Economy & business — Topics

25 Feb 2013

Standard Medium-term Interest Rate for Housing Loans

Foo Mee Har asked if MAS would set a standard medium-term interest rate for all banks to use when calculating mortgage servicing ratios for housing loans.
Tharman Shanmugaratnam, speaking for the Prime Minister, explained that MAS already sets broad parameters for medium-term interest rates, which banks determine based on their risk tolerance, typically ranging from 3% to 4%.
MAS has capped the mortgage servicing ratio for HDB flat loans at 30% of gross monthly income, requiring banks to use the medium-term interest rate for repayment calculations to assess borrowers' repayment ability and prevent over-borrowing.
MAS conducts regular stress testing on banks and requires financial institutions to provide a Residential Property Loans Fact Sheet showing repayment scenarios under different interest rates.

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25 Feb 2013

Opening of Savings Account by Parents of Children with Severe Disabilities

Member Zainal Sapari asked if the Prime Minister can direct commercial banks to allow parents of children with severe disabilities to open savings accounts without requiring a court order.
Tharman Shanmugaratnam, speaking for the Prime Minister, clarified that banks are not legally required to demand a court order but do so due to internal policies to safeguard the child's interests.
He explained that banks may advise parents to obtain a court order to appoint them as deputies, ensuring the bank can act on legally authorized instructions.
The Monetary Authority of Singapore (MAS) acknowledges the difficulties parents face in getting a court order and will collaborate with government bodies, courts, and industry groups to address the issue.

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25 Feb 2013

Annual Budget Statement

The government projected a modest GDP growth of 1-3% for 2013, highlighting challenges from global factors and an aging workforce, while noting a $3.9 billion surplus for FY2012 driven by short-term revenue increases.
A "Quality Growth Programme" was introduced, focusing on restructuring the economy through tighter foreign worker policies, wage subsidies, and productivity incentives to raise incomes and support businesses during the transition.
Social measures were expanded to promote inclusivity, including enhanced Workfare payouts for low-wage workers, property tax reforms targeting high-end properties, and new funds for healthcare, eldercare, and community services.
The government announced direct assistance to households, such as double GST Vouchers, Medisave top-ups for seniors, and tax rebates, to address cost-of-living pressures while maintaining a balanced budget with a projected surplus.

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25 Feb 2013

Participation Rate and Funds Disbursed for Workplace Re-design and Flexi Workplace Schemes

The government has disbursed nearly $57 million under the ADVANTAGE! Scheme since 2005, benefiting around 3,500 companies with an average payout of $16,000 per company, including $24 million for job redesign.
The Flexi-Works! scheme has disbursed over $3.9 million since 2007, supporting over 360 companies with an average payout of $11,000 each, while the Work-Life-Works! Fund has disbursed over $15 million, benefiting 860 companies with an average of $19,000 per company.
The Minister of State confirmed that these schemes will be enhanced and more details will be announced in March, acknowledging that while progress has been made in increasing flexible work arrangements and employment rates for older workers, more can be done to improve uptake and support local employment.

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25 Feb 2013

International Companies' Operations in Singapore

Tan Su Shan questioned the Minister for Trade and Industry about the number of international companies exiting or scaling down operations in Singapore over the last two years, the types and reasons for their departure, and how this compares to the previous five-year trend from 2005 to 2010.
The Minister responded that tracking a single number of companies exiting is not meaningful due to various factors like global restructuring, industry cycles, and economic transformation, emphasizing a focus on maintaining a competitive business environment and carefully calibrating policies like foreign worker regulations.
Tan Su Shan expressed concern that not monitoring company exits could lead to a vicious cycle of job losses and asked what forward-looking measures MTI would take to attract high-end industries and keep Singapore globally competitive.
The Minister clarified that while specific numbers are not tracked due to noise in macro data, MTI conducts sectoral monitoring, tracks retrenchment figures, and engages in broad economic scanning to understand industry changes and maintain competitiveness.

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8 Feb 2013

Refining the COE System

Denise Phua proposed a balloting system for fixed-price COEs by user categories to address escalating prices, but Minister Josephine Teo rejected it, citing risks of speculative demand, black markets, and lessons from Beijing's failed lottery system.
Phua urged the Ministry to study global COE models and engage Singaporeans in refining the system, which Teo agreed to consider by sharing insights and exploring alternatives like category redefinition.
Christopher de Souza requested priority for commercial vehicles in COE tweaks, with Teo noting existing ARF concessions for businesses but committing to further review.
Lim Wee Kiak inquired about the timeline for COE review, with Teo acknowledging the complexity and urgency but not providing a specific completion date.

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7 Feb 2013

A Sustainable Population for A Dynamic Singapore

Tan Chuan-Jin emphasized the need to balance population growth with infrastructure capacity, slowing the economy to a sustainable rate while preserving Singapore's values and identity, and defended an inclusive definition of the Singaporean core that includes immigrants who choose to make Singapore their home.
Low Thia Khiang argued that foreign workers depress local wages and take jobs, accusing Tan of quoting him out of context, and challenged the government to set clear targets for its labor initiatives rather than suggesting opposition should take over.
Tan responded by highlighting contradictions in the Workers' Party's stance on foreign workers and reiterated the government's commitment to improving labor participation rates, inviting concrete suggestions for addressing low fertility rates.

