Economy & business — Topics

10 Nov 2016

Selective Relaxation on Total Debt Servicing Ratio Restrictions

Sylvia Lim asked whether TDSR limits could be relaxed to allow borrowers with unencumbered private property as collateral to obtain credit despite breaching the 60% TDSR threshold.
The Minister explained that the 60% TDSR rule ensures borrowers have sufficient cash income to meet obligations, and exceptions may be allowed by financial institutions' credit committees in exceptional cases.
Sylvia Lim highlighted concerns that the TDSR formula overlooks assets, affecting residents with income drops and retirees with assets but no income, suggesting MAS review.
The Minister noted that TDSR does not apply to loans raised in company names for SMEs and sole proprietors, and assets like bonds and gold may be considered as income streams.
The Minister acknowledged feedback on re-mortgaging fully paid properties and stated that MAS and banks would study such cases carefully.

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10 Nov 2016

Reduction in Hawker Stall Rent for Hawkers who Fall Ill

Dennis Tan proposed that NEA consider rent reductions for hawkers certified medically unfit to work due to illness, with an annual limit.
Dr Amy Khor responded that while rent must be paid, the Ministry assesses such requests case-by-case and may allow a stallholder to appoint someone else to operate during illness.
She noted that exceptions, such as rent waivers, are granted only for exceptional compassionate circumstances, citing an example of a stallholder with serious injuries.
Ultimately, she advised stallholders to evaluate their health and consider transferring stalls or other employment if frequently medically unfit.

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9 Nov 2016

Benefits from Productivity and Innovation Credit and Capability Development Grant

Over the last three years, the Productivity and Innovation Credit (PIC) and Capability Development Grant (CDG) schemes have supported an average of 80,000 and 700 enterprises annually, respectively, benefiting millions of workers in Singapore.
The government, industry, and unions collaborate to share productivity gains with workers, such as through the Inclusive Growth Programme that co-funds projects and requires companies to share gains via higher wages.
The Ministry is working with tripartite partners to ensure equitable sharing of productivity benefits, with examples like NTUC partnerships enabling allowances or payments for workers.

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9 Nov 2016

Hiring of Ex-offenders in Financial Services Sector

Member of Parliament Leon Perera asked about MAS rules on hiring ex-offenders, breaches of "fit and proper" guidelines over the past decade, types of such breaches, and whether MAS is notified when job applications are rejected due to ex-offender status.
The Prime Minister, represented by Tharman Shanmugaratnam, responded that MAS has no rules banning the hiring of ex-offenders but expects all employees to be "fit and proper," and noted that no financial institutions have been found in breach of due diligence requirements in the last 10 years.
Financial institutions are responsible for their own hiring decisions and due diligence, and MAS is not alerted when candidates are rejected due to being ex-offenders, except for key positions requiring MAS approval or for representatives in specific financial activities.
MAS evaluates ex-offenders on a case-by-case basis considering the offence's seriousness, time elapsed, and job responsibilities, and can issue prohibition orders to bar individuals with serious criminal convictions from certain financial roles for a specified period.

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9 Nov 2016

Link between Entrepreneurship and Degree of Open Competition

Leon Perera proposed a study to examine the link between entrepreneurship rates and open competition, measured by the market share of top companies in specific industries.
S Iswaran highlighted that the Competition Commission of Singapore (CCS) already enforces the Competition Act to prevent anti-competitive conduct and promote a level playing field for entrepreneurs.
The minister noted that while market share data can indicate competition levels, CCS also considers factors like product differentiation and buyer responsiveness, with industry-specific traits affecting entrepreneurship differently.

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9 Nov 2016

Credit Bureau Bill

The Credit Bureau Bill empowers the Monetary Authority of Singapore (MAS) to license and supervise credit bureaus to enhance data security, operational soundness, and consumer protection, aligning with international best practices.
Key provisions include requirements for credit bureaus and approved members to safeguard customer information, ensure data accuracy, and provide consumers access to their credit reports, including free copies after credit application decisions.
Debates highlighted concerns about data security, potential monopolies, and the need for comprehensive credit information, with the Minister affirming that MAS will enforce standards and consider expanding data coverage while balancing innovation and competition.

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9 Nov 2016

Budget for Estate Upgrading Programme for Private Estates

The Minister of State confirmed that there is no fixed budget or schedule for the Estate Upgrading Programme (EUP) for private estates, with projects rolling out based on resource availability and each costing about S$20 million.
The Ministry works primarily with Citizens' Consultative Committees (CCCs) for nominations and will inform Members of Parliament when projects are ready or, upon request, during the call for projects.
While the Ministry aims to upgrade as many estates as possible, it considers factors like estate age, physical characteristics, and ongoing works rather than prioritising solely based on age, and no specific timeline was set for older estates.

