Economy & business — Topics

11 May 2015

Plans after Moratorium on Two Casino Licences Expires

The government confirmed there are no plans to extend the moratorium on additional casino licences beyond its expiration in 2017, focusing instead on enhancing the offerings of the two existing Integrated Resorts.
Economic contributions of the existing casinos, including 1.5-2% of GDP and over 20,000 jobs, along with regional competition from new IRs in other countries, were highlighted as key considerations for any future decisions.
The government is closely monitoring social harms and crimes related to casinos through the Casino Regulatory Authority, which has reported no substantial increase in associated crimes.

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11 May 2015

Impact of SMRT's Bid for Telecommunications Market Entry on Public Transport Services

SMRT’s bid for a telecom licence with a $34.5 million investment is expected not to affect public transport services, with the Land Transport Authority (LTA) monitoring and enforcing strict performance standards and penalties for non-compliance.
Ministers acknowledged SMRT’s higher profitability from non-fare businesses, but LTA will ensure management remains focused on core transport operations through regulatory oversight and compliance measures.
While SMRT’s non-fare profits are not directly considered in the fare formula, operators must contribute to the Public Transport Fund; suggestions were raised to mandate cross-subsidisation or consider overall profits in future fare reviews.
Parliament questioned whether current penalties are sufficient deterrents, with concerns that fines may be a small percentage of profits, and called for stronger safeguards to ensure public transport service quality is not compromised by other business ventures.

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11 May 2015

Maintaining Telecommunications Service Standards when New Company Enters Market

Baey Yam Keng raised concerns about ensuring high telecom standards if the new entrant, a partnership between SMRT and OMGTel, lacks a proven track record, questioning how the Ministry will maintain service quality.
The Minister responded that the Infocomm Development Authority (IDA) will require new entrants to participate in a spectrum auction with strict qualifying criteria, including strong technical capabilities and financial positions, and to comply with regulatory frameworks like Quality of Service standards.
The Minister clarified that past liberalization experiences, such as with M1 and StarHub, inform current processes, and future auctions will likely include prequalification phases evaluating financial and technical proposals to ensure capable participation.
The discussion emphasized that the tender process will consider multiple criteria beyond price, including innovation, to spur competition and enhance consumer benefits, with a long-term strategy to elevate user experience in Singapore's telecom market.

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11 May 2015

Electric Vehicles for General Public

The Ministry of State for Trade and Industry announced that Phase 2 of the EV car-sharing programme is under evaluation, with results expected by the end of 2015, and its 10-year duration aims to allow operators to recoup investments in EVs and charging infrastructure.
The government’s broader transport goal prioritizes reducing private vehicle ownership, and current incentives like the Carbon Emissions-based Vehicle Scheme (CEVS) offer rebates for low-emission vehicles, but individual EV ownership is not yet part of Phase 2’s scope.
In response to supplementary questions, the Minister emphasized that the 10-year timeline balances investment risks with technological advancements, and any future incentives like COE rebates for EV ownership would be studied by the Ministry of Transport after Phase 2 outcomes are known.

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11 May 2015

Safeguarding Singapore Banks against Possible Default on Loans for Properties in Iskandar Malaysia

The Ministry highlighted concerns about oversupply and declining property values in Iskandar Malaysia, noting Singaporean banks have limited exposure to such loans, which make up only 2% of their housing portfolios, and the Total Debt Servicing Ratio framework helps assess borrowers' ability to repay.
MAS and the Council of Estate Agents are increasing efforts to educate Singaporeans on the risks of overseas property investments, including regulatory, tax, and foreign exchange uncertainties.
The government is reviewing advertising standards for property investments but maintains that cooling measures like the Additional Buyer’s Stamp Duty are necessary to prevent a domestic property bubble, with any changes considered alongside global and local market conditions.

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11 May 2015

Assistance to and Inclusion of More Industry Sectors in SkillsFuture Learn and Earn Programme

Mr Thomas Chua questioned how companies outside the 17 priority sectors could join the SkillsFuture Earn and Learn Programme and asked if trade associations from non-priority sectors could get more resources to develop industry manpower plans.
Minister Lim Swee Say explained that the programme prioritises industries that are more ready, with food manufacturing already launched and others like retail and tech following, aiming to cover one-third of polytechnic and ITE graduates.
The Minister encouraged all trade associations, including those from non-priority sectors, to participate, with the government providing additional support to design relevant and quality programmes for broader industry skills progression.

