Economy & business

• The Government does not require a license for motor vehicle dealers, including parallel importers, and promotes fair trading by helping consumers make informed decisions, such as checking dealer reviews and participating in accreditation schemes.
• Consumer feedback to CASE on car dealers failing to honor contracts is low, averaging about 120 cases annually from 2013 to 2015, which is less than 1% of total motor vehicle transactions during that period.
• Consumers are advised to protect prepayments by transacting with dealers in the CaseTrust Accreditation Scheme, which requires a performance bond, and can leverage association programs to reduce accreditation costs.
• Unfair practices by dealers are investigated by SPRING Singapore under the Consumer Protection (Fair Trading) Act, with criminal cases referred to the Police.
• The Government’s approach emphasizes consumer education and voluntary measures rather than mandatory licensing, focusing on promoting fair trading and informed purchasing decisions.

• Pritam Singh asked whether the Government sought the President's permission to draw on Past Reserves for the Singapore-Malaysia High-Speed Rail (HSR) project and the amount set aside.
• Lawrence Wong stated that the Government did not seek permission to draw on Past Reserves for HSR and that the project will be funded through normal budgetary processes.
• The Government instead sought and obtained the President’s concurrence under the Constitution to guarantee payments by Singapore’s HSR Infrastructure Company to cover capital and operational costs, with Malaysia providing a similar guarantee.

• Singapore's drop in the 2016 World Talent Report was primarily due to a decline in the "Investment and Development" ranking, which fell from 29th to 38th, driven by a slight decrease in education spending as a percentage of GDP.
• The "Readiness" factor, which measures workforce skills and employability, improved significantly, ranking first in 2016, while "Appeal" remained stable around 19th place.
• Government spending on education has actually increased over the past decade in absolute terms, but as a percentage of GDP it decreased due to a growing economy and shrinking student cohort sizes.
• The government continues to invest in education and skills development, including through initiatives like SkillsFuture, to groom and boost the local talent pool despite the ranking change.

• The bill raises the re-employment age ceiling from 65 to 67, removes the option for employers to cut wages at age 60, and allows re-employment offers from another employer with the worker's consent, aiming to balance business flexibility and worker security.
• Multiple MPs support the bill but urge stronger measures to help mature workers stay employable, such as extending wage subsidies, promoting job redesign, and enhancing skills training to address disruptions from technological and economic changes.
• Minister Lim Swee Say explains the shift from raising the retirement age to re-employment age, citing higher employment rates in Singapore and Japan compared to other countries, and addresses concerns about CPF payout eligibility, anti-discrimination enforcement, and guidelines for fair re-employment terms.

• The Bill strengthens the regulation of over-the-counter derivatives, aligns Singapore with international standards, and streamlines rules for commodity and exchange-traded derivatives to support innovation and financial sector growth.
• It enhances retail investor protection by expanding regulatory oversight to include non-conventional investment products, tightening the definition of accredited investors, and introducing an opt-in regime for investors who qualify for higher-risk products.
• The Bill introduces new frameworks to improve market transparency and credibility, including regulation of financial benchmarks and disclosure requirements for short selling, alongside stronger enforcement powers and higher civil penalties for market misconduct.

• The International Enterprise Singapore Board (Amendment) Bill was introduced to amend the existing Act governing the board’s operations.
• The bill was presented by the Minister for Trade and Industry (Industry), Mr S Iswaran, and read for the first time in Parliament.
• It was scheduled for a second reading at the next available parliamentary sitting and to be printed for further consideration.

• Malaysia collected about RM14 million in road charges from Singapore vehicles at Woodlands and Tuas checkpoints between November 1 and December 20, 2016.
• Singapore will match Malaysia’s road charge to ensure reciprocal consideration of any fee changes, with details to be announced soon.
• The impact on the number of Singapore vehicles entering Malaysia was not noticeable, partly due to the December holiday period and the high proportion of motorcyclists using the Causeway.

• The Senior Minister of State for Transport stated that the expansion of Kuala Linggi International Port is expected to have minimal immediate impact on Singapore’s status as a regional shipping hub and economy, given its smaller scale, lack of container facilities, and Singapore’s strong ecosystem, but emphasized the need to remain competitive through technology investments, feedback integration, manpower development, and the upcoming Tuas terminal.
• Member of Parliament Saktiandi Supaat raised concerns about potential commercial shifts if the Malacca Gateway project succeeds, questioning whether shipping companies might relocate operations, and sought assurance on how such scenarios are considered.
• The Minister responded that commercial viability is key, with Singapore focusing on efficiency, reliable service, and strategic investments to ensure shipping companies find it more advantageous to use Singapore’s ports, thereby addressing competitive risks proactively.

