Economy & business — Topics

9 Jul 2013

Implementation of Cultural Donation Matching Fund

Janice Koh asked for an update on the Cultural Donation Matching Fund, how to ensure it attracts new sponsorships rather than replacing existing ones, whether its guidelines will match those of the National Arts Council, and if donations from April 2013 will be recognized.
Lawrence Wong explained that consultations with stakeholders and an online public exercise are underway, with the fund intended to signal shared responsibility and encourage new donations, as art groups see opportunities to tap new giving sources.
The fund will have its own governance guidelines based on references from existing ones like the National Arts Council, and while finalization is on track within months, it will not be backdated to April 2013.

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9 Jul 2013

Financial Literacy among Elderly Singaporeans

Ms Tan Su Shan questioned the Prime Minister on the progress of financial literacy among the elderly since MoneySENSE was introduced and the effectiveness of the Mental Capacity Act in protecting those unable to make sound financial decisions.
The Prime Minister cited a 2005 survey showing elderly had basic money management habits but lacked knowledge on financial products, and noted MoneySENSE has since partnered with CPF and other groups to provide educational resources for seniors.
An updated National Financial Literacy Survey is planned for Q4 this year to better understand the financial education needs of the elderly and other population segments.
Over 4,000 Lasting Powers of Attorney have been appointed since 2010, with about 70% by those older than 55, and the Public Guardian monitors these appointments with most decision-makers discharging their duties well.
The government will continue to support financial literacy initiatives for the elderly and ensure protections under the Mental Capacity Act remain effective.

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9 Jul 2013

Use of Past Reserves since 2002

Mrs Lina Chiam asked how many times past reserves have been used for all purposes since 2002, following a media report on their use for Selective En-bloc Redevelopment Scheme (SERS) projects.
Tharman Shanmugaratnam explained that past reserves are accessed through the Net Investment Returns Contribution for annual spending, and used for land projects like reclamation and SERS, which convert reserves into state land without a drawdown.
Since 2002, past reserves funded 23 land reclamation and underground space projects and 32 SERS-related land acquisition projects, with the land and any future sale proceeds remaining part of past reserves.
In exceptional crises, such as the 2009 global recession, past reserves can be drawn down with parliamentary and presidential approval, as was done for the Jobs Credit Scheme, with the amount later fully repaid.
Any use of past reserves follows strict principles to ensure sustainability, with actual drawdowns limited to extraordinary circumstances and requiring high-level consents.

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9 Jul 2013

Expanding Use of MediSave for Scans and for Elderly Patients

Er Dr Lee Bee Wah asked whether the healthcare financing review would consider expanding MediSave use for outpatient CT and MRI scans and ensuring retirees can use the system for outpatient services without cash.
Minister Gan Kim Yong noted current MediSave limits for outpatient scans related to cancer and chronic diseases, and said the review is exploring ways to reduce cash outlay for outpatient treatments, especially for the elderly, while balancing affordability and preservation of MediSave for hospitalisation bills.
Er Dr Lee Bee Wah pressed for a timeline on the review completion, citing residents' concern over high scan costs.
Minister Gan Kim Yong explained the review is complex, covering MediFund, MediShield, MediSave, and subsidies, and aims to balance affordability, prudent use, and incentives for healthy living; he assured that measures will be announced progressively when ready.

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9 Jul 2013

Award of Contracts for City Direct Public Bus Services

Mr Teo Siong Seng questioned whether the tender for City Direct bus services should exclude companies related to public transport operators to ensure fair competition and better utilize private sector resources.
The Minister for Transport responded that all private bus operators, including those related to public transport operators but with separate management, are allowed to participate if they meet tender requirements and can provide competitive and good service.
Mr Teo expressed concern that companies like ComfortDelGro, though separately run, are linked to public transport operators and have an unfair advantage due to their resources and parent company connections.
The Minister reassured that the tender evaluation process is fair, focusing on operators' ability to fulfill service commitments, financial standing, and delivering improved bus service levels.
The debate centered on balancing inclusivity of private operators with ensuring a level playing field in the Bus Service Enhancement Programme.

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9 Jul 2013

Progress of ASEAN Framework Agreement on Services

ASEAN has completed eight out of ten packages of services liberalisation under AFAS, with the ninth and tenth packages targeted for completion by end-2013 and 2015 respectively, demonstrating full commitment to the deadline.
Singapore has committed to open 71 sub-sectors across 10 services sectors for complete foreign equity participation as part of the eighth AFAS package.
Mutual Recognition Agreements (MRAs) for professionals fall under separate negotiations for the movement of natural persons (Mode 4) and are not currently covered under AFAS, with selective MRAs granted so far.

