Economy & business — Topics

10 Oct 2016

Cost Increase to Employers for Mandatory Corporate Medical Insurance

Leon Perera asked the Minister for Health about the estimated cost increase to employers and the impact on the Budget from making portable corporate medical insurance mandatory.
The Minister replied that MediShield Life already provides portable basic health insurance for all Singaporeans, covering pre-existing conditions and employment changes.
Employers can voluntarily offer portable medical benefits, with tax incentives such as higher deductions for medical expenses up to 2% of employees' remuneration.
Portable benefits can include contributions to Medisave or direct payment of insurance premiums, and employers are already required to contribute to Medisave for MediShield Life premiums.
The government’s focus is on ensuring MediShield Life meets Singaporeans' needs, rather than mandating additional corporate insurance.

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10 Oct 2016

Reducing Pay-TV Rates with Content Reduction

Member Yee Chia Hsing asked whether pay-TV providers should be required to reduce subscription fees pro-rata when content is reduced, especially for bundled services where cancelling pay-TV alone may not save money.
The Media Development Authority (MDA) considered but decided against mandating pro-rata reductions after a public consultation, noting the subjective value of channels and consumer feedback preferring the option to exit contracts without penalties.
Instead, MDA introduced measures in April 2016 allowing subscribers to exit without early termination charges if operators raise prices, remove a material channel or sports content, or eliminate 20% or more of channels.
These measures also require operators to offer rebates when making such changes, aiming to protect consumers while allowing industry innovation and commercial viability.

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10 Oct 2016

Central Provident Fund (Amendment No 2) Bill

The Bill introduces flexible lump-sum withdrawals of up to 20% from Retirement Accounts at Payout Eligibility Age, allowing members to choose between immediate cash, deferred transfers, or converting to monthly payouts.
It simplifies CPF payouts by automating the start of Retirement Sum Scheme payments at age 70, mirroring the CPF LIFE scheme, to assist members who may not apply on their own.
The amendments fully implement the Basic Healthcare Sum (BHS) to fix healthcare savings targets per cohort, remove obsolete MediSave Minimum Sum rules, and streamline family MediSave top-ups from Ordinary/Special Accounts.

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10 Oct 2016

Income Tax (Amendment) (No 3) Bill

The Income Tax (Amendment) (No 3) Bill was introduced to amend the Income Tax Act and related statutes including the Economic Expansion Incentives, Goods and Services Tax, and Stamp Duties Acts.
The bill was presented by the Senior Minister of State for Finance and received presidential recommendation, with proceedings including a first reading and scheduling for a second reading.
The parliamentary sitting was suspended and resumed within the same day to accommodate the legislative process.

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10 Oct 2016

Credit Bureau Bill

The Credit Bureau Bill aims to regulate credit bureaus, their credit reporting activities, and members who receive customer information, with provisions for related and consequential amendments to other Acts.
The bill was presented by the Minister for Trade and Industry (Trade), Mr Lim Hng Kiang, and read for the first time, with a second reading scheduled for the next parliamentary sitting.
The bill's objectives include establishing a regulatory framework for credit bureaus and their operations to ensure proper governance and data handling.

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10 Oct 2016

Dealing with Higher Unemployment Rate

The Ministry of Manpower (MOM) reported that local employment growth has slowed sharply due to demographic shifts like ageing and lower birth rates, while unemployment rose slightly to 3% in June 2016, with PMETs constituting 70% of local retrenchments.
To address job mismatches and support displaced workers, MOM has expanded initiatives like Adapt and Grow, Professional Conversion Programmes (PCPs), and the Career Support Programme (CSP), achieving over 13,000 job placements in the first eight months of 2016.
MOM emphasized a balanced approach to foreign manpower, reducing inflows by over two-thirds since 2011 while enhancing fair consideration for locals through the Fair Consideration Framework and targeting “triple weak” employers.
Future plans include transforming the National Jobs Bank into a vibrant online marketplace and leveraging Skills Frameworks to provide career guidance, but mandatory job advertising and reporting requirements are not being implemented.
Ministers and MPs highlighted ongoing challenges for mature PMETs, SME transformation, and the need for productivity gains to sustain growth without over-reliance on foreign labour, urging tripartite collaboration to navigate economic transitions.

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10 Oct 2016

Impact of Decline in Private Investments on Job Creation and Business Competitiveness

The government is addressing falling private investments and firm closures by launching targeted support measures like the Working Capital Loan for SMEs and the Enterprise Development Fund, while shifting focus to productivity-driven growth and industry transformation maps to sustain competitiveness.
Discussions highlighted uneven economic performance, with resilient sectors like information technology and healthcare offsetting weaknesses in manufacturing and services, and efforts to manage business costs through lower utilities and rental rates while encouraging innovation and overseas expansion.
There is emphasis on aligning job creation with manpower readiness through SkillsFuture and industry partnerships, addressing skills mismatches, and ensuring Singaporeans are equipped for new roles despite declining foreign manufacturing investments and sector-specific challenges.

