Economy & business — Topics

16 Nov 2012

Casino Control (Amendment) Bill

The Acting Minister for Social and Family Development emphasized a multi-faceted approach to problem gambling, combining personal responsibility, family support, community involvement, and operator efforts, with new measures like Casino Visit Limits and enhanced exclusion orders for financially vulnerable individuals.
The Second Minister for Home Affairs highlighted the government's commitment to balancing economic benefits from the Integrated Resorts with robust social safeguards, noting declining local visitorship and the need for ongoing regulatory vigilance amid regional competition.
During clarifications, concerns were raised about online gambling, the annual entry levy's effectiveness, and long-term options for the casino industry, with ministers assuring continued monitoring and potential interim measures while upholding existing contractual obligations.

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16 Nov 2012

Price Trend for BTO Flats

Er Dr Lee Bee Wah queried the price trend for BTO flats in mature and non-mature estates over three years and asked how affordability is maintained amid inflation.
Minister Khaw Boon Wan stated that BTO prices have stabilized, rising only 12% since January 2009, compared to a 34% rise in the HDB resale price index, and highlighted affordability measures like grants and housing loans.
The Minister emphasized that BTO pricing considers the average monthly income-to-loan ratio of 23% for first-timers, ensuring affordability, and noted that resale prices are market-driven while BTO prices are controlled by the government.
Specific prices were cited for non-mature estates, such as $251,000 to $310,000 for a 4-room flat and $320,000 to $385,000 for a 5-room flat, as part of efforts to stabilize prices.
The Minister defended the 12% increase as an achievement despite inflation and expressed hope for future moderation in resale prices, which could allow further adjustments to BTO prices.

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16 Nov 2012

Rules on Investing in Industrial Properties

Inderjit Singh proposed restricting industrial property purchases to end-users to prevent investment-driven buying that could raise costs for SMEs, while Lim Hng Kiang defended the current open market, noting investors provide rental options and flexibility for businesses.
The debate highlighted data gaps, with Singh questioning the proportion of strata-title factories sold to investors and their impact on SMEs, and Lim Hng Kiang clarifying that JTC’s market share in multi-storey factories is limited, with most space managed by the private sector.
Singh suggested JTC act as a landlord to rent out factories to SMEs and limit resale to investors, but Lim Hng Kiang rejected this, arguing it would distort the market, disadvantage JTC tenants with subsidized rents, and reduce flexibility for businesses.

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16 Nov 2012

Keeping Industrial Land Affordable for SMEs

Mr Inderjit Singh raised concerns about the sharp rise in industrial land prices by 60% over two years and asked for the Minister’s assessment of its economic impact, the proportion held by foreign investors, and whether the government should act as the primary landlord to ensure affordability for SMEs.
The Minister for Trade and Industry, Mr Lim Hng Kiang, highlighted that while industrial land prices have risen sharply, rentals have moderated, and the government will release more land through the Industrial Government Land Sale Programme with smaller parcels and shorter tenures to target SME needs.
Mr Lim clarified that industrial land cannot be converted to non-industrial uses, but enforcement is ongoing to prevent misuse of factory space, and he noted that foreign investment in industrial land is tracked anecdotally, with about 40% of factory space owner-occupied by SMEs and the remainder rented out.

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15 Nov 2012

Pay Increments for Healthcare Support Staff

The Minister for Health confirmed that pay increases for healthcare support staff in the intermediate and long-term care sector will be fully funded by the Government in FY2012 and FY2013, with continued subsidies under the normal framework thereafter.
The Government has allocated $110 million from 2012 to 2016 to improve productivity in the sector, aiming to sustain wage increases over time.
The Ministry will monitor costs to ensure ILTC services remain affordable and accessible to Singaporeans, addressing concerns about potential cost pass-through to patients.

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15 Nov 2012

Sharp Increases in Price of Industrial Space in Singapore

Asst Prof Tan Kheng Boon Eugene questioned if the sharp increase in industrial property prices in the first three quarters of 2012 was due to investors shifting from the residential market after cooling measures, and asked when cooling measures for the industrial sector might be needed.
Minister Lim Hng Kiang noted that industrial property prices rose 26.7% in the period, exceeding the 1% rise in residential prices, suggesting a possible shift in investment interest, with residential prices moderating since 2009 cooling measures.
The government plans to moderate industrial prices and rentals by releasing sufficient land through the Industrial Government Land Sales (IGLS) programme, including smaller parcels for SMEs, and will enforce rules to prevent misuse of industrial space.

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15 Nov 2012

Impact of Imported Shows at Integrated Resorts on Local Productions

Janice Koh inquired about the impact of imported shows at integrated resorts on local productions, specifically whether the rise in attendance was due to these shows and how they affected ticket sales, sponsorship, and marketing for local groups.
Lawrence Wong noted that imported shows, particularly blockbuster musicals, significantly contributed to increased attendance but could not confirm their impact on local ticket sales due to data confidentiality, while acknowledging stiffer competition for audiences and sponsors.
The National Arts Council is doubling direct support to local arts groups through grants and introducing new programs like Market and Audience Development to help them remain viable amid competition.

