Economy & business — Topics

9 Sep 2014

Matching Toll Charges at Causeway and Second Link

Pritam Singh asked whether Singapore will continue to match Malaysia’s toll charges at the Causeway and Second Link, and if a study assessed the impact of higher tolls on Singapore businesses in Iskandar, Johor.
The Senior Minister of State for Transport explained that matching toll charges ensures fair revenue distribution and prevents one side from offsetting lower tolls with higher charges on the other; Singapore has announced it will match Malaysia’s increased tolls from 1 August 2014.
The government has limited data on costs for Singapore businesses in Iskandar but noted potential impacts; it will also match Malaysia if tolls are reduced or removed.
Pritam Singh further asked if Malaysia forewarned Singapore of the toll hike, if Singapore informed Malaysia of its VEP fee increase, and whether Malaysia could tag the additional toll to the Eastern Dispersal Link.
The Senior Minister of State replied that Singapore was not informed in advance of Malaysia’s toll increase but did inform Malaysia in advance of its VEP fee hike; Singapore welcomes joint discussions to manage toll costs and avoid penalizing drivers not using the Eastern Dispersal Link.

Summary written by AI

Overview Original source

9 Sep 2014

Rationale for Vehicle Entry Permit Fees for Foreign-registered Cars

The Vehicle Entry Permit fee for foreign-registered cars was raised from $20 to $35 per day and the Goods Vehicle Permit from $10 to $40 per month to equalize costs with Singapore-registered vehicles, given higher local taxes and the Certificate of Entitlement system, marking the first VEP hike in 20 years and unchanged GVP since the 1960s.
The fee revision is not aimed at revenue generation, with only about 1 in 10 foreign-registered cars affected due to existing VEP-free days and hours; buses, taxis, and motorcycles remain exempt.
Singapore has not been officially informed of Malaysia’s proposal to impose entry fees on non-Malaysian vehicles entering Johor, has sought details, and will decide its response after receiving clarification, while noting concerns about potential impact on Singapore vehicles.

Summary written by AI

Overview Original source

8 Sep 2014

Percentage of Workforce Engaged under Contracts for Services

As of June 2013, 8.1% of employed residents were own account workers, a slight decrease from 8.9% in 2003, and they typically operate their own businesses under contracts for services.
Self-employed persons are required to contribute to their Medisave accounts if their net trade income exceeds $6,000 annually, but contributions to Ordinary and Special Accounts for retirement are voluntary and encouraged through tax relief.
The government promotes retirement savings for self-employed individuals through awareness campaigns, outreach events, and support schemes like Workfare Income Supplement and Medisave top-ups, while industry initiatives such as the Drive-and-Save scheme are also encouraged.

Summary written by AI

Overview Original source

8 Sep 2014

Breakdown of School and Tuition Fees Collected

Mrs Lina Chiam requested a three-year breakdown of school and tuition fees collected from primary, secondary, junior college, pre-university, polytechnic, and university students, categorized by Singapore citizens, permanent residents, and foreigners.
Heng Swee Keat explained that fees are reviewed regularly and differentiated by nationality, with total fees depending on prevailing rates and student enrolment, and provided tables detailing fees for general and post-secondary education.
For Singaporean students, the rise in fee collection is mainly due to increased enrolment in post-secondary institutions and some fee hikes, while for PRs and international students, the increase is primarily due to higher fee increments.

Summary written by AI

Overview Original source

8 Sep 2014

Study on Re-classification of Category C Certificate of Entitlement

The Ministry is reviewing Certificate of Entitlement policies on an ongoing basis but has not specified a timeline for completing any study on re-classifying Category C COEs.
Commercial vehicles benefit from lower taxes, including a reduced Additional Registration Fee, lower road tax, and exemptions from diesel fuel taxes, to ease costs for businesses.
SMEs can access repeated five-year COE renewals for better cash flow management and the Early Turnover Scheme for discounts and smoother replacement of pollutive diesel vehicles.

Summary written by AI

Overview Original source

8 Sep 2014

Public Hospitals Undergoing Construction or Renovations

Sylvia Lim questioned what mechanisms ensure prudent spending in public hospital construction, renovations, and refurbishments, highlighting concerns over financial discipline.
Gan Kim Yong explained that MOH enforces rigorous reviews of planning parameters, cost benchmarks, and space allocation, with large projects over $500 million subject to further scrutiny by the Ministry of Finance's Gateway Process to optimize cost-effectiveness.
Public procurement for healthcare infrastructure is conducted via competitive tendering based on price and quality, ensuring the most competitive bids are selected.
To instill financial discipline, public hospitals must self-fund general renovations, refurbishments, and equipment replacements, promoting responsible management of infrastructure.
The overarching objective is to ensure healthcare facilities are functional, patient-friendly, and cost-effective while making optimal use of space and resources.

