Economy & business — Topics

16 Sep 2013

CPF Housing Withdrawal Limit

Mr Ong Teng Koon questioned if the 120% CPF Housing Withdrawal Limit is adequate for typical housing loans and how low-income families with limited CPF savings can fully finance their housing when the limit is reached.
The Ministry clarified that the Valuation Limit is based on the lower of the purchase price or property value, with a Withdrawal Limit set at 120% of this limit, and that using CPF beyond the Valuation Limit requires setting aside half the Minimum Sum.
The Ministry noted that most CPF members prudently plan their housing purchases within these limits, and only a very small fraction of members encounter issues with these caps, with flexibility granted in deserving cases.

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16 Sep 2013

Special Employment Credit Scheme

Employers benefiting from the Special Employment Credit scheme span industries including wholesale and retail, manufacturing, healthcare, and social services, with wholesale and retail forming the largest group.
Senior workers employed through the scheme are primarily cleaners, labourers, service and sales workers, as well as clerical support workers and plant or machine operators.
Over 90% of workers who benefited from the scheme in the first half of 2012 remained in employment one year later, and more than 85% continued in the same industry.

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16 Sep 2013

Effects of the Recent Property Cooling Measures

Ms. Tan Su Shan raised concerns about whether the recent property cooling measures could overshoot and cause a prolonged downturn for homeowners, especially after emerging market collapses and investment outflows.
Minister Khaw Boon Wan stated that the measures aim to stabilize the property market by discouraging speculation and promoting prudent buying, noting that demand and price growth have eased but the market remains robust.
Khaw emphasized that with interest rates still low, the cooling measures are necessary to prevent a major price correction when economic conditions change, highlighting risks from normalizing rates to borrowers and the economy.
He acknowledged that external economic developments impact Singapore's property market and committed to continuously monitoring the situation and reviewing the measures as conditions evolve.

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16 Sep 2013

New Growth Areas to Support the Singapore Economy

The Ministry of Trade and Industry conducts regular economy-wide and industry-level reviews to identify future growth areas, such as the 2011 Economic Strategies Committee report and current EDB initiatives in data analytics, biologics, and a Future of Manufacturing plan.
The government invests in Continuing Education and Training programs like STEP for professionals and Workfare Training Support for lower-wage workers to develop skills for new industries.
Economic agencies partner companies and educational institutions to create targeted training curricula, such as the STRAT programme, which has trained 485 locals since 2008 in emerging fields like cell therapy and nanotechnology.

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16 Sep 2013

Incentive Schemes to Promote SME Exports

Chen Show Mao inquired whether current SME incentive schemes reward increases in firm-level export intensity and if not, whether the Ministry would consider using export-intensity ratios as a key performance indicator to promote SME exports.
Lim Hng Kiang responded that while IE Singapore offers customized assistance for SME internationalization, current schemes do not target firm-level export intensity due to WTO rules prohibiting subsidies conditional on export performance.
The Ministry emphasized that Singapore’s incentive programs must comply with international trade agreements, which restrict the use of export-linked metrics to avoid prohibited subsidies.

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16 Sep 2013

Tax Concessions Given to Foreign Nationals or Entities through Free Trade Agreements

Deputy Prime Minister Tharman Shanmugaratnam stated that under the US-Singapore and Singapore-European Free Trade Association FTAs, foreign nationals from specific countries receive tax treatment equal to Singaporeans on residential property purchases, including ABSD exemptions.
From December 2011 to July 2013, 252 residential property transactions by foreign individuals were granted ABSD remission under these FTAs, totaling $81.2 million in exempted duties, representing about 1.5% of all ABSD-attracting transactions.
No foreign entities enjoy ABSD remission, and ongoing FTA negotiations like the Trans-Pacific Partnership will balance Singapore’s benefits with any concessions offered.

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16 Sep 2013

Measures against Credit Card Debts

Mary Liew asked for the number of Singaporeans under 35 seeking help for credit card debt and whether preventive measures exist, with Tharman Shanmugaratnam responding that about 31% of those seeking help from Credit Counselling Singapore in early 2013 were under 35, while default rates are low across all ages but caution is still needed.
The Monetary Authority of Singapore (MAS) imposes income-based eligibility for credit cards, caps unsecured credit at four months’ income, requires credit bureau checks, and has introduced an industry-wide aggregate cap limiting unsecured borrowings to 12 months’ income after 90 days to discourage prolonged reliance on credit.
Additional measures prevent granting further credit to individuals with debts more than 60 days past due, complementing existing rules, while MAS emphasizes personal responsibility and runs the MoneySENSE programme to educate Singaporeans on prudent financial management.