• Zaqy Mohamad raised concerns about how recent ASEAN partnerships and investments from China, particularly in ports and other strategic sectors, might affect Singapore’s economic engines and asked for plans to keep industries competitive.

• The Minister for Trade and Industry acknowledged that China’s Belt and Road investments help regional infrastructure but emphasized Singapore’s proactive approach through ASEAN cooperation, free trade agreements, and sector-specific strategies like the Industry Transformation Programme to boost productivity and innovation.

• The Minister noted that increased competition from external investments, including from Chinese state-owned enterprises, is not new, and Singapore must continue to enhance competitiveness and adapt to evolving global economic dynamics.

• In a follow-up, Mohamad highlighted the unique challenge of state-backed Chinese investments and asked if there would be a counter-strategy or adjustments in the Committee on the Future Economy’s recommendations.

• The Minister reiterated that the CFE’s recommendations will be announced later, stressing that Singapore must remain focused on competitiveness, leveraging globalization and connectivity while preparing for diverse competition in the future.

• Trade associations can coordinate with lead government agencies, such as the Economic Development Board and SPRING Singapore, which oversee specific sectors under the Industry Transformation Maps (ITMs) launched across 23 industries.
• Even for sectors without an ITM, trade associations can receive government support through programs like the Local Enterprise and Association Development (LEAD) to improve productivity, innovation, skills, and internationalisation.
• The government encourages trade associations to proactively propose initiatives to enhance their industries, ensuring no wrong doors for support and collaboration.

• The President has concurred with a resolution passed by Parliament on 10 November 2016 to authorize the Minister for Finance to borrow up to S$200 billion in Government Securities under the Government Securities Act.
• The resolution increases the total borrowing limit for Government Securities to S$690 billion, in accordance with Article 144(1)(a) of the Constitution.
• This authorization is based on the legal framework provided by the Constitution and the Government Securities Act, ensuring proper governance of public borrowing.
• The decision was formally announced by the President on 23 November 2016, following parliamentary approval.
• The debate focused on the procedural and legal aspects of the resolution, with no substantive opposition or alternative proposals presented.

• Leon Perera requested the Ministry to compile anonymised case studies of entrepreneurial successes and failures in Singapore, analysing concrete success factors and mistakes to be published as an educational tool for entrepreneurs and startup funders.
• The Ministry responded that it already profiles successful entrepreneurs and companies through various platforms, including speeches, outreach events, and online channels like the SME Portal and #SgGoesGlobal series, to help entrepreneurs learn from examples.
• The Government collaborates with trade associations and chambers to provide sector-specific information, including case studies and industry data, to help entrepreneurs distil learning points from failures and successes in their specific industries.
• Targeted assistance is available through government-facilitated seminars, workshops, dialogue sessions, and mentoring services, such as IE Singapore’s iAdvisory series and SPRING’s support with ACE, to offer insights and connect entrepreneurs with experienced peers.

• The Foreign Minister rebutted false allegations from a Chinese tabloid regarding Singapore’s stance on the South China Sea, reaffirming that Singapore is a non-claimant state and has consistently articulated this position.
• Singapore’s bilateral relations with China remain strong and multifaceted, with deep cooperation in trade, investment, and government-to-government projects like the Chongqing Connectivity Initiative.
• Singapore supports an open international trade system and welcomes China to join the Trans-Pacific Partnership when ready, similar to its support for China’s WTO accession.
• Both Singapore and China leaders have agreed to strengthen mutually beneficial cooperation based on mutual respect and understanding, with continued robust people-to-people exchanges and trade initiatives.

• The Government proposes to raise the issuance limit for Government Securities from S$490 billion to S$690 billion to meet projected needs until 2022, given that the current limit is expected to be fully utilised by end-2017.
• The securities are issued not for spending but for specific purposes: developing the domestic debt market, meeting CPF investment needs via Special Singapore Government Securities, and providing long-term savings options for individuals through Singapore Savings Bonds.
• The outstanding amount is projected to reach S$690 billion by 2022, with about 84% of the increase earmarked for CPF Board and the remainder for the Monetary Authority of Singapore and individual investors.
• The increased borrowing has no impact on the Government's fiscal position, as proceeds are invested rather than spent, and the Government continues to operate under a balanced Budget framework under the Constitution's reserves protection.

