Economy & business — Topics

11 Jul 2016

Info-communications Media Development Authority Bill

The bill proposes the establishment of the Info-communications Media Development Authority (IMDA) to replace and consolidate the existing Info-communications Development Authority and Media Development Authority.
It aims to introduce a unified regulatory framework for competition and consumer protection in the media and info-communications sectors.
The bill includes the repeal of two existing acts and makes consequential amendments to other relevant legislation.

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11 Jul 2016

Government's Actions after Disclosure in Panama Papers

Dr Lim Wee Kiak questioned the Ministry of Finance on its actions after the Panama Papers disclosure, including whether Singapore companies or individuals were named and the government's stance on Singapore being labeled a tax haven.
The Senior Minister of State for Finance confirmed that one Singapore-incorporated company and some individuals/entities with Singapore links were named, but emphasized that offshore vehicles are legal and authorities are reviewing for actual wrongdoing, with regulatory bodies reminding intermediaries to report suspicious activities.
The government reiterated Singapore's commitment to financial integrity, its adherence to international standards, and its readiness to assist foreign investigations, while noting that naming specific individuals or entities during ongoing reviews would be inappropriate.

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11 Jul 2016

Impact of Brexit on Singapore's Economy and Investments

The Deputy Prime Minister outlined that Brexit’s immediate impact was mainly on financial markets with manageable volatility, while longer-term economic uncertainties in the UK and Europe could dampen global growth, though Singapore’s direct short-term impact is expected to be limited.
Temasek and GIC, with diversified long-term portfolios, are assessed to be resilient despite market dislocations, and the Net Investment Returns framework is designed to look beyond short-term fluctuations.
Singapore will maintain its existing talent admission framework, ensuring that foreign professionals are skilled and add value, while not expecting a flood of low-skilled workers due to Brexit.
The Singapore dollar’s trade-weighted basket remains relatively stable despite bilateral movements, and the government is closely monitoring developments to adjust strategies and protect Singapore’s competitiveness.
The government is engaged in diplomatic efforts to advance the EU-Singapore Free Trade Agreement and is open to future bilateral negotiations with the UK, though timelines remain uncertain due to the evolving Brexit landscape.

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11 Jul 2016

Cybersecurity Measures to Ensure Banking System Integrity

The Minister stated that MAS and financial institutions in Singapore have robust cybersecurity measures in place, including regular security reviews, threat detection, and recovery capabilities, to protect the banking system's integrity.
MAS supervises financial institutions through onsite and offsite assessments, issues advisories on cyber threats, and collaborates with industry groups like the Association of Banks in Singapore to enhance sector-wide cyber resilience.
Plans are underway to develop a local cybersecurity talent pool, coordinated by the Ministry of Communications and Information and the Cyber Security Agency, to address growing threats across all sectors.
MAS conducts regular audits and penetration tests on specific systems like FAST to ensure they are resilient against cyberattacks, similar to the SWIFT network targeted in the Bangladesh Bank incident.

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11 Jul 2016

Measures to Enhance Anti-money Laundering Compliance

The Singapore government has enhanced its anti-money laundering regime through stricter regulations, rigorous supervision, effective enforcement, and cross-border cooperation, including criminalising the laundering of serious tax offences and strengthening MAS oversight.
MAS took firm action against BSI Bank for anti-money laundering breaches, withdrawing its merchant banking licence and referring senior staff for prosecution, while organisational changes are being made to improve supervisory focus.
Financial institutions face higher compliance costs due to international standards, but these costs are applied uniformly across global institutions to maintain competitiveness in the fight against money laundering and terrorist financing.

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11 Jul 2016

Review of Vehicle Entry Permit Fee for Cars Entering Singapore via Johor

Ang Wei Neng asked the Minister for Transport for an update on adjustments to the Vehicle Entry Permit fee and toll charges in response to Malaysia's plan to charge RM20 for foreign vehicles entering Johor.
The Minister for Transport confirmed that Singapore’s tolls at the Causeway and Second Link were introduced in 1998 as a response to Malaysia’s tolls, with a policy of matching Malaysia’s charges to ensure mutual consideration of toll plans.
He stated that if Malaysia removes tolls, Singapore will do the same, expressing a preference for a toll-free Causeway and Second Link.
The Minister noted that if Malaysia’s new Road Charge discriminates against Singapore-registered vehicles, Singapore will match it in some form.
The government will confirm its response after Malaysia implements the Road Charge and details become available.

