Economy & business — Topics

13 May 2013

Funds for Youth Expedition Project Scheme

Dr Janil Puthucheary asked about the fund utilization, number of Youth Expedition Projects supported, and future funding plans for the Youth Expedition Project scheme over the past five years.
Lawrence Wong responded that about 95% of the allocated funds were used, supporting around 900 projects, which benefited over 1,700 youth leaders and 18,000 youths, with an average of 40 more projects added each year.
He noted that the National Youth Fund will be reviewed to possibly allocate more funds and make the programme more accessible to youths in the future.

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13 May 2013

Improving Productivity in Public Sector

The Public Service Division is addressing the challenge of measuring public sector productivity, which involves intangible outcomes like education quality, and maintains a low labour force share of 3.6% internationally.
Key initiatives include using IT and automation, such as the iCollect passport system, to expand service capacity without additional manpower.
Organisational efficiency is being driven through consolidation of responsibilities, like the Department of Public Cleanliness, to achieve economies of scale and better productivity.
Investment in training and upgrading of public sector officers via the Civil Service College ensures skills development and exposure to better working methods.
The Manpower Management Framework by MOF constrains manpower growth in the public sector, incentivising ministries to moderate headcount while delivering better value.

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13 May 2013

Singapore's Investment to Host Women's Tennis Association Championships

Singapore has been selected by the Women’s Tennis Association to host the WTA Championships from 2014 to 2018, a major global event second only to the Grand Slams in stature.
The government estimates the event could generate about S$15 million in annual tourism receipts and provide broader economic and branding benefits for Singapore.
Public agencies will co-fund a portion of the approved costs, citing the event’s potential for local tennis development, community engagement, and international exposure.

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13 May 2013

Extending Use of CPF Monies to Pay for Education in More Institutions

Assoc Prof Fatimah Lateef proposed allowing CPF funds for children's education at institutions like SHATEC, NAFA, and LASALLE.
The Minister responded that the CPF Education Scheme already covers NAFA and LASALLE's fully subsidised courses but not SHATEC, as the primary purpose of CPF is for retirement, housing, and healthcare.
Tin Pei Ling questioned whether more flexibility should be given for non-subsidised courses, suggesting repayment could preserve retirement savings.
The Minister maintained the stance to limit CPF usage to subsidised courses, citing the core purpose of CPF and alternative support options like bursaries.

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13 May 2013

Promoting Awareness for Government's Assistance Schemes for SMEs

The Minister of State highlighted that the government maintains regular communication with SMEs through trade associations, chambers, and the SME Committee, which has led to accepted Budget recommendations and new measures like integrated SME Centres and streamlined application processes.
In response to concerns about low take-up rates and past unpleasant experiences, the Minister emphasized that SME Centres and satellite offices will provide on-the-ground, bilingual hand-holding to help micro-enterprises, including those in heartlands, understand and access schemes.
The Minister acknowledged that while some schemes like the Collaborative Industry Programme require longer-term implementation, efforts are focused on improving awareness and encouraging SMEs to step forward, with a shift from creating new schemes to ensuring effective implementation.

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13 May 2013

Tote Board's $400-million Donation to Gardens by the Bay

Mrs Lina Chiam questioned why the Tote Board donated $400 million to Gardens by the Bay, which charges admission fees, instead of to social services, and asked about the publication of donation details.
The Minister of State for Finance explained that Tote Board's mandate includes supporting cultural and community projects, clarified that the donation was for development costs only, and noted that nearly half of its donations go to social services, with annual reports tabled in Parliament and available online.
Mrs Chiam asked if admission fees from the conservatories would cover maintenance costs, and the Minister responded that the conservatories aim to fully recover operating costs through fees and attendance, with adjustments based on visitor numbers over time.

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8 Apr 2013

Withdrawal of CPF Funds upon Reaching 55 Years of Age

Gan Thiam Poh asked the Acting Minister for Manpower how many Singaporeans have opted not to withdraw CPF funds upon reaching 55 and the percentage out of total CPF members.
Tan Chuan-Jin explained that CPF members must set aside the Minimum Sum in their Retirement Account upon turning 55 and can withdraw excess funds, with about 18% of those who turned 55 in 2012 not withdrawing their excess balances.
He noted that members with balances above the Minimum Sum often keep their money in CPF for the long term, possibly due to attractive CPF interest rates.

