Economy & business — Topics

15 Aug 2016

Factors Determining Increase in HDB and URA Car Park Charges

The Minister explained that car park charges are revised to ensure car owners bear the full cost of ownership and usage, preventing non-car owners from subsidizing parking.
HDB and URA car park charges have remained unchanged for 14 years, but costs have risen by about 40% due to higher construction overheads, capital expenditures, and maintenance for aging facilities.
Without the fee increase, HDB and URA face significant deficits; HDB alone expects a $100 million annual deficit from next year onward even after the revision.
Season parking rates for HDB have been differentiated, with lower rates for residents' first car and higher rates for subsequent cars or non-residents to reflect full cost recovery.
The adjustments align with Singapore's goal to become a more "car-lite" society by ensuring parking fees appropriately manage demand and cover operational costs.

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15 Aug 2016

Reasons for Increase in Rates at HDB and URA Car Parks

The government justified the increase in HDB and URA car park rates by citing that charges had remained unchanged for 14 years while maintenance and operational costs, driven by rising construction overheads, capital expenditures for upgrades, and repairs for ageing facilities, had risen significantly.
The new differentiated season parking charges for second cars affect approximately 31,500 HDB households, or about 12% of HDB car-owning households, with higher rates set to achieve full cost recovery for non-first cars.
The Minister confirmed there are no current plans to provide additional assistance or subsidies for older vehicle owners facing difficulties with the increased parking charges.

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15 Aug 2016

Consumer Protection (Fair Trading) (Amendment) Bill

The Bill proposes amendments to the Consumer Protection (Fair Trading) Act and related legislation to strengthen consumer rights and business accountability.
It includes updates to the Standards, Productivity and Innovation Board Act and the 2008 Amendment Act to align with current market practices.
The Bill was introduced by the Minister of State for Trade and Industry and is scheduled for its second reading in a future parliamentary sitting.
The amendments aim to enhance fair trading standards and ensure better protection for consumers in Singapore.

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15 Aug 2016

Effectiveness of Support Schemes in Helping PMETs Find New Jobs

Minister Lim Swee Say reported that the "Adapt and Grow" initiative has assisted 15,000 jobseekers in the first half of the year, with 4,000 PMETs and 6,000 rank-and-file workers securing jobs through enhanced support schemes.
The Government plans to proactively expand employment support and transform the Workforce Development Agency into Workforce Singapore (WSG) to better manage lifelong career transitions and match worker aspirations with business needs.
The Minister highlighted ongoing actions against "double weak" or "triple weak" companies to strengthen their Singaporean core, with the programme growing and further details available via parliamentary questions.

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15 Aug 2016

Functions of Nanyang Polytechnic International

The Acting Minister explained that Nanyang Polytechnic International (NYPi) was created to handle overseas activities and revenue generation as a fully-owned subsidiary of NYP, with no personal financial gains for its board or staff, and clarified that the Auditor-General's findings related to corporate governance lapses rather than fraud.
The Minister detailed that NYP's error was treating NYPi as an internal department rather than a separate legal entity, leading to improper subsidization, and emphasized that corrective measures are being implemented to establish a proper governance framework.
Dr Intan Mokhtar raised follow-up questions about potential disruptions from the $8.38 million in excess funding, steps to inform future board members on governance, and whether actions were taken against those with "vested interests."
The Minister responded that no disciplinary action was warranted as no fraud or third-party leakage occurred, and instead, the focus is on improving governance across polytechnics and ensuring transparency in NYPi's subsidies.
NYP is in the process of drafting a new governance framework to be approved by October, with the Ministry briefing all polytechnics and institutes to prevent similar lapses.

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15 Aug 2016

Lapses in Management of Student Loans

MOE explained that the student loan schemes are designed as a social support measure to prevent Singaporeans from being denied tertiary education due to financial reasons, offering flexible, interest-free loans during study and extended repayment periods.
In response to the Auditor-General's findings, MOE committed to expediting a review of bank agency fees and improving enforcement of loan recovery processes while maintaining sensitivity to borrowers facing genuine hardship.
The Minister highlighted that appeals for deferment are assessed individually based on circumstances like unemployment, further studies, or medical issues, with many granted temporary deferment and a default rate of 1.4% deemed low internationally.
To balance accountability and compassion, MOE intends to clearly articulate the social objectives of the loans in future reviews, ensuring auditors understand the intent behind the schemes while incentivizing prompt loan recovery.