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9 May 2016

Complaints against Licensed Moneylenders for Unfair Contracts and Practices

In 2015, the Registry of Moneylenders received 129 complaints about licensed moneylenders, including issues with high fees, interest rates, and breaches of credit limits, leading to 17 moneylenders facing licensing actions, nine receiving warnings or compositions, and six being prosecuted and convicted.
The Ministry takes enforcement action against moneylenders or officers found violating the Moneylenders Act and Rules, as seen in 2015 through revocations, forfeitures, warnings, and court convictions.
There has been an increasing trend in the value of loans granted by licensed moneylenders over the last three years, prompting the introduction of borrower protection measures like interest rate and fee controls in 2015, with further regulatory changes planned.

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9 May 2016

EDB's Performance in Attracting Foreign Investments

From 2011 to 2015, the Economic Development Board secured S$65 billion in fixed asset investments, expected to generate S$34 billion in annual business expenditure, S$77 billion in annual value-added, and create 107,000 jobs when fully implemented.
The EDB uses a targeted approach to attract investments aligned with Singapore’s competitive strengths and constraints like manpower, land, and carbon emissions commitments.
The EDB collaborates with other agencies to support existing companies, helping them improve competitiveness, productivity, and job creation for locals through skills training and job redesign schemes like WorkPro.

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9 May 2016

COE Quota and Pricing Policy for Taxi Hirers

Gan Thiam Poh asked the Ministry for Transport to review the COE quota and pricing policy for taxi hirers due to increasing demand from new competitors and new regulations for these competitors.
Khaw Boon Wan explained that taxis were taken out of the COE bidding process in August 2012, with operators allowed to pay the Category A Prevailing Quota Premium regardless of taxi model, recognizing their public transport role.
The Taxi Availability standards were introduced to increase taxi fleets by up to 2% per year if standards are met, leading to more taxis serving commuters during peak hours with better utilization.
The government currently has no plans to remove the COE concession for taxis or the cap on fleet growth, and will continue to regularly review the issue.

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9 May 2016

Cost of Developing New Generation ERP System

Zainal Sapari questioned the $556 million cost of the new GNSS-based ERP system, the large price gap between the winning tender and the next highest quote of $1.2 billion, and how data privacy would be protected.
Khaw Boon Wan explained that the tender covers design, backend systems, five-year operations, replacement of OBUs, additional equipment, and value-added services like traffic information and electronic payments.
He noted that both tender bids were technically sound, with price differences arising from varying cost estimates and pricing strategies by the tenderers.
The system is required to anonymise and aggregate ERP data to safeguard motorists' privacy while supporting traffic management and analysis.

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9 May 2016

Income Tax (Amendment No. 2) Bill

The Income Tax (Amendment No. 2) Bill introduces amendments to implement the Common Reporting Standard (CRS) for automatic exchange of financial account information from 2018 and to adjust the Productivity and Innovation Credit (PIC) scheme, including lowering its cash payout rate and mandating e-filing.
The CRS amendments empower financial institutions to collect and retain information from non-Singapore tax residents from 2017, but only exchange data with jurisdictions that have signed Competent Authority Agreements, with safeguards for confidentiality and a level playing field with other financial centres.
On the PIC scheme, members raised concerns about abuse and the need for stronger enforcement, with the government affirming its risk-based audit approach and plans to continue compliance reviews even after the scheme lapses.

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9 May 2016

Green Rebate for Tesla Electric Car

Er Dr Lee Bee Wah asked if the Tesla Model 3 would qualify for a rebate under the Carbon Emissions-based Vehicle Scheme (CEVS), to which the Minister for Transport replied that its eligibility would depend on its energy efficiency when sold in Singapore, with the possibility of a maximum rebate if it is as efficient as the Tesla Model S.
The Minister clarified that a previous controversy arose because the Tesla in question was a second-hand car, which must be retested for CO2 emissions, whereas new Teslas would receive the maximum rebate.
Dr Lee questioned why there was a "hoo-ha" about the Tesla previously and why no rebate was given, prompting the Minister to explain that second-hand cars, regardless of type, require retesting to determine fuel efficiency and emissions.
The Minister emphasized that car condition and maintenance affect fuel efficiency, and the CEVS applies based on accurate energy consumption data for fair assessment.