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8 Nov 2016

Scaling Water Conservation Tax to Allow for Minimum Hygiene Standards

Leon Perera proposed that the Water Conservation Tax (WCT) be scaled so that no tax is applied to water consumption deemed necessary for minimum hygiene standards.
Masagos Zulkifli explained that the current tiered WCT and tariff system aims to discourage excessive water use, with tax applied from the first drop to reflect water's scarcity and cost.
The Ministry maintains that applying WCT on all consumption, including basic uses, reinforces the principle that water is precious and ensures pricing reflects its long-term marginal cost.
The government addresses affordability through cash grants via the Utilities-Save scheme for HDB households, supporting lower-income groups while promoting prudent water use.

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8 Nov 2016

Discontinuation of Hardship Scheme for Hawkers

Mr Muhamad Faisal Bin Abdul Manap inquired about the reasons for discontinuing the hardship scheme for hawkers since 1989 and whether it might be reinstated.
Masagos Zulkifli B M M explained the scheme was discontinued in 1990 due to low take-up, as those in hardship preferred stalls in popular centres, and now all stalls are tendered openly.
The government has no plans to reinstate the scheme, emphasizing that hawker success requires entrepreneurship and that financial assistance is available through other government schemes.

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8 Nov 2016

Investigations into "Penny Stock" Cases

The Prime Minister affirmed that Singapore has robust safeguards and a regulatory regime comparable to other developed markets, with effective enforcement to detect and deal with market misconduct swiftly.
The Singapore Exchange, Monetary Authority of Singapore, and Commercial Affairs Department collaborate closely, using surveillance systems, joint investigations, and enhanced capabilities like data analytics to tackle securities fraud.
Investigations can be lengthy due to the complexity of evidence and challenges like uncooperative suspects, but resources are commensurate with market size and comparable to other developed markets.
Enforcement actions have been taken, with 21 civil penalty actions by MAS and 34 prosecutions by CAD between 2011 and 2015 for market misconduct.
The focus is on specialized units with dedicated expertise rather than just increasing staffing, to effectively investigate and deter securities fraud.

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8 Nov 2016

Consumers Pursuing Complaints against Merchants

Leon Perera asked about the assistance and costs provided by consumer protection organisations for complaints against merchants, and about any refusals of assistance over the past five years.
S Iswaran explained that CASE offers advice, negotiation, and mediation, with fees tiered by service type and claim value, including a $10.70 fee for letters outlining consumer rights.
CASE handles about 15,500 enquiries and 8,600 cases annually, with 20% using a $10.70 letter service and members paying annual fees and additional administrative fees for representation.
CASE has not refused assistance except for matters outside consumer protection laws, such as business-to-business disputes, accident claims, and investment contracts.

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8 Nov 2016

Extension of Home Improvement Programme to Flats Built after 1986

Er Dr Lee Bee Wah asked whether the Home Improvement Programme (HIP) could be extended to flats built after 1986 when they reach 30 years old, citing resident comparisons and concerns about design issues like noise and clothes drying poles.
Minister Lawrence Wong explained that HIP currently covers flats built up to 1986, with completion of eligible flats targeted by FY2018, and any extension would depend on fiscal sustainability and budget availability due to the long-term, costly nature of the programme.
The Minister acknowledged feedback on design improvements and safety concerns, noting that future upgrades would consider such issues, while also noting potential economic benefits from awarding contracts during downturns.

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8 Nov 2016

Industry Information on Recruitment Plans of Employers for Future Jobs

The Ministry of Manpower, through Industry Transformation Maps and skills frameworks, provides forecasts on future job growth and skill requirements across major sectors like Retail and Precision Engineering, with this information to be integrated into the National Jobs Bank.
While company-level employment forecasts three years ahead are challenging, industry-level forecasts are actively developed and published to guide Singaporeans in career planning and training decisions.
The government employs both Place and Train programs for job seekers and Train and Place initiatives for employed workers to ensure they are prepared for future jobs, with ongoing collaboration with economic agencies to align investments and workforce development.