• The Minister for National Development and Second Minister for Finance, Lawrence Wong, moved to increase Singapore’s subscription to the International Development Association to not exceeding US$1.1 million, citing Singapore’s support for global development goals.
• IDA provides concessional loans and grants to least developed countries, aiding sectors like education and climate change, and has seen positive outcomes for countries including ASEAN neighbors.
• Singapore has maintained a 0.15% contribution share since 2013 and will continue this for the 18th replenishment, with the Ministry of Finance budgeting US$46 million for the commitment.
• The 18th replenishment aims to double resources for fragile and conflict-affected states, using innovative capital market financing and private sector collaboration, with IDA holding a high credit rating.
• Parliament approved the subscription increase, noting that IDA’s initiatives reduce the need for higher member contributions and align with Singapore’s role as a responsible international citizen.

• The Minister for Education and Second Minister for Defence moved a resolution to authorize grants to the IMF's Catastrophe Containment and Relief Trust.
• The proposed maximum grant amount is 226,000 Special Drawing Rights, approximately equivalent to 311,781 US Dollars.
• The resolution is made under the Bretton Woods Agreements Act, with the Monetary Authority of Singapore acting on behalf of the Singapore Government.
• No other members spoke during the debate, and the motion was put to a vote and agreed to.
• Parliament formally resolved to approve the stated grant amount for the IMF trust, as proposed by Mr Ong Ye Kung.

• Singapore’s Minister for Education (Higher Education and Skills) and Second Minister for Defence moved a motion authorizing the Monetary Authority of Singapore to grant up to 14,510,000 Special Drawing Rights (approximately USD 20 million) to the IMF’s Poverty Reduction and Growth Trust.
• The grant is part of a multilateral effort to enhance the IMF’s capacity to assist low-income countries, fulfilling a pledge made in 2012 from the profits of IMF gold sales.
• A second grant will later be proposed to the IMF’s Catastrophe Containment and Relief Trust to support debt relief for countries facing natural disasters or epidemics.
• The grants comply with safeguards under the Bretton Woods Agreements Act, including collective action, public disclosure, and parliamentary approval.
• The motion was passed without debate, as no members wished to speak.

The Telecommunications (Amendment) Bill aims to update Singapore's telecom regulations to address increased consumer reliance on services and evolving industry needs. Key amendments include empowering IMDA to establish an Alternative Dispute Resolution scheme for consumer disputes and to regulate access to building rooftops for telecom infrastructure deployment. The Bill also clarifies existing powers and introduces measures to enhance consumer choice and industry oversight.

• The Income Tax (Amendment No 3) Bill of 2016 implements several tax changes announced in the 2016 Budget, including raising the Corporate Income Tax rebate to 50% with a $20,000 cap, enhancing the M&A tax allowance, extending the non-taxation of equity gains, and capping personal income tax reliefs at $80,000.
• The Bill introduces country-by-country reporting for multinational enterprises with global revenues exceeding $1.125 billion to counter base erosion and profit shifting, aligning Singapore with international tax standards.
• A pilot Business and IPCs Partnership Scheme offers a 250% tax deduction for employee volunteering, while other changes include delinking CPF top-up relief limits and providing tax deductions for retail bond issuance expenses.
• Louis Ng supported the Bill but raised concerns about the CIT rebate cap reduction and the phased mandatory e-filing, prompting the Senior Minister of State to explain the rebate rationale and detail support measures for businesses transitioning to e-filing.
• The Bill was passed with the government committing to monitor economic conditions and provide assistance for e-filing transitions.

• The Singapore Savings Bond program, launched in September 2015, has attracted about 35,000 individual investors and S$970 million across 14 issuances, with the government encouraged by the take-up rate.
• The Ministry emphasizes the bond's safety and flexibility, noting it allows penalty-free withdrawals and complements other investments, while interest rates are influenced by global bond yields.
• Outreach efforts are ongoing through campaigns and partnerships with organizations like MoneySENSE and grassroots groups to improve public understanding, with a focus on addressing misconceptions and promoting early savings among young people.