Economy & business — Topics

6 Feb 2017

Conflict-of-interest Issues in Competition Commission of Singapore's Investigations against Government-linked Companies

Pritam Singh asked about safeguards to ensure Conflict of Interest issues in Competition Commission of Singapore's (CCS) investigations against Government-linked Companies (GLCs) or companies predominantly owned by Statutory Boards/GLCs
Lim Hng Kiang stated that all private sector entities, regardless of ownership, must comply with the Competition Act, though certain regulated sectors like media and telecommunications are excluded
The First Schedule of the Competition Act requires CCS members with a vested interest in a business under investigation to declare this interest and recuse themselves from relevant deliberations or decisions

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6 Feb 2017

Electricity Prices for Singapore Homes and Businesses Compared to OECD Average

Leon Perera asked the Minister for Trade and Industry to compare Singapore’s electricity prices for homes and businesses with the OECD average from 2011 to 2015.
Singapore’s regulated electricity tariffs were on average 23% higher than the OECD average over that period.
The comparison is limited because OECD countries vary in energy policies and subsidies, while Singapore does not subsidise electricity and relies on imported natural gas.
Industrial price comparisons are challenging due to private contracts and confidential pricing arrangements.
As an energy importer, Singapore aims to foster a competitive market despite global energy price fluctuations.

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6 Feb 2017

Progress on Construction Sector's Productivity Roadmap and Capability Fund

The Ministry provided an update on the Construction Productivity Roadmap, noting that two roadmaps were launched in 2010 and 2015 to improve site productivity by 20% to 30% by 2020, with cumulative improvements of about 10% since 2010 and annual increases rising from 0.3% in 2010 to 2% in 2015.
The Construction Productivity and Capability Fund has made nearly $800 million available, with about $450 million committed to over 9,000 firms as of end 2016, and 90% of these beneficiaries are small and medium-sized enterprises.
The initiatives have involved tightening foreign manpower supply, promoting productive building designs, supporting technology investments, and fostering collaboration across the construction value chain to drive productivity gains.

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6 Feb 2017

ElderShield Premiums Paid Out Since 2002

Assoc Prof Daniel Goh Pei Siong asked the Minister for Health about the total ElderShield premiums collected, surpluses, rebates returned, and the profit margin and payout ratio of insurers since 2002.
Health Minister Gan Kim Yong reported that from 2002 to end-2015, about $2.6 billion in premiums were collected, with around $100 million paid out in claims and $130 million in premium rebates returned to policyholders.
The Minister explained that ElderShield collects premiums from ages 40 to 65 but provides lifetime coverage, so it is prudent to have premiums exceed early claims to fund future payouts as the policyholder base ages.
He noted that the proportion of claims over premiums collected has been increasing and is expected to continue rising as policyholders get older, addressing misconceptions about high premiums or excessive insurer profits.

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6 Feb 2017

Reverse Mortgages for Seniors

Lim Biow Chuan asked the Prime Minister whether the government plans to help seniors monetize their immovable assets through reverse mortgages offered by financial institutions.
Tharman Shanmugaratnam, responding for the Prime Minister, stated that financial institutions previously offered reverse mortgages but stopped due to low demand, a trend seen globally, including in the United States.
He noted that property owners have other options to monetize their assets, such as renting out spare rooms or entire properties, right-sizing with the Silver Housing Bonus, or applying for the Lease Buyback Scheme.
Private property owners may also obtain mortgage equity withdrawal loans, subject to credit assessment and underwriting standards by financial institutions.
The government will continue reviewing policies to explore additional monetization options as the population ages and behaviors potentially change.

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6 Feb 2017

Refund Rate to Customers who Prepaid for Services by Companies which Later Close Down

Er Dr Lee Bee Wah questioned the success rate of customers recovering funds from prepaid services when businesses close prematurely and proposed mandatory prepayment insurance for such companies.
S Iswaran explained that consumer protection focuses on promoting fair trading, with industry-specific accreditation schemes like CaseTrust offering prepayment protection that has prevented monetary losses in accredited businesses.
The government considers broad-based prepayment insurance measures challenging due to increased business costs and a lack of such mandates in comparable jurisdictions, while unfair practices are addressed under existing consumer protection laws.

