Economy & business — Topics

20 Feb 2017

Income Generated by Grassroots Organisations from Community Trade Fairs

Png Eng Huat asked for details on income from community trade fairs, the percentage of that income used for welfare, scholarships, and bursaries, and sponsorship amounts collected by grassroots organisations (GROs) in FY2015/16.
Chan Chun Sing, representing the Minister, stated that GROs raised $7 million from community trade fairs and $27 million in sponsorships and donations in FY2015/16.
GROs distributed $10 million in direct financial help, such as welfare assistance, scholarships, and bursaries, in the same financial year.

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20 Feb 2017

Annual Budget Statement

The government introduced targeted economic support measures for sectors facing cyclical or structural challenges, including deferred foreign worker levies for marine and process sectors, the "Attach and Train" programme to help workers reskill, and enhanced corporate income tax rebates for businesses.
It announced a carbon tax of $10 to $20 per tonne of greenhouse gas emissions to be implemented from 2019, alongside a restructuring of diesel taxes and new water pricing to reflect rising costs, while offering rebates and support to cushion the impact on households.
Social measures included increased housing grants for first-time resale flat buyers, higher bursaries for post-secondary students, expanded support for persons with disabilities and mental health conditions, and permanent increases in GST vouchers to help lower- and middle-income households manage cost-of-living pressures.

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20 Feb 2017

Limit Number of Vehicles for Private Hire Arrangements

Gan Thiam Poh asked the Ministry for Transport to review and control the number of vehicles for private hire beyond the vocational licence requirement.
The Minister for Transport responded that the government prefers to let the market determine industry growth, noting competition has benefited commuters and expanded the point-to-point transport market.
Gan raised concerns about potential higher COE prices for private vehicles due to taxi companies' COE exemptions, but the Minister stated evidence does not link private hire services to increased COE prices.

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7 Feb 2017

Investment Concerns Given recent Political Developments in US and Uncertainties in Europe

Liang Eng Hwa questioned whether recent political developments in the US and uncertainties in Europe would affect the long-term investment outlook and returns on Singapore's reserves.
Heng Swee Keat acknowledged increased global uncertainty from political events and structural challenges but noted that investment entities like GIC and Temasek are long-term focused, resilient to volatility, and have strong governance to navigate uncertain periods.
The government emphasizes that these entities operate independently with professional oversight, ensuring accountability and sustainable returns despite market fluctuations.

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7 Feb 2017

Impact of Private Car Hire Growth on Taxi Drivers' Incomes

Mr Zaqy Mohamad raised concerns about how the rise of private car hire services affects taxi drivers’ incomes, including income differences between day and night shifts and the impact of regulatory changes.
Minister Khaw Boon Wan noted a 6.2% drop in average net earnings for taxi drivers in 2016 compared to 2015, though earnings have increased by about 4% since 2013, partly due to lower energy costs and stable gross fare revenue.
The Ministry does not have data on income differences by shift type and considers the effect of removing the 250-kilometre requirement too soon to assess, but expects it to bring positive outcomes for drivers.
The Minister emphasised that competition from private hire services can benefit taxi drivers and mentioned that taxi companies are introducing measures like rental reductions and performance-based rebates to support drivers.
Taxi companies have the flexibility to adjust fares and surcharges to stay competitive, and the government will continue reviewing regulations to ensure they remain relevant for commuters, drivers, and companies.

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7 Feb 2017

Impact of Checkpoint Toll Charges on Inflation and Food Prices

Saktiandi Supaat asked if the reciprocal road charge on foreign vehicles would affect domestic inflation and food prices, and whether it could be waived for commercial goods vehicles.
Khaw Boon Wan confirmed that the reciprocal road charge will not be applied to commercial goods vehicles.
The response addresses concerns about the charge's impact on inflation and food prices by exempting commercial vehicles.
The debate focused on the potential economic effects of the checkpoint toll charges on Singapore's economy.
The exemption of commercial goods vehicles from the road charge aims to mitigate any negative impact on food prices and inflation.

