Economy & business — Topics

4 Jul 2017

Fair Treatment of Subcontractors in Government Projects

Mr Chong Kee Hiong raised concerns about subcontractors facing payment issues in the Changi Airport Terminal 4 project and asked about measures to ensure fair tender evaluation and subcontractor protection in future government projects.
The Second Minister for National Development clarified that the Terminal 4 project is undertaken by Changi Airport Group, a corporatised entity not bound by government procurement rules, and that subcontractor rights are governed by their contracts with main contractors.
The government has implemented the Building and Construction Industry Security of Payments Act (SOPA) to protect subcontractors by enabling fast, low-cost adjudication for payment disputes and improving cash flow in the construction industry.
For government construction projects, strict procurement systems are in place, including mandatory contractor registration criteria on financial capacity, track record, and performance to ensure contractors are qualified and capable.
These measures aim to minimise payment disputes and ensure fair treatment of subcontractors, though the Terminal 4 project itself falls outside direct government procurement oversight.

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3 Jul 2017

HDB Dwellers Concurrently Owning Private Residential and Commercial Properties

Gan Thiam Poh asked the Minister for National Development for statistics on HDB dwellers who concurrently own private residential and commercial properties, the number servicing both HDB and private bank loans, and whether only those who have fully paid off their HDB loans should be allowed to buy private properties.
As of April 2017, about 54,300 HDB households (less than 6%) owned private properties, with most owning only one property, primarily residential, and some owning commercial or mixed properties.
Among these households, about 7,100 (13%) were servicing HDB loans, but data on private bank loans was unavailable.
The government has existing financial safeguards, such as higher downpayments, tighter loan-to-value limits, Additional Buyer’s Stamp Duty, and the Total Debt Servicing Ratio framework to prevent over-leveraging.
The ministry will continue monitoring the market and review measures as conditions evolve.

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3 Jul 2017

Competitiveness and Health of Singapore's Wafer Fabrication and Semiconductor Industry Cluster

Singapore's semiconductor cluster is robust and growing, with a 4.3% compound annual growth rate in manufacturing output from 2011 to 2016 and recent major investments like Micron's S$5.4 billion expansion.
The government is supporting innovation and productivity through initiatives such as the RIE2020 Plan's S$3.2 billion for Advanced Manufacturing and Engineering and partnerships like Infineon's S$105 million Smart Factory transformation.
Workforce development is a key focus, with efforts to co-create a Skills Framework for the Electronics industry to map career pathways and support targeted training programs.
The upcoming Electronics Industry Transformation Map aims to further strengthen the competitiveness of the sector.

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3 Jul 2017

Compulsory Pre-market Approval for Health Supplements

Melvin Yong asked whether the Ministry of Health will consider mandatory pre-market approval for health supplements before they are imported and sold in Singapore.
Health Minister Gan Kim Yong explained that health supplements are regulated under a risk-based approach, are not required to have pre-market approval, and are treated similarly in jurisdictions like the US, EU, and Japan due to their lower risk compared to pharmaceutical drugs.
The Ministry noted that pre-market regulation could increase costs for companies and reduce consumer choice in Singapore’s small market, but importers and sellers are responsible for ensuring product safety, quality, and truthful claims.
The Health Sciences Authority conducts post-market surveillance, including monitoring adverse event reports, tracking international safety issues, and testing products to address any quality or safety concerns.

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3 Jul 2017

Higher Penalties for Misleading Claims in Advertisements of Health Products and Services

Melvin Yong asked if the Ministry of Health would increase penalties for false or misleading advertisements of health products and services to protect consumers.
The Ministry currently regulates such ads under the Health Products Act, with penalties up to a $20,000 fine, 12 months' imprisonment, or both.
Some health products like Chinese and Traditional Medicines fall under the Medicines Act, which has lower penalties of up to a $5,000 fine, two years' imprisonment, or both.
The Ministry plans to amend laws to move regulation of these medicines to the Health Products Act, applying the higher penalties.
The Ministry is also reviewing the Private Hospitals and Medical Clinics Act to enhance regulation of health services advertisements.

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3 Jul 2017

Measures to Assess and Maintain Stability of Singapore's Financial System

The Monetary Authority of Singapore (MAS) uses a two-pronged approach of microprudential supervision for individual financial institutions and macroprudential surveillance for the whole financial system, with close coordination between them.
For individual institutions, MAS conducts risk-focused supervision, enforces regulatory standards drawn from global best practices, and performs onsite inspections and offsite reviews, with extra attention given to systemically important institutions.
At the system level, MAS employs tools such as risk indicators, stress tests, and network analysis to identify vulnerabilities and how risks could spread through interconnections, and it subjects domestic systemically important banks to additional buffers.

