Economy & business — Topics

17 Feb 2014

Time Extension for Fulfilling Government Building Contracts

Gan Thiam Poh asked if the Ministry can allow all government agencies to grant building contractors up to six months of time extension without imposing liquidated damages due to tightening foreign labour.
Khaw Boon Wan explained that measures like reducing the Man-Year Entitlement quota and raising foreign worker levies are intended to drive construction productivity and reduce reliance on foreign workers, with advance notice given to builders.
The Ministry provides alternatives such as MYE-waiver applications with higher levies and the Construction Productivity and Capability Fund to support contractors facing labour constraints.
Time extensions are already possible under standard contract provisions for justified delays, evaluated case-by-case while maintaining productivity and foreign worker reduction goals.

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17 Feb 2014

Justifications for Recent Public Transport Fare Adjustments

SMRT cited a near 30% rise in operating costs from 2010 to 2012, driven by increases in energy (35%), manpower (28%), and network maintenance expenses.
SBS Transit reported an 8% operating cost increase between 2011 and 2012, with an over 11% rise in manpower costs and losses from new line operations.
Both operators highlighted growing losses in their bus businesses as a key factor in their fare adjustment applications.

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17 Feb 2014

Financial Penalties Imposed on Public Transport Operators

Gerald Giam asked about the total financial penalties imposed on each public transport operator (PTO) over the last three years and whether these penalties can be included in operational expenses.
Lui Tuck Yew provided specific penalty amounts: SMRT was fined $2.2 million (2011), $0.5 million (2012), and $0.36 million (2013); SBST was fined $0.4 million (2012) and $0.25 million (2013).
The PTOs, as publicly-listed companies, account for all regulatory penalties in their annual reports and income statements.
The Public Transport Council (PTC) does not consider these penalties when determining fare adjustments, as the fare formula is based on macroeconomic indicators and does not allow PTOs to pass penalty costs to commuters.

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17 Feb 2014

Setting Up Foreign Workers Fund to Improve Workers' Welfare

Ms Tan Su Shan proposed setting aside part of the Foreign Worker Levy to create a fund for improving foreign workers' welfare.
Minister Tan Chuan-Jin affirmed the government's commitment to foreign workers' welfare and explained that levy revenue already funds general expenditures, including foreign worker initiatives.
The government has implemented measures such as recreation centres, legal education, and infrastructure to support foreign workers, overseen by an Inter-Ministerial Committee.
The minister emphasized that caring for foreign workers aligns with Singapore's values and the needs of both locals and foreign workers.
No new fund was announced, as existing mechanisms already address welfare through integrated government spending.

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17 Feb 2014

Disbursements from Skills Development Fund

Mr Yee Jenn Jong asked for details on the Skills Development Levy contributions, disbursements from the Skills Development Fund (SDF), and allocations to small and medium enterprises (SMEs) over the past three years.
In FY2012, about $210 million was collected from the levy, with $171 million committed to training subsidies and infrastructure, including $67 million directly to employers as course fee subsidies and absentee payroll.
Of the $67 million, $29 million (43%) went to SMEs, with $7 million specifically allocated to SMEs with 10 or fewer employees.
The government has increased support for SMEs since 2012, offering 90% course fee subsidies and higher absentee payroll to encourage workforce training.
The authorities encourage all enterprises to utilize CET programmes to enhance skills and productivity.

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17 Feb 2014

Financial-viability of Foreign Contractors Awarded Government Tenders

The Building and Construction Authority requires foreign contractors to register and be assessed for their financial capacity to complete projects, including independent credit ratings for larger tenders.
Foreign contractors can register as a local subsidiary, which is a separate legal entity not liable for the parent company’s debts, or as a branch, where Singapore assets must pay local debts first if the parent liquidates.
Public agencies monitor project progress for financial distress signs and will act to minimize cost or schedule impacts if a foreign contractor’s parent company fails.

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17 Feb 2014

Accounting and Corporate Regulatory Authority (Amendment) Bill

The Bill aims to amend the Accounting and Corporate Regulatory Authority Act and make related changes to other laws, as presented by the Senior Minister of State for Finance.
The First Reading of the Bill was completed, with a Second Reading scheduled for a sitting on or after 1 April 2014.
The amendments focus on updating regulatory frameworks for accounting and corporate entities in Singapore.

