Economy & business — Topics

14 Nov 2012

Non-taxable Capital Gains from Sale of Properties, Shares and Financial Instruments

Gerald Giam asked for the total non-taxable capital gains from the sale of properties, shares, and financial instruments reported to IRAS over the last five years.
Tharman Shanmugaratnam responded that Singapore does not have a capital gains tax, so taxpayers are not required to report such gains to IRAS.

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14 Nov 2012

Qualifying Approval Limit for Revitalisation of Shops Scheme

Ang Wei Neng proposed lowering the requirement for the Revitalisation of Shops Scheme from 100% to 75% agreement among shop owners in a town or neighborhood centre.
Khaw Boon Wan explained that the scheme involves co-funding for upgrading common areas, and it is fair for all shop owners to contribute to avoid free-riding.
The Minister emphasized the importance of local Merchant Associations leading collective efforts to secure support from every shop owner for the upgrades.
The debate centered on balancing inclusivity with the need for full participation to ensure equitable cost-sharing.

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14 Nov 2012

Adequacy of Singaporeans' Retirement Income

Laurence Lien questioned if new retirees, especially middle-class Singaporeans, will have enough replacement income to maintain their lifestyle, citing Singapore's low ranking in the Melbourne Mercer Global Pension Index 2012.
The Acting Minister for Manpower argued that international indices like the Melbourne Mercer Index are not suitable for comparing Singapore's CPF system, as they overlook key pillars such as home ownership and CPF's broader role in addressing medical and housing needs.
The minister emphasized that Singapore's approach focuses on self-reliance, asset accumulation through home ownership, and targeted support via Workfare and CPF top-ups, rather than universal basic pensions.
An independent NUS study commissioned by MOM found that new workforce entrants can achieve reasonable retirement income replacement rates (around 70% for men and 65% for women) through CPF savings, comparable to international standards.
For older Singaporeans with lower CPF balances, the government offers solutions like the Silver Housing Bonus and enhanced Lease Buyback Scheme to monetize housing assets and supplement retirement income.

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14 Nov 2012

Freeze on Government Fee Increases to Limit Inflation

Laurence Lien proposed a short-term freeze on government fees, HDB flat prices, and public transport fares to curb inflation.
The government noted that most of the recent inflation stemmed from imputed housing rentals and COE premiums, while government fees and transport costs contributed minimally.
Measures such as increased housing supply, subsidies for healthcare and childcare, and GST vouchers are already in place to help households manage costs.
The government will continue monitoring inflation and is prepared to introduce additional measures if needed.

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14 Nov 2012

Economic Impact of China-Japan Islands Dispute on Singapore

A Member of Parliament asked if the China-Japan dispute over the Diaoyu/Senkaku Islands has affected Singapore's economy.
The Minister acknowledged that as major economies with deep global ties, any prolonged tension between China and Japan would likely impact the world economy and Singapore.
He noted the exact extent of the impact remains uncertain given the fragile global economic situation.
The Minister urged China and Japan to resolve their differences quickly for their own interests and the international community's benefit.

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14 Nov 2012

Setting Income Criteria for S Passes and Employment Passes

The Acting Minister for Manpower explained that income criteria for S Pass and Employment Passes are regularly adjusted to keep pace with local wage progression and ensure foreign workers do not unfairly compete with Singaporeans, particularly fresh graduates.
The government has tightened qualifying salaries and criteria for Employment Pass holders to maintain a level playing field while supporting business growth and global competitiveness through foreign talent.
Efforts are focused on enhancing the skills of local graduates through a robust education and lifelong training system, along with career support services, to improve their employment and wage outcomes amid competition.

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14 Nov 2012

Goods and Services Tax Voucher Fund Bill

The Bill establishes a permanent GST Voucher Fund with $3.6 billion initially set aside to help lower-income Singaporeans offset GST costs, with payouts starting in FY2012 and funded for at least five years.
Debaters highlighted the scheme's role in making the GST system more progressive and providing certainty for vulnerable groups, while noting eligibility criteria based on income and property value may exclude some retirees and older citizens.
Concerns were raised about the long-term funding beyond five years, especially during economic downturns, and suggestions were made to refine eligibility rules, clarify beneficiary criteria, and ensure prudent fund management and investment.

