Economy & business — Topics

17 Aug 2015

Details of Accounting Lapses in People's Association

The Minister detailed 13 tenancy contracts awarded without competition, citing valid community benefits but acknowledging they violated financial rules for lacking prior HQ approval, and outlined seven claims by a CCC chairman, including one without supporting documents, though three were later verified with vendors.
The Minister emphasized PA's commitment to financial governance, noting clean audit opinions for recent years and swift corrective actions, while clarifying that the earlier adverse opinion was due to unaudited GRO accounts being excluded, not financial irregularities.
Mr Png Eng Huat questioned the accuracy of the claim documentation, the audit sample size, and how the Minister could assert no irregularities without the GRO accounts being audited, to which the Minister responded by correcting the documentation record and explaining PA's internal audit processes.

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17 Aug 2015

Ministries' Follow-up Action from Auditor-General's Report

Ministries have investigated the lapses identified in the Auditor-General's Report, with most being non-repeat issues, and have implemented corrective measures such as closer supervision and improved guidelines.
Investigation reports are not routinely made public, but the Public Accounts Committee can review them and provide assessments to Parliament, ensuring accountability.
The government maintains that its financial accounts are reliable and have received unmodified audit opinions, contrasting with the AHPETC audit findings which showed fundamental systemic issues.
Disciplinary actions are taken against officers responsible for lapses, including withholding increments and debarment from promotion, to reinforce accountability.
The government balances stricter controls with practical administration, avoiding over-tightening that could hinder decision-making while ensuring public funds are safeguarded.

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14 Jul 2015

SPRING Singapore's Partnerships for Capability Transformation (PACT) Programme

Mr Yee Jenn Jong requested a breakdown of PACT projects by industry sector and more efforts to expand PACT in the services sector.
The PACT programme, expanded in Budget 2013, supports partnerships between large organisations and SMEs in manufacturing and services, with $60 million committed from FY2013 to FY2015.
Since 2013, 14 PACT projects and 461 SMEs have been supported in the services sector, while the manufacturing sector has seen 78 PACT projects benefiting 167 SMEs.

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14 Jul 2015

Bankruptcy (Amendment) Bill

The Bill introduces fixed timeframes for bankruptcy discharge (three, five, seven, or nine years), creating a more equitable process and incentivizing repayment, with non-repayment resulting in permanent public registration of the bankruptcy.
Institutional creditors must appoint and bear the costs of private trustees for bankruptcy proceedings, aiming to reduce the burden on public resources and encourage more prudent lending, though concerns were raised about impartiality, oversight, and potential cost impacts.
Officials highlighted existing financial education programs and alternative debt-recovery mechanisms, while noting the need for balance between encouraging entrepreneurship and ensuring financial responsibility, and emphasized checks on private trustees' conduct and fees.

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14 Jul 2015

Helping Self-employed Persons to Buy Homes

Er Dr Lee Bee Wah asked if self-employed persons could channel excess CPF contributions beyond the Medisave ceiling to their Ordinary Account for housing, or opt out of Medisave contributions if they have substantial medical insurance.
The Minister for Manpower explained that excess Medisave contributions are automatically transferred to the Special or Retirement Account for higher returns, and voluntary CPF contributions for housing are already allowed with tax relief.
The Minister clarified that Medisave is essential for covering healthcare expenses and family medical needs, so self-employed persons cannot opt out even with other insurance, as Medisave provides guaranteed lifelong coverage and broader family support.

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14 Jul 2015

Record Sale Prices for Neighbourhood Coffee Shops

Gerald Giam raised concerns about record-high coffee shop sale prices in Bukit Batok and Hougang, asking if the government is worried about their impact on stall rentals, food prices, and speculation affecting affordable food for lower-income residents.
Minister Khaw Boon Wan responded that these transactions were private market outliers, emphasized HDB's strategy of not selling coffee shops but renting them out, maintaining sufficient supply, and building new coffee shops and hawker centres to ensure competition and affordability.
Giam pressed for the government's stance on speculation and concrete measures to prevent it, including whether HDB should buy back coffee shops; Khaw clarified the sellers were long-term operators, not speculators, and that forcing sales back to HDB is not legally feasible.
David Ong suggested a hawker centre in Bukit Batok to provide alternative affordable food options, and Khaw confirmed that one is already planned, with efforts to find a good location.

