Economy & business — Topics

8 Oct 2014

Reverse Mortgages for Elderly HDB Flat Owners

Minister Khaw Boon Wan outlined that reverse mortgages allow elderly HDB flat owners to unlock equity without regular repayments, but noted risks like growing loan balances and potential property value shortfalls, while sharing that a 2006 pilot by NTUC Income saw low take-up and was discontinued.
The Ministry of National Development is studying reverse mortgage schemes from other countries, but preliminary findings show low adoption rates globally, and the Minister emphasized the need for careful review and public consultation before deciding on any introduction.
The government currently offers the Lease Buyback Scheme (LBS) as the primary option, and while reverse mortgages could provide additional choices, the focus is on ensuring seniors make informed decisions through tailored counseling and comprehensive information.

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8 Oct 2014

Impact of Tighter Manpower Supply on Hotels and Food Services Companies

The accommodation and food services sector faced a rising job vacancy rate of 6% in Q2 2014, but hotels maintained steady occupancy and revenue, and the F1 Singapore Grand Prix was successfully hosted without notable service disruptions despite tighter manpower constraints.
Productivity improvements have been observed, with real productivity growing 0.9% annually from 2010–2013 and labor productivity in accommodation rising 2.8% annually, while food services saw a reduced decline to -0.6% annually, supported by government initiatives and technology adoption.
Businesses like Gloria Foods and Shangri-La are implementing innovations such as digital ordering kiosks and kitchen consolidation to reduce staff and improve efficiency, though restructuring remains challenging for smaller enterprises.
The government continues to monitor the sector closely, providing support through schemes and grants to help companies adapt to the tight labor market and ensure high-quality service delivery for major events.

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8 Oct 2014

Update on Special Access for Indian Businesses under Bilateral Free Trade Agreement

Minister Lim Hng Kiang confirmed that the Comprehensive Economic Cooperation Agreement (CECA) with India has facilitated increased bilateral trade and investment since 2005, with specific provisions for temporary business entry and banking licenses.
The debate clarified that CECA grants India specific privileges, such as longer periods for intra-corporate transferees (eight years versus the WTO standard of five), but Singapore retains the right to regulate overall immigration and employment measures.
Gerald Giam sought assurance that the government would not yield to Indian pressure for more work passes, with the minister affirming that all CECA terms are strictly followed and any disputes can be addressed through the agreement’s dispute settlement process.

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8 Oct 2014

Police's Role in Enforcement against Timeshare Companies

Christopher de Souza urged the Police to take a more active role in investigating timeshare companies for criminal offences like cheating, rather than leaving aggrieved customers to bear the cost of civil claims.
The Second Minister for Home Affairs explained that the Police assess each complaint for potential criminal offences, having investigated about half of the 110 annual reports over the past five years, with some cases leading to charges under the Penal Code.
The Minister highlighted challenges in gathering evidence due to overseas incorporation and false identities of companies, while noting that consumer protection laws have been revised to provide greater recourse.
Christopher de Souza questioned why some cases with alleged dishonesty were treated as civil matters, and whether elderly victims and large financial losses should prompt special investigative considerations.
The Minister responded that each case is assessed individually, and while public awareness campaigns are important, enforcement must remain fair until an offence is proven.

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8 Oct 2014

Update on Vehicle Early Turnover Scheme and Impact on COE Prices

The Parliamentary Secretary reported that 3,212 vehicles were replaced under the enhanced Early Turnover Scheme (ETS) by end-September 2014, representing 77% of all replacements since the scheme began, with the COE of deregistered vehicles not contributing to the Category C quota but allowing direct registration of a new vehicle.
He stated that the ETS impact on COE prices is uncertain as prices are influenced by multiple factors like economic conditions and vehicle statutory life, and that not channeling the COE to the quota takes demand out of the system.
Ang Wei Neng asked for data on how many ETS-scrapped vehicles changed hands before scrapping to assess if agents or owners benefit, and suggested reducing the proportion of COEs channelled to the Open Category to help companies without old vehicles.
The Parliamentary Secretary explained that ETS provides multiple options for vehicle purchase, including renewing an existing COE, buying an ETS-eligible vehicle, or bidding for a new COE, and mentioned commercial vehicles benefit from lower taxes like a 5% Additional Registration Fee compared to cars.

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8 Oct 2014

Impact of Enhancements to HDB Upgrading Programmes

The Minister confirmed that the government has set aside sufficient budget for the enhancements to the Home Improvement Programme (HIP), Neighbourhood Renewal Programme (NRP), and Selective Lift Replacement Programme (SLRP), including raised cost caps, to allow more flats to benefit sooner.
For HIP, the government aims to complete selection of all eligible flats by 2018 and is accelerating the pace to launch upgrades for 100,000 flats over the next two years, with the entire programme expected to finish during the next government term.
The timeline for NRP and SLRP upgrades depends on Town Councils' capacity and resident engagement, with NRP implementation paced by local participation and SLRP allowing co-funding for lift replacements when Town Councils decide to proceed.