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15 Aug 2016

Consultancy Services for Construction of Bin Centre at Victoria Theatre and Victoria Concert Hall

The Minister explained that the consultancy for the bin centre was a contract variation for the broader redevelopment, procured as a lump sum to manage complex multi-institutional needs and limit cost escalation, with total consultancy costs at 8.7% of project costs, within industry benchmarks.
The consultant conducted extensive feasibility studies for site selection, structural works, traffic and pedestrian flows, odour control, and sensitive design, leading to construction cost savings of $420,000 through value engineering.
The Ministry acknowledged the Auditor-General's concern about documentation for the fee assessment but noted the AGO did not find the consultant overpaid, and stated that a fixed lump-sum contract would still be used if the project were done again due to the project's complexity.
In response to questions, the Minister clarified that facade design was part of the broader consultancy scope considering historical aesthetics, and while the AGO's percentage rule is reasonable for typical construction, it could reasonably be deviated from for this unique, non-construction-focused consultancy.

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11 Jul 2016

Measures to Encourage Parents to Have More Children

Dr. Lee Bee Wah questioned if free childcare could be provided and its potential cost, with Minister Tan Chuan-Jin responding that the government focuses on subsidies, such as the enhanced Child Development Account and fee-capped childcare centres, which have increased spending to $600 million last year.
The Minister explained that free childcare could limit program options, increase taxpayer burden, and cause over-consumption, making it harder for those in need to access services, while current measures keep childcare affordable and allow parental choice.
Initiatives like Baby Bonus, tax benefits, and housing grants support child-raising costs, with childcare subsidies allowing lower-income families to pay as little as $3 per month, and the government plans to continue reviewing these measures.

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11 Jul 2016

Non-extension of Income Tax Relief for Foreign Maid Levy to Single Females Supporting Aged Parents

Dr Lee Bee Wah questioned why single females supporting aged parents are excluded from the foreign maid levy income tax relief and asked if it could be extended to all female taxpayers employing maids for aged parents.
Tharman Shanmugaratnam explained the relief was introduced to encourage married women to remain in the workforce, hence it is not available to singles.
Singles, both men and women, can apply for a concessionary levy if they have young children or live with aged or disabled family members, subject to conditions.
The government has reduced the concessionary levy over the years, most recently halving it to $60 a month in Budget 2015.

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11 Jul 2016

Impact of China's "One Belt, One Road" Initiative on Singapore SMEs

The Minister highlighted that China’s Belt and Road Initiative (B&R) is mutually beneficial, encouraging economic integration and cooperation, with over 6,500 Chinese companies now based in Singapore—nearly double the number from five years ago—offering collaboration opportunities in logistics, construction, and finance.
Singapore SMEs can also tap into infrastructure and development projects in Chinese provinces, supported by initiatives like the Chongqing Connectivity Initiative, which opens doors in ICT, urban solutions, and logistics through government-to-government partnerships.
The government provides active support for SMEs through agencies like SPRING Singapore and IE Singapore, offering capability development, market entry assistance, and financing options via schemes such as the Market Readiness Assistance and partnerships with Chinese banks.

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11 Jul 2016

Government Expenditure on Advertisements and Sponsored Posts on Online Media Platforms

Dennis Tan asked the Minister for Communications and Information for annual government spending on online advertisements and sponsored posts from 2011 to 2015 and a breakdown by Ministry
The Government does not track total spending by Ministries on online advertisements
MCI itself spent about $4.3 million last year, or 0.5% of its operating budget, on digital advertisements for policies such as the Pioneer Generation Package, SkillsFuture, Marriage and Parenthood, and Integration issues
This spending was spread across online media platforms including YouTube, Facebook and Google

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11 Jul 2016

Home Protection Scheme for All HDB Flat Owners with Outstanding Home Loans

The Minister confirms that HDB flat owners using CPF to service loans must take up the Home Protection Scheme (HPS), covering 60% of such owners.
Among the remaining 40% who don’t use CPF, 43% have voluntarily adopted HPS, with others possibly using private mortgage insurance.
MND and MOM are reviewing whether to make HPS mandatory for all HDB flat owners with outstanding loans, focusing on affordability and premium payment lapses.

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11 Jul 2016

Incentives and Grants to Help Construction Companies Manage Labour Costs

Louis Ng asked about incentives and grants to help construction firms, especially SMEs, cope with rising foreign worker levy costs.
Lawrence Wong explained that the Construction Productivity and Capability Fund (CPCF) has made nearly $800 million available since 2010, with $400 million committed to over 8,000 firms, mostly SMEs.
The CPCF supports workforce training and upgrading, offering up to 90% funding for local employee upgrades and 80% for Basic Skilled R2 workers to move to Higher Skilled R1 status.
Companies can also receive funding to mechanize operations and adopt productive technologies, aiming to reduce reliance on foreign manpower.
The government encourages the industry to utilize these incentives and grants to improve construction productivity and manage labor costs.

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11 Jul 2016

Payment of CPF Contributions and Workfare Income Supplement to Prison Inmates and Disabled Adults

CPF contributions are required for disabled adults only if their work arrangements involve an employee-employer relationship with earnings above a threshold, which typically does not apply to social enterprise programmes like those at MINDS.
Prison inmates in voluntary work programmes are not considered employees and thus do not require CPF contributions, as these programmes are part of rehabilitation rather than formal employment.
Workfare Income Supplement is available to disabled adults and prison inmates if they meet eligibility criteria, including making necessary CPF contributions, with the age requirement waived for persons with disabilities.