Summary written by AI

Overview Original source

8 Sep 2014

Increase in Legal Requisition Fee for Drainage Interpretation Plans

Lim Biow Chuan questioned the 95% fee increase for drainage interpretation plans from $18 to $35, noting that no plans are supplied unless specific drainage works affect the property, and asked for a cost breakdown.
Vivian Balakrishnan explained that the fee covers NEA’s verification of drainage plans and maintenance of an accurate nationwide database, which has not been updated in over 10 years and now aims for full cost recovery.
The fee ensures lawyers and property buyers can assess drainage reserve impacts, with NEA providing plans only when reserves affect the property or issuing a clearance statement otherwise.
The revision in September 2014 aligns the fee with the actual resources needed to process requisitions and maintain the drainage database, which has increased due to inflation and operational costs.
Both the question and response highlight the fee’s purpose in supporting property transactions while ensuring government costs for drainage management are adequately covered.

Summary written by AI

Overview Original source

8 Sep 2014

Amount of Annual Medisave Top-ups under the Pioneer Generation Package

The Pioneer Generation Package provides lifelong annual Medisave top-ups ranging from $200 to $800, with the amount determined by year of birth rather than current age to give extra support to earlier cohorts who missed newer CPF and healthcare enhancements.
The rationale for using year of birth is that older pioneers typically have lower Medisave savings and receive top-ups for a shorter duration, while younger pioneers get lower amounts but over a longer period.
Other elements of the package, such as MediShield Life premium subsidies, increase with age to maintain affordability, while outpatient subsidies remain the same for all pioneers regardless of age.
The Pioneer Generation Package supplements broader government support for the elderly, including GST Vouchers, higher Medisave top-ups for older seniors, and subsidies for long-term care services.
Additional assistance for healthcare needs is available through schemes like MediFund Silver for those unable to afford medical costs.

Summary written by AI

Overview Original source

8 Sep 2014

Annual Renewal for Certificates of Entitlement for Commercial Goods Vehicles

David Ong proposed that commercial goods vehicle owners be allowed to extend their Certificate of Entitlement (COE) on an annual basis instead of in five-year blocks, especially for vehicles with shorter usage lives.
Lui Tuck Yew noted that current policy allows five-year COE renewals for goods vehicles with pro-rated refunds, ensuring owners pay only for the COE used.
Lui argued that annual renewals could increase deregistration variability, making COE supply for Category C vehicles more volatile and less predictable, creating uncertainty for businesses.

Summary written by AI

Overview Original source

8 Sep 2014

Impact of Removal of Medical Fee Guidelines on Healthcare Costs

Gerald Giam asked whether the removal of the SMA Guidelines on Fees in 2007 led to more competitive fees in primary and specialist care, and if not, whether it contributed to healthcare inflation, and if the Ministry would re-introduce the guidelines.
Minister Gan Kim Yong stated that MOH has monitored private sector charges, showing median surgeon fees for 10 common procedures rose 3.2–9.7% annually from 2007 to 2013, with overall healthcare inflation at 3.4% per annum, but variation above the 75th percentile makes it hard to attribute direct impact to the fee guidelines.
MOH is focusing on enhancing price transparency by publishing total hospital bills and operation fees, and is addressing cost drivers like an ageing population and new medical technologies through health technology assessments and medical device committees.

Summary written by AI

Overview Original source

8 Sep 2014

Limits and Charges Imposed on Use of Coins

Alex Yam questioned whether businesses can limit the number of coins a customer uses in a transaction and if banks should charge fees for coin deposits, especially for SMEs.
Lawrence Wong, representing the Prime Minister, explained that coins are legal tender with specific limits under the Currency Act, but vendors can set lower limits if they provide written notice to customers.
He added that banks charge fees for coin deposits due to handling costs, and while fee-setting is a commercial decision, MAS requires banks to disclose fees for transparency.

Summary written by AI

Overview Original source

8 Sep 2014

Insufficient Monies in Medisave Accounts for MediShield Life Premiums

The Minister outlined four ways the government provides substantial help to keep MediShield Life premiums affordable, including permanent subsidies for lower- and middle-income families, the Pioneer Generation, and transitional support for all citizens.
It was noted that about nine in ten inactive CPF members have sufficient Medisave balances or family support to cover at least three years of MediShield Life premiums, with additional top-ups available through schemes like the GST-Voucher.
The government emphasized that with permanent subsidies, additional premium support for the needy, and other measures, no Singaporean will be unable to afford MediShield Life premiums or fall out of the scheme.