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7 Oct 2014

Slowing Down Curbs on Foreign Manpower for Services Sector

Yeo Guat Kwang asked whether the government would slow curbs on foreign manpower in the services sector and if targets for managing foreign workforce growth across sectors (except construction) had been met.
Tan Chuan-Jin noted that foreign workforce growth in services has moderated significantly since 2011, with no new tightening measures in 2014, and highlighted early positive outcomes like rising Singaporean wages and business adjustments toward automation and flexible job packages.
The Ministry of Manpower stated that overall foreign workforce growth is approaching sustainable levels, with the slowest growth since 2009 in the first half of 2014, but cautioned that demand remains firm due to new infrastructure projects and low productivity in domestic-oriented services.
The government plans to maintain its current foreign workforce policy stance—neither liberalizing nor further tightening—to encourage manpower-lean models and better job outcomes for Singaporeans while monitoring the situation closely.

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7 Oct 2014

Number of Students Benefited from Tertiary Tuition Fee Subsidy for 2013

Mr Muhamad Faisal Bin Abdul Manap asked the Minister for Communications and Information about the number of students who benefited from the Tertiary Tuition Fee Subsidy (TTFS) in academic year 2013 and the surplus amount from non-disbursement.
For academic year 2013/14, 12,626 Malay students benefited from TTFS, an increase from 5,973 in the previous year, with the subsidy funded by the Government and disbursed by Yayasan MENDAKI.
The undisbursed TTFS amount in 2013 was $16.16 million out of a $46.91 million grant, and unused funds are channeled to MENDAKI's Education Development Fund for other educational programs.

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7 Oct 2014

Number of Companies Ceased Operations Due to Curbs on Foreign Manpower

About 17,000 companies ceased operations in 2013, but there is no specific data on how many were due to foreign manpower curbs, as closures can stem from various factors like market forces or mergers, though the net number of companies still increased.
Over 17,000 companies have benefited from productivity initiatives, with businesses receiving over $1.5 billion in tax savings and cash payouts under the Productivity and Innovation Credit scheme for activities like training and automation.
From 2010 to 2013, exportable sectors such as Precision Engineering, Transport Engineering, and Finance and Insurance showed positive productivity growth, while domestically-oriented sectors like Retail and Food and Beverage experienced declines, indicating varying challenges across industries.

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7 Oct 2014

Ex-gratia Payments and Gross Pension Ceiling for Government Pensioners

Christopher de Souza asked the Prime Minister about plans to increase ex-gratia payments and the gross pension ceiling for government pensioners.
The Prime Minister, represented by Teo Chee Hean, explained that pensions are fixed based on service and salary, but an ex-gratia Singapore Allowance has been provided since 1974 to help low-income pensioners below a set ceiling.
The Singapore Allowance was last increased in 2013 to $280 monthly, with the gross pension ceiling raised to $1,210, and the government will continue regular reviews and revisions as needed.
In addition to the allowance, government pensioners receive Medisave top-ups, GST Vouchers, and Pioneer Generation benefits, and will also benefit from MediShield Life when introduced in 2015.

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7 Oct 2014

Transfer of CPF Monies in Ordinary Account to Special Account for Older Singaporeans

Zainal Sapari asked whether CPF members aged 55 and above who have met the Minimum Sum can transfer their Ordinary Account balances to their Special Account for higher interest.
Tan Chuan-Jin explained that CPF members below 55 can already transfer savings from their Ordinary to Special Account up to the Minimum Sum to earn higher interest.
At age 55, savings from both Ordinary and Special Accounts up to the cohort’s Minimum Sum are moved to the Retirement Account, which earns interest rates similar to the Special Account.
Members who have met the Minimum Sum can top up their Retirement Account with further transfers from Ordinary and Special Accounts when the Minimum Sum is raised each year.

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7 Oct 2014

Microloans for Deserving Families in Difficulties

Mr Mohd Ismail Hussein proposed making microloans from non-profit organisations or social enterprises available to deserving families needing cash during difficult periods.
Minister Chan Chun Sing highlighted that needy families can seek ComCare assistance through Social Service Offices, which are being expanded island-wide for better access.
He added that credit co-operatives may provide unsecured loans to members with regular income, and the MicroCredit Business Scheme supports those starting or expanding microbusinesses.

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7 Oct 2014

Easing Impact of High Core Inflation Rate on Low-wage Households

Ang Wei Neng asked the Ministry of Trade and Industry about actions to ease the high core inflation rate and cushion its impact on low-wage households.
Lim Hng Kiang explained that core inflation is driven by higher food import costs and services inflation due to tight labor market conditions, while MAS uses currency appreciation to contain imported inflation.
The government is committed to keeping inflation in check through productivity schemes and transitional support like the Wage Credit Scheme to moderate wage cost pass-through to prices.
A multi-pronged approach supports low-income households, including job creation, Workfare, wage support, and subsidies and transfers for healthcare, childcare, education, transport, and housing costs.
Government transfers and rebates accounted for 90% of annual income per member for the lowest income quintile, highlighting significant support for vulnerable households.

