Economy & business — Topics

19 Jan 2015

Penalties for Dishonest Retailers

The Ministry of Trade and Industry is reviewing the Consumer Protection (Fair Trading) Act to enhance penalties, prevent errant retailers from forming new companies, and streamline consumer complaint processes with CASE and the Small Claims Tribunal, with amendments targeted for completion before mid-year.
Enforcement will be strengthened through closer collaboration between the Ministry, CASE, the Police, and mall operators, including investigating criminal elements under the Penal Code and considering an agency to handle consumer protection investigations.
Interim measures are being implemented, such as working with mall management on tenancy agreements, raising retailer standards, and monitoring complaints, while public consultation will occur before finalizing legislative changes.

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19 Jan 2015

Allocation of Funds from Increase in Public Healthcare Expenditure

The Parliamentary Secretary explained that 15–20% of public healthcare expenditures are allocated to administrative overheads, which is comparable to or lower than many other countries, and that resources are distributed to institutions based on workload, service type, and case complexity through regularly reviewed block budgets.
In response to concerns about potential unintended incentives from key performance indicators, the Ministry emphasises a holistic performance framework, robust costing exercises, institutional governance, and professional clinical judgment to ensure patient care remains the priority.
Officials noted there is no universal benchmark for administrative spending, and while administrative headcounts may be rising due to ageing population demands and service expansion, the focus remains on maintaining operational efficiency without compromising patient needs.

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19 Jan 2015

Singapore's Response to Malaysia's Imposition of Vehicle Entry Permit Fee on Singaporean Vehicles

Ang Wei Neng inquired if the Ministry of Transport would consider adjusting Singapore's Vehicle Entry Permit (VEP) fee in response to Malaysia's new fee on Singaporean vehicles entering Johor.
The Minister for Transport explained that Singapore's VEP fee aims to equalise the cost of owning and using foreign-registered vehicles with Singapore-registered ones.
The Minister noted that Malaysia's proposed levy appears more like a toll for revenue, and Singapore will consider matching it in some form once details are confirmed.
The decision will depend on whether Malaysia imposes the levy only at its border with Singapore or at all its borders.
The Ministry's approach is to maintain fairness in costs while responding to Malaysia's policy change.

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19 Jan 2015

Impact of Falling Oil Prices on Public Transport Fares

The Minister for Transport explained that the fare formula is based on the Core Consumer Price Index (40%), Wage Index (40%), and Energy Index (20%), using data from 2013 for the 2014 fare review.
The Energy Index showed a negative 12.6% change in 2013, but the Core Consumer Price Index and Wage Index increased, resulting in a fare adjustment quantum of negative 0.6% for 2014.
When combined with a carried-over 3.4% from the previous exercise, the overall fare adjustment for 2014 is a 2.8% increase.
For the 2015 fare review, which will use 2014 data, a negative fare adjustment of around 1% is possible due to lower energy prices.
The Public Transport Council will consider the formula, affordability, and operator applications before deciding on the final fare adjustment.

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19 Jan 2015

Impact of Falling Euro, Oil Prices and Rising US Dollar on Singapore's Competitiveness

The Minister explained that the recent rise in the US dollar and fall in the Euro reflect diverging economic prospects between the US and Eurozone, with the Singapore dollar depreciating against the US dollar but appreciating against the Euro.
He noted that such bilateral currency movements are not expected to significantly impact Singapore’s economy due to the Monetary Authority of Singapore’s exchange rate-centred policy, which manages the Singapore dollar against a trade-weighted basket of currencies.
The Minister emphasised that exchange rates are not used to directly manage export competitiveness in the short term, with demand conditions in major export markets being more critical, and a strengthening US economy is seen as a positive factor for Singapore.
Regarding falling oil prices, he stated that while lower input costs could temporarily enhance export price competitiveness, the advantage is limited as other exporters also benefit, and long-term competitiveness depends on improving productivity and innovation.
The Minister concluded that Singapore should focus on sustained efforts to help firms boost productivity and innovative capacity rather than relying on temporary factors like oil price movements or exchange rate fluctuations.

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19 Jan 2015

Impact of Falling Oil Prices on Singapore Economy and Petrol Pump Prices

The Minister explained that Singapore, as a net importer of oil, benefits from lower oil prices through reduced costs for electricity, fuel, and business inputs, which can improve margins and consumer purchasing power.
Concerns were raised about the petrochemical sector, where lower feedstock costs are offset by falling product prices, and about whether petrol pump price reductions fairly reflect the 41% drop in crude oil prices, with the Minister noting non-fuel costs and market factors limit the pass-through.
The Minister stated that core inflation remains sticky due to wage costs, while job security in the oil and gas sector is stable in the short term but could be affected if low oil prices persist long-term, and emphasized that competition and regulation prevent profiteering in utility prices.