Summary written by AI

Overview Original source

8 Sep 2014

Goods and Services Tax (Amendment) Bill

The Goods and Services Tax (Amendment) Bill was introduced to amend the GST Act and was presented by Senior Minister of State for Finance Mrs Josephine Teo.
The bill underwent its first reading in Parliament, with the recommendation of the President signified.
It was scheduled for a second reading at the next available parliamentary sitting and to be printed for further proceedings.

Summary written by AI

Overview Original source

8 Sep 2014

Stamp Duties (Amendment) Bill

The Stamp Duties (Amendment) Bill was introduced to amend the Stamp Duties Act (Chapter 312 of the 2006 Revised Edition) and was presented by the Senior Minister of State for Finance, Mrs Josephine Teo, with the President's recommendation signified.
The bill was read for the first time and scheduled for a second reading on the next available sitting of Parliament, with instructions for it to be printed.
The debate focused on the procedural progression of the bill, including its presentation, first reading, and planned second reading.

Summary written by AI

Overview Original source

8 Sep 2014

Business Names Registration Bill

The Business Names Registration Bill aims to repeal and re-enact the Business Registration Act to establish a clearer framework for registering both businesses and their names in Singapore.
The bill, presented by the Senior Minister of State for Finance, seeks to introduce amendments that align with modern business practices and streamline the registration process.
It also intends to make consequential and related amendments to other written laws to ensure coherence in the regulatory framework.
The bill was read for the first time and scheduled for a second reading at the next available parliamentary sitting.

Summary written by AI

Overview Original source

8 Sep 2014

Companies (Amendment) Bill

The Companies (Amendment) Bill was introduced to amend the Companies Act and make related amendments to other written laws.
It was presented by the Senior Minister of State for Finance, Mrs Josephine Teo, and read for the first time in Parliament.
The bill is scheduled for a second reading at the next available sitting of Parliament.

Summary written by AI

Overview Original source

5 Aug 2014

Monitoring Payment of CPF Contributions for Non-contract, Ad Hoc and Part-time Workers

Employers must contribute CPF for all local workers, including part-time and casual workers, as long as an employer-employee relationship exists, with the CPF Board conducting proactive audits and investigating complaints.
The WorkRight initiative, launched in 2012, includes a hotline and email for reporting non-compliance and has increased inspections to over 5,000 annually.
In 2013, the CPF Board recovered $420 million for over 250,000 workers from late, under-, or non-payment of CPF contributions.

Summary written by AI

Overview Original source

5 Aug 2014

Government Subsidy for Healthier Essential Foods

Dr Chia Shi-Lu asked whether subsidies for healthier cooking oil could be extended to other essential foods like brown rice, which is more expensive than white rice.
Health Minister Gan Kim Yong stated that the Healthier Ingredients Subsidy Scheme already covers brown rice and whole-grain noodles, not just cooking oil, and has been expanded to wholesalers and central kitchens this year to improve reach.
The scheme aims to reduce price differentials between regular and healthier food ingredients, with positive feedback received so far and regular reviews planned to benefit more Singaporeans.
HPB is also running public education campaigns to encourage healthier eating, with examples like a major restaurant chain making brown rice the default option for a signature dish.
The Ministry welcomes and will continue exploring innovative ideas to promote healthier eating habits.

Summary written by AI

Overview Original source

5 Aug 2014

Productivity and Innovation Credit Claims for Research and Development Work

The Ministry highlighted that IRAS processes most PIC claims within three to six months, but complex R&D claims can take longer due to the need for additional documentation and review.
To improve clarity and reduce delays, IRAS will release a revised e-tax guide with clearer R&D criteria, review processes, and documentation examples, plus simplified guidelines for SMEs.
Additional support includes publishing industry-specific R&D examples for ICT and F&B sectors by year-end and expanding the Technical Advisory Panel with independent experts for complex cases.

Summary written by AI

Overview Original source

5 Aug 2014

Preparations for Singapore to Respond to Provisions in Trans-Pacific Partnership Agreement Related to Public Health and Environment

Gerald Giam questioned how Singapore can legislate on public health and environment under the TPP's Investor-State Dispute Settlement (ISDS) provisions, and asked about past ISDS cases against Singapore.
Lim Hng Kiang explained that the TPP ensures a stable investment regime for both foreign and Singaporean investors, with safeguards against frivolous ISDS suits.
He stated that the TPP does not restrict Singapore from adopting measures for legitimate public policy reasons, including protecting public health and the environment.
He confirmed that no multinational company has challenged or threatened to challenge Singapore through ISDS to date.
The response emphasized that Singapore can implement public interest legislation while maintaining commitments under the TPP.

Summary written by AI

Overview Original source