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13 Apr 2015

Basic Healthcare Sum

Foo Mee Har questioned how the annual increase in the Basic Healthcare Sum (BHS) would impact the amount of CPF monies members can withdraw from their accounts.
Gan Kim Yong explained that the BHS is adjusted yearly to account for inflation and expanding Medisave uses, ensuring sufficient savings for basic healthcare needs after retirement, and becomes fixed at age 65.
With the removal of the Medisave Minimum Sum from January 2016, CPF members no longer need to transfer funds from other accounts to Medisave to withdraw monies, so their withdrawal amounts from Ordinary and Special Accounts are unaffected by Medisave balances.

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13 Apr 2015

Monthly Releases of Services Exports Data

Chen Show Mao proposed monthly releases of services exports data to provide better trend indicators and reduce the impact of monthly fluctuations in goods exports.
Lim Hng Kiang explained that services exports data are currently released quarterly due to survey-based compilation, while merchandise exports are monthly due to customs data.
The current release frequencies align with IMF standards, and there are no plans to increase survey frequency for monthly services data to avoid higher compliance costs.

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13 Apr 2015

Update on Trans-Pacific Partnership Negotiations

The TPP is expected to enhance regional economic integration and market access for Singapore-based firms in the US, Japan, and other TPP countries, with significant progress made over five years and efforts to conclude negotiations soon.
Key benefits include reduced compliance costs, supply chain efficiency gains, and disciplines on new sectors like e-commerce and intellectual property, which are especially advantageous for SMEs.
IE Singapore is conducting outreach, consultations, and capability-building initiatives to prepare firms, including SMEs, to leverage the TPP’s improved market access and address implementation challenges.

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13 Apr 2015

Cap on Deposits for Purchase of Goods and Services to Protect Consumers from Errant Businesses

David Ong proposed a cap on deposits for goods and services to protect consumers from errant businesses and asked about measures to stop such businesses from re-establishing under new entities.
Lim Hng Kiang explained that a broad deposit cap could unintentionally restrict trade and raise costs, preferring targeted approaches with CASE and industry groups for specific sectors.
The Ministry is reviewing consumer protection rules, drawing on examples from Hong Kong and Australia, to prevent errant retailers from evading restrictions by forming new entities, with the review due by mid-2015.

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13 Apr 2015

Net Neutrality Regulations to Prevent Discriminatory Network Management Practices

Gerald Giam asked if ISPs can throttle legitimate content or impose extra charges on OTT services, and whether net neutrality regulations are planned.
Assoc Prof Dr Yaacob Ibrahim stated that IDA’s 2011 policy allows ISPs to manage bandwidth during peak hours but not block legitimate content, and requires transparency and fair competition.
ISPs can offer differentiated services like specialized broadband plans, provided they meet QoS standards and disclose policies, and cannot impose extra charges on OTT services that harm competition or users.
IDA has monitored the market and found no evidence of ISPs breaching the current net neutrality policy.

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13 Apr 2015

Promoting Local Talent in Financial Services Sector

Benedict Tan inquired about efforts to promote local talent in the financial sector and the impact of overseas bank retrenchments on Singaporean job seekers.
Lawrence Wong responded that financial institutions in Singapore aim to build globally competitive teams, and MAS is enhancing training pathways, leadership programs, and fair employment practices to support Singaporeans.
MAS will collaborate with industry partners to develop skills, provide learning opportunities, and ensure merit-based hiring to maintain a level playing field for local talent.

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13 Apr 2015

Application of New CPF Withdrawal Amounts to Different Retirement Age Cohorts

Er Dr Lee Bee Wah questioned why the new CPF withdrawal rule allowing 20% of Retirement Account savings at age 65 applies only to those turning 55 in 2013 and not earlier, and asked what options older members have for accessing their CPF Retirement Account funds.
Minister Tan Chuan-Jin explained that older cohorts were excluded because they already had more generous withdrawal rules, such as being allowed to withdraw 50% at age 55, and applying the new rule to them would leave insufficient savings for meaningful retirement payouts.
The withdrawal rules were tightened from 2009 to 2013 to ensure adequate retirement savings, with the new 20% withdrawal at 65 applied retrospectively to those turning 55 from 2013, who were affected by the tightening, while those turning 55 in 2012 will receive a 10% withdrawal.