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14 Nov 2012

Income Tax (Amendment) Bill

The Income Tax (Amendment) Bill introduces enhancements to the Productivity and Innovation Credit (PIC) Scheme, including a doubled cash reimbursement rate and removal of certification requirements for certain in-house training, to support small and medium enterprises (SMEs).
The Bill makes the Renovation and Refurbishment Deduction Scheme permanent, doubles tax relief for older workers, and exempts Workfare payments from income tax retrospectively to aid low-income families and seniors.
MPs raised concerns about tax relief for stay-at-home mothers and suggested increasing the Spouse Dependency Tax Relief, while the Minister clarified that a holistic approach, including other family support measures, is taken instead of relying solely on tax reliefs.

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14 Nov 2012

Recurrent Funds Disbursed to Non-profit Childcare Anchor Operators

Mr Yee Jenn Jong questioned the amount, determination, and KPIs for recurrent grants to non-profit childcare anchor operators, and whether they must report on grant usage and KPI performance.
Acting Minister Chan Chun Sing stated that since 2009, $69 million has been disbursed based on centres built, manpower, and performance, with operators required to submit regular reports and meet quality and affordability targets.
Yee highlighted low SPARK accreditation rates—far below the 2013 target—and asked if this indicates unmet quality standards and whether grant disbursement should be more directly linked to objectives like staff retention.
Chan responded that efforts are made to help centres meet SPARK standards and that funding is withheld from those failing to meet requirements.

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14 Nov 2012

Funds Disbursed Under Multi-million Dollar Award Programme

Since 1991, the Multi-Million Dollar Award Programme (MAP) has disbursed $21.76 million, with $20.43 million to athletes and $1.33 million to National Sports Associations, awarded for 483 medals across the SEA Games, Commonwealth Games, Asian Games, and Olympic Games.
Nominated Member Nicholas Fang questioned the transactional nature of the MAP and suggested shifting support to front-load training and preparation for athletes, moving away from reward-based incentives.
Minister Lawrence Wong noted that MAP is funded by sponsors and reviewed periodically, and he expressed openness to discussing a balance between reward-based support and upfront investment in athlete development with SNOC and the sports community.

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14 Nov 2012

Discounted Rentals for Local Arts Groups

The Acting Minister confirmed that subsidized and preferential rental rates are provided to local arts groups at venues like the Esplanade, with discounts ranging from 35% to over 60% depending on the group's status.
Nominated Member Janice Koh highlighted that high venue rental costs can consume a large portion of arts groups' budgets, creating financial pressure and potentially leading to higher ticket prices.
The Minister stated that the National Arts Council is reviewing its grant framework to offer more support to arts groups and that efforts are underway to expand and upgrade performance spaces across Singapore.

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14 Nov 2012

Reasons for Higher Bill for Downtown MRT Line

The significant cost increase for the Downtown Line, from an original $12 billion budget to $20.7 billion, was primarily due to rising construction and material prices from 2007 onwards, along with project enhancements like an extended alignment, an additional station, and more entrances for better connectivity.
The Transport Minister explained that price fluctuation clauses in contracts, which are standard practice, allowed the Land Transport Authority (LTA) to bear the risk for key material cost increases, resulting in lower initial tender prices but also leading to higher costs when market prices surged.
The government emphasized that LTA follows best practices in procurement, including a two-stage tender process evaluating quality and price, and aims to increase competitiveness by inviting more firms, including local and international contractors, to bid for projects.

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14 Nov 2012

Cleaning Fee Hikes at Hawker Centres

Baey Yam Keng questioned the justification, protection for hawkers, procurement process, and impact on cleaners' pay regarding cleaning fee hikes at nine hawker centres.
The Second Minister explained that the fee increase is due to higher costs like manpower, and phasing the hikes was agreed with hawkers to mitigate impact, while the procurement ensures cleaning companies meet accreditation standards for workers' benefits.
Seah Kian Peng asked about fee increase clarity, future fees, service improvements, and the Tray Return scheme's effect, with the Minister noting contract provisions, industry changes, and hopes for better standards and efficiency.
Lim Biow Chuan suggested centralizing cleaning contracts for cost savings and support, and the Minister considered balancing economies of scale with autonomy for hawkers.

