Economy & business

Carrie Tan questioned whether the Ministry for National Development provides funding to Town Councils for municipal maintenance related to climate wear and tear, such as waterproofing repairs for older HDB buildings. Desmond Lee responded that Town Councils are responsible for maintenance, with HDB offering enhanced support, including inspections and technical advice for complex issues. The Government allocates nearly $260 million annually to support Town Council maintenance costs, and HDB co-shares 50% of exterior repair costs under a specific scheme. Town Councils are encouraged to manage their finances wisely and set aside contingency funds for unexpected repairs.

See Jinli Jean raised questions regarding the motivation of Productivity Solution Grant (PSG) vendors to update pricing in line with market changes and how businesses can provide feedback on the quality of pre-approved technology products. Josephine Teo explained that the PSG supports businesses in adopting verified solutions to improve productivity and promote competition among vendors. She encouraged businesses to select solutions that best meet their needs and stated that feedback on pricing and quality can be submitted via the GoBusiness platform or the Business Grants Portal.

Jean See inquired about the take-up and retention rates for work-study diplomas and degrees since 2021, as well as the possibility of increasing grant support for structured training costs. Chan Chun Sing reported a steady increase in enrolment for SkillsFuture Work-Study Programmes, with enrolment rising from 500 in 2021 to 1,300 in 2024 for diploma programmes, and from 300 in 2021 to 800 in 2023 for degree programmes. Approximately 70% of graduates from these programmes remain with the employers who trained them. Employers can receive grants of up to $15,000 for each eligible trainee, and the Ministry will continue to assess the effectiveness of these incentives.

Hazel Poa asked for a comparison of median monthly rents for hawker stalls in 2023 versus rents from three different time frames: up to three years ago, between three to six years ago, and more than nine years ago, with distinctions for NEA-managed stalls and those at Socially-conscious Enterprise Hawker Centres (SEHCs). Grace Fu Hai Yien reported that the median rent for NEA-managed stalls in 2023 is around $1,800, while the median rent for non-subsidised stalls has been stable at around $1,250 since 2015. For SEHCs, the median stall rent in 2023 is $1,700, with operators proposing fixed rents that cannot vary during the tenancy. Various factors, including location and competition, influence rental variations.

Assoc Prof Jamus Jerome Lim asked about the growth of Single Family Offices (SFOs) receiving tax incentives, potential regulation under the Securities and Futures Act (SFA), and considerations for such regulations. Gan Kim Yong reported that the number of SFOs granted tax incentives increased from 400 at the end of 2020 to over 2,000 by the end of 2024. SFOs, which solely manage family funds without serving third-party clients, are not licensed under the SFA, in line with practices in other jurisdictions. The Monetary Authority of Singapore (MAS) plans to implement a licensing class exemption framework for SFOs requiring them to notify MAS and adhere to anti-money laundering controls.

Jamus Lim questioned the Prime Minister on the job creation and tax revenue generated by the increase in family offices from 2020 to 2024. Gan Kim Yong responded, focusing on Single Family Offices (SFOs) with Monetary Authority of Singapore tax incentives, which must meet specific requirements. SFOs contribute to the growth of the asset management sector and related services, employing approximately 2,200 locals. Further details on job projections and fiscal contributions were not specified.

Neil Parekh Nimil Rajnikant questioned the Minister for Culture, Community and Youth about actions taken following Allianz Europe's withdrawal of its acquisition offer for a controlling stake in Income Insurance Limited and lessons learned from this situation. Edwin Tong Chun Fai explained that the government previously addressed concerns over the sale during parliamentary sittings, emphasizing that Allianz and Income are corporate entities not covered by the Co-operative Societies Act, which is why intervention was made via amendments to the Insurance Act. The Ministry is exploring potential amendments to the Co-operative Societies Act to enhance governmental oversight over co-operative societies considering corporatisation, with plans to present these amendments to Parliament in the future.

Alex Yam Ziming raised concerns about the impact of potential new US tariffs on Singapore's export-dependent economy and the government's plans to mitigate adverse effects on local businesses and workers. Gan Kim Yong confirmed that the US has recently announced tariffs on imports from Canada, Mexico, and China, but emphasized that Singapore is not directly affected. He noted that these tariffs will create global trade friction that could indirectly impact Singapore's economy by affecting supply chains and prices. The government is assessing the situation and engaging with impacted companies while leveraging existing support measures to help businesses adapt and diversify their operations.

Chua Kheng Wee Louis requested information from the Minister for National Development regarding average land prices for state land sold to HDB over the last five years, broken down by district, and cumulative changes in public housing land value during that period. Desmond Lee responded that HDB purchases land at fair market value determined by the Chief Valuer, with costs for non-mature estates ranging from $907 million to $2.6 billion and for mature estates from $1.3 billion to $5 billion annually from FY 2019 to 2023. He noted that total land costs fluctuate based on market conditions and land characteristics, and HDB does not track year-to-year fluctuations in public housing land value.

Chua Kheng Wee Louis raised questions regarding the pricing and accounting practices during changes in land use and ownership among Ministries and Statutory Boards. Lawrence Wong explained that state land is treated as an asset of public reserves and is transacted at fair market value (FMV), determined through tender or professional valuation. There is no change in land ownership for government infrastructure projects, and no payment occurs when land is reallocated between Ministries. For land alienated to Statutory Boards, it is sold at FMV, and the proceeds are recorded as land sales in their accounts. Any subsequent changes in land use involve transferring the land back to the state before reallocation, with associated costs recorded as development expenditure.