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9 May 2016

Applications for Early CPF Withdrawal

Assoc Prof Daniel Goh questioned the definition of "severely impaired life expectancy" for early CPF withdrawal and suggested aligning it with the Life Insurance Association's Critical Illness Framework for transparency, but the Minister declined, stating that using such a framework is not appropriate due to potential mismatches and that medical certification by CPF-approved doctors is required instead.
The Minister clarified that members with terminal illness can withdraw all retirement savings, while those with other conditions must set aside a reduced Retirement Sum of $40,300 and can withdraw a lump sum, with about 1,000 applications approved annually in the past two years.
Goh raised concerns about the accessibility of the application process for non-English-speaking elderly and the $5,000 cap, but the Minister responded that there is no list of ailments, accessibility is not an issue based on feedback, and the $5,000 cap is maintained to avoid depriving more members of the scheme.
In follow-up clarification, Goh noted that successful applicants can withdraw up to $5,000 or their remaining savings after setting aside the Retirement Sum, whichever is higher, but the Minister emphasized balancing lump-sum withdrawals with monthly support, noting that the reduced Retirement Sum allows for about $550 monthly, which lasts about seven years.

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9 May 2016

Private Insurers Offering Riders for Basic Standard B1 Integrated Shield Plans

Dr Tan Wu Meng proposed incentivising private insurers to offer riders for basic standard B1 Integrated Shield Plans to cover pre-existing conditions and exploring a reinsurance risk pool to lower premiums.
The Ministry of Health stated that while MediShield Life provides lifelong coverage for pre-existing conditions, it has no plans to incentivise private insurers for such riders, as the focus is on affordable basic insurance and avoiding taxpayer costs.
The Ministry noted that insurers can already offer risk-loaded policies for pre-existing conditions and will explore the reinsurance pool idea with industry players.

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9 May 2016

Deferment of Income Tax Payment for Retrenched Citizens

Mr Zainal Sapari asked whether IRAS would allow retrenched Singaporeans to defer income tax payments until they find employment.
The Senior Minister of State for Finance responded that taxpayers can use existing interest-free instalment plans and may apply for longer terms if facing hardship.
In follow-up, Mr Sapari asked if IRAS could reduce or waive tax liabilities in serious cases.
The Minister advised that while IRAS generally does not waive taxes, those with serious hardship should approach IRAS directly to discuss flexible instalment options.
The government emphasized balancing fiscal discipline with compassion, encouraging affected individuals to communicate with IRAS.

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14 Apr 2016

Acknowledgement to the Chair

The Leader of the House highlighted that this year's Budget and Committee of Supply debates focused on economic transformation, innovation, social inclusivity, and national resilience, with a record number of amendments filed and a strong emphasis on future-proofing Singapore for its next 50 years.
The debates underscored the need for Singapore to adapt to global challenges, such as terrorism and geopolitical tensions, while ensuring a cohesive society through initiatives like SkillsFuture and support for vulnerable groups.
The Speaker noted the Budget’s historic significance as the first for the new Parliament and Finance Minister, while also calling for greater public engagement in the democratic process and a shared national responsibility for Singapore's future.

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14 Apr 2016

Final Supply (FY2015) Bill

The Senior Minister of State for Finance introduced the Final Supply (FY2015) Bill to authorize additional expenditure beyond the original 2015 Supply Act, as permitted by the Constitution.
The supplementary estimates for this additional spending had already been approved by Parliament as Command Paper No 3 of 2016.
The Bill proceeded through its Second and Third Readings with unanimous agreement and was passed.

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14 Apr 2016

Supply Bill

The Supply Bill for the financial year 1 April 2016 to 31 March 2017 was introduced to authorize appropriations from the Consolidated Fund and Development Fund as required by the Constitution.
The bill outlined the Heads of Expenditure and sums approved in the Main and Development Estimates, enabling the Minister to issue warrants for spending up to the specified amounts.
The Second and Third Readings of the bill were successfully moved and agreed upon, leading to the bill's passage without debate or amendment.

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14 Apr 2016

Committee of Supply – Total Sums for Main Estimates, Development Estimates and Resolutions

Parliament approved a total expenditure of $82.4 billion for the Main Estimates for the financial year 2016/2017.
A separate sum of $32.2 billion was approved for the Development Estimates for the same financial period.
The Committee of Supply reported and Parliament agreed to both funding resolutions as per the government's proposals.

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14 Apr 2016

Committee of Supply – Heads B, C, D, E, F, G and Z

The Chairman proposed to take the expenditure heads B, C, D, E, F, G and Z from the Main Estimates en bloc, and the motion was agreed to.
The Chairman also proposed to take the expenditure heads B, C, E and F from the Development Estimates en bloc, and the motion was agreed to.
No amendments were tabled for these heads, leading to their approval without debate.
The approval covers the sums stated in the Schedule of estimated expenditure for the respective estimates.

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