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17 Feb 2014

Revision to Funding Formula for Schools

The Minister for Education explained that the funding review aims to resource schools based on their specific programmes and student enrolment, with more independent schools receiving increased funding and only a few seeing minor cuts due to overhead adjustments.
Funding for the Integrated Programme remains unchanged, and for students in both gifted and integrated programmes, schools will receive only one programme grant to streamline resources without affecting educational outcomes.
The Ministry assured that all schools, including independent ones, will be funded appropriately to meet their needs, and it will continue to invest in education while encouraging prudent use of resources to achieve maximum impact.

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17 Feb 2014

Oversight of Singapore's Defence Budget

Dr Lim Wee Kiak questioned the robustness of Singapore's defence budget oversight and procurement processes, citing Transparency International's poor anti-corruption rating.
Minister for Defence Dr Ng Eng Hen strongly defended Singapore's procurement integrity, noting its high global rankings and rejecting TI's methodology as flawed and unsubstantiated.
Dr Lim sought clarification on whether the government was consulted before TI's report and asked about efforts to improve perceptions of transparency.
Dr Ng confirmed TI had engaged with the government but sometimes declined information, stressing that full transparency could compromise national security.
The minister emphasized that while Singapore shares broad defence plans, it does not disclose detailed expenditures to maintain operational security.

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21 Jan 2014

Introduction of Benefit Corporation Legislation

Assoc Prof Tan Kheng Boon Eugene asked whether the Ministry will consider introducing benefit corporation legislation, similar to that in the US state of Delaware, to require for-profit B corporations to address multi-stakeholder interests and pursue specific public benefit goals.
Deputy Prime Minister Tharman Shanmugaratnam explained that benefit corporations are a new class of corporations originating in the US in 2010, with 19 states adopting such laws and about 400 corporations formed, offering legal protection for pursuing public benefit goals beyond shareholder returns.
In Singapore, companies can already include public benefit goals in their constitution, and listed companies are required under the amended Code of Corporate Governance to consider stakeholder interests and sustainability issues without facing legal challenges.
The Government supports social enterprises through tax incentives, seed funding, and mentoring programs, and will monitor the US experience with benefit corporations to assess relevance for Singapore.

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21 Jan 2014

Subscription to International Bank for Reconstruction and Development

The Deputy Prime Minister proposed increasing Singapore's capital subscription to the International Bank for Reconstruction and Development (IBRD) from US$40 million to US$672 million, with only 6% (US$38 million) as paid-in capital drawn from the 2013 budget, and the rest as callable capital that has never been drawn in the IBRD's history.
The increase is justified as Singapore's contribution to a stable global economy and aligns with its growing economic ties with developing countries, while also boosting its voting power in the IBRD from 0.05% to 0.25% and raising its ASEAN shareholder ranking from eighth to fifth.
A member of parliament questioned the large quantum of the increase and its benefits, to which the Deputy Prime Minister responded that the contribution is proportionate to Singapore's global economic share, the true budgetary cost is only the paid-in capital, and callable capital is unlikely to ever be called, making the annual cost about S$5 million over ten years.

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21 Jan 2014

Regulation of Imports and Exports (Amendment) Bill

The Minister for Trade and Industry moved the second reading of the Regulation of Imports and Exports (Amendment) Bill, which proposes to allow Singapore Customs to share declared trader information with domestic public agencies for purposes such as national security, public health, and economic policy, while maintaining confidentiality through safeguards like ministerial approval and the Official Secrets Act.
The Bill includes technical amendments to align and clarify the Regulation of Imports and Exports Act and the Customs Act for better administration, with no objections raised during public consultations from businesses or the public.
The House proceeded to committee stage, approved the clauses, and passed the Bill without amendment, noting a minor citation update from 2013 to 2014.

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21 Jan 2014

Government Procurement (Amendment) Bill

The bill amends the Government Procurement Act to align with the revised World Trade Organisation Agreement on Government Procurement, ensuring Singapore's compliance with updated international trade obligations.
The revised agreement expands Singapore's access to procurement opportunities in other signatory countries and adds "executive search services" as a new category covered by the rules.
The amendments are technical, updating references and definitions in the Act to reflect the new GPA terms, with no significant changes to existing procurement practices.

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21 Jan 2014

Progress of SME Workgroup

The SME Workgroup, launched in September last year, has engaged over 5,600 SMEs through 120 sessions, reviewing feedback on government policies and processes.
SMEs highlighted rising costs and manpower constraints, and the Workgroup is enhancing government schemes to support productivity, growth, and internationalization.
The Minister of State confirmed ongoing efforts to target sector-specific solutions and may announce new programs during the Budget period to address SME challenges.

