Economy & business — Topics

7 Jul 2014

Prices of Medicines Sold at Public Hospitals

Foo Mee Har questioned if medicines in Singapore’s public hospitals are more expensive than in Malaysia and Thailand and how to narrow the price gap for affordability.
The Ministry of Health explained that higher prices stem from factors like distribution costs, exchange rates, and supplier pricing, but bulk tendering by public institutions helps reduce costs.
Subsidies are available through the Standard Drugs List and Medication Assistance Fund, with plans to increase subsidies for lower- to middle-income patients and pioneers from 2015.
The government regularly reviews drug affordability and provides additional financial aid through Medifund for needy patients.

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7 Jul 2014

Funds from Dormant Accounts for Charity

Laurence Lien proposed introducing a law to transfer funds from dormant accounts to a fund for charitable and community projects.
The Minister acknowledged that account holders retain ownership of dormant funds and highlighted that MAS is working with financial institutions to trace claimants and will review the policy, considering practices in other jurisdictions.
Lien cited the UK’s Dormant Bank and Building Society Act as a successful example, where funds from accounts dormant for over 15 years are used for charitable causes while protecting the right to reclaim.
The Minister noted that dormant account laws are common in some developed jurisdictions, often transferring unclaimed funds to the national treasury, and agreed to study international experiences, including the UK model, as part of the policy review.

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7 Jul 2014

Loans Disbursed by Pawnshops

Mrs Lina Chiam asked about the number of pawnshops established, total loans disbursed, and defaulters unable to redeem items from 2011 to 2013.
The Senior Minister of State for Law reported that 43 new pawnshops were set up, growing the industry from 163 to 204 outlets.
Pawnbroking loans granted were $4.9 billion in 2011, $7.1 billion in 2012, and $5.5 billion in 2013, including refinanced loans.
About 95% of pledges were redeemed, with reasons for non-redemption not tracked, including whether it was due to inability to repay.
The response clarified that default statistics are not specifically recorded by the Registry of Pawnbrokers.

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7 Jul 2014

Effect of New Licensed Moneylenders Rules on Consumers' Access to Credit

The Ministry of Law outlined regulatory changes since 2008, including a 2012 moratorium on new licences, which reduced moneylenders from 249 to 185 and saw loan values fluctuate between $189 million and $480 million.
The government aims to balance borrower protection with access to credit, implementing measures like advertising restrictions, upfront fee bans, and required disclosure of effective interest rates.
An Advisory Committee on Moneylending has been established to review policies, engaging economists, financial industry representatives, and borrower support organizations to address access to credit and consumer protection.
The Senior Minister of State clarified that loan values in 2012 were $346 million, not $260 million as previously stated, and noted the committee will consider stakeholder suggestions for its review.
David Ong asked for data on licensed moneylending's share of the consumer credit market and the extent of stakeholder engagement by the Advisory Committee, but the Minister did not have the market share data on hand.

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7 Jul 2014

Legal Framework for E-commerce and Online Sale Transactions

The Minister of State for Trade and Industry confirmed that Singapore's consumer protection laws, including the Lemon Law, apply to both local and overseas online purchases if Singapore law governs the transaction or it is concluded in Singapore.
The Lemon Law covers defective physical goods and provides recourse for repair, replacement, price reduction, or refund, but does not extend to virtual goods or services.
The government will monitor the law's effectiveness and collaborate with CASE to enhance consumer education and address unfair trading practices.

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7 Jul 2014

Take-up Rate and Profile of Beneficiaries of Child Development Co-savings Scheme

Mr Yee Jenn Jong asked for data on the take-up rate and full co-matching of the Child Development Co-savings Scheme by housing type since 2001, and the reasons for differences, but the Ministry does not track this by housing or income level and instead focuses on supporting low-income families through community touchpoints and initiatives like the OCBC Starter Scheme.
The Minister highlighted challenges such as awareness and ability for lower-income families to participate, explaining that the scheme’s co-matching aims to encourage parental savings, with community efforts supplementing support but not replacing the core philosophy of shared responsibility.
Mr Yee proposed removing the co-matching requirement or using alternative incentives like higher interest rates to better assist low-income families, but the Minister maintained that the co-matching principle remains relevant to encourage family savings and that different policy tools are needed for different objectives.

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7 Jul 2014

Impact of Personal Data Protection Act on Financial Institutions' Contractual Relationship with Clients

The Minister affirmed that the Personal Data Protection Commission does not condone unreasonable contract terminations by financial institutions and will investigate complaints, noting that while non-consent for marketing may justify ceasing a service, demanding consent for secondary purposes like marketing is often unreasonable.
Ang Wei Neng raised concerns about banks using lengthy or unclear terms and conditions to justify data usage, and suggested mandating that banks provide customers with an option to limit marketing to the bank alone, not from affiliated partners, and avoid contractual threats for disagreement with data policies.
The Minister agreed to forward these suggestions to the Commission and the Association of Banks of Singapore during ongoing banking sector consultations, emphasizing the need to protect customer interests and data.