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13 Apr 2015

Third-Party Taxi Booking Service Providers Bill

The bill is introduced to regulate third-party taxi booking services and make necessary amendments to other relevant laws, presented by the Minister for Transport Mr Lui Tuck Yew.
It has undergone the First Reading and is scheduled for a Second Reading in the next available Parliament sitting.
The bill aims to establish a legal framework for overseeing taxi booking platforms, ensuring safety, fair competition, and consumer protection.
It includes provisions for licensing, operational standards, and enforcement mechanisms for third-party taxi service providers.
The legislation is part of broader efforts to modernize transportation regulations and adapt to evolving mobility services in Singapore.

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13 Apr 2015

Government Securities (Amendment) Bill

The Government Securities (Amendment) Bill was introduced to amend the Government Securities Act (Chapter 121A of the 2014 Revised Edition).
The bill was presented by the Senior Minister of State for Finance, Mrs Josephine Teo, and read for the First Time in Parliament.
It is scheduled to be read for the Second Time at the next available sitting of Parliament.

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13 Apr 2015

Monetary Authority of Singapore (Amendment) Bill

The Monetary Authority of Singapore (Amendment) Bill seeks to amend the Monetary Authority of Singapore Act and make consequential amendments to other Acts to enhance regulatory and operational frameworks.
The bill was presented by Deputy Prime Minister and Minister for Finance Tharman Shanmugaratnam and received its First Reading in Parliament.
The bill is scheduled for a Second Reading in the next available sitting of Parliament and will be printed thereafter.

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13 Apr 2015

SMEs' Access to Foreign Exchange Hedging Products

The government confirmed that banks in Singapore offer SMEs a comprehensive range of foreign exchange hedging products, including for the renminbi, with solutions available for transactions as small as $10,000, and that SGX, banks, and ASME provide workshops and seminars to educate SMEs on these tools.
The Minister noted that while demand for hedging services is growing among SMEs as they expand overseas, the primary gap lies in SMEs' knowledge and in-house skills rather than the availability of products, and agencies like SPRING, ASME, and MAS are intensifying outreach to address this.
In response to a query about comparative studies, the Minister stated that banks report increasing SME demand for FX solutions but emphasized that the focus is on enhancing SME capabilities through education and support rather than conducting formal market comparisons.

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13 Apr 2015

Comparing SME Talent Programme and SkillsFuture Earn and Learn Programme

The SkillsFuture Earn and Learn Programme (ELP) is a work-study scheme for fresh graduates from ITEs and Polytechnics, offering income and skill development with career progression pathways across both SMEs and non-SMEs.
The SPRING-administered SME Talent Programme (STP) targets building a talent pipeline for SMEs through internships, sponsorships, and HR support, with students working in SMEs after graduation.
Both programmes are complementary to national SkillsFuture goals, and as the ELP expands, the STP will scale down and eventually cease for sectors covered by the ELP.

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13 Apr 2015

Revising CPF Interest Rates Upwards with Rising Interest Rates

Foo Mee Har asked whether CPF interest rates would be revised upwards with rising market rates and how implementation would work.
The Minister for Manpower explained that CPF rates are pegged to market instruments and reviewed quarterly or annually, with floor rates of 2.5%–5% to protect members from low rates, and adjustments would occur if market rates exceed these floors.
Foo Mee Har followed up, questioning whether the government would preserve the current positive spread between CPF floor rates and market rates as interest rates rise.
The Minister responded that CPF rates are reviewed regularly as part of a holistic approach to retirement adequacy, and the system includes additional incentives to support members.

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13 Apr 2015

Effectiveness of Government-funded Productivity Promotion Centres

The Minister of State for Trade and Industry highlighted that government-funded productivity centres have assisted about 800 companies, with projects delivering 10% to 20% improvements in metrics like processing time and machine utilisation, citing an example of an SME reducing processing time by 20%.
The centres also organise events benefiting over 1,300 companies and 1,000 participants, and the government is expanding consultant pools, conducting research, and scaling centres to cover new sectors to enhance support.
The government introduced various schemes and grants, with centres providing diagnostic help, consultancy, and advisory services across sectors like construction, manufacturing, and retail, though the overall labour productivity declined 0.8% in 2014.

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