Economy & business — Topics

3 Nov 2014

Addressing Problem of Taxi Shortage

Er Dr Lee Bee Wah asked the Ministry for Transport about solutions for taxi shortages, a potential monthly fixed ERP charge for taxis, standardizing fares, and abolishing surcharges, with the Minister noting improved availability but cautioning that a fixed ERP could be unfair and studying fare harmonization carefully.
The Minister highlighted increased taxi availability and utilization since 2013, but explained that taxis should pay congestion charges like other vehicles and rejected a fixed monthly ERP due to concerns about equity and appropriate pricing.
Surcharges were defended as necessary to incentivize taxis to serve high-demand areas and times, aligning with practices in other cities, while fare standardization remains under review due to stakeholder interests and potential impacts on rentals and fares.

Summary written by AI

Overview Original source

3 Nov 2014

Government Grants and Programmes for Fledgling Entrepreneurs in Our Educational Institutions

Dr Lee Bee Wah asked how the government educates students on entrepreneurship grants and programmes, whether support for start-ups could be expanded, and how SPRING and EnterpriseOne engage student entrepreneurs, while Minister Lim Hng Kiang outlined existing schemes like YES! Schools, ACE Schools, grants, loans, and incubation spaces.
The government supports entrepreneurship through structured programmes in schools, volunteer entrepreneurs paired with institutions, funding for start-up incubation, and access to grants, tax incentives, and low-cost business spaces.
Minister Lim noted that while the government provides schemes and infrastructure, entrepreneurs must still recognize and understand the risks and opportunities of starting a business.

Summary written by AI

Overview Original source

3 Nov 2014

Silver Support Scheme

K Karthikeyan requested details on the Silver Support Scheme prior to the 2015 Budget.
Tharman Shanmugaratnam stated the scheme was announced to supplement retirement savings for the needy elderly, similar to the Workfare Income Supplement.
The government is studying eligibility criteria to ensure sustainability and will share full details at Budget 2015.

Summary written by AI

Overview Original source

3 Nov 2014

Limit on Medical Costs to be Borne by Employers of Foreign Domestic Workers

Zaqy Mohamad asked whether there is a cap on medical costs for employers of foreign domestic workers (FDWs) and how the government protects employers from high medical bills, noting differences from corporate healthcare liabilities.
The government does not subsidize healthcare for FDWs, and employers must bear all medical costs to prevent unpaid bills from burdening taxpayers, a condition agreed upon when applying for work passes.
Employers are required to purchase mandatory medical insurance for FDWs with a minimum coverage of $15,000 per year, which covers 98% of inpatient and day surgery bills at public hospitals, and personal accident insurance with $40,000 coverage.
Employers facing costs beyond the insured amount can discuss installment plans with hospitals, and are encouraged to buy additional coverage for higher protection, especially for private hospital treatments.
The insurance requirements aim to balance affordability for employers with sufficient coverage for most medical scenarios, based on historical data from 2010 to 2013.

Summary written by AI

Overview Original source

3 Nov 2014

Property Valuation Limit for Mortgage Payments from CPF Ordinary Account

The Minister explains that the Valuation Limit (VL) is set at the lower of the property's purchase price or its value at the time of purchase to ensure CPF members can recover their CPF savings and interest when selling the property.
The VL policy encourages prudent property purchases and preserves some CPF savings for retirement, with exemptions for subsidised HDB flats financed with an HDB loan.
Most CPF members are not affected by the VL, and those who reach it can use CPF savings beyond the VL if they set aside half the Minimum Sum, with flexibility available through appeal for those facing difficulties.

Summary written by AI

Overview Original source

3 Nov 2014

Curbing Increase in Cost of Medicines with Subsidies Accompanying Pioneer Generation Cards

Dr. Lee Bee Wah asked about guidelines for prescribing cost-effective medicines for the Pioneer Generation and ways to deter the use of expensive medicines with PG cards.
The government provides subsidies for drugs on the Standard Drugs List and Medication Assistance Fund, with committees ensuring clinically and cost-effective drug use in public institutions.
Doctors are guided by clinical practice guidelines and are ethically required to prioritize patient interests, including cost-effective treatments, with encouragement to use generic drugs when possible.
Patients are encouraged to discuss treatment options and charges with doctors, including asking about generics, while the Ministry monitors clinic claims for PG and CHAS patients.
Clinics are held accountable for exceptional claims to ensure appropriate use of subsidies and deter unnecessary prescription of expensive medicines.

Summary written by AI

Overview Original source

3 Nov 2014

Singapore's Implementation of Global Standard for Automatic Exchange of Financial Account Information

Singapore has committed to implementing the OECD Automatic Exchange of Information (AEOI) Standard by 2018, subject to conditions such as a level playing field among major financial centres, strong rule of law and confidentiality safeguards from partner jurisdictions, and reciprocity in information exchange.
The implementation will impose costs on financial institutions, which may need new customer due diligence procedures and systems for compliance, but the government will work with the industry to address these issues.
The move is expected to reinforce Singapore’s reputation as a trusted financial hub by adhering to international standards, though careful management of conditions is necessary to avoid shifting funds to less-regulated jurisdictions.