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6 Feb 2017

Cost of Reorganising Healthcare Clusters into Three Groups

Assoc Prof Daniel Goh asked the Minister for Health about the cost of reorganising healthcare clusters, the rationale for choosing three clusters, and concrete patient benefits like shorter waiting times.
Minister Gan Kim Yong explained that reorganising into three integrated clusters is necessary to better meet future healthcare needs, such as an ageing population and chronic diseases, and to support key shifts like moving care to the community.
The Minister stated that the reorganisation will enable more comprehensive, person-centred care across regions, enhance primary care, and improve economies of scale, staff development, and collaboration with partners.
He noted that no significant additional cost is expected as the infrastructure and services are already budgeted for under existing healthcare plans.
The clusters are designed to deliver more appropriate care closer to patients, though specific benefits like waiting times were not detailed in the response.

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6 Feb 2017

Impact on Singapore of US Pull-out from Trans-Pacific Partnership

Singapore faces heightened economic vulnerability due to rising protectionism and the US withdrawal from the TPP, which could reduce global trade and affect the nation’s externally driven economy.
The government plans to maintain open trade policies, pursue alternative regional integration efforts like RCEP and the ASEAN Economic Community, and leverage existing FTAs to stay connected globally.
Without the US, the TPP’s viability is under reassessment by remaining members, with Singapore exploring the “TPP model” in new agreements while adapting to shifting trade dynamics.
Bilateral and multilateral trade strategies remain active, including ongoing negotiations and WTO engagement, to diversify opportunities and mitigate the impact of stalled large-scale agreements.
The focus on workforce resilience through industry transformation maps aims to support workers and businesses amid global trade headwinds, ensuring job creation and adaptability.

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10 Jan 2017

Government Measures to Support Building and Construction Industry Slowdown

The government will increase public sector construction projects to offset private sector slowdown, with significant projects like the Deep Tunnel Sewerage System and new MRT lines.
Funding support through the Construction Productivity and Capability Fund has committed over $420 million to help over 8,600 firms, mostly SMEs, adopt productive technologies.
The government is focusing on helping firms venture overseas, with Singapore contractors securing an average of $1.7 billion annually in overseas projects.

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10 Jan 2017

Civil Law (Amendment) Bill

The Civil Law (Amendment) Bill aims to strengthen Singapore’s position as a leading international commercial dispute resolution hub by allowing third-party funding for arbitration and related proceedings, abolishing the common law torts of champerty and maintenance.
The bill introduces a regulated framework where only professional, capital-adequate funders can provide funding, requires disclosure of funding to prevent conflicts of interest, and restricts lawyers from receiving referral fees.
While the initial focus is on international arbitration to test the framework, some MPs suggested expanding it to domestic arbitration and litigation to enhance access to justice, and proposed industry guidelines or a code of conduct for funders.

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10 Jan 2017

Profile of Organisations that Received Disbursements from Cultural Matching Fund

The Cultural Matching Fund (CMF) has disbursed about $152 million since inception, with $65 million to 12 national companies and museums, $33 million to 36 major grant and seed grant companies, and $54 million to 37 other charities.
The disbursement by sector is $23 million for visual arts, $40 million for performing arts, $0.6 million for literary arts, $24 million for traditional arts, $20 million for heritage, and $44 million for remaining groups.
The CMF does not match government grants or donations from certain entities, requires certified cash donations, and has a $15 million cap per recipient to prevent crowding out smaller organizations, with the government reviewing a possible new tranche when the current fund runs out.

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10 Jan 2017

Singapore Companies' Efforts to Upskill Employees and Use of SkillsFuture Credits to Train for Alternative Careers

The Minister highlighted that Singapore's adult training system has shifted toward supporting individual lifelong learning, with $400 million in annual subsidies and 40% allocated to individual-initiated training, while noting participation rates above the OECD average but trailing some advanced countries.
Over 126,000 citizens have used $37 million in SkillsFuture Credits by end-2016, but the Minister emphasized prioritizing targeted efforts like Place and Train schemes to align skills with new jobs rather than imposing mandatory employer funding requirements.
Both speakers discussed the need for companies, especially SMEs, to increase investment in employee upskilling, with the Minister citing existing levies and programs while rejecting further burdens like mandatory payroll percentages for training.

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10 Jan 2017

Display of Prices at Wet Market Stalls

Leon Perera asked whether wet market stallholders must display prices, how enforcement works, and how many breaches occurred in the past five years.
Dr Amy Khor confirmed that displaying prices is a licence condition, with verbal advisories issued in 2016, and noted challenges with daily price fluctuations are being reviewed.
The ministry is considering revising price display requirements, promoting transparency, and using place managers to monitor and address consumer feedback.