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7 Jul 2014

Business Model for Government Projects

Mr Teo Siong Seng inquired whether the bus contracting model, where the government owns infrastructure and private operators run services, would be extended to other sectors like MRT and healthcare.
The Senior Minister of State for Finance responded that while the model is relevant for public transport, its application depends on sector-specific goals and circumstances, citing examples like the New Rail Financing Framework for MRT and corporatised hospitals in healthcare.
The government currently uses a mix of public-private partnership models, such as leasing nursing homes and having private operators fund and run water plants, to balance efficiency, affordability, and quality of public services.

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7 Jul 2014

New Bus Contracting Model

The Government is transitioning from a privatised bus model to a Government Contracting Model, where LTA owns buses and routes, and operators bid competitively to improve service quality and cost-efficiency, with the aim of benefiting commuters.
The Minister declined to disclose specific budgets or subsidy amounts before tenders are issued to avoid skewing bids, emphasizing that the overall bus system costs must be covered by fares or subsidies, and regular fare adjustments are necessary for financial sustainability.
To ensure contestability and lower barriers to entry, the government will own bus assets, structure tenders simply, and offer five-year contracts with two-year extensions, while being open to new local and overseas players, with all 12 bus packages eventually tendered.
Financial sustainability will be managed by judiciously assessing new routes and service standards, avoiding low-ridership routes, and adhering to the established fare review mechanism to balance affordability and operational costs.

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29 May 2014

Singapore's Leadership Position in Southeast Asia

Mrs Lina Chiam questioned the Prime Minister on plans to preserve Singapore's leadership in Southeast Asia regarding stock trading volume and business activity/skills economic value, citing current rankings.
The Prime Minister responded that while the Singapore Exchange (SGX) remains the largest in the region by market capitalization, its trading volume is second to Thailand, prompting initiatives to strengthen regulation, regional integration, liquidity, and new growth sources like direct Chinese listings and derivatives.
For business competitiveness and skills, Singapore's strong performance in surveys reflects its open environment, governance, skilled workforce, and infrastructure, with ongoing government-company collaborations to enhance training, internships, and overseas expansion through trade agreements.

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29 May 2014

Withdrawal of CPF Monies by Permanent Residents

The Ministry for Manpower reported that from 2003 to 2013, Permanent Residents who left Singapore withdrew an average of $426 million in CPF funds annually, though they do not specifically track withdrawals by PRs who give up their status.
The Minister noted that PRs who withdraw their CPF monies and leave Singapore may continue to own property in their names and could be considered for future employment in Singapore based on their application and history.
The debate highlighted that data on the average length of PR status among those who left is not tracked, and specific details on property and employment rules for departing PRs would require further parliamentary questions.

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26 May 2014

Debate on President's Address

Supporters of the President’s Address highlighted progress on social policies like the Pioneer Generation Package and housing cooling measures, while urging continued focus on retirement adequacy, CPF reforms, and stronger safety nets for vulnerable groups, including the middle class and PMEs.
Debates emphasized the need for economic restructuring, productivity growth, and support for SMEs through technology adoption and skills training, with calls for fair employment practices to prioritize local workers and address wage stagnation.
Concerns were raised about political discourse, with some advocating for constructive politics and institution-building, while others questioned government actions and called for greater transparency and accountability in policy implementation.

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16 May 2014

Prime Minister's Office (National Research Foundation)

The National Research Foundation (NRF) collaborates with various ministries and partners to build R&D capabilities, foster innovation, and develop Singapore into a knowledge economy, resulting in strong international academic rankings and the establishment of research groups with leading global universities.
NRF has expanded its research focus to sectors like biomedical sciences, digital media, environmental technologies, and cybersecurity, while investing in growing a strong pool of researchers through fellowships and investigatorships to enhance Singapore’s scientific core.
For the next five-year plan (RIE 2020), NRF aims to improve governance and coordination across government entities and link the entire innovation value chain—from scientists to corporations—to translate research into economic growth and create future jobs for Singaporeans.

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16 May 2014

Prime Minister's Office (Monetary Authority of Singapore)

The Singapore economy is restructuring amid a challenging external environment, with growth expected to remain subdued and volatility continuing; monetary policy will aim to stabilise inflation while supporting productivity-led growth.
MAS is ensuring financial resilience by implementing Basel III requirements ahead of schedule, strengthening oversight of financial institutions, and enhancing regulatory frameworks for capital markets, OTC derivatives, and financial benchmarks.
To protect retail investors and promote financial prudence, MAS is improving advice quality, introducing a web aggregator for insurance products, reviewing collective investment schemes, and raising financial literacy among Singaporeans.
Singapore remains committed to international standards on anti-money laundering and tax evasion, while building on its financial strengths and fostering innovation, such as developing an offshore RMB hub and enhancing SME financing.