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16 Sep 2013

Taxi Booking Fees

Mrs Lina Chiam questioned the necessity of taxi booking fees, suggesting their removal could discourage drivers from gaming the system and encourage more road plying.
The Minister defended the booking fee as necessary to cover the opportunity cost for drivers who commit to a booking and cannot accept other jobs during that time.
The Ministry highlighted existing regulations to prevent system manipulation, including centrally controlled "On Call" signs and penalties for drivers who refuse passengers.
To ensure taxi availability, LTA has introduced standards requiring a high percentage of taxis on the road during peak periods and minimum daily mileage.
The Ministry assured it will continue working with taxi companies to maintain high service standards for commuters.

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16 Sep 2013

Wage Increase Component for Low-Income Earners

Png Eng Huat inquired about the proportion of low-income workers earning $1,000 or less who received the $50 wage increase recommended by the National Wages Council in 2012.
Tan Chuan-Jin stated that six in ten private establishments gave or decided to give wage increases to workers earning up to $1,000.
Of these establishments, three in ten provided at least a $50 built-in wage increase to this group of workers.
Additionally, 35% of long-tenured full-time resident employees in this income bracket received built-in wage increases of at least $50.

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16 Sep 2013

Exempting Taxis from ERP Charges for Admission into Central Business District

Mrs Lina Chiam asked if empty taxis could be exempted from ERP charges to encourage them to enter the Central Business District (CBD) to pick up passengers.
Minister Lui Tuck Yew stated that taxis are subject to ERP charges as they contribute to congestion, and existing measures like the City Area Surcharge and reimbursements for empty taxis during peak periods aim to incentivize CBD entry.
The government will monitor taxi supply and demand in the CBD and refine policies as needed to ensure a good match.

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16 Sep 2013

Economic Cost of Haze Occurrence in June 2013

R Dhinakaran questioned whether the Singapore Government had calculated the economic cost of the June 2013 haze and any productivity losses from employees being unable to work effectively.
Ng Eng Hen, speaking for the Prime Minister, acknowledged adverse economic impacts, particularly on tourism and outdoor-dependent sectors, noting past haze episodes like in 1997 cost up to S$318.6 million.
He added that the 2013 haze was shorter due to early alert to Indonesia and favourable winds, limiting absenteeism and business disruptions, though polyclinics saw increased haze-related visits.

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16 Sep 2013

Jurong Town Corporation (Amendment) Bill

The bill aims to amend the Jurong Town Corporation Act and make related changes to the Urban Redevelopment Authority Act to modernize the legal framework for industrial development.
The Minister for Trade and Industry presented the bill, which was read for the first time and scheduled for a second reading in a future parliamentary sitting.
The amendments are intended to enhance the efficiency and flexibility of industrial land and property management in Singapore.
The debate focused on the necessity of updating existing legislation to support economic growth and industrial transformation.
The bill was introduced to ensure that the legal provisions align with current and future industrial development needs.

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16 Sep 2013

Income Tax (Amendment) Bill

The Income Tax (Amendment) Bill seeks to amend the Income Tax Act and make a consequential amendment to the Economic Expansion Incentives (Relief from Income Tax) Act
The bill was presented by the Senior Minister of State for Finance Mrs Josephine Teo with the recommendation of the President signified
The bill received its First Reading and was scheduled for Second Reading at the next available sitting of Parliament

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16 Sep 2013

Property Tax (Amendment) Bill

The Property Tax (Amendment) Bill was introduced to amend the Property Tax Act, with the proceedings presented by the Senior Minister of State for Finance, Mrs Josephine Teo.
The bill received its First Reading in Parliament and was scheduled for a Second Reading at the next available sitting.
The debate included the recommendation of the President's signified consent as part of the legislative process.