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10 Jan 2017

Effectiveness of Move to Let Social Enterprises Run Hawker Centres

The debate highlighted that social enterprises managing hawker centres have implemented measures like price monitoring, affordable meal options, and productivity innovations (e.g., self-payment kiosks and centralised dishwashing), with largely positive feedback from hawkers and patrons.
New initiatives, such as entrepreneurship programmes and train-and-place schemes, have helped lower entry barriers for aspiring hawkers, with examples of new entrants from various professions benefiting from these schemes.
Concerns were raised about high conservancy fees at some centres, with the government explaining that these fees cover specific services (cleaning, utilities, and dishwashing) and are market-determined, offsetting some costs for hawkers through improved productivity.
The government plans to extend the social enterprise model to more hawker centres, leveraging economies of scale to enhance vibrancy and operational efficiency while maintaining affordable rents for hawkers.

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9 Jan 2017

Proportion of Public Procurement Projects' Contract Price Targeted at Wage Increases for Outsourced Workers

The Government mandates accredited cleaning, security, and landscaping service providers to pay workers according to the Progressive Wage Model, which incorporates National Wages Council wage increment recommendations, and about three-quarters of relevant contracts since 2013 include reminders for tenderers to factor in these wage increases.
Agencies are encouraged to allow year-by-year bid price breakdowns to accommodate wage adjustments, and the Government favors accredited service providers who adopt good employment practices.
From 2014 to 2016, around 30% of cleaning, security, and landscaping contracts imposed liquidated damages for service non-performance, collecting about $4 million, which is 0.5% of the total contract value for those contracts.

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9 Jan 2017

Update on SG50's "50 Schools, 50 SMEs" Initiative

The "50 Schools, 50 SMEs" initiative was a joint SPRING Singapore and National Library Board programme run from April 2014 to May 2015 to connect students with SMEs that contributed to Singapore's economy.
The programme exceeded its target, matching 250 secondary students from 51 schools with 62 SMEs across various industries, with students submitting write-ups on their experiences.
Feedback was positive from both students and SMEs; students gained appreciation for business adaptation and innovation, while SMEs benefited from fresh perspectives and ideas.
The write-ups from the partnerships were uploaded onto the Singapore Memory Project portal, Wikipedia, and Infopedia to preserve and share the learning outcomes.

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9 Jan 2017

Collection and Disbursement of Zakat by MUIS

In 2015, MUIS collected $35.3 million in zakat and disbursed $36.3 million to the eight prescribed Asnaf categories, with figures reported annually.
Over 70% of zakat is collected during Ramadhan, but disbursements occur year-round, which can lead to minor yearly surpluses or deficits.
MUIS maintains a reserve to buffer against shortfalls and unforeseen situations, ensuring ongoing funding for zakat-supported programmes.

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9 Jan 2017

Amount of Operating Subsidy for Public Bus Operators in 2017 under Bus Contracting Model

The Minister reported that the bus contracting model is fully implemented with improvements in service levels and a rise in Singaporean bus captains, which has increased operating costs and subsidies.
The estimated operating subsidy for bus services over the next five years is between $3.5 billion and $4 billion, factoring in the fare reduction effective 30 December 2016.
To control subsidy growth, the government will enforce cost discipline through regular competitive tenders and bus service rationalisation, while maintaining price discipline with regular fare adjustments.

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9 Jan 2017

Complaint against EM Services for Refusal to Supply Lift Components

Pritam Singh asked when the Competition Commission of Singapore (CCS) first received a complaint against EM Services for refusing to supply lift parts and which other companies were investigated.
CCS received the complaint in April 2014, investigated, and accepted EM Services' voluntary commitments in May 2016 after consultations, similar to past cases.
Investigations into other companies are ongoing, but CCS does not disclose their names due to confidentiality.

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9 Jan 2017

Singapore's Economic Growth Trend and Progress on Productivity and Innovation Adoption

The Singapore economy grew by 1.8% in 2016, with a modest growth forecast of 1% to 3% for 2017 due to weak global trade conditions, though sectors like education and technology show promise.
Productivity growth has been sluggish recently, particularly in domestically-oriented sectors, but initiatives like Industry Transformation Maps are helping to improve performance across industries.
The government is investing $19 billion under the RIE2020 plan to boost research and innovation, with rising private-sector R&D spending and more high-tech startups being key signs of progress.
Efforts to raise productivity and drive innovation are central to Singapore’s economic restructuring, aiming to sustain competitiveness in the next phase of development.

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