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7 Feb 2017

Rejection Rates for SME Working Capital Loan Programme

Since its launch in June 2016, over $700 million in loans has been catalysed under the SME Working Capital Loan Programme, benefiting about 4,300 SMEs with an 80% to 85% success rate.
Rejected applications are primarily due to poor SME financial track records, such as lack of profitability, and adverse individual credit bureau records of owners, like late payments on personal loans.
SMEs with rejected applications can seek other Government financing assistance, including factory and equipment loans, trade financing, and alternative financing platforms like venture lending, as well as schemes to support business capabilities, scaling, and internationalisation.

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7 Feb 2017

International Enterprise Singapore Board (Amendment) Bill

The Bill amends the International Enterprise Singapore Board Act to realign IE Singapore's regulatory functions with the reduced scope of the Commodity Trading Act, which now focuses only on spot commodity trading after the transfer of OTC derivatives oversight to MAS.
Key changes include clarifying IE Singapore's regulatory role in spot trading and the rubber trade, updating its authority to collect and disclose commodity trade information for policy purposes, and adjusting the use of the Singapore Rubber Fund for broader commodity industry promotion.
The amendments are largely consequential to the 2016 Securities and Futures Amendment Bill and administrative updates, with no objections raised during public consultation.
IE Singapore will continue to regulate the rubber trading industry under the Rubber Industry Act and promote the sector, while advisory services to businesses remain unchanged as already provided under existing legislation.
The Bill was passed after second reading and committee review, with no substantive changes from the initial proposal.

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7 Feb 2017

Spin-off Deals from Africa-Singapore Business Forum

The Ministry of State for Trade and Industry outlined Africa's growth potential and Singapore's efforts to strengthen ties through business forums, government agreements, and support for companies like Hyflux, CrimsonLogic, and YuuZoo operating there.
Singapore has signed several government-to-government agreements with African nations, including Bilateral Investment Treaties with Nigeria and Mozambique, an Avoidance of Double Taxation Agreement with Ethiopia, and an Air Services Agreement with Nigeria.
SME involvement was highlighted, with the Minister encouraging Singaporean SMEs to explore opportunities in sectors like agri-business, infrastructure, urban solutions, logistics, ICT, and oil and gas, and to join trade missions to understand African markets better.

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7 Feb 2017

Impact of Growing Practice of Hiring Freelancers on Wages and Retirement Adequacy

The Ministry of Manpower noted that freelancers currently make up about 8% of the workforce, and while their numbers are stable overall, growth is sector-specific, prompting a new annual survey to better understand their profiles and trends.
Minister Lim Swee Say reported that median real wages have risen broadly across sectors from 2014 to 2016, with no significant deflationary impact observed yet, but the government remains concerned about future effects on wages and retirement adequacy.
In response to concerns, the Ministry plans to work with tripartite partners to develop best practices and outreach measures to help freelancers with financial planning, CPF contributions, and retirement savings, though concrete policies will depend on survey findings.

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7 Feb 2017

Salary Payment for Workers Engaged by Private Vendors in Government Contracts

The Government pre-qualifies contractors based on financial standing and monitors performance to mitigate payment risks during contracts.
In liquidation, unpaid worker salaries are prioritized under the Companies Act, with workers able to claim through the appointed liquidator.
The Minister clarified that establishing escrow accounts for worker payments is impractical, as it would interfere with contractors' internal financial arrangements and complicate creditor priorities.

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7 Feb 2017

Funds Disbursed under Young Entrepreneurs Scheme for Schools Programme

The YES! Schools programme has disbursed about $4.3 million to 149 unique schools from 2008 to 2016, with SPRINGSingapore monitoring key outcomes like student participation and prototype development, and an NTU study showing it strengthens entrepreneurial inclination.
The programme primarily uses a “pull” model where schools opt in, with over half of secondary schools and 35% of primary schools participating, and is complemented by other initiatives like MOE’s Applied Learning Programme and entrepreneurship CCAs to provide multiple exposure pathways.
The government emphasises a balanced approach that includes teaching risk management and resource constraints, ensuring students understand both the opportunities and challenges of entrepreneurship while nurturing an enterprising mindset for future economic contributions.

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7 Feb 2017

Price Changes for Natural Gas Supplied to Singapore

Mr Leon Perera asked for the percentage change in natural gas prices for Singapore's power generation sector since 2010 and how this compares to electricity price changes for consumers and SMEs over the same period.
The Minister for Trade and Industry responded that from 2010 to 2016, natural gas prices fell by 37% while the regulated electricity tariff declined by 16%, noting fuel costs account for about half of the tariff.
The Minister added that the pattern of annual changes was similar and consistent with the fuel cost composition of electricity prices.

