Economy & business — Topics

8 Jul 2013

Impact of Recent Malaysia General Elections on Singapore's Investments

Dr. Lim Wee Kiak questioned the implications of the Malaysian General Election on Singapore, including the impact on Singaporean investments in Iskandar and Malaysia, and the future of the high-speed rail link between Kuala Lumpur and Singapore.
The Minister for Foreign Affairs, K Shanmugam, noted that the election results return Barisan Nasional to power, expected to advance transformation plans, and highlighted strengthened bilateral ties and progress in joint projects like Iskandar Malaysia.
Singapore has seen growing foreign direct investments in Malaysia, with significant commitments in Iskandar Malaysia, and both countries are committed to enhancing connectivity through projects like the High-Speed Rail and Rapid Transit System links.

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8 Jul 2013

Revisions to Financial Assistance Schemes' Payouts

Mary Liew inquired about the frequency of adjustments to financial assistance payouts over the past five years to account for inflation and whether the payouts are sufficient for daily needs.
Chan Chun Sing noted that Public Assistance recipients receive a monthly cash allowance along with additional support, including medical care and community services, with extra help for households with school-going children.
The government has increased cash assistance rates three times in the last five years (2009, 2011, 2013) and introduced extra tiers in 2013 for special needs like healthcare and hygiene items to help recipients cope with rising costs.
These adjustments aim to address inflation and evolving needs, with ongoing reviews planned to keep financial assistance relevant and effective for emerging trends.

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8 Jul 2013

Curbing Profiteering Activities during Occurrence of Haze

Members of Parliament raised concerns about profiteering and price spikes for essential goods like N95 masks during the haze, asking for stronger legislative or advisory measures to prevent hoarding and ensure fair prices.
The Senior Minister of State for Trade and Industry explained that the Control of Essential Supplies Act exists to manage crises but was not invoked during the short haze period, with the government instead releasing stockpiles and relying on existing bodies like the Retail Price Watch Group and CASE to monitor prices and handle complaints.
The government emphasized that the market generally self-regulates, but lessons from the haze will be considered for improving supply logistics and possibly issuing advisories on fair pricing, though officials cautioned against heavy-handed intervention in a free market.

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13 May 2013

Tax Exemption Scheme for Donations to National Monuments

Over the last five years, 12 owners or tenants of National Monuments have used the Tax Exemption Scheme, raising about $4.5 million in donations and receiving about $10.5 million in tax exemptions, with notable beneficiaries including the Cathedral of the Good Shepherd, Siong Lim Temple, Sri Mariamman Temple and Abdul Gafoor Mosque.
The National Monuments Fund, launched in 2008, has disbursed $3.6 million to date to assist owners with restoration or extraordinary repair costs beyond normal maintenance.
The Preservation of Monuments Board promotes both schemes through annual tea sessions, periodic monitoring, and site inspections, and also provides non-financial assistance such as technical advice on restoration works and general guidance on fundraising and coordination.

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13 May 2013

Foreign Worker Quota for the Construction Sector

Assoc Prof Fatimah Lateef asked if the foreign worker quota for construction projects should be based on the year the project is awarded rather than the year it starts.
The government has progressively reduced the Man-Year Entitlement (MYE) since 2010 to promote productivity-led growth, with reductions applying only to applications lodged after each cut to encourage quicker industry response.
The quota changes were phased over four years, and the Dependency Ratio Ceiling was not reduced to ensure completion of key infrastructure projects, while supporting the sector’s transformation through assistance schemes and technology adoption.

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13 May 2013

Cost of National Electronic Health Records (NEHR) System

Gerald Giam asked about the total amount spent to date on the NEHR system, the additional funding needed to complete it, and the annual maintenance costs.
Minister Gan Kim Yong stated that $172 million has been spent on NEHR Phase 1 so far and that the total investment depends on the healthcare sector's needs as the 10-year program continues.
The Minister noted that MOH is currently gathering stakeholder feedback for the next phase and that the system's annual maintenance costs are about $20 million.

