Economy & business — Topics

5 Feb 2013

Preventing Runaway COE Prices

The Ministry of Transport explained that COE prices are market-driven, influenced by demand, economic conditions, and financing options, and noted that separate bidding categories and lower fees for commercial vehicles help businesses.
Several MPs raised concerns about high COE prices skewing access toward the wealthy, squeezing out middle-class buyers, and hurting SMEs, suggesting reviews based on car value or owner profiles to improve affordability and fairness.
The Ministry acknowledged issues like the closing price gap between car categories and the impact on businesses, and indicated openness to reviewing COE categorization and rebalancing allocations while cautioning that implementing first-time buyer schemes or differentiating needs is complex and prone to circumvention.

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5 Feb 2013

Impact of Public Transport Fare Increases on Transport Workers' Salaries

Transport Minister Lui Tuck Yew defended the profit-oriented model for public transport operators (PTOs), stating it drives cost efficiency and reduces the need for higher fares or greater government subsidies compared to nationalized systems in other cities.
He explained that profitability metrics like Return on Total Assets (ROTA) are used instead of Return on Equity (ROE) to assess PTOs, and that recent fare increases have been lower than in other major cities while fares remain relatively affordable.
The Minister noted that fare adjustments over the past decade have not kept pace with rising operational costs like diesel prices and wages, posing challenges for PTOs to fund wage increases without fare hikes or subsidies.
Parliament members raised concerns about whether transport workers' salaries should be included in the fare formula, the impact of PTO profits on service quality, and the need for targeted subsidies for vulnerable groups, with the Minister committing to review these through the Fare Review Mechanism Committee.
The debate also highlighted future financial commitments for PTOs, such as SMRT’s $1.75 billion payment for assets, and the government’s role in ensuring service standards and long-term sustainability amid profit motives.

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5 Feb 2013

Annual Amount Collected from HDB Resale Levy

HDB collects about $22 million in resale levies annually, with around 2,900 appeals per year for reductions or waivers.
The resale levy changed from a floating to a fixed amount in 2006, creating barriers for some homeowners due to accumulated interest and differing calculations.
The Minister acknowledged the levy can be a barrier but noted it is unfair to harmonize past and current formulas, as many already paid under the old system.
Appeals are considered case-by-case, with options like reducing or waiving interest charges or incorporating the levy into the new flat’s price for instalment payments.
Members suggested allowing instalment payments for the cash component to help low-income residents, which the Minister said is already considered in individual cases.

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5 Feb 2013

Affordability of New HDB Flats

The Minister explained that new HDB flats are priced based on household income, resale market prices, and flat attributes, with substantial discounts and grants to ensure affordability for first-time citizen buyers.
The pricing policy allows flexibility in adjusting discounts and grants to maintain affordability, even as new flat prices are now deliberately delinked from resale price trends.
Concerns were raised about whether delinking new flat prices from resale prices contradicts the earlier practice, to which the Minister clarified that discounts are still anchored to resale benchmarks but can be varied to stabilize prices.

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4 Feb 2013

Qualifying Criteria for Employment Pass

The Ministry of Manpower sets a qualifying salary of at least $3,000 for Employment Pass applicants, with higher requirements for more experienced professionals to ensure they do not undercut local wages, and provides an online Self Assessment Tool to help employers gauge application success.
The government offers transition periods for policy changes, such as staggered implementation and one-time renewals, and encourages businesses to proactively attract Singaporean talent and tap support schemes like those from the Workforce Development Agency to address foreign worker pass renewal issues.
Ministries monitor business costs and activity indicators, gather feedback from businesses, and track the impact of manpower policies on competitiveness while supporting companies in productivity improvements.

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4 Feb 2013

Baby Bonus Grant Disbursements

Since its inception in 2001, the Baby Bonus scheme has disbursed $2.31 billion in benefits, with over 310,000 children receiving a cash gift and more than 240,000 opening Child Development Accounts that receive dollar-for-dollar government matching.
In 2011, families primarily used the cash gift for child-related expenses, vaccinations, and hospital costs, while Child Development Account funds were mainly used for childcare, kindergarten, and healthcare expenses.
The scheme has a high take-up rate across all ethnicities and income groups, with 99% of eligible children receiving the cash gift and 97% opening CDAs from 2001 to 2005, though some low-income households do not open accounts.
Benefits are tiered based on the child's birth order, so families with more children receive greater total support, as illustrated by a table detailing total benefits per number of children.

