Economy & business — Topics

15 Jan 2016

Ministry of Finance

The Ministry of Finance aims to sustain Singapore's growth through prudent public finance, targeting subsidies to those in need, and shifting the economy toward innovation and value creation by supporting businesses in restructuring and internationalizing.
Over the long term, the government will build revenues to meet higher spending needs from an ageing population while maintaining a progressive tax system and promoting economic vibrancy through SkillsFuture and partnerships with unions and employers.
Initiatives include enhancing care support for families, improving retirement adequacy through CPF reforms, and investing in community infrastructure to foster social cohesion and inclusivity.
The public sector will transform using digital technologies to deliver integrated services, improve operations with data analytics, and encourage innovative procurement to support productivity and innovation.

Summary written by AI

Overview Original source

18 Aug 2015

Revenue Earned by Citizens' Consultative Committees from Organisation of Trade Fairs

Sylvia Lim requested the Minister for Culture, Community and Youth to provide the total revenue earned by Citizens’ Consultative Committees (CCCs) from trade fairs in FY2012/2013, FY2013/2014, and FY2014/2015, along with a breakdown by CCC for those years.
The Minister, represented by Lim Swee Say, reported that about 40 trade fairs were organised annually by CCCs between FY2012 and FY2014, with most fairs earning between $10,000 and $350,000, except the Geylang Serai Trade Fair which generated $900,000 to $1.3 million yearly.
Funds raised from these trade fairs are used for welfare assistance, scholarships, bursaries, community programmes, and initiatives like healthcare and community facility projects, and must comply with the People’s Association’s financial rules.

Summary written by AI

Overview Original source

18 Aug 2015

Civil Aviation Authority of Singapore (Amendment) Bill

The Civil Aviation Authority of Singapore (Amendment) Bill establishes the Changi Airport Development Fund (CADF) to finance the expansion of Changi Airport, specifically the construction of Terminal 5, which will double passenger capacity to about 135 million per annum.
The government will provide initial capital of S$3 billion and co-invest jointly with the airport operator and users to maintain the airport's cost-competitiveness, with the fund intended for major development works, infrastructure, and related capital assets.
During the debate, concerns were raised about the necessity of Terminal 5 amid current capacity levels and the creation of a dedicated fund instead of using existing mechanisms, but the Minister clarified that detailed feasibility studies are ongoing and the CADF is essential for long-term, assured funding.

Summary written by AI

Overview Original source

18 Aug 2015

Public Transport Council (Amendment) Bill

The Public Transport Council (Amendment) Bill aims to amend the Public Transport Council Act to institutionalize PTC's advisory role to the Minister for Transport, formalize the 2013 Fare Review Mechanism Committee's recommendations, and empower PTC to standardize taxi fare structures.
The Bill establishes the Public Transport Fund as a government fund, mandates operator contributions during fare increases, and enhances PTC's powers to enforce fare evasion penalties and regulate non-public bus service fares.
Debate highlights include Mrs Lina Chiam's support for PTC's new advisory role but concerns about the Public Transport Fund's complexity and a call to explore deregulation, to which the Minister responded by defending the regulated public transport system and clarifying taxi fleet ratios and fund management.

Summary written by AI

Overview Original source

18 Aug 2015

Incentives for Companies that Employ 85% or More of Singaporeans

K Karthikeyan proposed incentives for companies with over 85% Singaporean employees.
The Minister for Manpower stated there are no current plans to offer such incentives.
The Ministry encourages all companies to build a strong Singaporean Core regardless of percentage.
SkillsFuture is used to support businesses in strengthening their Singaporean workforce.
The government believes this approach sustains economic growth and creates better jobs.

Summary written by AI

Overview Original source

18 Aug 2015

Medisave Contribution Ceilings and Retaining Overflows for Medical Expenses

Baey Yam Keng asked whether CPF members who have reached their MediSave contribution ceiling can keep the overflows to pay for medical expenses instead of channelling them to other accounts, with the Ministry noting that overflows go to the Special or Retirement Account to improve retirement adequacy and that exceptional cases can be reviewed individually.
The Ministry explained that the MediSave Contribution Ceiling is being replaced by the Basic Healthcare Sum to reflect longer working lives, and CPF LIFE payouts can supplement healthcare needs, with flexibility considered for exceptional circumstances.
Dr Lee Bee Wah suggested allowing overflow funds to be channelled to the Ordinary Account for housing purchases for those who have not bought an HDB flat, but the Ministry of Manpower emphasized that retirement savings must take precedence, especially for the self-employed.
Minister Lim Swee Say clarified that for the self-employed, MediSave overflows are directed to the Special Account to ensure retirement adequacy, arguing that prioritizing housing over retirement savings for all workers would not be wise.