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13 May 2013

Healthcare Spending and Funding Sources

Gerald Giam asked the Minister for Health to provide healthcare spending breakdown for the last 10 years across nine funding sources including government subsidies, MediSave, MediShield, ElderShield, MediFund, private and employer insurance, other employer benefits, out-of-pocket cash, and other funding.
Gan Kim Yong explained that National Health Expenditure (NHE) covers inpatient and outpatient care, primary care, long-term nursing, health products, traditional medicine, and spending by both residents and foreigners.
From 2002 to 2011, NHE grew at an average of 9% per year, while Government Health Expenditure (including Medifund, Medisave withdrawals, and MediShield claims) grew faster at over 11% annually.
In 2011, ElderShield payouts were $10 million and are expected to rise with population aging, while Integrated Shield Plans paid out about $0.2 billion.
The remainder of funding includes private medical insurance, employer benefits, Civil Service medical benefits, charitable donations, and out-of-pocket payments, including by foreign medical tourists.

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13 May 2013

Tax Allowances under Mergers and Acquisitions Scheme

Mr Yee Jenn Jong inquired about the utilization of tax allowances under the M&A scheme by 42 companies in 2011 and 2012 and whether the scheme would be enhanced to better support small and medium enterprises.
Deputy Prime Minister Tharman Shanmugaratnam noted that 31 of the 42 companies were small firms with annual revenue up to $50 million, confirming the scheme's target audience.
The number of companies using the scheme doubled from 2011 to 2012, indicating increased uptake.
The Ministry of Finance regularly reviews the scheme and enhanced it in Budget 2012 with double tax deduction on transaction costs and more flexible acquisition structures.
The government will continue monitoring the M&A scheme's relevance and effectiveness for further improvements.

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13 May 2013

Exposures of Financial Institutions to Home and Real Estate Development Financing

As of March 2013, property-related exposures accounted for 28% of Singapore banks' total outstanding non-bank loans, comprising housing loans (17%) and loans to property developers and construction companies (11%), with over 70% of housing loans for owner-occupied homes.
The government's cooling measures, including stricter loan-to-value caps, have provided buffers for banks, with the average housing loan LTV ratio at 48% as of Q1 2013.
An increase in interest costs can affect financial institutions' net interest margins and loan quality, though current housing loan default rates remain low at below 1%.
The Monetary Authority of Singapore conducts regular stress tests, with the most recent showing all major financial institutions would maintain adequate capital buffers even under adverse scenarios, including a sharp property price correction.
Authorities will continue monitoring the property market closely to prevent bubbles that could harm borrowers and destabilize the financial system.

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13 May 2013

Fluctuations in Prices for Commercial Properties

Lim Biow Chuan inquired whether the recent rise in commercial property prices is expected and if the government plans to address excessive price fluctuations.
Khaw Boon Wan noted that price increases for office and shop space have slowed significantly compared to previous years, with rentals declining, and attributed current price rises to new project launches.
The government stated that the softening rental market and upcoming supply of commercial space should help stabilize prices, and it will monitor the market closely to introduce measures if needed.

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13 May 2013

Financial Support for National Sports Associations to Hire Administrators

There are currently 358 sports administrators working across Singapore's National Sports Associations (NSAs).
Funding for these administrators' salaries totals $16 million annually, representing 50% of direct cash grants to NSAs and about 7% of the total sports operating budget.
The Singapore Sports Council uses its own market benchmarks for budgeting purposes, but individual NSAs set specific salaries, often supplementing them with corporate sponsorship funds.

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13 May 2013

Part-time Workers Seeking Flexible Work

The Government already supports SMEs through sector-specific part-time worker pool programs, such as those in Retail, Food Services, and Hotels, which involve industry associations in training and deployment.
WorkPro has been launched to assist employers in implementing flexible work arrangements, including funding support up to $160,000 per company to help attract and retain employees.
SMEs are expected to comprise 70% of the companies benefiting from WorkPro, addressing challenges they face in adopting flexible work models.

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13 May 2013

Engineering Study for Malaysia-Singapore Rapid Transit System Link

The Singapore Land Transport Authority and Malaysia's Land Public Transport Commission jointly awarded a US$42 million contract to a consortium led by AECOM for an engineering study on the Malaysia-Singapore Rapid Transit System Link.
Seven other companies bid for the contract, with prices ranging from about S$28 million to over S$60 million.
Singapore's share of the S$52.8 million contract is S$26.4 million, split equally with Malaysia.

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13 May 2013

Impact of Property Cooling Measures on Number of Homes Sold and Buyer Profile

Between 12 January and 31 March 2013, about 4,500 new and 1,700 resale private properties were sold, with 76% purchased by Singaporeans, 15% by Permanent Residents, and 9% by foreigners, while 65% of buyers were first-time owners.
The latest cooling measures moderated the property market, with private home prices rising only 0.6% in Q1 2013 compared to 1.8% in the previous quarter, and overall transactions declining due to fewer resale units sold.
Speculative activity decreased as sub-sales fell to 5.6% of transactions in Q1 2013 from 6.9% previously, and the government will continue monitoring the market and act if necessary to ensure stability.