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21 Jan 2014

Help Schemes for Low-wage Workers

The government has enhanced the Workfare Income Supplement (WIS) scheme, raising the income cap to $1,900, increasing the maximum payout to $3,500, and boosting the cash component to 40% to better support low-wage workers with retirement and immediate expenses.
Initiatives like the WorkRight programme, sector-specific criteria in cleaning, and fair employment practices through TAFEP are underway to ensure workers receive CPF benefits and improve employment terms.
The Community Health Assist Scheme (CHAS) has been expanded, removing the age floor to allow all eligible family members in lower- and middle-income households to access subsidised medical and dental care.
The government is considering a consolidated statement to inform workers of their total annual benefits from various schemes and to include information on upgrading and training opportunities.
Assistance to low-wage workers extends beyond wages to include housing, healthcare, and education, with ongoing reviews to enhance support as part of a whole-of-government effort.

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21 Jan 2014

Malaysians Taking on Blue Collar Jobs in Singapore

The Acting Minister for Manpower stated that about 15% of Malaysian Work Permit Holders in Singapore are in blue-collar jobs like plumbing and electrical work, and noted that measures like the Foreign Worker Levy and Dependency Ratio Ceiling help protect local wages by managing foreign worker costs and numbers.
Baey Yam Keng clarified that his concern was about self-employed informal workers such as freelance Malaysian plumbers and electricians who may not pay levies and could undercut local prices, questioning whether the Ministry can track and act against this illegal work.
Tan Chuan-Jin responded that any foreign worker without a valid work pass is illegal, with penalties including fines and imprisonment, and encouraged public reporting and industry awareness to combat such activities, as they harm local livelihoods.
Low Thia Khiang asked about enforcement against informal Malaysian workers on social visit passes, including roles like karang guni collectors and deliverymen, and expressed concern that some work permit holders in construction might be engaged in non-construction jobs, alleging that MOM might overlook these issues.
Tan Chuan-Jin acknowledged that illegal work by individuals on social visit passes occurs and relies on random checks and public complaints for enforcement, inviting Low to provide specific feedback on alleged lax enforcement for follow-up.

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21 Jan 2014

Sale of Tickets for Concerts

Lim Biow Chuan asked whether the government would regulate concert ticket sales to protect consumers from financial loss if events are cancelled, noting concerns about ticketing agents and refunds.
The Acting Minister responded that current consumer protection laws apply, and major ticketing agents like Sistic hold revenues until events conclude, enabling refunds; he preferred industry self-regulation and consumer awareness over new regulations.
Lim Biow Chuan raised follow-up concerns about the impact of concert cancellations on Singapore’s reputation, consumer confidence, and potential breaches of the Companies Act by event organisers.
The Minister acknowledged that cancellations occur globally, but noted few in Singapore, and mentioned that in the case of a bankrupt K-pop concert promoter, Sistic would refund consumers as it held the ticket revenues.

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20 Jan 2014

Bus Service Reliability Framework

Gerald Giam asked for the evidence behind using financial incentives instead of just penalties to improve bus reliability, and whether taxpayers would fund these incentives.
Lui Tuck Yew explained that bus operators incur extra costs for monitoring and improving service reliability, such as hiring controllers and mobilizing standby buses, so financial incentives are necessary.
The framework is modeled after the successful London system, with plans to review and improve it based on cost-effectiveness and commuter feedback.
The Bus Service Reliability Framework will be funded by the Government as a trial to improve bus service reliability.

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20 Jan 2014

Affordability of Nursing Homes

Sitoh Yih Pin asked the Ministry of Health (MOH) about plans to increase cost norms for nursing homes to improve affordability.
MOH highlighted recent measures such as increased funding rates, expanded subsidies for middle-income households, and GST absorption for subsidised patients.
The Community Silver Trust was expanded to cover long-term care providers' operating expenses, helping nursing homes defray costs.
MOH committed to continuous reviews of funding rates to ensure nursing home care remains affordable and cost-effective.
The government's actions aim to balance affordability while maintaining sustainable healthcare financing.

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20 Jan 2014

Funding Formula for Government Grants to Gardens by the Bay

Laurence Lien asked about the Government's funding formula for grants to Gardens by the Bay and whether future funding would be reduced.
Khaw Boon Wan explained that the Government fully funded the Gardens' development and currently covers 50% of annual operating expenses for outdoor gardens, with other costs recovered from admissions, commercial activities, and sponsorships.
The Government will continue to review the funding framework as the Gardens is still in its initial years of operation to ensure it meets its objectives as a national public garden.

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