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3 Jul 2017

Singaporeans who are Eligible for Workfare Income Supplement but Who are Left Out

Ms K Thanaletchimi asked about Singaporean workers who meet the eligibility criteria for Workfare Income Supplement (WIS) but have been omitted from payouts, where to appeal, and how the Ministry ensures all eligible workers receive WIS.
Minister Lim Swee Say stated that eligible workers are not omitted, but some may not have received payouts due to changes in circumstances after data cut-off dates, and they can appeal to the Central Provident Fund Board for reassessment within two years.
The Ministry has enhanced WIS since January 2017 by paying monthly instead of quarterly and raising the income ceiling, expecting about 460,000 Singaporeans to receive support for the year.

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3 Jul 2017

Building and Maintenance Costs of Multi-storey Car Parks

The cost to build a multi-storey car park is generally three to five times higher per lot than a surface car park, depending on construction material prices and site-specific conditions.
Annual maintenance, improvement, and repair costs account for about 20% of car park expenditure, but parking charges do not cover the full costs of building, operating, and maintaining car parks.
Without increases in parking charges, HDB would face an annual deficit of around $100 million in the coming years, and even with revised charges, deficits are expected to continue due to rising overheads, ageing infrastructure, and other capital expenses.

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3 Jul 2017

Blacklisting Training Providers Who Profiteer from SkillsFuture Programme

Ms Chia Yong Yong asked whether the government monitors and blacklists training providers who profiteer from the SkillsFuture programme by marking up course fees, and sought the number identified and blacklisted.
Ong Ye Kung responded that SkillsFuture Singapore (SSG) works with reputable providers and ensures course fees are reasonable through industry benchmarks and competition among over 650 private training providers.
SSG enforces against profiteering and has suspended 17 organisations since 2016 for serious breaches like false declarations of trainee eligibility or course fees.

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3 Jul 2017

Consumer Complaints against Premium Rate Telecommunications Service Providers

The Ministry monitors complaints against Premium Rate Services (PRS) providers and has taken enforcement actions in 28 cases since the PRS Code of Practice was introduced in 2007, including warnings, financial penalties up to $100,000, and potential licence suspension or cancellation for repeat offenders.
Mobile operators have offered a PRS barring service since 2012, allowing consumers to block PRS subscriptions and avoid unintended charges, contributing to a 74% drop in complaints from 483 in 2012 to 126 in 2016.
Most remaining complaints involve allegations of unsolicited charges, which investigations often attribute to consumers not reading terms and conditions carefully; the Ministry encourages vigilance and use of the barring service to protect themselves and family members.

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3 Jul 2017

Incidence of Late Payment of Employer CPF Contributions

Assoc Prof Daniel Goh asked about the 69% rise in CPF arrears from 2014 to 2016, penalties for late payments, and whether the CPF Board’s education and deterrence strategies need improvement.
Lim Swee Say explained that late payments increased in absolute terms but as a percentage of total contributions, and cited reasons such as cash flow issues and employer errors, with fewer employers failing to rectify payments within one month by 2016.
The CPF Board imposes a 18% annual late payment interest, composition fines, and enhanced penalties including higher fines and jail terms, with 3,233 employers convicted in 2016.
Since 2014, penalties were doubled for first-time offenders, and the CPF Board’s WorkRight initiative has expanded outreach, inspections, and self-rectification tools to educate employers on compliance.

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3 Jul 2017

Minimum Lease Period Left on a Property for Withdrawal of CPF Monies for Mortgage

Gan Thiam Poh asked the Minister for Manpower whether the CPF Board would review the minimum lease period left on a property for CPF withdrawal for mortgage purposes.
Lim Swee Say explained that the current policy sets a 30-year minimum lease to balance retirement adequacy and housing needs, as short-lease properties depreciate quickly and may not yield enough proceeds to refund CPF withdrawals.
For properties with 30 to 60 years lease remaining, CPF can be used if the lease covers the buyer until age 80 and the withdrawal amount is prorated based on the Valuation Limit, with an example given for a 35-year-old buyer.
These safeguards are intended to ensure the lease covers retirement years, increase the likelihood of CPF refunds upon sale, and prevent over-consumption of savings on properties that may be outlived.
The Ministry of Manpower will continue monitoring CPF housing withdrawal rules, considering life expectancy and market changes, to help Singaporeans make prudent housing choices while safeguarding retirement adequacy.

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3 Jul 2017

Impact of GIC's Divestment in UBS on Rate of Return for Government's Investment Portfolio

Png Eng Huat asked about the impact of GIC’s reduced stake in UBS on the Government’s portfolio returns and the realised loss from the divestment.
Heng Swee Keat explained that GIC’s published performance figures already include both realised and unrealised gains or losses from all investments, including UBS, so the divestment only converts an existing unrealised loss into a realised one.
The Minister noted that the Government does not disclose details of specific transactions and evaluates GIC’s performance over the entire portfolio and long term, not on individual investments.
He emphasized that while the UBS deal was disappointing, investing involves calculated risks, and some losses are unavoidable without being completely risk-averse.
As of 31 March 2016, GIC’s 20-year annualised return was 4% above global inflation, which includes the UBS investment.

