Economy & business — Topics

20 Jan 2014

Tuition Grants for International Students

The number and percentage of international students receiving tuition grants in polytechnics and universities have decreased since 2010, with polytechnics at about 6% or 1,700 students and universities at 13% or 2,200 students currently.
The total tuition grant provided to international students is approximately $210 million per year, representing less than 10% of the annual subsidies to tertiary institutions.
International students receiving grants must work for a Singapore-based company for three years after graduation, with most complying and actions taken against those who default.

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20 Jan 2014

Fair Contract Terms for Taxi Drivers

Mary Liew raised concerns about the role of taxis in transport, the fairness of rental rates, and the possibility of a mandatory weekly rent-free day for drivers.
Minister Lui Tuck Yew stated that taxis complement public transport and that rental agreements are private commercial contracts with varying rates based on costs and competition.
The Minister explained that taxi companies already offer rent-free days annually and that flexibility exists through relief drivers, so mandating rest days is unnecessary.
The Ministry encourages taxi companies to improve driver welfare by offering more flexible contract terms.

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20 Jan 2014

Update on Fuel Equalisation Fund

Seng Han Thong asked for an update on the Fuel Equalisation Fund, including its size, utilisation since 1992, and how it fits into the fare review mechanism.
Lui Tuck Yew stated that the Fund was established in 1992 to help public transport operators manage fuel price fluctuations, with about $25 million drawn down and a current balance of around $60 million.
The Fare Review Mechanism Committee recommended adding an Energy Index component to the fare formula, which the Government accepted, and the Public Transport Council will review the need for the Fund in due course.

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20 Jan 2014

Overseas Expansion by Local SMEs

SMEs' internationalisation is robust, with half reporting overseas revenue in 2013 and a growing trend to enter new markets like the Philippines, Myanmar, and Brunei.
Nearly 24,000 companies, mostly SMEs, sought assistance from IE Singapore in 2013, a 60% increase from 2012, using schemes like the Global Company Partnership and Market Readiness Assistance.
While comprehensive data on offshoring is not available, feedback indicates many SMEs are exploring regional production models to leverage lower-cost locations while keeping key functions in Singapore.

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20 Jan 2014

Employment and Employability of Seniors

David Ong proposed removing the statutory retirement age and restoring full CPF contributions for workers over 50 to empower seniors and address age discrimination, emphasizing that longer lifespans and a tight labour market make their continued employment both economically sensible and personally beneficial for financial security and well-being.
Dr Amy Khor, representing the Ministry of Manpower, defended the existing re-employment framework under the Retirement and Re-employment Act as a balanced approach that protects workers while giving employers flexibility, noting high re-employment rates and gradual progress in restoring CPF contributions without harming older workers' employability.
Both speakers highlighted the need to redesign jobs, enhance schemes like WorkPro and the Special Employment Credit, and shift societal attitudes to view older workers as assets, ensuring fair compensation and active ageing for Singapore's ageing population.

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20 Jan 2014

Impact of Growth of Moneylenders

MPs expressed concern over the rapid growth of licensed moneylenders in heartlands, the risk of over-indebtedness, and aggressive marketing, asking if measures like caps on outlets and higher age limits could protect vulnerable borrowers.
The Ministry of Law highlighted existing safeguards, including interest rate caps for low-income earners, licensing criteria, and advertising rules, while noting that loans from licensed moneylenders constitute a small share of the consumer credit market.
The Ministry is reviewing whether to extend interest rate caps to higher-income borrowers, cap late payment fees, limit the number of moneylenders in heartlands, and consider regulatory oversight by the Monetary Authority of Singapore.
MPs also called for support systems to help borrowers deleverage and for alignment of borrowing age limits with banks, with the Ministry affirming these points will be included in ongoing reviews.

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20 Jan 2014

Exemption on Telemarketing Messages under Do Not Call Regime

MPs raised concerns about the exemption allowing businesses to send telemarketing SMS/fax to existing customers without checking the Do Not Call Registry, questioning the definition of “ongoing relationship,” privacy balance, and enforcement clarity.
The Senior Minister of State explained the exemption was introduced after public consultations to allow limited in-service telemarketing messages (e.g., telecom updates with promotions) only if there is an ongoing relationship, message relevance, and an opt-out option, aligning with international practices.
The government emphasized extensive outreach to businesses and consumers, and the PDPC will investigate and enforce breaches, with no cases yet involving abuse of the exemption.