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9 Jul 2013

Rate-rigging Activities at Banks in Singapore

Monetary Authority of Singapore imposed additional statutory reserves and censured 20 banks for governance failures after 133 traders attempted to influence key financial benchmarks, but found no conclusive evidence of actual benchmark manipulation or senior management awareness.
MAS defended the reserves penalty as proportional to Singapore’s smaller market size and aligned with international actions, noting criminal prosecution was impossible due to insufficient evidence and lack of specific laws against benchmark rigging, though legislation will be strengthened.
Banks will implement remedial measures and industry-wide improvements to benchmark governance, but individual traders face employer-led sanctions like termination rather than consistent MAS penalties, with reference checks to deter future misconduct.

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8 Jul 2013

Vacant Private Properties Owned by Singaporeans and Foreigners

Baey Yam Keng asked for the current number of private properties owned by Singaporeans and foreigners that have been vacant for over a year and the districts where these units are concentrated.
Khaw Boon Wan replied that the Ministry does not have the requested data, noting the tax authority does not track property vacancy duration as property tax applies regardless of occupancy.

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8 Jul 2013

Sectoral Median Monthly Wages and Wage Shares vis-a-vis Those in Developed Economies

Singapore's wage share of GDP averaged 41.5% from 2007 to 2011, lower than most developed economies which were typically at 50% or more, while its real median income was higher than Germany and the UK but lower than the US.
In the biomedical, general manufacturing, and accommodation and food services sectors, Singapore's average wages and wage shares were comparable or lower than developed economies, with no comparable data for the biomedical cluster.
Singapore's labour productivity growth from 2007 to 2011 was slower than many developed economies but outpaced them over 2002–2011, while median wage growth was faster than in most developed economies during 2007–2011.

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8 Jul 2013

Measures to Prevent Negative Impact of Haze on Efficiency in the Services Sector

The Ministry highlighted ongoing initiatives since 2012, such as the Job Flexibility for Productivity programme, to improve manpower quality and operational efficiency in the tourism sector.
The Singapore Tourism Board is investing up to $265 million from its Tourism Development Fund to support skills upgrading, technology adoption, and business process enhancements across tourism industries.
While the current haze has not significantly impacted the overall tourism sector, the Ministry is actively monitoring the situation and working with stakeholders on contingency plans for potential medium-term effects.

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8 Jul 2013

Avenues for Public to Report Profiteering from Sale of N95 Masks by Retailers and Individuals

The public can report profiteering on N95 masks through the Retail Price Watch Group (RPWG) website, which monitors excessive price increases and anti-competitive behaviour.
Reports of unfair trading practices can be made to the Consumers Association of Singapore (CASE), with substantiated cases referred to the Competition Commission of Singapore (CCS) for investigation.
The Government will take action against retailers or individuals engaged in profiteering based on reports submitted through these channels.

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8 Jul 2013

Update on Review of Section 328(2) of the Companies Act on Workers' Salary Claim Limits

Patrick Tay Teck Guan asked for an update on reviewing Section 328(2) of the Companies Act to raise the salary claim limit for workers from insolvent companies in line with rising median salaries.
Tharman Shanmugaratnam stated the current cap is five months’ salary or $7,500, whichever is lower, and that the review aims to balance employee and creditor rights while considering international practices.
The Ministry of Finance will consult tripartite partners and seek public feedback on proposed changes to the section by September this year.

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8 Jul 2013

Measures to Prevent Money Laundering and Tax Evasion in Transactions in High-End Artwork, Precious Stones and Metals

Foo Mee Har asked about measures to prevent money laundering and tax evasion in high-end art, jewellery, watches, precious stones, and metals in Singapore.
Teo Chee Hean stated that such transactions are regulated under the Corruption, Drug Trafficking and Other Serious Crimes Act, requiring professionals to report suspicious transactions.
The Commercial Affairs Department has conducted workshops to raise industry awareness of these anti-money laundering measures.

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8 Jul 2013

Average Length of Time Stocks Listed on Singapore Exchange Held by Individuals and Institutional Shareholders

Assoc Prof Tan Kheng Boon Eugene asked for the average holding period of SGX-listed stocks by individual and institutional shareholders, as well as the percentage of stocks held by individuals per decade from 1990 to 2009.
Tharman Shanmugaratnam, for the Prime Minister, stated that based on CDP records from 2007 to 2011, individual investors held stocks for an average of around 10 months, increasing from about six months in 2007 to around 10 months in 2011.
During 2007 to 2011, individual investors accounted for approximately 25% of stock holdings on the SGX, while data for earlier decades was not provided.
The average holding period for institutional investors is unavailable because they typically hold shares through custody or omnibus accounts, not directly with CDP.
The CDP maintains records for six years, and data for 2012 was still being processed at the time of the response.