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14 Jul 2015

Increasing Trade and Economic Cooperation between Africa and ASEAN

The Asian-African Conference in Jakarta in April 2015 is seen as a significant platform to strengthen political and economic ties between the two regions, with strong attendance signaling mutual interest in deeper cooperation.
Singapore is actively expanding engagement with Africa through trade missions, commercial centers in Ghana and South Africa, and efforts to establish bilateral investment and tax agreements to boost business confidence.
The Singapore Cooperation Programme has trained nearly 8,000 African officials since 1992, supporting capacity-building in areas like public administration and economic development.
Recent initiatives, including ministerial visits and the Africa-Singapore Business Forum, aim to enhance mutual understanding and create new opportunities for trade and investment between Singapore and African nations.

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14 Jul 2015

Review on Effectiveness of Foreign Worker Levies

Yeo Guat Kwang questioned whether foreign worker levies have shifted from their original purpose to merely reducing company margins and asked if removing them would benefit the local workforce, while also seeking support plans for businesses, especially SMEs.
The Minister for Manpower explained that levies, alongside quotas, help manage foreign worker demand, encourage productivity, and protect local workers' wages, noting that removing them could suppress local salaries and reduce investment in technology.
The Minister added that various government schemes, such as SPRING’s Innovation and Capability Voucher and lower levies for skilled workers, assist firms, particularly SMEs, in adapting to manpower challenges and improving productivity.
Nominated Member Thomas Chua inquired about the specific sectors that received foreign workers in 2014 and what portion went to SMEs, following a noted decline in foreign worker growth from 2011 to 2014.

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14 Jul 2015

Impact of Greece's Loan Default on Singapore

The Minister for Culture, Community and Youth, Lawrence Wong, responding for the Prime Minister, stated that Greece's default on IMF debt has a negligible direct impact on Singapore due to Greece's small share in Singapore's trade and banking assets, and that the IMF's preferred creditor status and reserves protect member countries like Singapore from financial loss.
While the immediate financial risk to Singapore is low, there is a concern about potential contagion if Greece exits the Eurozone, which could affect investor confidence globally, though European authorities are expected to take measures to contain the crisis.
The debate highlighted key lessons from the Greek crisis, including the importance of sustainable budget policies that avoid populist spending and accumulating debt, and the need to maintain economic competitiveness to prevent prolonged deficits and growth issues.

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13 Jul 2015

Funding for Cancer Research in Singapore

The Minister reported that from 2006 to 2012, about $210 million was spent on cancer research in Singapore, with $1.1 million specifically allocated for brain tumour research and over $50 million for non-site specific cancer research.
Additional funding for cancer-related research is provided by other public agencies such as the National Research Foundation, Ministry of Education, and Agency for Science, Technology and Research.
Data from 2010 to 2014 shows an average of 400 new brain tumour cases annually, representing 3.3% of all new cancer cases, with most reported in public healthcare institutions.

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13 Jul 2015

Disbursement of Community Improvement Projects Committee (CIPC) Funding to Town Councils

Pritam Singh asked the Minister for National Development how much CIPC funding has been extended to each Town Council via their respective CCCs from May 7, 2011.
Khaw Boon Wan explained that CIPC funding supports HDB estate improvement projects like covered walkways and playgrounds, and is disbursed through CCCs to identify community-focused projects.
The CIPC allocates its budget to CCCs yearly based on HDB residential units in each Town, with CCCs prioritizing projects based on local needs.
Town Councils can approach their CCCs for enquiries or proposals regarding CIPC-funded projects.

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13 Jul 2015

Prospect and Implications of Prolonged Deflation for Singapore

Ang Wei Neng questioned whether Singapore would enter prolonged deflation after seven months of negative headline inflation and the implications of such a scenario.
Lim Hng Kiang clarified that the negative inflation was due to specific price declines in car costs, housing rentals, and oil-related items, not broad-based demand weakness, and core inflation remained positive.
He explained that these disinflationary factors are temporary, with oil prices recovering and budgetary measures set to dissipate, leading to projected inflation rises later in 2015 and 2016.
The government assessed that Singapore is not experiencing deflation and does not expect to slip into it, with core and headline inflation expected to average within positive ranges for 2015.
Monetary Authority of Singapore and Ministry of Trade and Industry will continue monitoring price developments closely.

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13 Jul 2015

Number of Individuals Declared Bankrupt Due to Credit Card Debt

Christopher de Souza asked about the number of bankruptcies due to credit card debt and whether stricter credit card policies are needed, to which the Prime Minister's reply noted that 41% of bankruptcies in the past year were linked to excessive credit use, including credit cards.
The government has implemented safeguards such as income requirements for credit cards, limits on unsecured credit based on monthly income, and a new cap on total unsecured borrowing that will be progressively tightened to 12 times monthly income by 2019.
Additional measures include the Repayment Assistance Scheme for heavily indebted borrowers and ongoing financial education initiatives to promote prudent debt management.