Summary written by AI

Overview Original source

3 Nov 2014

Public Trustee (Amendment) Bill

The Public Trustee (Amendment) Bill introduces a new "flow-through" system for paying interest to trust estates based on actual returns after costs, replacing the previous system where rates were declared in advance.
It renames the Public Trustee Investment Board to the Investment Board and changes its composition to include the Permanent Secretary of MinLaw as Chairman, the Public Trustee, and three appointed members, at least one being a public officer, to incorporate private sector expertise.
The Bill requires the Public Trustee's views or written consent to be sought before appointment to represent minors, administer small estates, act as a trustee, or transfer estates, ensuring state resources are used only where there is public interest.
Miscellaneous amendments allow the Minister to appoint Deputy Public Trustees and authorize the Public Trustee to outsource functions, such as fund management, to enhance administrative efficiency.

Summary written by AI

Overview Original source

3 Nov 2014

Income Tax (Amendment) Bill

The Income Tax (Amendment) Bill 2014 extends and enhances the Productivity and Innovation Credit (PIC) scheme, including a higher cap for SMEs and new anti-abuse measures targeting cash payouts.
It introduces tax relief for R&D and intellectual property, clarifies tax treatment for hybrid instruments, increases dependant reliefs, and allows SRS investment withdrawals without liquidation.
The bill incorporates international tax cooperation measures, such as enabling mutual administrative assistance and spontaneous information exchange, to combat cross-border tax evasion.

Summary written by AI

Overview Original source

3 Nov 2014

Pioneer Generation Fund Bill

The Pioneer Generation Fund Bill establishes an $8 billion fund to provide lifelong healthcare benefits, such as Medisave top-ups and MediShield Life premium subsidies, to about 450,000 Singaporeans born before 1949, with the full cost projected to be slightly over $9 billion including accumulated interest.
Parliament debated the bill’s administrative details, including eligibility appeals, transparency of healthcare provider definitions, and the need to streamline processes like disability assessments, while assuring that the benefits are not means-tested.
Speakers supported the bill as a recognition of pioneers’ contributions, but raised concerns about potential misuse, communication gaps with seniors, and the sustainability of the fund amid rising healthcare costs and aging demographics.
An amendment to clause 3, proposed by NMP Chia Yong Yong to remove wording that implied financial need as a criterion, was negatived after the government clarified that the package is not means-tested and the phrasing only reflects historical context.

Summary written by AI

Overview Original source

3 Nov 2014

Companies' Contributions to Charities

Ms Chia Yong Yong questioned the government about the percentage of profits companies contribute to charities and the strategies to encourage such commitments to reduce the strain on public funds.
Minister Lawrence Wong shared that a 2012 NVPC survey found three in five companies contributed around or less than 0.5% of pre-tax profits, with IRAS data showing approved donations were 0.32% of pre-tax profits in 2012, rising to 0.53% in 2013.
Corporate giving has increased over the past decade, with company donations to Institutions of a Public Character doubling from $325 million in 2004 to $644 million in 2013, accounting for about two-thirds of total giving.
The government offers financial incentives like a 2.5 times tax deduction for donations to IPCs and matching donation schemes, alongside NVPC efforts to promote corporate giving through CEO networking and best practice sharing.

Summary written by AI

Overview Original source

3 Nov 2014

Measures to Deal with US Federal Reserve Rate Hike

The US Federal Reserve's rate hikes could affect Singapore SMEs and households, with highly leveraged companies and a small segment of over-extended borrowers particularly vulnerable, but Singapore's strong fundamentals and reserves provide resilience.
The government has implemented cooling measures like tighter loan-to-value ratios and the Total Debt Servicing Ratio framework to temper household debt growth and improve borrower risk profiles, while SPRING supports SMEs with financing schemes.
For vulnerable groups, such as those with floating-rate property loans, the government continues to review and provide targeted assistance measures to mitigate the impact of potential rate increases.

Summary written by AI

Overview Original source

3 Nov 2014

Measures to Strengthen Singapore Economy

The Singapore economy grew by 2.4% year-on-year in Q3 2014, driven by manufacturing and services, with full-year growth forecast between 2.5% and 3.5%, though risks remain from global uncertainties like US monetary policy, China’s slowdown, and geopolitical tensions.
The government acknowledges domestic restructuring challenges, including labor constraints and cost pressures, and is implementing sector-specific productivity plans with finer metrics to measure progress beyond traditional value-add per worker.
Long-term competitiveness aims for GDP growth between 2% and 4%, contingent on achieving productivity growth of 1% to 3%, supported by initiatives like the SkillsFuture Council to upskill workers and raise productivity sustainably.