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8 Apr 2013

Micro Loan Programme (MLP)

The Micro Loan Programme (MLP) approved S$144.1 million, S$94.6 million, and S$120.7 million in loans in 2010, 2011, and 2012 respectively, with median interest rates of 5.5%, 5.5%, and 5.75%.
Between 2010 and 2012, approved loans were distributed across sectors as follows: 14% construction, 12% manufacturing, 37% services, and 37% wholesale and retail trade, with the latter having a high share due to greater working capital needs.
Applicants consult relationship managers at participating financial institutions for preliminary screening and advice on submitting applications, but no record is kept of cases where applicants are advised not to apply.

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8 Apr 2013

Internationalisation Finance Scheme (IFS) and Loan Insurance Scheme

The Internationalisation Finance Scheme (IFS) approved loans totaling S$378 million in 2010, S$195 million in 2011, and S$121 million in 2012, with successful applicant companies having an average annual turnover of around S$40 million, and the infrastructure services sector receiving the largest share of approved loans at 41% by value.
The Loan Insurance Scheme (LIS and LIS+) approved loans totaling S$2.3 billion in 2010, S$1.6 billion in 2011, and S$1.3 billion in 2012, with successful applicant companies having an average annual turnover of around S$15 million, and the wholesale and retail trade sector receiving the largest share at 62% by value.
Both schemes saw a decline in approved loan quantum due to the scaling back and withdrawal of enhancements under the Special Risk-Sharing Initiative in 2010 and 2011, with the 2012 levels considered more representative of the steady-state run rate.
Financial institutions do not maintain records of cases where relationship managers advise potential applicants against submitting applications, so the rejection rate is not tracked.

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8 Apr 2013

Update on Plans to Develop Singapore into a Global Interactive Digital Media Hub

The Singapore government allocated S$500 million in 2006 to develop the Interactive Digital Media (IDM) sector, with S$328 million committed across three initiatives: international research partnerships, startup support, and innovation platforms, while the overall media industry reached S$7.4 billion in value-add by 2011 against a S$10 billion target.
The IDM Programme funded over 400 R&D projects, supported more than 3,000 researchers, launched 450 products and services, and saw the IDM sector’s value-add grow from S$763 million in 2008 to S$1.41 billion in 2011, with 1,500 research papers published and 63 patents filed.
More than 200 startups and 700 entrepreneurs received support, raising over S$20 million in follow-on funding, while test-bed initiatives attracted over S$100 million in third-party investments, with companies like KAI Square achieving rapid growth and international expansion.

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8 Apr 2013

Benefits from Mergers and Acquisition Scheme

The Mergers and Acquisitions Scheme has supported 42 companies since its inception in 2010, with 81% of beneficiaries being SMEs.
A total tax allowance of $40 million has been granted to companies under the scheme.
The average deal size supported is $25 million, while the median deal size is $3 million.
The scheme provides a tax allowance of 5% of the deal value, capped at $5 million, and remits stamp duties for qualifying transactions.
The cap on allowances is designed to focus benefits on SMEs, with companies having annual revenue up to $100 million considered eligible.

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8 Apr 2013

Requests for Banking Account Information

Singapore cooperates with Malaysia and Indonesia through Mutual Legal Assistance and bilateral tax agreements, but does not disclose the number of requests received from specific countries.
The Prime Minister confirmed that Singapore has fully assisted all requests from Malaysia and Indonesia in accordance with existing tax agreements, including information on transactions and companies.
Singapore has offered to update its tax agreements with Malaysia and Indonesia to include the international Standard for exchange of bank information, which would further enhance tax cooperation.

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8 Apr 2013

Housing Developers (Control and Licensing) (Amendment) Bill

The Bill amends the Housing Developers Act to strengthen buyer protection by requiring show flats to be built to scale and be "what you see is what you get," with the Controller of Housing empowered to investigate and penalise non-compliance.
It mandates the disclosure and publication of all rebates, discounts, and benefits offered by developers, and requires the collection and publication of sales transaction data to improve market transparency and aid informed buyer decisions.
The amendments enhance governance by expanding grounds for licence revocation, requiring public disclosure of audited financials, regulating marketing activities, and significantly increasing fines and penalties for non-compliance.

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8 Apr 2013

Financial Holding Companies Bill

The Financial Holding Companies Bill introduces a regulatory framework for the Monetary Authority of Singapore (MAS) to oversee financial holding companies (FHCs) and their groups, aiming to enhance prudential oversight and mitigate risks like intra-group contagion.
MAS will designate specific FHCs for regulation based on criteria such as being the ultimate parent of a Singapore financial group or if the subsidiary is systemically important, rather than regulating all FHCs automatically.
The Bill aligns with international standards, uses a risk-based and proportionate approach to avoid over-regulation, and mirrors existing requirements from banking and insurance laws to ensure consistency across different financial group structures.
Stakeholders, including Nominated Members, supported the Bill but suggested continued consultation during rule-making and consideration of regulatory gaps with foreign jurisdictions and varying organizational forms of FHCs.