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10 Oct 2016

Likelihood of Economic Recession

Seah Kian Peng raised concerns about rising unemployment, slower growth, and a weak global outlook, questioning if a recession is imminent and what measures the government is considering.
The Minister for Trade and Industry acknowledged a slowdown in Singapore's growth due to external factors like weak global trade, moderate China growth, and Brexit uncertainty, while noting some bright spots like tourism and IT sectors.
The government expects full-year growth at 1–2%, potentially at the lower end, and stands ready to introduce contingency measures, including sector-specific support and worker assistance through SkillsFuture and Adapt and Grow initiatives.
Seah expressed that consumer confidence is low and a recession feels imminent, urging the government to act preemptively rather than wait for a downturn.
The Minister clarified that while an outright recession is not the baseline projection, some quarters of negative growth are possible, but overall growth is still expected within the 1–2% range.

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13 Sep 2016

Update on Delayed Construction of Singapore's First Co-digestion Plant at PUB's Ulu Pandan Water Reclamation Plant

Miss Cheng Li Hui asked for an update on the delayed co-digestion plant at Ulu Pandan, whether fraud was involved, and what assistance would be provided to affected SMEs.
Minister Masagos Zulkifli explained the project aims to test Anaergia Inc's technology under a co-funded scheme, faced delays due to the local representative's issues, but resumed after the parent company appointed another subsidiary, with completion expected by December 2016.
PUB paid the main contractor promptly but does not directly handle subcontractor payments; subcontractors facing non-payment from APL were advised to seek legal redress, with some having obtained court judgments, and fraud involvement is not commented on.

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13 Sep 2016

Removal of GST on Water Conservation Tax

Low Thia Khiang asked whether the Ministry will consider removing GST on the water conservation tax (WCT).
Heng Swee Keat explained that WCT and GST serve different purposes, with WCT reflecting water’s value and covering production costs, while GST is a general consumption tax applied to the final price of goods and services.
The Minister noted that applying GST to WCT is consistent with international practice and that fairness is maintained through schemes like GST Vouchers, which provide rebates to lower- and middle-income households.

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13 Sep 2016

Interest Payment on CPF Amount Owed to Members under Full Savings Vesting (FSV) Bonus Scheme

Mr Zainal Sapari asked if the Ministry of Defence (MINDEF) will pay interest on CPF amounts owed to servicemen under the Full Savings Vesting Bonus scheme, as noted in the Auditor-General's Report for FY2015/16.
MINDEF is working with the CPF Board to credit the outstanding CPF amounts to affected servicemen.
The credited amount will include interest that could have been earned if CPF contributions had been made on time, in line with CPF guidelines.
This addresses the shortfall highlighted in the Auditor-General's Report regarding the FSV Bonus scheme.
The action ensures compliance with CPF rules and rectifies the issue for servicemen.

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13 Sep 2016

Monies Paid by Pilgrims to General Sales Agents for Pilgrimage Package

MUIS collects a $300 per pilgrim fee, included as "Medical and Administrative Cost" in the haj package price, to partially cover costs of its Haj Mission services, but this only covers about half of the actual $700 per pilgrim cost over the last three years.
The fee is disclosed to pilgrims in the package breakdown, but MUIS does not receive a portion of the general sales agents' monies directly; the fee is collected through the agents.
The total amount collected over the last three years and its proportion relative to the total haj package sum were not specified in the response.

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13 Sep 2016

Total Debt-service Ratio as Percentage of Income for Singapore Resident Households

Chen Show Mao asked for the total debt-service ratio as a percentage of income for median, 20th percentile, and 90th percentile Singapore resident households from 2010 to 2015.
Tharman Shanmugaratnam replied that debt servicing ratios improved after the Total Debt Servicing Ratio framework was introduced in June 2013, with the 20th percentile falling to 17% in 2015 and ratios for median and 90th percentile households also declining slightly.
He noted that MAS measures have moderated household debt growth and reduced the number of borrowers with high unsecured debt, and MAS will continue to monitor and promote responsible borrowing.