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5 Nov 2014

Preventing Sharp Increase in Hawker Centre Food Prices

The government has banned the subletting of hawker stalls for new stallholders since 2012, with existing stallholders given until March 2015 to comply and become owner-operators, with limited flexibility for partnerships.
Since 2001, 106 hawker centres have been upgraded under the Hawker Centres Upgrading Programme, with subsidised cooked food stalls paying a fixed monthly rent of $192 or $320 after basic or major upgrades, while non-subsidised rents are based on professional valuation.
The Ministry considers hawkers' feedback before deciding on upgrades, has delayed upgrades for sold centres due to operational concerns, and stated that no further upgrades will be carried out as the programme is complete.

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5 Nov 2014

Rationale for Recent Increase in Postage Rates

Mrs Lina Chiam questioned the rationale behind SingPost’s postage rate increase, citing rising profits and revenue growth, and asked about the number of consumer complaints over the past three years.
The Minister of State explained that global postal challenges, declining letter volumes, and rising costs—including a 40% increase in rates paid to overseas operators—justified the rate hike, noting SingPost had not raised rates in eight years and was investing $100 million in service improvements.
In response to supplementary questions, the Minister clarified that future rate increases would depend on cost drivers in the regulated mail sector, not SingPost’s overall profits, and that the $100 million investment would be implemented as quickly as possible to enhance service quality and infrastructure.

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4 Nov 2014

Sustainability of Government's Wage Credit Schemes

Assoc Prof Randolph Tan questioned the sustainability and impact of the Special Employment Credit (SEC) and Wage Credit Scheme (WCS), including their use in non-recessionary periods and potential availability during downturns.
The Ministry of Manpower explained that the SEC supports hiring older workers and the WCS co-funds wage increases for Singaporean employees, with both schemes not intended as permanent support but as transitional measures tied to specific economic conditions.
The debate highlighted rising employment rates for older workers, attributed partly to the SEC and other policies like re-employment laws and skills upgrading schemes, with sustainability viewed as dependent on long-term workforce upskilling rather than perpetual wage credits.

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4 Nov 2014

Impact of Low Labour Productivity on Singapore's Economic Growth

Gerald Giam questioned the government's satisfaction with low productivity growth rates of 2.2%, -1.4%, and -0.2% in 2011-2013 against its 2%-3% annual target from 2010-2020, asking about the impact on economic growth and the timeline for achieving the target.
Lim Hng Kiang noted that while annualised productivity growth since 2010 has been weaker at 0.2% after a strong 2010 recovery, overall GDP growth remained at 4.1% from 2010-2013, within the 3%-5% decade projection.
Export-oriented sectors like Wholesale Trade and Financial Services achieved 2.1% annual productivity growth from 2010-2013, while domestic sectors like Construction and Retail saw a -0.3% decline, prompting targeted measures to improve productivity in these areas.
The government acknowledges progress in its productivity drive but emphasizes that economic restructuring is a long-term process, with efforts to uplift weaker sectors taking time to reflect in productivity numbers.

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4 Nov 2014

Maintaining Economic Competitiveness as Reliance on Foreign Workers Cut

The Government is restructuring Singapore’s economy towards productivity-driven growth by tightening foreign manpower access, implementing this gradually while offering support schemes to help firms raise productivity and manage costs.
Slowdowns in the last two quarters were observed in manufacturing, construction, and some services sectors due to global headwinds, property cooling measures, and tighter labour constraints, though some sectors have adjusted by moving up the value chain.
Assistance measures such as the Productivity and Innovation Credit, wage credits, and tax rebates have seen increased take-up, with core inflation kept low relative to income growth, and the Government remains committed to supporting firms through the transition.

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4 Nov 2014

Review of Penalty for Premature Withdrawal of Monies from Supplementary Retirement Scheme

Ms Lee Li Lian asked if the 5% penalty for premature withdrawal from the Supplementary Retirement Scheme (SRS) could be waived for Singaporeans wanting to withdraw before retirement age.
Tharman Shanmugaratnam explained that the SRS is a voluntary retirement savings scheme offering tax relief, with withdrawals after age 62 taxed at only 50%, while premature withdrawals are fully taxed to discourage using SRS for tax avoidance rather than retirement savings.
He noted that a 5% penalty deters premature withdrawals, but flexibility exists for cases like medical needs or bankruptcy where withdrawals are penalty-free.

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4 Nov 2014

Building World-class Singapore Enterprises

Mr Thomas Chua highlighted a growing gap between large enterprises and SMEs in Singapore, noting that while large firms have improved in productivity and efficiency, SMEs have seen a decline, exacerbated by foreign manpower policy tightening.
He urged the Government to refine policies for SMEs, such as not further tightening foreign worker quotas, consulting businesses on new policies, supporting older worker employment, and mandating partnerships between large companies and SMEs for government projects.
The Senior Minister of State for National Development acknowledged the challenges and outlined government support measures like the Productivity and Innovation Credit (PIC) and Innovation and Capability Voucher (ICV), which have benefited many SMEs, while emphasizing ongoing efforts to help businesses adapt and innovate.