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8 Apr 2013

Consumer Education on Premium Rate Services Provided by Telecommunications Companies

Mr Lim Biow Chuan questioned whether IDA would act against telecom companies that allow third-party providers to mislead consumers into expensive quizzes and contests without clear cost notifications.
The Minister confirmed that IDA enforces a Code of Practice for Premium Rate Services, requiring upfront price disclosure and explicit consumer confirmation before charging, with penalties up to $1 million or 10% of annual turnover.
IDA has taken 26 enforcement actions since 2007, including warnings and financial penalties, with the highest fine being $100,000.
Since 2012, mobile operators must offer consumers the option to bar PRS services to prevent accidental subscriptions and charges.
The Minister advised consumers, especially vulnerable groups like children and the elderly, to stay vigilant and use barring services or education to avoid unintended charges.

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8 Apr 2013

Trend for Singapore's Inflation Rates

Singapore’s inflation is projected to ease to 3.5–4.5% this year, with accommodation and car costs still accounting for a large share, while imported food and oil-related inflation are expected to remain benign.
The government acknowledges that tight labour policies may push up wage costs and services inflation during restructuring, but measures like the Wage Credit Scheme and productivity initiatives aim to cushion the pass-through to consumers.
In response to concerns about structural inflation, the minister emphasized that wage increases alone do not necessarily cause long-term inflation if they are accompanied by productivity gains, and it is too early to conclude that tighter labour policies will create sticky inflation.

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8 Apr 2013

Impact of New Pricing Policy on BTO Flat Prices

Png Eng Huat requested data on average BTO flat prices for 3-room, 4-room, and 5-room units in mature and non-mature estates before and after HDB delinked BTO prices from the resale market.
The Minister for National Development explained that delinking was achieved through increased government subsidies to stabilize BTO prices, with examples from Punggol, Sengkang, and Tampines showing generally stable or slightly increased prices between 2010 and 2012.
Despite fluctuations in resale markets, BTO prices remained steady across towns, with the government committing to maintain this stability until market conditions normalize.

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8 Apr 2013

Impact of Tighter Foreign Worker Quotas on Completion of new HDB Flats

The tightening of foreign worker policies, including a 45% cumulative reduction in the man-year entitlement quota and higher levies, is expected to impact construction time and costs for HDB BTO projects, though HDB's extensive use of prefabrication helps mitigate delays.
The government has contingency plans to manage contractors unable to meet schedules, such as novating contracts to other contractors, and remains committed to delivering flats on time without relaxing the foreign worker tightening policy.
Despite potential cost increases from levies, HDB will maintain affordable BTO prices by absorbing additional costs through government subsidies, as BTO prices are delinked from resale indices.

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8 Apr 2013

Recent Changes to Rules for Car Loans

MAS introduced car loan restrictions to promote financial prudence and moderate demand for cars, which helps control COE prices and inflation, and offered a two-month temporary lift for used car dealers to clear pre-policy inventory.
Government officials emphasized that the loan limits were set based on assessments of past trends and the need for significant demand moderation, with tiered limits for smaller vehicles to support first-time buyers while balancing policy goals.
Parliament discussed concerns about the policy’s impact on less cash-rich individuals, used car dealers’ hardships, and potential alternatives, with assurances that the policy will be monitored and recalibrated based on COE market conditions and inflation effects.

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15 Mar 2013

Insurance (Amendment) Bill

The Insurance (Amendment) Bill enhances MAS’s supervisory powers by allowing pre-emptive asset maintenance requirements, imposing conditions before licence cancellation, and enabling removal of key persons detrimental to policy owners.
The Bill clarifies regulatory scope by refining the definition of insurance business and introducing a clear definition of “solicitation,” prohibiting unlicensed insurers from soliciting business or co-branding with licensed insurers.
It aligns the Insurance Act with other MAS-administered Acts by introducing an appeal process for licensing rejections, harmonising penalty provisions with the Banking Act, and applying “fit and proper” criteria for insurer controllers.
The Bill updates outdated provisions, such as removing the requirement for all long-term policies to have cash surrender values, to accommodate low-cost protection-only insurance products.

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