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12 Nov 2013

Impact of Tightened Foreign Workers Inflow on Arts and Creative Industries

Ms Janice Koh raised concerns about how tightened foreign worker inflows affect the talent pool for arts and creative industries, and suggested policy refinements for modest pay scales and freelance work, as well as a special pass for foreign arts graduates.
The government explained that foreign workforce policies aim to drive productivity and are applied consistently, using fixed monthly salary as a key criterion for work pass eligibility to ensure quality and economic contribution.
While acknowledging the unique challenges in the arts sector, the government noted that flexibility for specific arts professionals is considered case-by-case with support from the National Arts Council.

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12 Nov 2013

Easing the Cost of Healthcare for Singaporeans

Gerald Giam highlighted that high out-of-pocket medical costs worry many Singaporeans, especially the elderly, and proposed premium subsidies for vulnerable groups, an annual cap on out-of-pocket payments, and better use of technology to improve care coordination.
Gan Kim Yong acknowledged rising healthcare costs and the need for Government support, outlining a multi-pronged approach including subsidies, risk-pooling through MediShield Life, and a Pioneer Generation Package to help seniors with premiums.
The Minister emphasized balancing co-payments to prevent over-consumption while ensuring affordability, and committed to increasing the Government’s share of healthcare costs while managing overall expenditure sustainably.
Both speakers agreed on the need to reform healthcare financing, with Giam calling for greater Government intervention and risk-sharing, and Gan outlining current and future measures to strengthen the system.
The debate concluded with Parliament agreeing to adjourn, reflecting ongoing efforts to ease healthcare costs for Singaporeans.

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12 Nov 2013

Central Provident Fund (Amendment) Bill

Parliament debated amendments to the Central Provident Fund Act to increase penalties for employers who default on contributions, aligning them with the Employment Act by introducing imprisonment terms and higher fines.
Members raised concerns about retirement adequacy, especially for low-income workers, homemakers, and the self-employed, urging the government to review CPF coverage and support for those outside traditional employment.
Discussions highlighted the need for greater flexibility in CPF withdrawals for members above 55 and for those facing housing loan challenges, with suggestions for staggered transfers and alignment with housing schemes.

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12 Nov 2013

Stabilising Property Prices

Christopher de Souza asked whether cooling measures from 2012-2013 reduced foreign demand and speculation, and what could create a predictable regulatory regime for sustainable property prices.
Minister Khaw Boon Wan confirmed the measures dampened foreign buying and speculation, with foreign purchases falling from 17% to 7% of transactions and sub-sales declining from 7.6% to 4.6%.
Khaw emphasized prioritizing Singaporean home ownership through policies like restricting new HDB flat purchases to citizens and allowing only Singaporeans to buy most landed property.
De Souza asked whether a basket of tools like stamp duties was preferred over restrictive foreign ownership models, to which Khaw replied that managing the market requires multiple measures, as no single solution exists and external global factors influence Singapore’s property market.
Khaw described the approach as both art and science, noting the need for nimble adjustments, and stated that while the situation is improving, continued monitoring is necessary.

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12 Nov 2013

Renewal of Employment Passes for Foreign Workers

R Dhinakaran asked for the number and breakdown of non-renewed Employment Passes in the first half of the year and the industries affected.
The Acting Minister reported that about 2,600 EPs were not renewed, with over half being Q1 Pass holders, primarily in Wholesale and Retail Trade, Professional Services, and Information and Communications, due to tightened qualifying criteria.
Dhinakaran inquired if companies were complaining about the tight labour market and considering relocating, which could hurt local employment.
The Minister acknowledged concerns from both local and foreign firms but emphasized Singapore’s broader competitiveness and the government’s calibrated approach to productivity-led growth.
The overall message stressed the need for tightening foreign labour policies to support a more productivity-focused and manpower-lean economic model.

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12 Nov 2013

Recent Changes to Taxi Fares

Members of Parliament raised concerns about the complexity of taxi fare structures and whether they effectively ensure adequate taxi availability for commuters.
The Minister explained that taxi fares were deregulated to allow companies to respond to market conditions, but acknowledged the current system is confusing and promised efforts to simplify it.
Questions were also raised about the fairness of different fares for different taxi types and the impact of rental agreements on drivers, with the Minister noting these are market-driven issues that require further study.

