Economy & business

• The number of F&B establishments in Singapore grew from 6,000 in 2009 to 7,000 in 2014, with employment in the sector rising faster than the overall workforce, prompting concerns about manpower sustainability.
• The sector faces challenges including slowing sales growth, increased competition, and labour constraints, making continued expansion in workforce size unsustainable.
• The government is promoting productivity and manpower efficiency through initiatives like the Food Services Productivity Roadmap, which supports kitchen automation, workflow redesign, and digital services.
• F&B enterprises can access grants and vouchers such as the Capability Development Grant and Innovation and Capability Voucher to adopt technology and reduce reliance on manpower.
• The emphasis is on transforming the sector through innovation and productivity gains to address labour shortages while supporting ongoing and future projects.

The Bill raises the debt threshold for bankruptcy from $10,000 to $15,000 to account for inflation and encourage debt resolution outside bankruptcy.
It introduces an expedited bankruptcy application, allowing creditors to act before the 21-day statutory period ends if the debtor's assets risk being significantly diminished.
Institutional creditors are required to appoint private trustees in certain cases, shifting costs from public resources to private parties and aiming to improve efficiency in bankruptcy administration.
A differentiated discharge framework is established, setting clear timelines (3-7 years for first-time bankrupts and 5-9 years for repeat bankrupts) based on target contributions, with safeguards like public records to prevent moral hazard.

• The Bill introduces limits on upfront commissions for life policies and spreads total commissions over a specified period to align with the Financial Advisers (Amendment) Bill.
• It empowers MAS to require insurers to submit data for the compareFIRST web aggregator, enabling consumers to easily compare life policies from different insurers.
• The Bill allows MAS to prescribe matters like product characteristics and distribution methods, including mandating simpler, commission-free Direct Purchase Insurance (DPI) products.

• The Bill introduces a new remuneration framework for financial advisers that requires a significant portion of their pay to be based on non-sales key performance indicators (KPIs), such as assessing customer needs and product suitability, to align their interests with consumers.
• It empowers the Monetary Authority of Singapore (MAS) to regulate commission structures, limiting upfront commissions for life insurance and prohibiting short-term sales incentives to promote long-term customer support and prevent conflicts of interest.
• The amendments strengthen MAS's regulatory powers by allowing it to impose financial requirements on insurance brokers and approve inspections by foreign regulatory authorities, while also restricting financial advisers from engaging in certain conflicting non-financial activities.

• The bill amends Singapore's Constitution to include Temasek Holdings in the Net Investment Returns framework, allowing the government to spend based on expected long-term real returns rather than just actual dividends, aiming to provide an additional 1% of GDP in annual budget resources for national investments.
• Ministers and MPs emphasized the need for fiscal prudence, with safeguards such as a 50% spending cap, real-return calculations, and net asset adjustments to preserve reserves and balance current and future generations' needs.
• Concerns were raised about Temasek's higher portfolio volatility, liquidity management, and potential risks to investment strategies, but the government assured robust processes and independence for investment entities.
• The debate concluded with unanimous support for the bill, passing with 73 "Ayes" in both readings, highlighting Singapore's commitment to sustainable fiscal management amid aging population and infrastructure demands.

• The debate focused on the Asian Infrastructure Investment Bank Bill, aiming to implement the international agreement for the bank’s establishment and enable Singapore’s membership.
• The Senior Minister of State for Finance, Mrs Josephine Teo, presented the bill, signified the President’s recommendation, and arranged for its first reading and printing.
• The bill was scheduled for a second reading at the next available parliamentary sitting to progress its legislative process.

• The sharp drop in job growth in the first quarter of 2015 was attributed to seasonal declines, moderation in manufacturing and construction, and slower growth in services sectors, though the overall year-on-year job growth remained positive at 2.7%.
• The Manpower Minister emphasized that Singapore's high employment rate, low unemployment, and high job vacancies indicate a tight labor market, and the focus is on restructuring the economy towards productivity and innovation rather than relying on foreign labor growth.
• Concerns were raised about whether the slowdown signals that restructuring is too slow, but the Minister argued that faster restructuring would further slow job growth and that the transition is necessary for long-term sustainability, with support for businesses in both tradable and non-tradable sectors.