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4 Nov 2014

Pawnbrokers Bill

The Pawnbrokers Bill was introduced to repeal and re-enact the Pawnbrokers Act (Chapter 222) to modernise the regulatory framework for pawnbrokers in Singapore.
The bill, presented by Senior Minister of State for Law Ms Indranee Rajah, was read for the first time and scheduled for a second reading at the next Parliament sitting.
The bill also includes consequential amendments to other written laws to ensure consistency with the new pawnbrokers regime.

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4 Nov 2014

Clarification by Senior Minister of State for Ministry of Finance

Mrs Josephine Teo clarified that the Government will not apply means-testing to the Pioneer Generation Package, confirming the intent behind the Pioneer Generation Fund Bill.
She acknowledged Ms Chia Yong Yong's proposed amendment to clause 3, which aimed to remove language about "needs" to avoid confusion on means-testing, and noted the amendment was not considered due to short notice.
Mrs Teo stated that the Government reviewed the Bill and agrees to refine clause 3 to better convey the package's intent and prevent any restriction to only the financially needy.
The amendment will be formulated and introduced in Parliament at an opportune time, likely alongside another appropriate Bill.
She thanked Ms Chia for her suggestion and support of the Bill.

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4 Nov 2014

Creating SME Apprenticeship Opportunities for ITE Students

Mr Ang Wei Neng questioned the progress in expanding apprenticeship opportunities for ITE students within SMEs, noting that many technical roles are in non-air-conditioned environments which some graduates may avoid.
The Minister for Education, Mr Heng Swee Keat, highlighted existing strong ties between ITE and SMEs, with over 60% of host companies being SMEs, and ongoing programmes like place-and-train initiatives to integrate study and work.
Mr Ang asked how ITE could simulate realistic work conditions, such as non-air-conditioned environments, to better prepare students, and whether MOE tracks graduates remaining in their technical fields.
Mr Heng responded that experiences like hands-on work in non-air-conditioned settings are already part of training, and emphasised that the ASPIRE Committee's focus is on creating career ladders and structured internships to encourage students to stay in their fields.
The debate underscored the need for practical training environments and career support to align ITE graduates with industry demands, especially in sectors like oil and gas, construction, and transport maintenance.

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4 Nov 2014

Revising Free-entry Time for Malaysian Cars into Singapore

Er Dr Lee Bee Wah asked the Ministry of Transport to consider revising the free entry time for Malaysian cars into Singapore on weekdays from 5pm to 7pm to align with local Off-Peak Car schemes, and to explain why Malaysian cars are exempt from fees on weekends, while also requesting data on entry numbers over the past six months compared to a year ago.
The Minister for Transport explained that the Vehicle Entry Permit (VEP) fee aims to balance costs between foreign and local vehicles, with free periods like weekends to encourage visits during low-traffic times, and noted that only about 10% of foreign cars pay the fee.
The Minister provided data showing average daily entries of foreign cars on weekdays and weekends were 10,900 and 12,100 respectively from April to September this year, compared to 11,900 and 13,600 for the same period last year, indicating a decline.
The Minister stated that the suggestion to revise VEP-free periods would be considered, factoring in Malaysia's proposed charges on non-Malaysian vehicles entering Malaysia.

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4 Nov 2014

Dealing with Graduate Under-employment

The Minister for Manpower highlighted that while Singapore’s graduate under-employment rate is currently low and stable, the government is proactively addressing potential risks by ensuring the economy remains competitive, promoting relevant skills through initiatives like SkillsFuture, and encouraging students to pursue quality degrees aligned with job market needs.
In response to concerns about competition from foreign professionals, the Minister explained that foreign talent contributes to Singapore’s economic vitality and job creation, while existing measures like the Employment Pass framework and Fair Consideration Framework help ensure fair opportunities for locals; specific support programs such as Professional Conversion Programmes and the Max Talent Programme also assist graduates in finding suitable employment.
The government acknowledges evolving workforce challenges, including the rise of non-time-based under-employment and variable degree quality from private institutions, and continues to track relevant data while exploring new initiatives to support Singaporeans at different career stages.

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3 Nov 2014

Making Skills Development Fund Similar to Edusave with Funds Given to Every Worker

K Karthikeyan proposed making the Skills Development Fund analogous to Edusave, with funds given directly to individual workers.
The Ministry of Manpower explained that the Skills Development Fund currently supports training through subsidies to employers and individuals via approved providers, having trained 1.2 million people and showing high satisfaction rates.
The Ministry is open to enhancing the Continuing Education and Training system but emphasizes maximizing benefits for individuals and employers and fostering a culture of lifelong learning.

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3 Nov 2014

Aligning New Growth Industries and Jobs with Career Pathways for Workers

The Ministry of Manpower collaborates with economic agencies, training institutions, and unions to align new growth industries with clear career pathways and sector-specific skills development.
Initiatives like the NTU Additive Manufacturing Centre and Biologics Overseas Skills Training Programme are examples of industry-training partnerships to build talent pipelines for emerging sectors.
The new tripartite SkillsFuture Council will lead national efforts in lifelong learning, using a sectoral approach to identify skill gaps and ensure workers are prepared for future job demands.

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