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15 Nov 2012

Strong Singapore Dollar and Impact on Non-Imported Inflation

Teo Siong Seng questioned how a strong Singapore dollar policy addresses inflation driven by domestic factors like rising manpower, transport, and rental costs.
Tharman Shanmugaratnam explained that while high inflation in 2012 was partly due to domestic factors like COE premiums and imputed housing rentals, the strong dollar helps dampen imported prices and moderate overall inflation, with monetary policy calibrated to guard against rising inflation expectations.
The government employs a multi-pronged strategy including supply-side measures such as expanding public transport and housing supply, as well as targeted financial support for lower-income households to manage cost pressures.
To address long-term inflationary pressures from a tight labor market, the government emphasizes raising productivity through investments and initiatives, aiming to sustain growth without increasing reliance on foreign workers or inflation.

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15 Nov 2012

Enhanced Regulatory Regime for Fund Management Companies

Ong Teng Koon questioned the impact of the $250,000 base capital requirement, its purpose, the burden of audit rules on small hedge funds, the number of exempt fund managers transitioning or deregistering, the potential for start-ups to relocate, and Singapore’s competitiveness versus Hong Kong and Shanghai.
Tharman, responding for the Prime Minister, explained that the enhanced regime aligns with global standards post-financial crisis and Madoff scandal, with tiered capital requirements and lighter internal controls for smaller firms to safeguard investors.
MAS noted that some small firms may close due to higher costs and investor scrutiny, similar to trends in other hubs, but does not expect the changes to deter new fund managers from setting up in Singapore.
Since August 2012, 58 exempt fund managers transitioned to the new regime while 101 shut down, with most expected to register or apply for a licence by the February 2013 deadline.
Singapore’s competitiveness is rooted in its pro-business environment, skilled workforce, and reputation for trust and sound regulation, with reforms designed to ensure long-term growth and alignment with international standards.

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15 Nov 2012

Casino Control (Amendment) Bill

The Bill strengthens regulatory and enforcement measures for casinos, including higher financial penalties for operators and new offences for casino-related crimes like cheating and collusion.
It introduces a casino visit limit regime to protect financially vulnerable locals, alongside enhancements to the existing exclusion system managed by the National Council on Problem Gambling.
An independent Evaluation Panel will be appointed to assess the integrated resorts' contributions to tourism and the economy when casino licences are granted or renewed.

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15 Nov 2012

Financial Advisers (Amendment) Bill

The Bill expands MAS powers and imposes stricter standards on financial advisers to protect investors, including extending civil liability for false or misleading statements.
Amendments require advisers to ensure due diligence and transparency, but concerns were raised about potential excessive compliance costs and burdens on small advisers.
The debate highlighted the need for balanced regulation to avoid stifling the financial industry while ensuring investor protection and access to quality advice.

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15 Nov 2012

Securities and Futures (Amendment) Bill

The Securities and Futures (Amendment) Bill introduces reforms to regulate over-the-counter (OTC) derivatives, including mandatory trade reporting and central clearing, to mitigate systemic risks highlighted by the 2008 financial crisis.
The Bill strengthens retail investor protection by enhancing disclosure requirements, introducing Product Highlights Sheets, and restricting certain arrangements that could expose investors' funds to risk.
MAS will enhance its supervisory and enforcement powers, including expanded investigation abilities and clearer civil remedies for market misconduct, to ensure compliance and accountability.
The amendments phase in reforms to align with international standards, particularly G20 guidelines, while allowing flexibility to adapt to Singapore's market conditions and avoid regulatory overreach.
Debate participants supported the principles-based approach, emphasizing tailored definitions for "specified persons" and derivatives to protect Singapore's financial stability without stifling its global competitiveness.

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15 Nov 2012

Singapore Accountancy Commission Bill

The Singapore Accountancy Commission Bill aims to establish a regulatory body to oversee the accountancy sector, enhance professional standards, and support its growth in Singapore.
The bill proposes the registration of chartered accountants, ensuring a structured framework for the profession and aligning with international best practices.
It includes consequential amendments to existing laws to integrate the new commission’s functions and maintain legal consistency across relevant statutes.

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15 Nov 2012

Solar-Powered Lighting for Households and Commercial Premises

As of January 2012, Singapore had 157 grid-connected solar PV installations with a total capacity of 5,546 kWp, representing 0.05% of the nation's electricity generating capacity.
The government does not provide subsidies like feed-in tariffs, preferring correct energy pricing, but has allocated funds for R&D and testing, including $16.6 million for clean energy solutions and $20 million for the Solar Capability Scheme.
A pilot solar leasing scheme for 40 HDB blocks in Punggol involves private partners financing and operating installations, offering electricity at rates not higher than retail tariffs.
The Minister emphasized that solar energy faces challenges like intermittency and land constraints, but investments in R&D aim to build capabilities for future cost-competitiveness and potential expertise export.
The government is exploring collaborations with the private sector to develop and possibly export solar energy expertise, though large-scale domestic use remains limited.