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16 May 2014

Ministry of Trade and Industry

MTI will promote sustainable economic growth and create good jobs by leveraging Singapore’s strengths, including its open business environment and skilled workforce, while navigating a competitive global landscape.
The ministry will support research, innovation, and industrial transformation to grow advanced manufacturing and exportable services, with agencies like EDB and A*STAR applying R&D to enhance competitiveness.
Singapore will expand its international network through trade agreements and platforms like WTO, ASEAN, and APEC to reinforce its position as a Global Asia Hub.
MTI will invest over $300 million in SME restructuring and productivity programs, focusing on upstream interventions and sector-wide improvements to drive economic transformation.
The ministry will partner with MOM, MOE, and industries to develop career pathways, training programs, and global-ready talent to meet the aspirations of young Singaporeans entering the job market.

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16 May 2014

Ministry of Manpower

The Ministry of Manpower aims to boost productivity, real incomes, and job quality through a pragmatic balance of local and foreign workforce policies, supported by tripartite collaboration and a focus on lifelong learning via the CET Masterplan.
Key initiatives include enforcing the Fair Consideration Framework to ensure Singaporeans are fairly considered for jobs, expanding training support for SMEs, and using the Jobs Bank for better job matching.
Efforts will focus on uplifting low-wage workers through the Progressive Wage Model, protecting their rights, and reviewing policies for older workers, including a potential extension of the re-employment age to 67.

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16 May 2014

Ministry of Finance

The Ministry of Finance will pursue fiscal policies to ensure a vibrant economy and equitable society, anchored in sound and sustainable finances to meet rising needs from an aging population and higher spending on healthcare and infrastructure.
Economic transformation focuses on building capabilities, innovation, and productivity to secure good jobs and rising incomes, with support for businesses, SMEs, R&D, and worker development through the Research, Innovation and Enterprise Plan.
Social strategies aim to preserve mobility and share national progress through investments in education, lifelong learning, and healthcare support, including the Pioneer Generation Package and enhanced MediShield Life for affordable and sustainable healthcare.
The government will maintain a fair and progressive tax system, leverage Net Investment Returns Contribution, and streamline regulations to enhance ease of doing business while participating in global financial initiatives.
Major investments will improve living environments, including public transport upgrades, housing rejuvenation, community facilities, and expanded e-services with greater data availability to benefit citizens and businesses.

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16 May 2014

Ministry of Communications and Information

The Ministry aims to develop a vibrant infocomm, media, and design sector to improve quality of life, including a new Infocomm Media Masterplan to make Singapore a Smart Nation and promoting computational thinking in youth.
It will nurture startups by improving the ecosystem, level the playing field for accredited firms in government tenders, and build new infrastructure like a nationwide sensor network.
The Ministry will enhance regulatory frameworks, such as classifying internet services as essential utilities and amending the Broadcasting Act, while expanding co-regulation and content classification to protect consumers and public interest.
Initiatives include digitizing national collections, improving public service broadcasts, and setting up a Digital Inclusion Fund to ensure accessibility for all Singaporeans, including the disabled.
The Ministry will strengthen public engagement through REACH and enhance government communications, including translation services, to foster a connected and informed nation.

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14 Apr 2014

Applying the Progressive Wage Model to Benefit More Low-wage Workers

Gerald Giam asked how the Government plans to raise wages for the 110,000 local low-wage workers in industries beyond cleaning, security, and landscaping, noting that the Progressive Wage Model (PWM) currently only covers about 80,000 workers in these three sectors.
The Minister highlighted that raising incomes requires a holistic effort, including maintaining a healthy economy, a tight labour market to keep unemployment low and wages rising, and enhancing Workfare to supplement incomes for over 400,000 Singaporean workers.
The Government supports PWM as a targeted legislative measure for specific sectors with labour market issues, but for other sectors, it prefers NTUC’s efforts to work with employers on progressive wage structures and career pathways.
Additional support for low-income earners includes housing, medical, and education subsidies, alongside measures like raising the full-time equivalent salary to $1,000 to ensure meaningful employment.
The approach emphasizes sustainability through productivity improvements and sector-specific interventions rather than a one-size-fits-all mandate.

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14 Apr 2014

Breakdown of Motorcycle Population and COE Revenue Collected

Muhamad Faisal Bin Abdul Manap requested a breakdown of the Class 2, 2A, and 2B motorcycle populations and COE revenue for 2011 to 2013, and asked whether Class 2B COEs could be abolished to support lower-income users.
Lui Tuck Yew provided a table with the requested population and COE revenue data for the three motorcycle categories over 2011 to 2013, though the table is not included in the text.
Lui Tuck Yew stated that the COE system aims to manage vehicle population in line with road capacity, and since all motorcycles occupy similar road space regardless of engine size, exempting Class 2B motorcycles from COE is not appropriate.

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