Melvin Yong Yik Chye asked about the last review of accredited investor definitions under the Securities and Futures Act 2001 and feedback received on incorporating knowledge criteria for eligibility. Gan Kim Yong responded that the criteria were last updated in 2018, introducing a cap on primary residence value for net asset assessment, and clarified that financial institutions must treat customers as retail investors first, regardless of net worth. Investors can opt to become accredited investors for access to more products but lose certain regulatory safeguards, which must be clearly explained to them. The Monetary Authority of Singapore's updated Fair Dealing Guidelines emphasize assessing customer profiles and knowledge when recommending products, while also stressing that regulatory safeguards do not replace individual investor responsibility.

Christopher de Souza asked about simplifying the registration process for a Corppass account to ease claims for employers using SkillsFuture Enterprise Credit (SFEC). Gan Kim Yong explained that while SFEC is tied to various base enterprise support schemes requiring Corppass for application, the process for obtaining a Corppass account is straightforward, with approvals expected within five working days. Once a company secures the base scheme, they do not need a separate application for SFEC, as the Inland Revenue Authority of Singapore automatically reimburses eligible companies without needing Corppass.

Neil Parekh Nimil Rajnikant asked about the current status and effectiveness of the Overseas Networks and Expertise (ONE) Pass since its inception. The Minister for Manpower reported that approximately 3,000 ONE Passes were issued in 2024, with one-sixth being new entrants and the majority being from conversions of existing work passes. The top sectors for employment of ONE Pass holders include financial services, information and communications, and professional services, with ongoing efforts to engage global talent and enhance awareness of the program. Gerald Giam inquired about measures to assess skills transfer and economic impact of the ONE Pass, and the Minister indicated that while there are no formal requirements for reporting professional activities, the ministry aims to foster collaboration and mentorship opportunities for local professionals.

Saktiandi Supaat asked about the economic benefits and sector impacts of the Johor-Singapore Special Economic Zone (JS-SEZ), including concerns over potential relocation of firms and available government incentives for Singapore companies. Alvin Tan highlighted that the JS-SEZ aims to enhance competitiveness and job creation across sectors like manufacturing and logistics, while existing Singapore firms are already benefiting from operations in both regions. He acknowledged the importance of monitoring the JS-SEZ's impact on various sectors and mentioned that Malaysia is offering incentives to attract investments, prompting a need for mitigation measures in Singapore. The JS-SEZ is viewed as an opportunity to leverage Johor's resources while building on Singapore's strengths to attract new investments.

• Ms. He Ting Ru raised concerns about landlords making false claims for CDC Vouchers intended for tenants, asking for statistics on appeals, outcomes, and penalties for such claims.
• Minister Edwin Tong provided details on the distribution and spending of CDC Vouchers, highlighting that over $1.3 billion has been spent, with a near-equal split between heartland merchants and supermarkets.
• He explained that each household can only claim one set of vouchers per tranche and outlined the process for households living in co-tenanted premises to appeal for their vouchers.
• The Minister emphasized the importance of reporting false claims and mentioned that 97% of eligible households had claimed their 2024 CDC Vouchers, indicating high participation in the scheme.
• The Government is committed to ensuring the effectiveness of the CDC Vouchers Scheme and will continue to monitor and improve its implementation.

• Ms. He Ting Ru inquired about the total value and breakdown of unclaimed CDC Vouchers for 2024 as of December 31.
• Minister Edwin Tong reported that over $1.3 billion in CDC Vouchers have been spent, with nearly equal distribution between heartland merchants and supermarkets.
• Approximately 97% of Singaporean households claimed their CDC Vouchers for 2024, marking the highest claim rate since the digital scheme's launch in 2021.
• Some households may not claim their vouchers due to issues like co-tenancy or incorrect registered addresses, but they can appeal for assistance at community centers.
• The government is focused on ensuring all eligible households can claim their vouchers and is actively reaching out to those who may struggle with digital processes.

• Zhulkarnain Abdul Rahim inquired about the redemption rates of CDC Vouchers at supermarkets and small businesses over the past four years and suggested increasing the proportion of vouchers for supermarkets.
• Edwin Tong reported that since January 2023, CDC Vouchers have been equally distributed between supermarkets and heartland merchants, with approximately 50% spent at each category.
• Over $1.3 billion in CDC Vouchers has been utilized, with 97% of Singaporean households claiming their vouchers for 2024, marking the highest participation since the digital scheme's launch.
• The government is focused on ensuring all eligible households can claim their vouchers, particularly assisting those who are digitally less-savvy.
• There are measures in place to address issues related to households that may not have claimed their vouchers due to address discrepancies or other challenges.

• Mr. Yip Hon Weng inquired about the annual costs of passport services in Singapore and the funding sources for these costs.
• He also asked if advancements like passport-less immigration clearance could lead to reduced passport administration costs and if this would prompt a review of passport renewal fees.
• Minister K Shanmugam stated that the passport application fee has been $70 since 2006 and is based on a cost-recovery model, excluding costs related to immigration clearance.
• The Ministry will continue to review passport fees, including those for lost or damaged passports.

• The debate focused on the implications of the US' new AI diffusion policy and export controls on Singapore's tech sector and competitiveness.
• Mr. Chua Kheng Wee Louis raised concerns about Singapore's exclusion from the list of countries allowed exceptions for importing high-end chips and technologies.
• Minister Gan Kim Yong acknowledged that the AI diffusion rule is not finalized and emphasized the government's ongoing monitoring and engagement with companies regarding potential impacts.
• The government is open to considering measures to ensure continued access for Singapore-based companies to necessary technologies from the US.

• Ms. Usha Chandradas inquired about plans for Singapore arts businesses to benefit from the Johor-Singapore Special Economic Zone agreement.
• Deputy Prime Minister Gan Kim Yong highlighted that the Special Economic Zone aims to enhance cross-border movement and ease of business.
• The agreement is expected to allow various sectors, including the arts, to leverage the strengths of both Singapore and Johor for growth.