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16 Sep 2013

Impact of Potential Rising Interest Rates on Singapore Economy

Arthur Fong raised concerns about the impact of rising US interest rates and quantitative easing tapering on Singapore's export outlook and domestic growth, and how SMEs can cope with higher costs and changing demand.
The Minister for Trade and Industry Lim Hng Kiang responded that while a disorderly tapering poses low-risk, domestic interest rates will rise with global normalization, increasing borrowing costs for SMEs, and the government will focus on helping SMEs enhance capabilities and productivity rather than artificially lowering borrowing costs.
Lim Hng Kiang also noted that SPRING supports SMEs through loan schemes to ensure credit accessibility, but emphasized that businesses must prepare for the eventual rise in interest rates.
Liang Eng Hwa asked about potential capital inflows from Japan's quantitative easing and competitive currency devaluation in Asia, to which Lim Hng Kiang replied that global monetary policies are tightening overall, and SMEs need to adapt to the normalization of interest rates.

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16 Sep 2013

GST Levied on Taxi Rentals

Ang Hin Kee questioned the GST on daily taxi rentals and requested a review or removal to alleviate drivers' financial burdens.
The Ministry of Finance explained that GST is applied broadly to keep rates low, but offered to collaborate with taxi associations to explore options for better GST cost recovery.
Ang Hin Kee expanded the discussion to include a $5,100 annual diesel tax levy, suggesting it be reviewed due to advancements in vehicle efficiency.
The Ministry noted the diesel tax is already a concession compared to volumetric fuel taxes and has remained unchanged since 1998, advising a separate question for further details.

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16 Sep 2013

COEs for Commercial Vehicles

Ang Wei Neng questioned the Minister for Transport about the number of commercial vehicles replaced under the Early Turnover Scheme for Cat C vehicles between April and August 2013 and proposed measures to assist owners with high COE prices.
The Minister for Transport reported that 101 commercial vehicles were replaced under the scheme, with increased interest in August, and highlighted the Budget announcement allowing five-year Cat C COE renewals, which has been widely adopted by 96% of renewals.
Ang Wei Neng thanked the Minister and suggested enhancing the Early Turnover Scheme to make it more attractive and splitting Cat C COEs into categories based on vehicle weight to support small and medium enterprises.
The Minister acknowledged the suggestions, noted feedback on the Early Turnover Scheme would be considered, and stated the Ministry would review the Cat C COE categorization to address concerns about smaller commercial vehicles being disadvantaged.

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16 Sep 2013

Income Threshold for GST Voucher

Lee Li Lian questioned why the $24,000 Assessable Income (AI) threshold is used for the GST Voucher – Cash, whether it will be reviewed for inflation, and if basic annual salary could be used instead to determine eligibility.
The Senior Minister of State for Finance explained that the AI threshold targets the bottom 40% of earners and includes other income sources for fairness, with annual reviews to account for income changes.
In a supplementary question, Lee Li Lian suggested using basic salary with a cap on AI multiples to better include low-income workers, but the Ministry noted it will consider this during the next threshold review.
The Ministry also highlighted that only the GST Voucher – Cash uses AI, while other components like U-Save and MediSave do not, and that additional support is available through other schemes.

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12 Aug 2013

Estimated Budget for Hosting the 28th Southeast Asian Games in June 2015

Assoc Prof Tan Kheng Boon Eugene asked for the estimated budget and measures to prevent overruns for Singapore's hosting of the 28th SEA Games in June 2015.
Lawrence Wong stated that the budget is not yet finalised as the SEA Games Federation will finalise plans after the 2013 Games in Myanmar, and he will inform Parliament once the budget is set.
To avoid overruns, SINGSOC will tightly monitor areas like venue construction, event organisation, and IT, and work with stakeholders to define service levels and control costs.
SINGSOC will plan ahead, leverage existing sports facilities, bring forward procurements, and actively seek corporate sponsorship to help manage expenses.
The overall goal is to keep the costs under control and ensure the success of the Games through close coordination with the Singapore National Olympic Council and the SEA Games Federation.

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12 Aug 2013

Establishment of Fund for Childcare Operators

Ang Hin Kee proposed a fund similar to Australia’s to help childcare operators raise wages and retain educators.
The Ministry highlighted existing initiatives like scholarships, professional pathways, and training frameworks to support educators.
The Early Childhood Development Agency is studying HR and pay practices to determine further steps on wages and retention.
The Ministry mentioned ongoing efforts including enhancing scholarships, structured mentoring, and collaboration with employers and unions.

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