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13 May 2013

Collections and Use of Monies for Madrasah Fund

Between 2006 and 2012, about $7 million was collected for the Dana Madrasah, with $1.04 million disbursed to the six full-time madrasahs in 2012.
Funds are used for teacher and student development, including professional training, remedial lessons, and facility improvements, helping to uplift madrasah education standards.
The fund has contributed to improved PSLE passing rates, rising from 88.2% in 2011 to 91% in 2012.

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13 May 2013

Market Risk Analysis for Specific Sectors

Laurence Lien requested a study on sector-specific risks, including the food and beverage (F&B) sector, with data on loss proportions, business failure likelihood, and accumulated profits or losses upon exit.
Lim Hng Kiang responded that business risks vary by sector and within sectors, with external-oriented sectors more affected by global developments and domestic-oriented sectors like F&B influenced by local factors.
In 2012, net company formation remained healthy across sectors, and the proportion of loss-making firms in key services stayed stable. For the F&B segment, 877 companies ceased operations, a 2.7% decline, while operating receipts and gross operating surplus increased, with 67% of F&B companies recording positive surplus in 2011.
The Government continues to support a business-friendly environment, as evidenced by Singapore's top ranking in the World Bank Doing Business report, and will assist companies in restructuring and productivity improvements.

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13 May 2013

Single Agency for Application of Business Licences

Teo Siong Seng proposed that business licence applications be channelled through a single agency to improve efficiency and reduce costs, instead of requiring submissions to multiple government agencies.
Lim Hng Kiang highlighted Singapore's top ranking in the World Bank's Ease of Doing Business Survey and pointed to existing initiatives like the Online Business Licensing Service (OBLS), which integrates over 80 licences from 17 agencies into a one-stop portal.
The government emphasised its commitment to streamlining e-services through platforms like GeBiz and Web Interface Standards to ensure consistency and user-friendliness across agencies.
It was noted that the Public Service will continue to enhance accessibility and integration of e-services under the eGov Masterplan, moving towards a more cohesive approach for businesses.

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13 May 2013

Impact of Cyprus Banking Crisis on Singapore

Mary Liew questioned the Prime Minister on whether Singapore is affected by the Cyprus banking crisis and asked about safeguards for taxpayers and depositors.
Lawrence Wong replied that Singapore faces minimal direct impact due to negligible exposure and Cyprus's small share in the Eurozone, but vigilance is needed due to contagion risks from Eurozone strains.
He noted Singapore’s financial institutions operate under strong regulation, with the system remaining resilient, liquidity conditions sound, and MAS closely monitoring developments.

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13 May 2013

PMETs' Vulnerability to Retrenchment

Gerald Giam asked why PMETs, especially degree holders, were more vulnerable to redundancy in 2012 beyond general factors like globalization, whether this trend would continue in 2013, and if the government would reduce Employment Pass issuances in response.
Tan Chuan-Jin noted that redundancy among PMETs rose slightly but remained low overall, with increases concentrated in externally oriented sectors like electronics and financial services, and highlighted that unemployment rates for resident PMETs stayed comparable to non-PMETs and lower than in some peer economies.
The government emphasized ongoing support for displaced workers through training and job placement services, a decline in Employment Pass holders in 2012 due to stricter policies, and further reviews of EP eligibility to ensure fair consideration for Singaporeans.

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13 May 2013

Update on Used Cars Industry

Mr Ang Wei Neng asked the Minister for Transport about used car transaction numbers before and after the 2013 financial curb, how many of the 7,000 pre-curb used cars were sold during a temporary 60-day lift, and the number of new cars bought by the physically disabled or their caregivers exempted from the loan curb.
Minister Lui Tuck Yew stated that from August 2012 to January 2013, about 5,000 used cars were sold monthly via the Temporary Transfer Scheme.
As of 7 May 2013, around 3,800 used cars (55% of the 7,000 in stock before the curb) had been sold after the restriction was temporarily lifted from 6 April 2013.
As of 7 May 2013, one application for a loan curb exemption for the physically disabled or their caregivers had been received by MAS, with more expected following the implementation details released on 15 April 2013.

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