Economy & business — Topics

15 Oct 2012

Securities and Futures (Amendment) Bill

The Securities and Futures (Amendment) Bill was introduced to amend the Securities and Futures Act and related laws.
The Minister for Trade and Industry presented the Bill, which received its First Reading in Parliament.
The Bill was scheduled for its Second Reading at the next available Parliamentary Sitting and ordered to be printed.

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15 Oct 2012

Goods and Services Tax Voucher Fund Bill

The Bill seeks to establish the Goods and Services Tax Voucher Fund to provide targeted financial assistance to eligible households, and was presented by the Minister of State for Finance, Mrs Josephine Teo.
It was read for the First Time in Parliament and scheduled for a Second Reading on the next available sitting, with the proceedings to be printed.
The debate focuses on the legal framework for setting up the fund and its related administrative matters to support low- and middle-income groups against GST impacts.

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15 Oct 2012

Income Tax (Amendment) Bill

The Income Tax (Amendment) Bill aims to amend the Income Tax Act and related incentives under the Economic Expansion Incentives Act.
It was presented by Minister of State for Finance Josephine Teo with the President’s recommendation signified.
The bill was read for the first time and scheduled for a second reading in the next parliamentary sitting.

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15 Oct 2012

Casino Control (Amendment) Bill

The Casino Control (Amendment) Bill was presented by the Second Minister for Home Affairs to amend the Casino Control Act and make consequential amendments to the Income Tax Act.
The bill was read for the first time and scheduled for a second reading at the next available sitting of Parliament, with instructions for it to be printed.
The debate focuses on regulatory and tax-related updates to the existing casino control framework in Singapore.

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15 Oct 2012

Efforts to Resolve Transboundary Haze Problem

Singapore has led regional efforts through the Ministerial Steering Committee, establishing the ASEAN Specialised Meteorological Centre and Regional Haze Training Network to improve monitoring, training, and information sharing, though haze levels have recently spiked again.
The Minister highlighted that haze is driven by cheap land-clearing methods on peatlands, and effective solutions require economic pressure, transparency via satellite data and concession maps, and action from consumer groups and NGOs.
Legal prosecution of errant companies is challenging due to jurisdictional limits, complex corporate structures, and the need for direct evidence, so the focus is on commercial pressure and promoting sustainable practices among companies.

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15 Oct 2012

Effectiveness of Productivity and Innovation Credit Scheme

The PIC scheme has seen promising initial uptake, with 34,700 companies (about 30% of active filers) claiming in its first year, including over one in four small companies.
Usage is spread across all sectors, with 20-40% of companies in priority areas like construction and wholesale retail adopting the scheme, and automation equipment being the most popular claim category.
The scheme has increased awareness of productivity improvements, supported by trade associations and government efforts, though its full effectiveness will be clearer with sustained efforts and future data.

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15 Oct 2012

Effectiveness of Government's Productivity Measures

The government attributes the current productivity decline to short-term economic slowdown and companies being slow to adjust their workforce, while reaffirming a long-term commitment to a 2-3% annual productivity growth target through sector-specific roadmaps and broad-based schemes like the PIC and ICV.
Multiple initiatives have been rolled out, including sectoral productivity roadmaps for 16 priority sectors, the Innovation and Capability Voucher (ICV) for SMEs, and tax incentives under the Productivity and Innovation Credit (PIC) scheme, with about 7,000 companies, 86% of which are SMEs, having benefited to date.
The government is reviewing and simplifying its productivity schemes to improve accessibility for SMEs, who have reported confusion and paperwork burdens, while proactively reaching out to sectors to help them adopt best practices and navigate support options through Enterprise Development Centres.
The Minister of State acknowledged that increasing productivity faces long-term challenges such as the time needed for process redesign and industry-specific adjustments, but emphasized that sustained efforts and sector-specific customization are necessary for transformation.
Members of Parliament raised concerns about the causes of declining productivity, the impact of foreign worker policies, and the need for more targeted support for SMEs, to which the government responded with a comprehensive overview of ongoing measures and future refinements.

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15 Oct 2012

Measures to Help Businesses Given Economic Slowdown

Ms Tan Su Shan questioned whether the decline in non-oil domestic exports risked a technical recession and if tighter monetary policy and rapid restructuring were worsening the situation, suggesting a review of policy pace or off-budget measures for SMEs.
The Minister for Trade and Industry clarified that Singapore avoided a technical recession in Q3 2012, with modest growth attributed to global headwinds, and noted that economic restructuring and support measures for businesses are being calibrated.
The Minister emphasized that the strong Singapore-dollar policy is essential to control inflation, while competitiveness is sustained through productivity and innovation, not exchange rate adjustments.
The debate highlighted ongoing concerns about balancing growth and inflation, with the government maintaining its policy stance due to persistent high inflation risks and a healthy labour market.
In response to concerns about capital inflows and property price inflation, the Minister indicated that macro-prudential measures are in place to manage such risks.