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12 Nov 2013

Art Pieces Displayed in Public Areas

Ms Janice Koh raised questions about the number of public art pieces placed under the Public Art Tax Incentive Scheme and Art Incentive Scheme for New Developments in Central Area, a yearly breakdown for the last five years, and the availability of a comprehensive public listing including the status and condition of the artworks.
The Acting Minister, Mr Lawrence Wong, responded that since its 2006 launch, five artworks have been placed under the Public Art Tax Incentive Scheme, and from 2005 to 2012, 36 artworks were approved under the Art Incentive Scheme for New Developments in Central Area, with agencies committing to make information public.
Ms Koh followed up with concerns about accountability for artworks during demolition or renovation, the impact of the expired URA scheme, and the potential for enhanced tax incentives or online resources to share best practices.
Mr Wong stated that public agencies (NHB and URA) manage relocated artworks, MCCY is exploring ways to promote more public art through various schemes beyond tax incentives, and the Ministry is open to considering online resources for better information sharing.
The debate highlighted ongoing efforts to encourage public art maintenance and commissioning, with a focus on public accountability, accessibility, and support for artists and developments.

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11 Nov 2013

Impact of Restructuring Policies on Export Competitiveness

Ms Tan Su Shan questioned whether restructuring policies are increasing costs and reducing export price competitiveness, given the decline in non-oil domestic exports despite growth in re-exports.
Minister Lim Hng Kiang attributed the weak non-oil domestic exports to global economic challenges affecting regional economies, with modest recovery expected as global demand improves and export orders rise.
The Minister emphasized that economic restructuring is essential for long-term competitiveness, with phased implementation of foreign worker levies and support schemes like tax credits and training funding to ease business transitions.
Singapore continues to enhance export competitiveness through Free Trade Agreements, with 20 FTAs in force providing tariff concessions and market access advantages.

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11 Nov 2013

More Transparency for Government Procurement

Zaqy Mohamad asked whether the government would increase transparency in procurement by disclosing price-quality ratios in GeBiz.
Tharman Shanmugaratnam explained that construction tenders already specify price-quality ratios, but weighted criteria are not always necessary for simple, cost-driven procurements.
The Ministry of Finance is revising procurement rules to align with the WTO's revised Agreement on Government Procurement, which requires clearer disclosure of evaluation criteria and their relative importance.

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11 Nov 2013

Calling of Restricted Tenders by Government Agencies

The Government Procurement Act and relevant subsidiary legislation, together with Singapore's commitments under the WTO-GPA and FTAs, dictate that a procurement is a "covered procurement" only if it meets three criteria: the procuring entity is covered, the value exceeds the agreed threshold, and the type of procurement is covered, and covered procurements must allow free competition.
Government agencies can call restricted tenders only under specific permitted scenarios outlined in the Government Procurement Regulations (Annex A), such as when no tenders are received, for R&D projects, or for reasons of technical exclusivity, and such tenders are not confined to any particular industry.
Over the past five years, about 80% of all awarded tenders were conducted via open procurement, and the recent HDB tender for next-generation roofing systems was a restricted R&D tender under the Co-Innovation Partnership programme, which is not covered by international obligations as R&D procurement is generally excluded.

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11 Nov 2013

Small and Medium Enterprises

Mr. Yee Jenn Jong asked for specific percentages regarding SME credit compared to other countries, breakdowns by SME size, mortgage equity withdrawal loans, and total capital invested by private investors.
Tharman Shanmugaratnam responded that Singapore SMEs accounted for 27% of total business credit in 2012, lower than Taiwan, Japan, and South Korea but higher than several advanced economies, with differences partly due to varying definitions of SMEs.
He noted that 15% of SME loans were mortgage equity withdrawal loans but highlighted the lack of data on credit by SME size or total capital from private investors, while mentioning government schemes like SPRING’s financing programs to support SMEs.

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11 Nov 2013

Impact of Schemes to Monetise HDB Flats for Retirement Adequacy

The CPF Board conducts outreach through talks, events, and online platforms to educate members on retirement planning and tools like the Minimum Sum Topping-up Scheme.
The government has launched the Enhanced Lease Buyback Scheme and Silver Housing Bonus to help elderly Singaporeans unlock home value for retirement, but acknowledges these may not be preferred by those with sufficient savings or family support.
Efforts are ongoing to improve public messaging and member education, encouraging early retirement planning and prudent home financing to ensure adequacy.

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11 Nov 2013

Electric Vehicles in Singapore

Hri Kumar Nair inquired about the Ministry of Transport's plans to promote electric vehicles in Singapore.
Lui Tuck Yew noted that while EVs are cleaner and more energy efficient, their upfront and life cycle costs remain higher than conventional vehicles even with tax waivers under TIDES-PLUS.
The government is monitoring EV technology and costs, with a multi-agency taskforce conducting a limited-scale test-bed that will end on 31 December 2013 to gather data for future policies.

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