Summary written by AI

Overview Original source

18 Aug 2015

Prices Charged at Hawker and Food Centres

The Minister outlined how rental controls, the removal of speculative practices, and the appointment of social enterprises like NTUC Foodfare have lowered rental costs and are addressing the primary cost driver of ingredients for hawkers.
Concerns were raised about the responsibility for keeping food affordable, the importance of maintaining food value and heritage rather than just low prices, and the need for transparency with price displays at stalls.
The Minister affirmed a shared stakeholder approach to affordability, highlighted the pilot use of social enterprises to reduce ingredient costs, and agreed to study requirements for clearer price display to enhance consumer transparency.

Summary written by AI

Overview Original source

18 Aug 2015

Land Assessment Tax for PUB's Waterworks in Johor

The debate concerns a land assessment tax notice from the Kota Tinggi District Council to PUB's Johor River Waterworks, which would more than double the tax rate and apply a category created solely for PUB.
Minister Shanmugam stated that the 1962 Water Agreement governs PUB's obligations and does not require PUB to pay this land assessment tax, and that Singapore has raised concerns through diplomatic channels with Malaysia.
Singapore has engaged the Malaysian federal government, including through Third Person Notes and direct talks between ministers and prime ministers, seeking resolution in line with the Separation Agreement guaranteeing Johor's compliance with the 1962 Water Agreement.

Summary written by AI

Overview Original source

17 Aug 2015

Take-up Rate for Space in JTC and HDB Industrial Parks

The occupancy rates for JTC and HDB industrial facilities decreased from 97% in 2012 to 94% in 2014, while the overall industrial space market occupancy fell from 93% to 91% over the same period.
An average of 1.8 million sqm of industrial space is expected annually in 2016 and 2017, exceeding the past three years' average annual supply of 1.5 million sqm and demand of 1 million sqm.
New JTC developments, including JTC Chemicals Hub @ Tuas View and JTC nanoSpace @ Tampines, will contribute about 340,000 sqm to the upcoming industrial space supply.
The Government will continue to monitor the industrial property market and make more space available when necessary.
There are plans to build more industrial parks as needed, based on market monitoring and demand trends.

Summary written by AI

Overview Original source

17 Aug 2015

Update on Financial and Capital Market Integration in ASEAN

The ASEAN Economic Community will be launched in 2015 with financial integration as a key but complex component, progressing slower than trade integration due to the need for regulatory harmonisation.
The ASEAN Banking Integration Framework (ABIF) has been established to allow banks meeting prudential criteria greater market access, reflecting progress in banking.
Singapore is undecided on supporting the proposed MSME Growth Bank due to limited details, as existing private financial programmes are seen as effective for SME financing.

Summary written by AI

Overview Original source

17 Aug 2015

Effectiveness of Existing Fair Employment Guidelines in Protecting Older PMEs

The Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) guidelines are supplemented by the Retirement and Re-employment Act, which makes it an offence to dismiss employees under 62 due to age and mandates re-employment offers up to age 65, with a goal to raise the re-employment age to 67 soon.
The government employs a two-pronged approach: the Special Employment Credit (SEC) provides wage subsidies for hiring older workers, and programmes like Professional Conversion Programmes (PCP), P-Max, and the Career Support Programme (CSP) offer financial support for reskilling and hiring older PMEs.
Efforts are underway to address ageism through campaigns like "Tap into a Wealth of Experience," but mindset changes among employers and the community are deemed necessary, with TAFEP continuing to support capability building for older workers.

Summary written by AI

Overview Original source

17 Aug 2015

Bringing Forward Roll-out of Progressive Wage Model for Landscape Workers

K Karthikeyan asked if the Progressive Wage Model for landscape workers could be implemented this year instead of the planned schedule.
The Progressive Wage Model was announced in April and will be required for companies registered with the Landscape Company Register from June 2016.
While the full implementation is set for next year, progressive companies are encouraged to adopt it early with financial incentives available.
Funding schemes like the Progressive Wage Incentive offer grants up to $150,000 to support early adoption of the model.

Summary written by AI

Overview Original source

17 Aug 2015

Security Sector's Readiness to Implement Progressive Wage Model

The Security Tripartite Cluster has set PWM requirements to be incorporated into licensing by 1 September 2016, with non-compliance leading to license non-renewal, and active engagement is underway to brief agencies and service buyers.
Measures to assist security guards include ensuring current officers can remain in the industry without forced transition, with flexible training options and an Assessment Only Pathway for experienced professionals to gain certification.
Training capacity has been increased to 2,800 places monthly, and integrated curricula and flexible arrangements are in place to help meet PWM training requirements.
Service buyers are being reached out to explain PWM benefits and cost implications, with funding schemes like the Progressive Wage Incentive providing grants up to $150,000 to support cost increases in contracts.