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13 Jul 2015

Licensed Fund Managers Exempted from Capital Markets Services Licence Requirement

Mrs Lina Chiam inquired about the number of licensed fund managers exempted from the capital markets services licence requirement between 2011 and 2014.
The Prime Minister explained that prior to August 2012, fund managers serving 30 or fewer qualified investors were exempt from licensing as Exempt Fund Managers (EFMs), but this regime was discontinued to raise regulatory standards.
From January 2011 to August 2012, 95 and 80 fund managers respectively obtained EFM status, and when the regime ended, 527 EFMs existed, with 408 transitioning to licensing or registration and 119 ceasing operations.

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13 Jul 2015

Rebates on Service and Conservancy Charges for Yuhua Residents Involved in Green and Energy-saving Initiatives

Mrs Lina Chiam asked the Ministry for National Development when it would consider reducing service and conservancy charges for Yuhua residents who participated in HDB’s Greenprint energy-saving initiatives since 2012.
Minister Khaw Boon Wan replied that the decision rests with the local Town Council, which must weigh net savings from Greenprint against rising operational costs.
He noted that while Greenprint generates some savings, it represents only a small portion of the Town Council’s total annual expenditure.

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13 Jul 2015

Progressive Wage Model Requirement for Government Unarmed Security Contracts

Mr Zainal Sapari asked whether the Government will require Ministries and Statutory Boards to adopt the Progressive Wage Model (PWM) for unarmed security contracts before it becomes a licensing condition on 1 September 2016.
Deputy Prime Minister Tharman Shanmugaratnam confirmed the Government fully supports implementing the PWM in public sector security contracts ahead of the licensing deadline.
The Government has accepted the Security Tripartite Cluster’s recommendations for PWM in the security industry and is discussing ways to identify early adopters for recognition in contract awards.

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13 Jul 2015

Creating Job Opportunities for PMETs through Place-and-Train Programmes

Lim Swee Say outlined government measures to support PMETs facing industry restructuring, including the Professional Conversion Programme which has helped over 6,000 PMETs since 2007, and the new Career Support Programme providing wage support to employers hiring mature PMETs in mid-level jobs from October 2015.
He emphasized the need for both employers to value the experience of mature PMETs and for PMETs themselves to adapt and upskill to seize new opportunities in the innovation-driven economy.
Foo Mee Har's query about expanding place-and-train programmes to aid mid-career switches prompted the Minister's detailed response on existing and enhanced initiatives, affirming the government's commitment to helping PMETs through restructuring.

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13 Jul 2015

Assessment of Productivity Performance of Food and Accommodation Services Sector

Assoc Prof Randolph Tan inquired whether the Ministry uses alternative measures, such as customers served per worker, to assess productivity in the food and accommodation services sector.
The National Productivity Council primarily tracks Value-Added per worker, supplemented by sector-specific indicators like revenue per worker and revenue per square foot for hotels and food services.
Data from 2009 to 2013 shows steady productivity improvements in these sectors, with revenue per worker growing 9% annually in hotels and 4.3% in food services.
The government plans to continue supporting companies in innovation and productivity enhancement while monitoring progress through macro and sector-level indicators.
The NPC aims to expand the range of sectors tracked and consider publishing these indicators in the future.

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13 Jul 2015

Regulating Debt Collection by Licensed Moneylenders

Alex Yam asked if the debt collection process of licensed moneylenders is regulated, if any have been penalized for intimidation in the last five years, and whether the framework will be strengthened to prevent intimidation.
K Shanmugam stated that existing laws like the Penal Code and the Protection from Harassment Act already protect debtors from unreasonable or illegal conduct, with no cases of licensed moneylenders having their licences suspended or revoked for criminal behavior during debt collection in the last five years.
The Ministry of Law believes the current system provides sufficient safeguards and is committed to improving industry professionalism, having accepted 12 out of 15 recommendations from an Advisory Committee on Moneylending to strengthen the regime.

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13 Jul 2015

Singapore's Membership in the Asian Infrastructure Investment Bank

Singapore joined the AIIB as a founding member to support regional infrastructure development and has actively participated in its establishment, including hosting negotiations and co-chairing the articles of agreement.
The government will subscribe to US$250 million (0.25%) of the AIIB's capital, with US$50 million paid in over five years and the rest callable if needed, similar to other multilateral institutions.
Singapore's membership offers opportunities for its companies to bid on infrastructure projects and provide advisory services, with risks comparable to other multilateral development banks, though due diligence is still required.
The AIIB focuses solely on infrastructure, unlike the World Bank or Asian Development Bank which have broader priorities, but Singapore will continue partnering with all such institutions to promote regional growth.

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