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4 Feb 2013

Increase in Medisave Withdrawal Limits

Mr Sitoh Yih Pin asked the Ministry of Health to consider increasing Medisave withdrawal limits to allow for greater use of Medisave balances.
The Ministry explained that Medisave is designed to cover hospitalisation and selected outpatient treatments, with careful balance needed to avoid premature depletion of funds over a lifetime.
Current withdrawal limits are generally sufficient for most subsidised hospital bills, and recent revisions have increased limits for certain outpatient treatments.
The Ministry noted that limits help prevent over-consumption and moderate cost escalation, with financial assistance available for those who still face difficulties.
The Ministry regularly reviews the Medisave scheme to ensure its continued relevance.

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4 Feb 2013

Protection of Consumers from Errant Gold Trading Companies

MAS currently educates the public on gold buy-back scheme risks and lists unregulated companies on its Investor Alert List.
Physical asset schemes like gold trading are not regulated as financial products, but MAS is reviewing whether regulatory changes are needed.
MAS will balance regulation to protect consumers without stifling legitimate business and innovation.
MAS plans to work with advertising authorities to tighten rules and prevent misleading claims in investment marketing.
Consumers are advised to thoroughly assess operators and understand risks before investing in unregulated schemes.

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4 Feb 2013

State of Singapore's Manufacturing and Industrial Sectors

Liang Eng Hwa questioned whether recent export and industrial production declines signal long-term economic competitiveness loss or hollowing out in the manufacturing sector.
Lim Hng Kiang attributed the slump to global economic headwinds, citing that Singapore remains highly competitive, with rising manufacturing investments and business formations.
The government is maintaining competitiveness through the Global-Asia Hub strategy, diversified manufacturing, FTAs, and market access initiatives to support the sector’s resilience.

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4 Feb 2013

Subsidy for Enrolment in Student Care Centres

Lim Biow Chuan asked if the Ministry would consider providing higher subsidies for students placed in student care centres.
The government recently enhanced ComCare student care subsidies in July 2012 by raising the monthly household income criterion from $2,500 to $3,500 and introducing a per capita income criterion.
Subsidy quantum was increased to a cap of $255 per month, with lower-income families paying as little as $5 monthly, and a Start-up Grant of up to $400 was introduced.
As of December 2012, nearly 3,800 children were benefiting from the subsidies, and the Ministry will continue to review them for affordability and accessibility.

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4 Feb 2013

Financial Holding Companies Bill

The Financial Holding Companies Bill aims to regulate financial holding companies and amend related laws, presented by Mr Lawrence Wong.
The bill received its first reading and will proceed to a second reading after the conclusion of the FY2013/14 Estimates of Expenditure.
The bill's purpose is to establish a regulatory framework for financial holding companies, ensuring systemic stability and oversight.
The debate focuses on the need for such regulation in Singapore's financial sector, with emphasis on its role in risk management.
The bill is part of broader efforts to strengthen Singapore's financial regulatory framework amid global economic uncertainties.

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4 Feb 2013

Insurance (Amendment) Bill

The Insurance (Amendment) Bill aims to amend the Insurance Act and make related changes to other laws.
Mr. Lawrence Wong presented the bill, which was read for the first time and will proceed to a second reading.
The second reading is scheduled after the conclusion of the Estimates of Expenditure for FY2013/14.

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4 Feb 2013

Financial Institutions (Miscellaneous Amendments) Bill

The bill seeks to amend various statutes to enhance the regulation of financial institutions, entities, and instruments in Singapore.
It was presented by Mr Lawrence Wong and read a first time, with the second reading scheduled after the FY2013/14 Estimates of Expenditure proceedings.
The amendments aim to strengthen the financial regulatory framework to ensure stability and compliance in the sector.

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4 Feb 2013

Monetary Authority of Singapore (Amendment) Bill

The Monetary Authority of Singapore (Amendment) Bill was introduced to amend the Monetary Authority of Singapore Act and make related amendments to the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act.
The bill was presented by Acting Minister for Culture, Community and Youth Mr Lawrence Wong and was read for the first time.
It was scheduled for a second reading after the conclusion of proceedings on the Estimates of Expenditure for FY2013/14 and to be printed.