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7 Feb 2013

Visitorship at Museums

Janice Koh raised concerns about declining visitorship and exhibitions at the Singapore Art Museum (SAM) since 2009, questioning if budget allocations should be increased to support museums.
Acting Minister Lawrence Wong explained the drop in visitors was due to SAM's strategic shift toward Southeast Asian and contemporary local art, which prioritizes quality and relevance over international blockbusters.
Koh emphasized the need for more outreach, marketing, and a balanced mix of international and local exhibitions to attract broader audiences, including for events like the Singapore Biennale.
Wong agreed on the importance of accessible art and outreach, noting efforts to enhance exhibitions and partnerships to engage schools and community groups.
Both parties acknowledged the need for continued government support to balance local/regional art development with occasional international blockbusters to draw diverse visitors.

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6 Feb 2013

Funding Cap under Revitalisation of Shops Scheme

Ang Wei Neng questioned whether the funding cap under the Revitalisation of Shops Scheme should be increased due to rising construction and material costs.
Khaw Boon Wan responded that costs have remained stable since the scheme's launch in 2007, with nine sites completed based on awarded tenders.
He stated the current funding cap remains appropriate and HDB has no plans to revise it.

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6 Feb 2013

Licences for Private Bus Operators

Er Dr Lee Bee Wah asked if the Ministry would issue licences to more private operators to fill service gaps and review SMRT and SBS Transit routes to create competition and improve efficiency.
The Minister stated the Public Transport Council regularly reviews schemes for private operators, with current examples including 90 Premium Bus Services and 83 Shuttle Bus Services run by multiple licensees.
The Ministry will continue to review and potentially implement more non-basic public transport bus services to better serve local communities.
While longer-term issues like route reviews for competition will be considered, the immediate focus is on improving service levels through initiatives like the Bus Service Enhancement Programme.

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6 Feb 2013

A Sustainable Population for A Dynamic Singapore

The debate highlighted the urgent need for Singapore to plan for an ageing population, with projections showing the elderly population rising to 900,000 and a declining old-age support ratio, citing Japan, Taiwan, and China as cautionary examples of economic stagnation and social burdens from low fertility and immigration resistance.
Speakers emphasized that population growth is essential for economic competitiveness, warning against isolationism that would drive away businesses and talent, and advocating for a balanced approach that supplements the local workforce with foreign labor while investing in productivity and infrastructure.
Concerns were raised about current infrastructure strains, but the White Paper was defended as a long-term roadmap, with calls to focus on immediate improvements like transport and housing while reviewing assumptions periodically, rather than fixating on the projected 6.9 million figure.
The debate stressed that population policy is not just about numbers but about sustaining Singapore's vitality, ensuring citizens' well-being, and learning from other countries' mistakes to avoid unsustainable welfare and debt traps.

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6 Feb 2013

A Sustainable Population for A Dynamic Singapore

The government's population roadmap, projecting a possible 6.9 million by 2030 to counter an ageing citizen population and sustain economic growth, was met with strong public anxiety about overcrowdedness, infrastructure strain, and competition for jobs, with many speakers noting the government's failure to plan ahead for current population pressures.
A central debate emerged between supporting the government's calibrated immigration policy to fill workforce gaps and opposing it in favor of a more aggressive push to raise the Total Fertility Rate, with critics arguing immigration is a short-term fix that dilutes the Singaporean core and urging radical work-life balance measures and stronger support for families.
The opposition proposed a lower population target of about 5.9 million, advocating for zero foreign workforce growth to force productivity increases, a move government supporters warned would cripple the economy, halt critical infrastructure projects, and leave Singapore ill-prepared for its demographic challenges.

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6 Feb 2013

Assessing Quality of Financial and Investment Courses

Mrs Lina Chiam proposed developing standards and mandatory assessments for financial and investment courses to counter misleading “get-rich-quick” offerings.
Lawrence Wong, responding for the Prime Minister, stated that MAS cannot assess course credibility or trainers directly but will tighten advertising rules and enhance consumer education through MoneySENSE.
He emphasized that existing licensing applies only to specific financial advisory services, not general education, and declined to regulate all training providers broadly.
Mrs Lina Chiam asked if MAS could license financial educators and address conflicts of interest, but Wong clarified that general training falls outside MAS’s current regulatory scope.
Yeo Guat Kwang urged expediting advertising guidelines to reduce misinformation, and Wong confirmed the process is being prioritized.

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6 Feb 2013

Impact of Government's Cross-carriage Measure on Competitiveness of Broadcast and Content Market

The cross-carriage measure has increased content commonality, with over 50 channels now available on multiple platforms, and the market has grown with more subscribers and service innovation.
The government clarified that the measure's goal is not to lower subscription costs, which are influenced by rising global content prices, but to enhance choice and competitiveness.
Authorities are closely monitoring contract negotiations, such as for the Barclays Premier League, to prevent circumvention of the measure and ensure fair market access.
While the common set-top box initiative was shelved due to unmet proposals, the government sees no regulatory barriers preventing new players from entering the market.