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13 Sep 2016

Update on Iskandar Malaysia Project

The Minister provided an update on the 10-year collaboration between Singapore and Iskandar Malaysia, noting infrastructure and economic progress but highlighting concerns over an oversupply of residential properties in Johor.
Despite the lower ringgit, there has not been an increase in Singaporean property purchases in Iskandar Malaysia; transaction volumes have dropped significantly, and the Johor housing market has slowed.
The Minister advised that overseas property investments carry risks such as over-supply, foreign exchange fluctuations, and regulatory changes, and encouraged Singaporeans to use the Council of Estate Agents' checklist before purchasing.

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13 Sep 2016

Possibility of Fare Reduction with New Operating Models for Public Transport

Khaw Boon Wan noted that the Public Transport Council could consider a fare reduction of up to 5.7% in the next fare review, mainly due to falling energy prices, but cautioned that energy costs are volatile and may rebound.
He emphasized that the current fare formula, introduced in 2013, will be reviewed before its expiry next year, and future fare adjustments must balance commuter expectations with fiscal responsibility.
The government has significantly increased subsidies for public transport through initiatives like the Bus Service Enhancement Programme, bus contracting, and the New Rail Financing Model, totaling billions of dollars in commitments.
While public transport is subsidized in many major cities, Khaw stressed the need to avoid excessive fiscal burden, ensuring that the new fare formula balances affordability for commuters with prudence in government spending.

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13 Sep 2016

Formula Used in Deriving New Public Parking Rates

Muhamad Faisal Bin Abdul Manap asked how the new public parking rates effective from 1 December 2016 were tabulated and derived.
Lawrence Wong stated that car owners bear the full cost of parking, with charges set to cover the building, operating, and maintaining of HDB car parks to avoid subsidizing car owners.
He noted that parking charges remained constant for 14 years while core inflation and costs increased by about 30% and 40% respectively, justifying the review.
The new rates differentiate HDB season parking charges, with lower rates for residents' first car and higher rates for subsequent cars or non-residents to reflect full cost recovery.

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13 Sep 2016

Financial Deficits in HDB Car Park Operations

Assoc Prof Daniel Goh raised four questions about the sharp worsening of HDB car park finances, including reasons for the projected deficits, cost savings from outsourcing, current space utilisation, and potential savings from recalibrating car park numbers.
Lawrence Wong explained that while car park charges have remained unchanged for 14 years, costs have risen due to inflation, construction, maintenance, ageing infrastructure, and new amenities, leading to projected deficits of $80 million this year and $100 million next year.
The Electronic Parking System (EPS) has reduced some operating costs by about 25%, but savings are insufficient to offset overall cost increases, and HDB expects deficits to continue even after recent fee revisions.
HDB car parks are generally well-utilised, with average season parking take-up rates above 70% islandwide, and there are limited cost savings from reducing existing parking spaces due to sunk costs, though some spaces have been converted to other uses.

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13 Sep 2016

Safeguards for Sale of Financial Products to Vulnerable Groups

The Monetary Authority of Singapore (MAS) regulates financial advisers under the Financial Advisers Act, which requires assessing product suitability, disclosing material information, and conducting supervisory checks before sales to ensure products are appropriate for vulnerable customers.
For vulnerable customers, such as the elderly, supervisors must call them before transactions and senior management must confirm complex product risks, providing an additional opportunity for customers to withdraw if needed.
Some financial advisers have voluntarily enhanced practices, including multilingual documents and encouraging vulnerable customers to bring trusted relatives or friends to meetings.
MAS continues to work with the industry to improve adviser competencies and share best practices, aiming to raise standards beyond regulatory requirements.

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13 Sep 2016

Rationale for Alternative Ownership Model for Changi Airport Terminal 5

The Ministry of Transport is exploring alternative ownership models for Terminal 5 to maintain Changi Airport's long-term competitiveness, given its massive scale and the need for a different approach compared to existing terminals.
The study will consider models where airport operation and ownership are separate, similar to some leading international airports, but will not adopt a public-private partnership model for co-development.
Lessons from the Sports Hub partnership will inform the review, and contingency plans are being considered should the selected ownership model prove ineffective.

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13 Sep 2016

Coaching Researchers to Help Them Relate Better to Business Needs

Thomas Chua Kee Seng asked whether research scientists and engineers from public research institutes can be trained to better communicate and relate to SMEs' business needs.
S Iswaran highlighted that SMEs are vital to Singapore's economy and that government programs like GET-Up connect them with research expertise, while A*STAR offers training to improve researchers' communication skills and has an SME Office to reach out to businesses.
A*STAR has trained over 600 researchers in communication, deepened engagement with SMEs, and reported a 40% increase in projects with SMEs from 2011 to 2015, along with specific secondments and advisory support.
The government will continue aiding SMEs through innovation, while urging SMEs to proactively utilize available public research capabilities.

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