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7 Oct 2014

Implementation of Foreign Worker Dependency Ratio Ceiling for Certain Industries

Christopher de Souza asked if the government would adopt a flexible approach to the foreign worker dependency ratio ceiling for hard-to-fill industries like construction and landscaping.
Kuik Shiao-Yin inquired about studies on manpower constraints' impact on SMEs of different sizes, the proportion benefiting from productivity grants, and the number of smaller SMEs that closed due to manpower issues.
The Minister responded that current policies aim to reduce foreign labour reliance while supporting productivity growth, with sector-specific ratios and flexibility for essential needs, but warned against entrenching labour-intensive models.
The Minister noted that SMEs can use grants like SPRING's to cope with labour constraints, with most beneficiaries being smaller firms, and emphasized a balanced policy approach for inclusive growth.

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7 Oct 2014

Companies (Amendment) Bill

The bill introduces a "small company" concept to exempt private companies from annual audits if they meet two of three criteria for two consecutive years, reducing compliance costs for at least 25,000 companies.
It removes the one-share-one-vote restriction for public companies to provide greater capital-raising flexibility, while safeguards require disclosure of different share class rights in company constitutions.
Private companies will no longer keep their own register of members, with ACRA maintaining a centralized register to improve public access to shareholding information and reduce duplication.
Directors and company secretaries can be debarred from new appointments if their companies fail to file required documents on time, enhancing enforcement and compliance with filing requirements.
The bill updates preferential payment limits for employees of insolvent companies to five months' salary or five times the non-workmen salary cap under the Employment Act, whichever is lower, automatically aligning with future salary cap adjustments.

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7 Oct 2014

Income Tax (Amendment) Bill

The debate involves the Income Tax (Amendment) Bill, which seeks to amend the Income Tax Act and the Economic Expansion Incentives (Relief from Income Tax) Act.
The bill was presented by the Senior Minister of State for Finance, Mrs Josephine Teo, and received the recommendation of the President.
The bill was read for the first time and scheduled for a second reading in the next available sitting of Parliament.

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7 Oct 2014

Economic Impact from Increase in Causeway Tolls

The Minister for Trade and Industry stated that the overall economic impact of the Causeway toll increase on Singapore is expected to be small, as land transport costs form a minor part of total business costs for most firms, though some SMEs in sectors like food and wholesale may be more affected.
The government acknowledged that some SMEs might see reduced profit margins and minor pass-through effects on inflation, but noted that many firms are adapting by improving trip scheduling and consolidation, and the majority of imports use other transport modes.
Officials confirmed that there has been no major operational feedback regarding worker mobility issues affecting SMEs, and the government will continue monitoring the situation and working with trade associations to assess if further support measures are needed.

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7 Oct 2014

Mandatory Implementation of National Wages Council Recommendations

K Karthikeyan proposed making National Wages Council (NWC) recommendations mandatory to address wage disparity.
The Minister for Manpower rejected mandatory implementation, stating that NWC guidelines are advisory to preserve market forces and business flexibility.
The Minister cited evidence that voluntary adoption of NWC guidelines has narrowed wage gaps, with stronger real income growth for lower-income workers.
The Minister emphasized that mandatory wage increases could harm businesses and employment, while the tripartite approach ensures sustainable wage growth aligned with productivity.
The government reaffirmed its commitment to maintaining the NWC’s role as a consensus-building and flexible framework for wage negotiations.

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9 Sep 2014

Applied Study in Polytechnics and Institute of Technical Education Review (ASPIRE)

The Senior Minister of State emphasized that ASPIRE is part of a holistic education strategy, linking applied learning across primary, secondary, polytechnic, ITE, and university levels to align education with industry needs and promote lifelong learning.
The debate highlighted the need for mindset change to value skills over qualifications, with the public sector leading by example through integrated career schemes and faster progression for non-graduates, while employers, especially SMEs, are encouraged to adopt training programs and sector-specific frameworks.
Members stressed the importance of industry and employer engagement, with government support schemes like SPRING's grants and WDA's training funding to help businesses invest in human capital, and calls for a taskforce to rigorously define job competencies beyond paper qualifications.

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9 Sep 2014

Effectiveness of Moneylenders Licensing Regime in Reducing Harassment Cases

The Senior Minister of State reported that unlicensed moneylending and related harassment cases decreased by 31.6% in the first half of 2014 compared to the same period in 2013, with a steady decline since 2010, which he attributed to tough laws, enforcement, community support, and the availability of licensed lenders.
Christopher de Souza acknowledged the reduction but raised concerns that some licensed moneylenders were using harassment tactics similar to unlicensed ones to recover debts, asking for more oversight of these practices.
Masagos Zulkifli clarified that while licensed lenders can take reasonable steps to recover debts, they are prohibited from harassment, and borrowers should report such behaviour to the police; he also noted that an advisory committee was formed in June to review and strengthen the regulatory regime, including debt collection practices.

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