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3 Jul 2017

Government's Benchmark for Annualised Real Rate of Return for GIC and Temasek Holdings

The Government does not use a single benchmark but evaluates GIC and Temasek’s long-term performance based on their distinct roles, risk exposure, and market trends.
GIC aims to achieve long-term returns above global inflation, with its risk tolerance expressed through a reference portfolio of 65% global equities and 35% bonds, which is adjusted as needed.
Temasek’s performance is measured by long-term Total Shareholder Returns against a risk-adjusted hurdle rate and market indices like MSCI.
Both entities’ performance is assessed comprehensively, considering risk taken and market conditions, with ongoing efforts to ensure long-term returns for Singaporeans.

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3 Jul 2017

Scope and Terms of Reference of Future Economy Council

The Future Economy Council (FEC) will oversee implementing the Committee on the Future Economy’s recommendations, focusing on growing a vibrant economy, transforming enterprises through industry-specific strategies, and enabling Singaporeans to acquire deep skills for future opportunities.
The FEC comprises tripartite partners from government, private sector, unions, Institutes of Higher Learning, and Trade Associations, with six subcommittees coordinating efforts across industry clusters to ensure collaboration and agility in responding to economic changes.
The Council will continue wide engagement through focus groups, company visits, and consultations to incorporate new ideas, address workforce challenges like elderly and low-skilled workers, and adapt to technological shifts such as digital transformation and the rise of driverless vehicles.

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3 Jul 2017

Help for Vendors Displaced by Closing of Sungei Road Hawking Zone

The government explained that the Sungei Road Hawking Zone is closing due to public health and disamenity issues, and will not be relocated, but has offered vendors lock-up stalls at hawker centres and flea markets with rental rebates and training to help them transition.
Agencies have engaged over 200 vendors, providing financial aid, job placement, and community support, with more than 60 receiving assistance; some vendors have already moved to new locations while others plan to decide after the closure.
Despite calls from MPs to consider relocation or alternative sites, the government maintains that sustainable alternatives are being provided and that the community can continue to support vendors through patronage at their new stalls.

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8 May 2017

Long-term Plan to Help Lower-income Singaporean Families Defray High Cost of Infant Formula

Sitoh Yih Pin and Low Thia Khiang asked if the Ministry plans to provide permanent or long-term assistance to lower-income families to manage the high cost of infant formula, potentially expanding existing schemes like the NTUC FairPrice Foundation-CDC Milk Fund.
Tan Chuan-Jin highlighted that families can use the Baby Bonus Cash Gift, which provides up to $10,000 per child, disbursed over 18 months, to help cover child-raising costs including infant formula.
The Ministry directs low-income families facing difficulties to Social Service Offices for ComCare assistance, which includes monthly cash grants that can cover infant formula costs after a needs assessment.
The government acknowledges community efforts like the NTUC FairPrice Foundation-CDC Milk Fund and will continue monitoring infant formula costs and reviewing social assistance schemes as needed.

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8 May 2017

Gender Budgeting to Determine Effect of Policies on Women

Assoc Prof Daniel Goh asked whether the Government practises gender budgeting to assess policies' impact on women, particularly regarding fertility and labour participation, and for which policies this applies.
Heng Swee Keat stated that Singapore does not use formal gender budgeting but integrates gender considerations in policy design and resource allocation to advance women's advancement and equality.
The Minister highlighted policy measures such as affordable preschool, Work-Life Grants, enhanced parental leave, and legal protections like the Women's Charter to support women and families.
Statistics show progress: higher tertiary education and employment rates for women, steady wage growth, and increased flexible work arrangements benefiting workers overall.
Singapore's efforts are detailed in reports to the United Nations' Committee on the Elimination of Discrimination against Women, demonstrating ongoing commitment to gender equality.

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8 May 2017

Affordability of Infant Formula

The Minister highlighted that while breastfeeding is encouraged, infant formula sold in Singapore meets nutritional standards, and the government will promote public awareness to help parents make informed choices and reduce reliance on marketing claims.
Measures include supporting Baby-Friendly Hospital Initiative certification, facilitating more formula options in hospitals, and simplifying import requirements to increase competition, with the Competition Commission investigating any anti-competitive pricing behavior.
Regulatory bodies will tighten labelling and advertising rules and review ethics codes, while the government, along with consumer associations, will monitor pricing fairness and address potential profiteering.

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8 May 2017

Ways for SMEs to Export Their Brands and Operations Overseas

SMEs can leverage large-scale Singapore-led projects, such as malls and industrial parks in China and Vietnam, to access overseas markets through familiar ecosystems and established networks.
International Enterprise Singapore partners with project developers like CapitaLand and SembCorp to integrate SMEs into overseas projects, enabling them to offer niche, value-added products and services.
Examples include SMEs in Guangzhou’s Datansha project providing specialized architectural and eldercare services, and food industry SMEs in Vietnam’s VSIPs catering to the growing middle class.
IE Singapore will continue facilitating these partnerships to help SMEs scale and establish themselves in international markets.

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