• The Ministry of Manpower is enhancing the Fair Consideration Framework and Jobs Bank to ensure employers give priority to qualified Singaporeans, with stricter scrutiny of Employment Pass applications for companies with a weak Singaporean Core.
• Companies with a weaker Singaporean Core relative to their industry will be required to provide evidence of fair hiring practices and may need to commit to plans to strengthen their local workforce.
• The government will use data from the Jobs Bank to identify skills deficits and work with industries to address them, while also profiling and promoting companies with strong Singaporean cores and progressive employment practices.
• Only a small group of employers with a “double weak” profile (weak Singaporean Core and weak commitment to fair consideration) will face tighter EP approval processes, to maintain Singapore’s competitiveness and attractiveness to businesses.

• Yee Jenn Jong requested detailed breakdowns since 2000 of autonomous universities' annual expenditures across categories like instruction, student services, financial assistance, research, administration, and capital investment, including dollar amounts, percentages of total budgets, and per-student spending.
• Heng Swee Keat responded that for FY2006, the three autonomous universities (NUS, NTU, SMU) spent $1.1 billion on manpower and $0.8 billion on other operating expenses, rising to $2 billion and $1.5 billion respectively in FY2013.
• The response clarified that autonomous universities only existed from FY2006 onwards, limiting available data to NUS, NTU, and SMU during the specified period.
• The Minister did not provide the requested year-by-year breakdowns since 2000 or the detailed categorization and per-student metrics outlined in the question.

• Yee Jenn Jong asked for detailed annual income breakdowns from 2000 for autonomous universities, covering government funding, philanthropy, endowments, auxiliary income, and research grants, along with percentage shares and per-student figures.
• Heng Swee Keat responded with financial data for FY2006 and FY2013, noting that only NUS, NTU, and SMU were autonomous then, with government funding at $1.9B and $2.8B, and investment income at $0.3B and $0.5B respectively.
• The reply indicated that per-student calculations were not provided, and the figures referenced operating and research grants within government funding.

• Seah Kian Peng asked whether the pricing policy at Government and restructured hospital pharmacies will be reviewed to widen the price gap with retail pharmacies and make them more affordable.
• The Ministry of Health explained that public hospitals procure drugs in bulk to achieve economies of scale, with savings reflected in lower pharmacy prices for patients.
• Subsidised patients receive significant government subsidies on drugs listed under the Standard Drug List and Medication Assistance Fund, including enhanced subsidies of 75% for lower- to middle-income patients since 2015.
• Pioneers receive an additional 50% off their subsidised drugs, which has significantly lowered costs in public healthcare institutions and widened the price gap with private retail pharmacies.
• The Ministry will continue to review policies to ensure healthcare affordability, and needy patients can apply to MediFund for further financial assistance.

• Assoc Prof Randolph Tan questioned the outcomes of the Max Talent place-and-train programme, the reasons for PME attrition within six months, and whether the enhanced P-Max programme would perform differently.
• The Ministry reported that Max Talent successfully placed 1,000 PMEs in 954 SMEs, with 88% remaining employed after six months, and most early departures were due to personal reasons.
• The new P-Max programme introduces an SME Workshop for supervisors and an enhanced PME Workshop to improve talent management, aiming to place 3,000 PMEs and technicians in SMEs over three years.

• Ang Hin Kee proposed a government CPF top-up scheme for freelancers and self-employed individuals similar to the Temporary Employment Credit, and asked whether current CPF savings are adequate for their retirement and medical needs and what measures exist to encourage regular contributions.
• Lim Swee Say responded that the Workfare Income Supplement already tops up MediSave accounts for low-income self-employed persons, and tax relief incentives exist for voluntary CPF contributions, while noting their median MediSave balances remain lower than employees'.
• The CPF Board uses outreach, instalment options, and industry partnerships to encourage MediSave contributions, with recent increases in contribution rates and higher interest for older members to help meet healthcare needs.
• The government provides substantial MediShield Life premium subsidies and additional support for those in financial need, but self-employed individuals are not required to contribute to retirement accounts and must take personal responsibility for retirement planning.