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7 Nov 2016

Support for Small and Medium-sized Kindergartens and Childcare Operators

Mr Ang Hin Kee asked about the number of small and medium-sized kindergartens and childcare operators that have ceased operations since 2015 and the support provided to them, with Minister Tan Chuan-Jin noting fewer than 30 preschools closed in 2015, representing about 2% of the total.
The government prioritizes quality, accessible, and affordable early childhood services through initiatives like the Anchor Operator and Partner Operator schemes, which help operators control fees and improve quality, with smaller operators achieving economies of scale.
Broad-based initiatives such as the Skills Framework for Early Childhood Care and Education, Professional Development Programme, and funding for smart solutions support educator attraction, training, and sector productivity for all operators.
Support schemes like the Community and Sports Facilities Scheme, Portable Rental Subsidies, and Workplace Child Care Centre Scheme help operators defray costs and maintain affordable fees, provided they meet quality and affordability requirements.
Small and medium-sized operators can also access capability development grants and vouchers from SPRING Singapore for staff training, technology adoption, and consultancy in areas like human resources, financial management, innovation, and productivity.

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7 Nov 2016

Betting and Sweepstakes Duty Collections from Exempted Remote Gambling Operators

Png Eng Huat inquired about the estimated betting and sweepstakes duty from exempted remote gambling operators and the financial effect of exempting Singapore Pools and Singapore Turf Club on total collections.
Heng Swee Keat clarified that exemption from the Remote Gambling Act does not exempt operators from paying betting and sweepstakes duty, which applies to both terrestrial and remote gambling at 25% for sports betting and 30% for lotteries.
Singapore Pools launched its remote channel in October 2016, and Singapore Turf Club was scheduled to do so in November 2016, making it premature to assess the financial impact of remote gambling on duty collections.

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7 Nov 2016

Coordinated and Holistic Help for SMEs to Transform

Government agencies are coordinating closely with industry partners, trade associations, and SME centres to provide integrated support for SMEs facing immediate survival concerns while pursuing transformation.
A $4.5 billion Industry Transformation Programme, with tailored Industry Transformation Maps for over 20 sectors, aims to systematically raise productivity, skills, and internationalisation across industries.
Initiatives like the SME Working Capital Loan, simplified Capability Development Grant, and the Business Grant Portal are designed to improve access to financing, capability development, and grant applications for SMEs.

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7 Nov 2016

Licensing of Jackpot Outlets from 2006 to 2015

Chen Show Mao requested data on jackpot licences issued from 2006 to 2015, including current licensed outlets and revenue generated each year.
K Shanmugam stated there are currently 84 Private Lotteries Clubs (PLCs), down from 97 in 2010, with seven new permits issued and 20 ceased since 2010.
The Minister provided a table of duties collected from PLC-operated jackpot machines from FY 2006 to FY 2015.

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7 Nov 2016

Access to Government Digital Infrastructure by Micro and Small Businesses

The Government has introduced schemes like IMDA’s i-SPRINT to subsidise SMEs in adopting proven ICT solutions, with over 8,000 SMEs having benefited.
Additional support is provided through SPRING’s Capability Development Grant and Innovation and Capability Voucher to help SMEs adopt ICT for efficiency.
To address cybersecurity risks, agencies have created an Employee Cyber Security Kit with the Singapore Business Federation to guide SMEs in securing their systems.
Digital services such as the Business Grants Portal, LicenceOne, and the upcoming CorpPass aim to simplify grant applications, licence payments, and secure online transactions with the Government.

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7 Nov 2016

Government Assistance to Small and Micro Businesses on Staff Hire

The Government offers a one-stop Lean Enterprise Development Scheme (LEDS) to help SMEs transform, upgrade, and meet manpower needs by developing new capabilities and becoming more manpower-lean.
Various agencies provide specific support, such as Workforce Singapore’s P-Max and Career Support Programme, e2i’s Place-and-Train schemes, SkillsFuture Earn and Learn for graduates, and SPRING’s SME Talent Programme for internships.
SMEs can access assistance through career fairs and 12 SME Centres to recruit staff and transition to more efficient operations.

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7 Nov 2016

Government Assistance to Help Micro, Small and Medium Businesses Venture Overseas

The Minister noted that Singapore's services trade has outpaced goods trade, with services exports growing 6.9% annually from 2010 to 2015 while goods exports declined 0.1%, though services growth has moderated since 2015 in line with global trends.
The government provides various schemes like Market Readiness Assistance and Global Company Partnership to help SMEs internationalise, with over 80% of beneficiaries being SMEs, and collaborates with trade associations to support market entry.
Initiatives such as the ASEAN Economic Community and Overseas Centres are used to lower market access barriers and provide targeted assistance in both developed and emerging markets.
Manpower development programmes like the Young Talent Programme and SkillsFuture Study Awards aim to build a pipeline of global-ready Singaporeans to support international business ventures.

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