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4 Feb 2013

Value-for-money Principle in Large Public Sector Infrastructure Projects

The Minister of State outlined Singapore’s multi-pronged approach to ensuring value-for-money in large public infrastructure projects, including a Gateway Process for rigorous review, dedicated in-house capabilities in major agencies, a Centre for Public Project Management (CP2M), and post-project reviews by a Value-for-Money Review Office.
An example was cited where the Singapore University of Technology and Design project achieved cost and land-use efficiency through Gateway reviews and CP2M input, such as reducing the campus footprint and relocating facilities.
Mr Lien questioned whether these measures have led to generally satisfactory project outcomes, citing past capacity losses and cost overruns like the Downtown Line, and sought the Ministry’s assessment of progress.
The Minister replied that 26 large projects have undergone the Gateway process since 2010, with cost savings to be confirmed at completion, and noted that while government capabilities may have shifted externally, expertise remains within Singapore.

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14 Jan 2013

Workfare Income Supplement Scheme

The Workfare Income Supplement (WIS) scheme, introduced in 2007, supplements wages and CPF savings for low-income workers, with a 1:2.5 cash-to-CPF ratio for employees and full CPF for the self-employed, and targets the bottom 20% of income earners while extending benefits up to the 30th percentile.
Enhancements since 2010 include increased payout quantum and income cap, with payment frequency doubled to four times a year by 2012, and a review is scheduled for 2013 to consider changes in income, inflation, and the balance between cash aid and retirement savings.
The government emphasizes a holistic approach to supporting low-income workers, noting that WIS is one of several schemes alongside ComCare and Medifund, and the review will focus on ensuring the scheme's effectiveness, fiscal sustainability, and targeting of those most in need.

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14 Jan 2013

Foreign Worker Levy Rates

Tan Su Shan asked whether the foreign worker levy could be adjusted based on a sector's strategic importance and its reliance on foreign workers, considering the impact on local inflation.
Tan Chuan-Jin explained that the levy is a pricing mechanism to manage foreign worker numbers, with planned increases until July 2013 to encourage a shift away from labor-intensive growth toward technology and productivity.
He noted that levy adjustments consider factors like productivity gains, foreign worker growth, and local wages, with higher increases for sectors that rely heavily on foreign workers and have stagnant local wages.
The government acknowledged potential inflation concerns but emphasized sending a clear signal to companies to restructure, while offering support through measures like Innovation and Capability Vouchers and the Productivity and Innovation Credit.

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14 Jan 2013

Financing Options Open to NSmen for Education Courses

About 61,000 NSmen have received a National Service Recognition Award top-up to their Post-Secondary Education Accounts (PSEA), with around 14,000 using it for government-subsidised post-secondary education.
The Ministry of Education does not track how many NSmen are pursuing non-subsidised degree courses at private institutions, as PSEA funds cannot be used for these.
NSmen intending to study at private institutions for non-MOE subsidised courses can seek financing through commercial bank loans or the financial assistance schemes offered by the institutions themselves.

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14 Jan 2013

Increased National Healthcare Budget for the Elderly

Member Mary Liew proposed increasing the national healthcare budget and reviewing MediShield to reduce out-of-pocket expenses and improve insurance coverage for the elderly.
Minister Gan Kim Yong stated that the healthcare budget has been steadily increased, with plans to double it from $4 billion in 2011 to about $8 billion in 2016, and highlighted enhanced subsidies for primary and long-term care.
The government will provide a one-time Medisave top-up of up to $400 and regular annual top-ups of up to $450 for less well-off elderly to help with MediShield premiums and healthcare costs.
The Ministry of Health is conducting an ongoing review of the healthcare financing system to maintain affordability through subsidies and the 3Ms framework (Medisave, MediShield, Medifund).

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14 Jan 2013

Growth of the F&B Sector in Singapore

The F&B sector's GDP contribution has remained stable at around 1.3%, while the number of outlets grew by 54% and total employment nearly doubled over a decade, with foreign workers increasing to one in three of the workforce.
The government recognizes the sector's role in making Singapore attractive but views the reliance on foreign workers as unsustainable, hence investing $75 million in productivity initiatives like part-time pool programs.
Businesses unable to adapt may close, but entrepreneurs can access government schemes such as SEEDS and TECS to redirect their efforts into new ventures.

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