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11 Jul 2016

Local Employees Covered under Portable Medical Benefits Options Eligible for Higher Tax Deductions

The Minister noted that only about 4% of companies, covering roughly 20% of local workers, currently provide voluntary portable medical benefits, despite existing tax incentives.
The Government is shifting focus toward encouraging employer contributions to employees' Medisave accounts and leveraging MediShield Life as the primary platform for portable medical benefits.
The Minister indicated that the Tripartite Guidelines on Re-employment of Older Employees already encourage employer Medisave contributions, and partners will continue efforts to promote broader adoption.

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11 Jul 2016

Impact of Relaxation on Car Loan Restrictions and Raising of Car Park Charges on Building of Car-lite Society

The Minister emphasized that a car-lite society relies on a robust public transport system, highlighting significant upgrades to rail and bus services, with the rail network set to double by 2030 and improvements in connectivity through sheltered walkways and cycling paths.
To manage car usage, public parking rates have been increased for the first time in over a decade to reflect higher costs, though they remain lower than in many global cities, and the government is reviewing parking provisions in buildings.
The Monetary Authority of Singapore (MAS) adjusted car loan restrictions in response to reduced inflationary pressures and lower vehicle loans, but this policy reset does not hinder the broader goal of limiting car population growth, with the vehicle growth rate to be reviewed next year.
Initiatives such as electric car-sharing programs and active mobility rules are being promoted to offer alternatives to private car ownership, supporting a shift towards more sustainable transportation options.

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11 Jul 2016

Government's Efforts to Raise Awareness for Business Opportunities Offered by Multi-national Corporations

The Economic Development Board (EDB) actively promotes business opportunities between Singapore-based multinational corporations (MNCs) and local SMEs, including facilitating visits by overseas MNC executives to assess partnerships and outsourcing opportunities.
EDB collaborates with agencies like SPRING Singapore to groom SMEs and start-ups in sectors such as cleantech, exemplified by partnerships like Green Koncepts and DNV GL to develop energy management solutions.
Economic agencies work with Trade Associations and Chambers (TACs) to create networking platforms and supplier conferences, such as the Airbus supplier conference during the Singapore Airshow 2016, to connect MNCs and SMEs.
These efforts will continue as priorities for EDB and its partners to enhance awareness and opportunities for local businesses.

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11 Jul 2016

Review of Criteria for Working Mother's Child Relief Claims

Zainal Sapari asked whether the income declared for Working Mother's Child Relief (WMCR) could exclude National Service allowances and internship earnings, and if the $4,000 annual income ceiling for the child could be reviewed due to rising costs.
Tharman Shanmugaratnam explained that to qualify for tax reliefs like WMCR, dependants must be financially dependent with no income, but a concession allows incidental income up to $4,000 annually for all dependants, without excluding any income categories for consistency.
He noted the $4,000 threshold was last increased in 2010 and will be reviewed periodically, but no immediate changes were announced.

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11 Jul 2016

Segregating COE Bidding for Different Categories of Car Buyers

Zaqy Mohamad asked if the LTA would limit COE bidding categories for private hire cars and taxis compared to individual owners, and if it would consider segregating bidding between individuals and companies, including dealers.
Lim Biow Chuan suggested removing private hire car firms like Uber and Grab from the COE process, treating them like taxi operators to prevent distortion.
Khaw Boon Wan responded that taxi operators already draw COEs from Cat E without bidding, and the LTA will monitor private hire growth before deciding on similar measures.
Khaw stated that most individuals use dealers for convenience, and segregating bids would be artificial and distort demand, recommending the market decide car pricing formats.
The debate highlights concerns about COE system fairness, with officials leaning toward market-driven solutions over artificial segregation.

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11 Jul 2016

Bretton Woods Agreements (Amendment) Bill

The Minister moved to amend the Bretton Woods Agreements Act to allow MAS to provide grants to the IMF’s Poverty Reduction and Growth Trust (PRGT), funded by Singapore’s share of IMF gold sales profits, subject to Parliamentary approval.
Amendments introduce safeguards requiring Parliamentary approval for grants, Gazette publication of financial assistance details, and collective action with at least one other government, while consolidating MAS’s existing powers for loans and deposits.
MPs supported the Bill but raised questions on reserves impact, sustainability of PRGT, rationale for low threshold for collective action, constitutional safeguards involving the President, potential write-offs of loans, scope of “other financial assistance,” and public transparency beyond the Gazette.
The Minister clarified that gold sales proceeds would not affect official foreign reserves, PRGT lending capacity is sustainable for two decades, IMF loans carry low credit risk due to preferred creditor status, and MAS will ensure public accountability beyond just Gazette publication.

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