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15 Oct 2012

Effectiveness of Recent Measures to Stabilise Property Prices

The Minister acknowledged that global liquidity and low interest rates are driving property demand, but noted that cooling measures and increased supply have moderated price growth, with private property and HDB resale price increases slowing significantly in 2012.
Officials emphasized that while some high-profile transactions like the $1 million Queenstown flat are outliers, the overall market is stabilising, and they will continue to monitor and act if necessary to prevent unsustainable price rises, including through recent loan tenure curbs.
The Ministry outlined that affordability is assessed using international guidelines, with HDB BTO pricing kept around 25% of household income for mortgages and resale generally under 35%, ensuring most citizens can afford homes.
To meet demand, HDB has ramped up BTO supply and plans to maintain around 25,000 units annually to cover family formations and additional needs, while considering adjustments for singles and potential buffers for unanticipated demand.

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11 Sep 2012

Impact of Increased Varsity Places on Job Market, Value of Singapore Degrees and Median Salaries

Ms Tin Pei Ling questioned how the economy would cope with more university places, the projected job creation for PMEs, measures to preserve the value of Singapore degrees, and the trend of PME median salaries amid rising graduates.
Minister Tan Chuan-Jin explained that Singapore’s shift toward productivity and innovation-driven growth will create higher-value jobs, and increasing the university participation rate to 40% will provide more opportunities for Singaporeans to upgrade their skills.
To ensure degree value, universities will focus on industry-relevant skills and practical training, with applied degrees at SIT and UniSIM offering differentiated pathways to prepare graduates for the workforce.
The Minister noted that while wage growth projections are challenging, keeping the labour market tight and boosting productivity should lead to positive real wage growth over time.
He emphasized that more degree holders help level the playing field and that attracting good companies and maintaining a diverse workforce are key to creating well-paying jobs for Singaporeans.

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11 Sep 2012

Public Transport Subsidy for Each Singaporean

Mr Gan Thiam Poh asked about the amount of public transport subsidy each Singaporean has received over the past 10 years.
Minister Lui Tuck Yew explained that the Government subsidizes infrastructure costs, such as MRT tunnels and stations, and covers the first set of operating assets, with $17 billion invested from 2002 to 2011.
The Minister also noted that targeted financial aid of over $10 million was provided to low-income Singaporeans in the last five years to help with fare increases.

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11 Sep 2012

Update on Singapore's Free Trade Agreement Negotiations

The EU-Singapore Free Trade Agreement negotiations are in an advanced stage with a few outstanding issues, and both sides hope to conclude them later this year.
The second review of the Comprehensive Economic Cooperation Agreement with India is ongoing and taking longer than expected, but both countries are committed to concluding it by the end of this year.
Negotiations on the services and investment chapters of the India-ASEAN Free Trade Agreement are progressing well, with hopes for a conclusion by year-end, and this is expected to have a positive impact on the bilateral CECA with India.

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11 Sep 2012

Improvements to Productivity and Workers' Salaries

The Acting Minister for Manpower outlined that Singapore's productivity growth has been inconsistent, with a notable 11.1% jump in 2010 followed by lower rates in subsequent years, prompting urgent efforts to restructure the economy, reduce reliance on foreign workers, and support businesses through schemes like iSPRINT to improve productivity and wages.
Government initiatives include sectoral productivity roadmaps, incentives for SMEs, and tightening foreign worker policies to drive higher-value job creation, though challenges remain in scheme accessibility and encouraging business feedback to refine programs.
Long-term goals aim to achieve 2-3% annual productivity growth to boost real wages and living standards, with data showing past wage growth aligned with productivity improvements, but ongoing efforts are needed to ensure Singaporeans take up better jobs and sustain competitive economic growth.

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11 Sep 2012

Government Risk-sharing Programmes for SMEs

Mr Teo Siong Seng asked whether the Government would consider implementing extraordinary financing measures like the Special Risk-Sharing Initiative to help SMEs in a severe economic downturn, and if any plans exist.
Deputy Prime Minister Tharman Shanmugaratnam responded that while the economy is still growing, the Government is closely monitoring downside risks and is ready to provide assistance if a significant downturn occurs.
He assured that specific measures and the level of government risk-sharing with businesses and banks will be determined based on the nature and severity of any future downturn.