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7 Feb 2017

Online Banking Licences for Internet Companies that Provide Mobile Payment Solutions

Sun Xueling asked if online banking licenses will be offered to internet companies providing mobile payment solutions and about the prerequisites for such licenses.
The Minister responded that MAS’s existing framework can accommodate internet-only banks under the same regulations as conventional banks, while most payment companies do not need a banking license unless they handle deposits or loans, and MAS is developing a new streamlined payments regulatory framework.
The Minister also highlighted the FAST system and the upcoming Central Addressing Scheme to enable interoperability across banks, allowing payments via proxies like NRIC or mobile numbers, which will enhance consumer convenience beyond proprietary systems.

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6 Feb 2017

Breakdown of Expenditure Incurred by Grassroots Organisation Committees for FY2015/16

Mr Png Eng Huat requested the FY2015/2016 expenditure details for grassroots organisations and a percentage breakdown among Citizens’ Consultative Committees, Community Club Management Committees, Residents’ Committees, Neighbourhood Committees, and others.
Minister Chan Chun Sing stated the total grassroots organisations expenditure was $206 million.
The minister provided the percentage breakdown for the respective committees, though the specific percentages are not detailed in the provided debate text.

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6 Feb 2017

Allocation and Utilisation of ActiveSG Funds

The Minister reported that as of 31 December 2016, ActiveSG had nearly 1.2 million members and a total budget of about $60 million, which included funding for facilities.
Approximately three-quarters of members had used their $100 ActiveSG credits, representing about $10 million in annual revenue forgone, while 150,000 members had their credits lapse despite reminders.
Credits were extended for over 630,000 members who used them at least once within the previous year, and the debate highlighted questions about how forfeited and unconsumed funds are handled.

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6 Feb 2017

Tax-free Withdrawals from Supplementary Retirement Scheme (SRS) Accounts

Yee Chia Hsing proposed allowing tax-free withdrawals from SRS accounts for contributions that do not receive tax deduction due to the $80,000 personal income tax relief cap effective from Year of Assessment 2018.
Heng Swee Keat explained that the $80,000 cap on personal income tax reliefs, including SRS contributions from 2017, preserves the progressivity and fairness of Singapore's tax system.
He advised SRS members to assess whether they would benefit from tax relief before contributing, noting that those who have reached the cap can invest outside SRS and enjoy similar tax treatment on gains, achieving the same outcome as the proposed tax-free withdrawals.

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6 Feb 2017

Update on SME Working Capital Loan Scheme

The SME Working Capital Loan Scheme, introduced in 2016, catalysed over $700 million in loans to about 4,300 SMEs within its first seven months, with 96% of SME applications for working capital loans being successful.
Most approved loans under the scheme are under the $300,000 maximum, indicating it meets the needs of most applicants, and the Government monitors SME financing needs through regular meetings with financial institutions and business groups.
The Government is prepared to provide greater assistance if necessary, but the current scheme is deemed sufficient to address SME cash flow concerns and support business growth.

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6 Feb 2017

Full-time Securities Dealer's Representatives and Remisiers from 2007 to 2016

Patrick Tay asked for the number of full-time securities dealer's representatives and remisiers in Singapore from 2007 to 2016.
Tharman, responding for the Prime Minister, stated that MAS does not collect data on whether representatives work full-time or part-time.
The response included a table with statistics for the requested years, but without a breakdown by employment status.

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6 Feb 2017

Number of Unsold Residential Units

Dr Intan Azura Mokhtar queried the number of unsold private units built by developers, units for sale by home owners, and whether the government should slow land sales for residential development due to a sluggish market.
Minister Lawrence Wong reported that at the end of 2016, about 9,700 unsold private dwelling units were launched for sale, and including those with planning approvals but not launched, the figure is around 25,000 units—a historical low since 2001.
The URA does not track units for sale by home owners, but private housing demand remained robust, with developers selling about 12,000 units in 2016, a 20% increase from 2015.
The government considers factors like economic and market conditions to determine housing supply but has no immediate plans to slow or halt the Government Land Sales programme, as the current inventory is low and maintaining supply is important to avoid future shortages.

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