Summary written by AI

Overview Original source

3 Nov 2014

Helping Local Businesses Tap on ASEAN Economic Community

The Ministry of Trade and Industry outlined support schemes like IE Singapore’s Market Readiness Assistance and Global Company Partnership to help SMEs tap ASEAN Economic Community (AEC) opportunities.
The government, with the Singapore Business Federation, is promoting awareness through forums and SME Centres to prepare businesses for the AEC by 2015.
No specific sectors or countries are prioritized; instead, support is broad-based, with efforts to organize business trips across ASEAN to help SMEs expand.

Summary written by AI

Overview Original source

8 Oct 2014

Occupancy Rate of Leased Hawker Centre and Wet Market at Aljunied Avenue 2

The hawker centre at Block 117, Aljunied Avenue 2 currently has a 54% occupancy rate, with 87 stalls occupied and 74 vacant.
The 74 vacant stalls will be released for open tender in October 2014 to ensure a fair allocation process.
Existing stallholders can also bid for the vacant stalls if they believe it would be advantageous for them in terms of rent.
The market rents for non-subsidised stalls are determined by professional valuers, based on results from recent tenders.
The government allocates vacant stalls through open tender as the fairest method, with existing stallholders not left worse off.

Summary written by AI

Overview Original source

8 Oct 2014

Drawdown on CPF Monies for Those Not Re-employed at 62 Years Old

K Karthikeyan proposed allowing those not re-employed after 62 to draw CPF savings until they find work or reach 65.
The government explained CPF drawdown ages are rising to 65 by 2018 to support longer lifespans and retirement savings.
Re-employment legislation ensures most employees aged 62-65 are offered continued work, with support for job seekers.
Early CPF withdrawals are already permitted on medical grounds, and government assistance schemes exist for unemployed or needy individuals.

Summary written by AI

Overview Original source

8 Oct 2014

Goods and Services Tax (Amendment) Bill

The bill allows non-legal entities, such as partnerships, to claim GST on business properties acquired through bare trustees and account for GST on supplies of such properties, putting them on par with legal entities.
It permits GST-registered businesses to claim the full GST on re-imported customer goods for overseas value-adding activities, including the portion attributable to the original goods.
A technical amendment clarifies that zero-rating for goods on ships applies only to their sale or rental, not to all related supplies.

Summary written by AI

Overview Original source

8 Oct 2014

Stamp Duties (Amendment) Bill

The Stamp Duties (Amendment) Bill introduces three changes, including an exemption from Seller's Stamp Duty for industrial property transfers during corporate restructuring, effective retrospectively from January 2013.
The Bill adjusts how interest is charged on withdrawn stamp duty relief, shifting from the document execution date to the refund date to reflect actual taxpayer experience.
The amendments reduce compliance costs by allowing the Commissioner of Stamp Duties discretion to process refunds without requiring claim lodgment or surrender of original instruments.
The Bill underwent public consultation with no relevant feedback and was passed without amendments after being read a second and third time.

Summary written by AI

Overview Original source

8 Oct 2014

Business Names Registration Bill

The Bill repeals the 1974 Business Registration Act and replaces it with the Business Names Registration Act 2014 to simplify registration processes and keep Singapore's business laws competitive.
All persons carrying on business in Singapore must register with ACRA, but individuals using only their full names and certain licensed hawkers, craftsmen, and taxi drivers remain exempt.
Business name registrations and renewals can now be for one or three years for those with good MediSave contribution records, improving convenience and encouraging timely contributions.
The Bill extends civil and criminal consequences to those operating after registration has ceased or been cancelled, and increases maximum penalties for offences to align with other ACRA-administered laws.
The changes aim to maintain an accurate public register, enhance public protection, and reduce the regulatory burden on business owners while keeping pace with Singapore's development as an international business centre.

Summary written by AI

Overview Original source

8 Oct 2014

Companies (Amendment) Bill

The Companies (Amendment) Bill aims to update Singapore’s company laws, reduce compliance costs for businesses, and balance corporate flexibility with transparency, as supported by speakers who praised its extensive public consultation and acceptance of most recommendations from a steering committee.
Key provisions include exempting small companies from mandatory audits (benefiting around 25,000 SMEs with estimated savings of $2,000-$3,000 annually), introducing multiple proxies to enfranchise indirect investors like CPF contributors, and lifting one-share-one-vote restrictions for non-listed public companies to allow dual-class shares, while acknowledging ongoing reviews by MAS and SGX for listed companies.
Speakers expressed concerns about potential risks, such as tax evasion from audit exemptions and entrenchment of control in dual-class shares, with the Senior Minister of State outlining safeguards like group-wide criteria for audit exemption, disclosure requirements for shareholder rights, and provisions for shareholder redress through courts.

Summary written by AI

Overview Original source