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6 Feb 2013

New Childcare Centres and Childcare Fees

The Minister explained that anchor childcare operators must be not-for-profit and without religious or ethnic affiliation to ensure accessibility for all children and to direct public funding toward public good rather than private profit, with a policy review underway.
To prevent excessive fee increases, subsidies are targeted at lower-income and larger families, making across-the-board hikes less likely, and anchor operators are monitored to keep fees below the industry median.
The government is working to expand the number of affordable childcare centres, including exploring new sites and modular structures in high-demand areas like Sengkang, and is concerned about market consolidation by for-profit entities.

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5 Feb 2013

Workfare Income Supplement (WIS) Scheme

Gan Thiam Poh requested a review of the Workfare Income Supplement (WIS) scheme to extend it to the lower middle income group and increase payouts for all qualified workers.
Tan Chuan-Jin explained that WIS currently targets the bottom 20% of full-time income earners, with benefits tapering down to cover earners up to around the 30th percentile to encourage progression.
The Ministry of Manpower will review WIS in 2013, considering changes in income levels and inflation to ensure assistance remains meaningful while promoting individual effort and responsibility.
WIS is a permanent social transfer mechanism designed to support those who need it most, with the review aiming to balance support with incentives for work.

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5 Feb 2013

Special Credits Given to Employers for Continued Employment of Seniors and Persons with Disabilities

Gan Thiam Poh asked the Ministry for Manpower about the total amount of Special Employment Credit given to employers for employing seniors and persons with disabilities, and the number of employers, senior workers, and persons with disabilities who have benefited.
Tan Chuan-Jin explained that the Special Employment Credit encourages employers to hire Singaporean employees aged above 50 and persons with disabilities, with credit rates of 8% to 16% of monthly wages depending on the employee's age and disability status, capped at $240 per month for persons with disabilities.
Since its introduction in 2011, $268 million has been paid to 91,000 employers for employing 404,000 eligible employees up to June 2012, including $2.5 million for 3,200 persons with disabilities hired between January and June 2012.
The Special Employment Credit is paid twice a year, with the next payment scheduled for March 2013 for eligible employees on payroll from July to December 2012.
The scheme aims to support older Singaporeans and persons with disabilities to gain dignity through work and achieve independence.

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5 Feb 2013

Closure of New York University Tisch Asia's Singapore Campus

Ms. Janice Koh asked the Minister for Trade and Industry about the reasons for the closure of New York University Tisch Asia's Singapore campus, the options explored to keep it running, the total amount EDB spent on loans and grants, and how its failure affects future EDB strategies.
The Minister explained that Tisch Asia was established under EDB's Global Schoolhouse initiative but faced financial challenges due to lower revenues and higher costs, leading NYU to close it after exploring options like fundraising and undergraduate programs, with EDB disbursements stopped when difficulties were realized.
While regretting the closure, the Minister noted that EDB provided S$11.68 million in loans and S$5.3 million in grants, and highlighted that existing students will complete their studies without disruption, while other local institutions and schemes support the arts and media industry.
The Minister emphasized that the Global Schoolhouse initiative remains successful, with 11 foreign campuses attracted to Singapore, and EDB will continue to develop the education sector to meet economic needs despite this specific setback.

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5 Feb 2013

Annual Grants for Town Councils

Over the last three years, the Ministry of National Development disbursed around $110 million in annual grants to Town Councils to help offset operating costs and mitigate the impact of GST increases.
The 4th Town Council Management Report (TCMR) indicated that most Town Councils performed well in estate cleanliness, lift performance, S&CC arrears management, and corporate governance.
However, seven out of 15 Town Councils were rated "amber" under estate maintenance, with obstruction of common areas being the most common issue, posing potential fire hazards and evacuation challenges.
The TCMR aims to provide objective information to residents and facilitate discussions with Town Councils to improve estate upkeep, emphasizing joint efforts between residents and Town Councils to address the issues raised.

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5 Feb 2013

A Sustainable Population for A Dynamic Singapore

The debate highlighted concerns over rising business costs, particularly the impact of high COE prices on small businesses that rely on vehicles, with a call for alternative systems to manage operating expenses more reasonably.
Speakers addressed the need for a balanced approach to immigration, arguing that while a zero-immigration policy would harm SMEs and infrastructure projects, tighter controls and incentives like job advertising requirements could prioritize Singaporean employment.
There was emphasis on improving employment protections, such as extending notice periods and creating statutory unfair dismissal protections, to support Singaporean workers amid economic expansion and foreign labor competition.
Quality of life issues were raised, including the side effects of urban development like noise and privacy impacts, stressing the importance of detailed planning to maintain social cohesion and affordable housing.
The population White Paper was supported as a long-term planning tool, with a call for greater public involvement to ensure the plan reflects Singaporeans' ideas and concerns while building infrastructure for future needs.

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