Summary written by AI

Overview Original source

17 Aug 2015

Water and Electricity Charges

Seah Kian Peng asked about the history, principles, and cost basis of water and electricity pricing, including the last price change, governing rules, price recovery, and long-term marginal cost.
Vivian Balakrishnan explained that water prices are pegged to the Long Run Marginal Cost of desalinated and NEWater, reflecting scarcity, and have remained unchanged since 2000 due to technological improvements.
He noted that energy prices affect future water costs, but currently, there is no need for a tariff adjustment despite rising labor and equipment expenses.

Summary written by AI

Overview Original source

17 Aug 2015

Cap for Hospital Bills Based on Class of Ward

K Karthikeyan proposed capping hospital bills based on ward class rather than MediShield Life claim limits to control costs for patients.
Gan Kim Yong explained that hospital bills vary by condition and treatment, and existing measures like subsidies, MediShield, MediSave, and MediFund already ensure most subsidised ward bills are affordable.
The Ministry opposes caps as they may encourage wasteful healthcare consumption, shifting costs to taxpayers and premiums, and prefers using claim limits to manage costs while supporting patients through financial assistance schemes.

Summary written by AI

Overview Original source

17 Aug 2015

GDP Per Dollar of Business Cost in Singapore

From 2010 to 2014, business costs in Singapore rose moderately, with unit labor costs increasing faster than productivity in both manufacturing and services sectors.
The government has implemented schemes like the Productivity and Innovation Credit and SkillsFuture to drive productivity and skill development for long-term competitiveness.
National initiatives such as the Innovation and Capability Voucher and the National Productivity Council have supported thousands of companies in process and technological improvements.

Summary written by AI

Overview Original source

17 Aug 2015

Trade Sectors Driving Economic Growth and SMEs' Contribution

The Singapore economy grew by 1.8% year-on-year in the second quarter of 2015, with wholesale and retail trade and finance and insurance sectors being the primary drivers of this growth.
The wholesale and retail trade sector expanded by 5%, supported by increased domestic exports in oil products, while the finance and insurance sector grew by 7.1% due to strong fund management activity.
While a breakdown of GDP growth by SME and non-SME contributions is unavailable, SMEs accounted for approximately 50% of Singapore's GDP in 2014.

Summary written by AI

Overview Original source

17 Aug 2015

Proper Accountability by Public Sector Entities for Public Resources

Mrs Lina Chiam raised concerns over repeated financial lapses in Statutory Boards, notably the People’s Association (PA) and Grassroots Organisations (GROs), citing a lack of accountability and oversight, failure to audit GRO accounts for over a decade, and recurring issues such as improper procurement and conflict of interest.
Senior Minister of State Josephine Teo responded that recurrent lapses are rare exceptions, with measures like enhanced training, a procurement competency framework, and a mix of centralized and decentralized procurement processes to balance efficiency and oversight.
Minister Lim Swee Say clarified that while GROs sometimes bypassed procedures due to urgent community needs, their actions did not compromise residents' interests, and that PA’s accounts were now consolidated and received clean audit opinions after addressing financial reporting standards changes.

Summary written by AI

Overview Original source

17 Aug 2015

Asian Infrastructure Investment Bank Bill

Singapore's Minister of State for Finance outlined the rationale for joining the AIIB, emphasizing its role in financing Asia's infrastructure needs and the strategic importance for Singapore as a financial center, with a capital subscription of US$250 million.
A Member of Parliament raised concerns about granting extensive immunities and tax waivers to the AIIB, questioning the risks and benefits for Singapore, while another Nominated Member supported the bill, highlighting Singapore's expertise and potential business opportunities for local companies.
The Minister responded to concerns by affirming that the AIIB will uphold high governance standards and that immunities are consistent with other international institutions, while emphasizing the economic and strategic benefits for Singapore and the region.

Summary written by AI

Overview Original source

17 Aug 2015

Subsidies for Dyslexic Students in Specialised Independent Schools

Hri Kumar Nair questioned why dyslexic students in Specialised Independent Schools are excluded from subsidies for the dyslexia remediation programme and asked for a policy review.
The Minister of State for Education stated that these schools offer customised curricula and that financial assistance is already provided, with plans to rationalise and extend subsidies to eligible students from January 2016.
The debate concluded with the Speaker ending Question Time and noting that any unanswered questions would be addressed in writing.

Summary written by AI

Overview Original source