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8 Jul 2013

Financing Arrangements for Changi Motorsports Hub Project

The Ministry explained that the Changi Motorsports Hub was always intended as a fully private commercial venture, unlike the public-private partnership model used for the Sports Hub, and the project was terminated because the winning bidder failed to secure financing after paying for the land.
The Singapore Sports Council (SSC) incurred no direct costs beyond standard tender expenses, with any post-termination site costs to be deducted from the eventual partial refund to the defaulting bidder, SG Changi.
After reassessing market interest, the Government concluded that providing public subsidies or concessions for the project was not a good use of public funds, given its limited community impact and commercial nature.
The Government has learned to be more cautious in evaluating the financial strength and potential financing challenges of bidders in future tenders to prevent similar occurrences.

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8 Jul 2013

Impact of S Pass and Employment Pass Tightening Measures on Singapore's Attractiveness as Location for Companies' Regional Headquarters

Ms Tan Su Shan asked whether studies have been done to assess the number of multinational corporations (MNCs) using Singapore as a regional headquarters and how tightening S Pass and Employment Pass policies might affect their executive training and relocation decisions.
Minister Lim Hng Kiang cited a 2010 survey showing 44% of MNCs with Asia Pacific headquarters are in Singapore, attributing this to the country's open economy, infrastructure, talent, and connectivity, rather than just training programmes.
While tightening foreign worker policies could pose challenges, the Minister believes MNCs are unlikely to relocate solely due to training programme disruptions, and ongoing engagement with MNCs shows continued confidence in Singapore's strategic advantages.
Investment forecasts from the Economic Development Board reflect sustained confidence, with $11-$13 billion in fixed asset investments expected for 2013.

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8 Jul 2013

Decline in Singapore's Economic Competitiveness Ranking

Seah Kian Peng questioned the Ministry for Trade and Industry on steps to arrest Singapore’s decline in the 2013 IMD World Competitiveness ranking and safeguard economic growth, job creation, and wage growth for Singaporeans.
Lim Hng Kiang explained that Singapore dropped one spot to fifth due to weaker performance in Economic Performance and Business Efficiency, driven by low GDP growth, rising unit labour costs, and perceptions of skilled labour scarcity amid a tight labour market.
Despite the ranking fall, Singapore remains attractive for business, with strong institutional rankings, high investor interest, and increased job creation for Singaporeans in 2012.
The government will continue restructuring the economy towards productivity-driven growth, committing funds from the National Productivity Fund and introducing the Quality Growth Programme, including a $5.3 billion Transition Support Package, to help companies upgrade and manage costs.

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8 Jul 2013

Encouraging Companies to Adopt Recommended Pay Increment for Low-Wage Workers

The Ministry of Manpower is working with tripartite partners to promote the adoption of the National Wage Council's recommendation for a $60 monthly wage increase for workers earning below $1,000.
In the previous year, 30% of employers gave at least $50 in wage increases to these low-wage workers, which was seen as a positive start, and efforts are underway to encourage more employers to follow the full recommendation this year.
The government, as the largest employer, has committed to providing additional wage increases for lower-grade civil servants and will include wage compliance as a consideration in government tenders to encourage contractors to adopt good wage practices.

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8 Jul 2013

Tote Board's Revenues and Donations

Between FY07 and FY11, the Tote Board had total surpluses of $3.4 billion, averaging $680 million annually for donations.
The Board approved an average of $572 million in donations per year during this period, which is about 84% of its annual available revenue.
As of 31 March 2013, the Tote Board had about $3.6 billion in available funds, which can cover its outstanding commitments of $2.3 billion.
Donation amounts vary yearly based on the evaluation of meritorious projects and community proposals.
The annual breakdown of donations and revenues is available in the Tote Board's reports and on its website.

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8 Jul 2013

Discontinuation of NYU@NUS Law Programme

The NYU@NUS Dual Degree Master of Laws programme, established in 2007, is being discontinued after its 2014 cohort due to high costs and regulatory risks concerning the New York bar examination, with NUS and NYU mutually agreeing to conclude it.
The Singapore Economic Development Board provided $5.3 million in grants to date, with an additional $2.2 million expected, totaling $7.5 million in government support, which covered about 35% of the programme's costs; no separate government scholarships were offered.
The programme produced 237 graduates, including nine Singaporeans and three PRs, with about 15% staying in Singapore, and it contributed to legal talent development despite not achieving financial self-sustainability as initially planned.

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