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15 Nov 2012

Solar-Powered Lightings at HDB Blocks

About 100 HDB blocks across 15 locations have solar PV systems, primarily to power common-area lighting, water pumps, and lifts, with 40 blocks in Punggol under a solar leasing model where Town Councils save up to 5% on electricity bills.
The solar leasing model, partly government-funded and mostly financed by contractors who recoup costs by selling solar power to Town Councils, has a payback period of 19 years; monthly savings per block range from $500 to $800.
Savings currently benefit Town Councils by mitigating operating costs, which may delay tariff adjustments for residents, but direct rebates to Service and Conservancy Charges are not yet realized as the program remains in a pilot phase.
The government aims to scale up the program if solar PV cell costs continue to fall, though current economics require subsidies and global benchmarks suggest widespread adoption is still limited.

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15 Nov 2012

Enhancing Consumer Awareness of Investment Schemes through Investor Alert List

The MAS updates the Investor Alert List (IAL) and works with media to publicize unlicensed entities, providing consumer tips and educational resources through MoneySENSE to help the public assess investment risks.
Deputy Prime Minister Tharman emphasized that consumers must exercise caution, verify licensing status via the MAS website, and critically evaluate the realism of returns and potential recourse, noting ongoing investigations into certain gold buy-back schemes like Genneva Pte Ltd.
Members of Parliament suggested expanding outreach to non-English speaking and elderly populations, including collaborations with organizations like the Consumers' Association and using bank channels such as ATMs, which MAS is considering.
MAS is exploring tighter advertising rules with other agencies to prevent misleading claims on investment schemes, reinforcing the message that if returns seem too good to be true, they likely are.

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15 Nov 2012

Budgeting for Infrastructure Projects

Christopher de Souza asked whether the Ministry of Transport would conduct an internal, confidential cost calculation for infrastructure projects before tendering to ensure proper funding and avoid pressuring sub-contractors' fees.
The Parliamentary Secretary explained that the Land Transport Authority (LTA) prepares cost estimates based on norms and market rates, keeps them confidential, and calls competitive tenders while assessing quality and value for money, without influencing sub-contractors' fees.
De Souza clarified his concern was about sub-contractors, questioning whether LTA would reject bids significantly lower than its internal estimate to prevent unsustainable projects and further squeezing of sub-contractors.
The Parliamentary Secretary reassured that LTA assesses projects accurately, consults the industry, and considers quality and feasibility, not just the lowest bid, to ensure realistic project implementation.

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15 Nov 2012

Rationale for Recent ERP Rate Increases

The Minister explained that ERP rate increases are quarterly routine adjustments based on traffic speeds falling outside the optimal range, citing specific gantries on CTE and ECP where speeds dropped below 45km/h.
The Minister emphasized that the primary aim of ERP is congestion management, not revenue generation, and noted that more ERP decreases than increases occurred over the past two years, including reduced operating hours.
The Minister stated that no road tax reduction is planned as ERP adjustments are traffic-responsive, and confirmed public transport can cope with any shift from car owners affected by the rate changes.
Dr Lee questioned the lack of road tax reduction despite increased ERP revenue and expressed concern over the $4.00 rate on CTE, especially after lane expansions, and asked if evening ERP would be scrapped.
The Minister clarified that ERP offers travel choices, such as smoother rides before 8:00 PM by paying the fee, and highlighted historical ERP rate reductions to provide perspective on the current adjustments.

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15 Nov 2012

Strategic Review of National Wages Council

The Acting Minister for Manpower stated that the National Wages Council has contributed to real wage growth for low-wage workers despite economic recessions, with recent specific recommendations like a $50 monthly increase for workers earning up to $1,000 receiving employer support.
Discussions highlighted the NWC’s evolution from quantitative to flexible wage guidelines and the possibility of returning to more specific dollar-based recommendations for low-wage workers, depending on economic conditions.
A suggestion was made to mandate cost-sharing between service providers and buyers for implementing NWC recommendations, but the Minister responded that market mechanisms and existing measures like Workfare are preferred for now.

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15 Nov 2012

Lift Upgrading Programme's Cost and Benefit to Each Household

The cost per benefiting housing unit is computed by dividing the total cost of upgrading a block by the number of units directly benefiting from the Lift Upgrading Programme (LUP), and HDB has consistently used this basis but will not change it as the programme nears its end.
HDB is focusing on completing the remaining feasible blocks by 2014, but some blocks cannot be upgraded due to high costs or technical constraints, and HDB continues to seek solutions for them.
Residents in non-benefiting blocks who face physical barriers due to age or medical conditions can approach HDB for special assistance to improve their quality of life.
The LUP is a large-scale program with a $5 billion budget covering 5,000 blocks, and HDB works to find cost-effective technical solutions for challenging blocks while maintaining financial prudence.
Beyond lift upgrades, HDB is exploring alternatives for residents in difficult blocks, such as partial landings, and encourages those with severe disabilities to contact HDB for tailored assistance.

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