• Christopher de Souza sought clarification on the definition of "lifetime wage" for the Silver Support Scheme and the rationale for using this criterion.
• Lim Swee Say explained that the scheme targets the bottom 20% to 30% of elderly Singaporeans, using lifetime wages (pre-retirement) to assess eligibility since current wages may not reflect means.
• Lifetime wages are measured by total CPF contributions before age 55 to avoid discouraging older workers from continuing employment, alongside household support and housing type.
• The scheme aims to supplement retirement incomes and is planned for implementation in the first quarter of 2016, with further details to come.

• Foo Mee Har asked whether charities and Institutions of Public Character can buy Singapore Savings Bonds and if they could have a higher investment cap than individual investors.
• Tharman explained that Singapore Savings Bonds are designed for individual savers with features like small minimum investment and non-transferability, while organisations can already invest in conventional Singapore Government Securities without limits.
• He noted that the bonds' returns are based on conventional securities and are guaranteed by the Government, and that the key benefit of early redemption for individuals addresses liquidity concerns that organisations typically manage differently.

• Er Dr Lee Bee Wah proposed banning landlords from pegging rent to tenants' sales volume and creating a platform for fair market rent references to support small retailers.
• Lim Hng Kiang opposed government intervention, stating rental rates are set by market supply and demand, and prescribing lease structures would lead to inefficiencies.
• He highlighted existing support measures, such as the Business Leasing Guide by the Singapore Business Federation, which offers guidance on lease negotiations.
• Public rental data from the Urban Redevelopment Authority is available quarterly, providing percentile breakdowns by location and floor area to aid leasing decisions.
• The government's stance is to avoid direct intervention in commercial leases while providing resources to help businesses manage rental costs effectively.

• The Bill grants the Land Transport Authority (LTA) powers to regulate third-party taxi booking services, requiring those with more than 20 participating taxis to register and imposing penalties for unregistered operations.
• It aims to balance consumer protection with innovation by allowing LTA to set conditions on fees, data provision, and service standards, while prohibiting practices like bidding and pre-trip tipping for taxis.
• MPs raised concerns about distinguishing taxi services from chauffeured vehicle bookings, ensuring fair treatment of drivers, and preventing market dominance, with the Minister emphasizing ongoing monitoring and enforcement to address these issues.

• The Government Securities (Amendment) Bill was introduced to allow the issuance of Singapore Savings Bonds as non-tradeable securities, ensuring principal protection and flexible redemption for individual investors.
• Members of Parliament supported the Bill, highlighting its benefits for long-term savings, retirement planning, and risk-averse investors, while raising questions about caps, inheritance, and investor education.
• The Senior Minister of State addressed concerns, confirming the bonds are safe, tax-exempt, and designed to complement existing savings options without impacting government finances or the banking system significantly.

• The Monetary Authority of Singapore (Amendment) Bill strengthens MAS’s anti-money laundering and counter-terrorism financing supervisory powers, aligning with international standards, by centralising inspection powers, enhancing information sharing with foreign and domestic authorities, and codifying customer due diligence requirements in primary legislation.
• Members supported the Bill but raised concerns about potential conflicts for financial institutions balancing client confidentiality with regulatory duties, the need for effective extradition processes for cross-border crimes, and the importance of safeguarding banking confidentiality while cooperating with foreign supervisors.
• The Minister assured that MAS will ensure a level playing field among financial institutions, has robust safeguards against misuse of information, and emphasises a holistic, multi-agency approach to AML/CFT efforts across government sectors.

• The Financial Advisers (Amendment) Bill was presented by Minister Lawrence Wong for first reading, with the second reading scheduled for the next parliamentary sitting.
• The bill aims to enhance regulatory frameworks for financial advisers, ensuring stronger consumer protection and industry standards.
• Amendments focus on licensing requirements, conduct rules, and enforcement powers to address emerging risks in financial advisory services.
• The debate highlighted the need to balance innovation in financial products with safeguards against mis-selling and systemic vulnerabilities.
• Parliament emphasized the importance of aligning Singapore’s financial advisory regulations with international best practices.