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11 Sep 2012

Support for Employment of Disabled Persons

Christopher de Souza proposed expanding financial support, extending special employment credits to non-SPED graduates, and reviewing the Open Door Fund for workplace modifications and training.
Acting Minister Chan Chun Sing responded that current initiatives like the Workfare Income Supplement and Special Employment Credit are being prioritized and evaluated, with flexibility in applying credits to non-SPED graduates, alongside efforts to improve vocational training and job redesign.
Denise Phua asked for formal inclusion of non-SPED graduates in the Employment Credit Scheme, to which the Minister agreed to consider while emphasizing employer partnerships and job redesign.
Lily Neo raised concerns about transport accessibility for disabled persons, prompting the Minister to outline dual approaches: specialized vehicles by VWOs and new public transport options via recently completed proposals.
The debate highlighted ongoing government efforts to support disabled employment through financial incentives, training, job redesign, and improved accessibility, with a commitment to collaborate with disability sectors and employers.

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10 Sep 2012

Assistance to SMEs on Hiring of Locals

Er Dr Lee Bee Wah asked about the percentage of work pass renewals rejected in the past year and how many companies have used the ADVANTAGE! Scheme since its introduction.
Acting Minister Tan Chuan-Jin stated that 30% of Employment Pass and S Pass applications were rejected from January to July 2012, with 29% of rejected applications being renewals, due to stricter salary, educational, and dependency ratio criteria.
The minister clarified that tightening measures affect all companies, with those employing more foreigners or fewer locals being more impacted, but grace periods were given for compliance.
Over 3,000 companies have used the ADVANTAGE! Scheme since 2005, helping to recruit, retain, or re-employ more than 26,000 mature local workers.
The government will continue working with tripartite partners to help employers tap the pool of older residents for manpower needs.

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10 Sep 2012

Impact of Reduction of Foreign Workers on SMEs

The Ministry of Manpower engages SMEs through various channels like industry associations and company meetings to understand their concerns about foreign worker reductions and has taken actions such as extending the Period of Employment for work permit holders to address these issues.
The Government has implemented policies like extending the maximum employment period for workers to 10 years and granting companies up to two years to adjust to new Dependency Ratio Ceiling changes, providing flexibility and time for SMEs to transition.
Schemes such as online Innovation and Capability vouchers are being simplified and intensified to assist SMEs in innovation, branding, and overseas expansion, with a review to enhance current programmes and develop new support measures.

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10 Sep 2012

Adequacy of $1.1 Billion Bus Services Enhancement Programme

Liang Eng Hwa questioned if the $1.1 billion Bus Services Enhancement Programme is sufficient to meet urgent bus service needs and whether additional funding is required to improve services in poorly served areas.
Minister Lui Tuck Yew assured that the programme aims to deliver new routes, shorter waiting times, less crowded buses, and better connectivity, with a commitment to periodic reviews of its adequacy and funding.
The focus is on rapid implementation, including collaborating with transport operators to recruit and train enough drivers to support the programme’s rollout.

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10 Sep 2012

Government's Total Expenditure on National Day Parade

Gerald Giam requested an itemised breakdown of the government's total expenditure on the National Day Parade for the last 10 years, including manpower costs for civil servants and soldiers on parade duty.
The Minister for Defence provided the total expenditure for the last 10 financial years, noting that costs increased significantly when the parade was held at venues like the Padang and Marina Bay due to extensive preparatory work.
The NDP show accounts for about half of the expenditure, covering production, costumes, props, lighting, and equipment rentals, while the rest includes infrastructure, logistics, publicity, and security, with manpower costs imputed but not directly costed.

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10 Sep 2012

Ownership and Rental of HDB Commercial Premises

Gerald Giam asked the Minister for National Development for data from 2006 to 2011 on the ownership and average rental per square foot of HDB commercial premises by owner type across town regions, whether foreign and private ownership has led to rising rentals, and what measures are in place to contain rentals for small businesses.
Khaw Boon Wan stated that HDB manages about 5,900 rental shops and 8,700 sold shops, with HDB owning all rental shops and about 95% of sold shops owned by Singaporeans or Singaporean-owned companies, while PRs, foreigners, and foreign-owned companies own the remaining 5%.
Khaw explained that HDB shop rental rates depend on factors like location, population catchment, business type, and market conditions, and that HDB reviews shop supply based on population changes, occupancy rates, and sales turnover to maintain balance between supply and demand.
Khaw noted that HDB shop rentals have been relatively stable over the last 10 years, with median rental for HDB rental shops rising from $44 per square metre in 2001 to $48 per square metre currently.
Khaw added that HDB does not collect data on rental rates for sold shops and therefore cannot assess the effect of foreign and private ownership on rental trends.

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