Minister for Finance about the amount of unpaid income tax from deceased persons owed to IRAS over the past three years, the recovery rate, and the possibility of writing off taxes below a certain threshold.
Heng Swee Keat responded that outstanding taxes from deceased taxpayers range between $13 million and $20 million annually, with approximately 80% recovered over time.
The Minister stated that IRAS attempts to recover all unpaid taxes first but will consider writing off amounts after all appropriate recovery actions are exhausted.

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4 Jul 2017

Reducing Mobile Roaming Charges across ASEAN

Lim Wee Kiak asked about progress in reducing mobile roaming charges across ASEAN to support business and tourism.
Assoc Prof Dr Yaacob Ibrahim confirmed tangible progress, noting affordable daily unlimited data roaming plans offered by local operators for popular ASEAN destinations at $15–$19 per day.
ASEAN ministers endorsed a framework in 2015 to develop transparent and affordable roaming charges, with Singapore working toward its completion by next year.
The government aims to continue promoting affordable roaming services to enhance regional integration and benefit businesses and consumers.
Efforts include expanding data roaming packages that can be used across multiple ASEAN countries.

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4 Jul 2017

Monetary Authority of Singapore (Amendment) Bill

The Monetary Authority of Singapore (Amendment) Bill enhances MAS’s resolution regime for financial institutions, introducing tools like recovery and resolution planning, a statutory bail-in regime, and a Resolution Fund to manage distressed FIs and prevent systemic contagion.
The Bill aligns Singapore’s framework with international standards, clarifies MAS’s supervisory priority over development objectives, and streamlines operational matters such as capital management and fund arrangements.
MPs broadly supported the Bill but raised questions on implementation, including the adequacy of penalties, protection of depositors and policyholders, transparency of affected institutions, and measures to support workers and public education during financial distress.

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4 Jul 2017

Measures to Ensure Stable Motorcycle COE Prices

The Senior Minister of State for Transport explained that recent motorcycle COE price spikes are due to market flux following ARF changes, with lower-end models unaffected and a larger supply of motorcycle COEs expected after stopping COEs from Category D contributing to the Open Category.
The Minister stated that the tiered ARF makes higher-end motorcycles more expensive but does not affect over 60% of the market, and declined to create a separate motorcycle category, arguing it would split the quota and increase price volatility.
The Minister reiterated that motorcycles are already in a separate COE category to avoid competition with car buyers, and further splitting it would reduce quota stability and affordability for lower-end models.

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4 Jul 2017

SMEs' Feedback for Bilateral and Multilateral Trade Agreements

The Ministry of Trade and Industry consults SMEs through roundtable sessions and one-to-one meetings with trade associations to gather feedback on trade agreements.
IE Singapore conducts market surveys and runs outreach workshops to help companies understand and benefit from trade agreements, with 3,500 companies engaged over five years.
Roundtables are typically organized around specific ongoing FTA negotiations, such as country or group-of-country themes, but companies can also raise trade-related issues in other forums.

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4 Jul 2017

Data on Online Retail Transactions

The Ministry tracks online transactions via locally-issued cards, showing about $18.3 billion with local entities and $6.4 billion with foreign entities over the past three years, with e-commerce making up 3% of total retail receipts.
The government aims to grow e-commerce to 10% of retail receipts by 2020 under the Retail Industry Transformation Map, supporting local businesses through digital capability programs, SME initiatives, and workforce upskilling.
MPs raised concerns about the availability and public access of e-commerce data for analysis, to which the Ministry responded that data is tracked but may not cover all transaction types, and they will continue to monitor and benchmark against international trends.

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4 Jul 2017

Application and Price Trends for NEA Hawker Stalls

As of May 2017, 97% of over 6,000 NEA-managed cooked food stalls were occupied, with average tender bids over the last three years at $1,370 per month, ranging from $1 to $4,888.
The Ministry stated it will not reinstate a policy of allocating stalls at market rates to those in financial hardship, citing historically low take-up rates and the need for hawkers to have business skills rather than just need.
However, the Ministry is implementing initiatives to support aspiring hawkers, including training programs, a hawkerpreneur course, and incubator stalls to help individuals, including the retrenched, enter the trade sustainably.

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