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14 Nov 2012

HDB Concessionary Loans for Second-time Applicants

Lim Biow Chuan raised concerns about applicants being denied HDB loans after taking two previous loans, querying the numbers, policy review, and financial cost to the government.
Minister Khaw Boon Wan stated that 2% of recent HDB loan applicants were rejected due to having two prior loans, explaining the policy aims to manage subsidies and that exceptions are considered case-by-case.
Lim Biow Chuan highlighted specific cases like family transfers or divorce where the two-loan rule causes hardship, urging a review to help more residents own homes.
Liang Eng Hwa noted that some applicants cannot secure bank loans due to income levels and struggle to afford market rentals, suggesting a need for better support for home ownership.
Khaw Boon Wan emphasized balancing home ownership with prudence to avoid sub-prime risks, while noting a 36% success rate for appeals on mortgage matters.

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12 Nov 2012

Foreign Worker Levies Collected and Workfare Income Supplement Disbursed

Gan Thiam Poh asked about the amounts of foreign worker levies collected and Workfare Income Supplement disbursed over the past two years, and whether the levies funded the WIS for Singaporean workers.
Tan Chuan-Jin stated that foreign worker levies collected were S$2.5 billion in FY2011 and S$1.9 billion in FY2010, and these are not ring-fenced but go into the Consolidated Fund.
The Workfare Income Supplement disbursed about S$400 million each for work years 2010 and 2011 to support older low-wage workers.
All government revenue, including foreign worker levies, funds general expenditures such as the WIS scheme, but the levies are not specifically allocated to WIS.

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12 Nov 2012

Annual Casino Entry Passes Sold and Levies Collected

Png Eng Huat asked the Acting Minister for Social and Family Development for the number of annual casino entry passes sold per year by each of the two casinos and the amount of casino entry levies collected per year from 2010 to October 2012.
Chan Chun Sing responded that casino entry levies collected in 2010 and 2011 were about $216 million and $195 million respectively, with about $134 million collected from January to September 2012.
The data on the number of annual casino entry levies collected by each casino operator and the amount collected by each operator is commercially sensitive.
All casino entry levies are paid to the Singapore Totalisator Board and are used for public, social, and charitable purposes.

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12 Nov 2012

Source of Funds for NTU's Campus Transformation

The $700 million for NTU's campus transformation will be funded by a combination of Government funding and NTU's own resources, primarily for new learning facilities and residential halls to accommodate increasing student enrolment.
The expenditure aims to enhance the learning environment by promoting student interaction and collaboration, and providing more opportunities for residential learning programs to better prepare graduates for a globalized economy.
The Government expects no significant impact on university fees, as any fee adjustments are carefully considered annually in consultation with the MOE, taking into account education costs and economic conditions, with infrastructure costs subsidized and spread across student enrolment.
The Government remains committed to affordability and provides financial assistance for students from low-income families, while conducting annual reviews of university expenditures to ensure responsible use of funds.

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12 Nov 2012

Singapore's Participation in Formula One Grand Prix

Mrs Lina Chiam requested a cost-benefit report on the Formula One Singapore Grand Prix for the next five years and a comparison between projected and actual tourism receipts from the last three years.
S Iswaran stated that the F1 event has transformed Singapore's tourism sector, generated about $150 million in incremental tourism receipts per race, and attracted close to 200,000 international visitors over the first five races, exceeding initial projections.
The government co-funds 60% of the race costs, which are estimated at $150 million per event, and the event has provided significant global branding benefits, with over 360 million television viewers worldwide.
Future benefits are expected to be sustained with lower costs due to infrastructure optimization and revised terms with race promoters, while efforts to minimize public inconveniences will continue.

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12 Nov 2012

Income of Top One Percent Income Earners in Singapore

Deputy Prime Minister Tharman Shanmugaratnam stated that only taxable income data is collected by IRAS, excluding non-taxable items like capital gains, making long-term comparisons over 10 years difficult due to tax base changes.
From Year of Assessment 2009 to 2012, the number of top 1% income earners in Singapore increased from 29,524 to 32,285, with an average taxable income of $0.7 million each year.
A table with detailed income figures for YA 2009 to 2012 was referenced but not included in the provided text.

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12 Nov 2012

Single-Operator System in School Canteens

The Ministry of Education allows schools autonomy in managing canteens, with 75% using the Individual Stallholders System and 25% the Single Tender System, where vendors often sublet stalls.
A survey found canteen food prices are slightly higher under the Single Tender System, about 5% more for primary and 7% for secondary schools, with overall satisfaction comparable between systems.
MOE will encourage more schools to adopt the Individual Stallholders System to support small business operators and provide more job opportunities.

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