Economy & business

Melvin Yong Yik Chye asked if ACRA would collaborate with other agencies to prevent individuals from starting new businesses without settling existing debts from tribunal orders. Chee Hong Tat explained current procedures allow creditors to enforce tribunal orders through the court, but the government does not require individuals to clear business debts before establishing new entities. He noted that business owners of sole proprietorships and partnerships are personally liable for debts, while companies provide limited liability to shareholders. This limited liability encourages entrepreneurship, although it may not guarantee full recovery for creditors upon insolvency. Balancing liability protection with creditor rights is crucial for maintaining economic competitiveness and job creation.

Chua Kheng Wee Louis asked about the timelines for the Equities Market Review Group's recommendations to the Government and their implementation. Gan Kim Yong responded that the Review Group aims to complete its report by August 2025, with potential updates and phased announcements occurring before that date.

Christopher de Souza asked the Minister for Health about the possibility of bulk purchasing shingles vaccines to lower costs and improve their cost-effectiveness for the population. Ong Ye Kung responded that the Ministry of Health employs value-based pricing and bulk purchasing to secure cost-effective drug and vaccine pricing. He noted that the current price of the shingles vaccine does not reflect its benefits, but the Ministry remains committed to engaging with the supplier for better pricing.

Assoc Prof Jamus Lim questioned the exclusion of certain SkillsFuture-approved courses from the SkillsFuture Mid-career Support programmes. Chan Chun Sing explained that the $4,000 SkillsFuture Credit (Mid-Career) is designed to aid mid-career Singaporeans aged 40 and above in upskilling and reskilling efforts. The credit can be used for over 7,000 courses that enhance employability, including academic qualifications and industry-specific training. SkillsFuture Singapore plans to collaborate with sector agencies and providers to update courses to meet economic and workforce needs.

Yip Hon Weng raised concerns about short-term solutions to housing affordability, specifically asking if the government would consider longer-term measures, including a review of the property tax structure and additional subsidies. Chee Hong Tat affirmed the government's commitment to affordable public housing, highlighting grants for first-time and resale HDB flat buyers, and new classifications to ensure affordability. He also noted past cooling measures to stabilize property prices and explained the progressive nature of the property tax system, which will see adjustments in 2025 to reduce taxes for most owner-occupied properties. Additionally, the government has enhanced the Assurance Package to help Singaporeans with living costs.

Gerald Giam Yean Song asked for the total projected expenditure of the Next Generation Electronic Medical Record (NGEMR) system and its impact on public healthcare costs, along with measures to ensure it provides value for money without increasing costs for patients. Ong Ye Kung stated that the phased roll-out of NGEMR was completed at some institutions by July 2024, with full implementation costing the government $1.5 billion over 10 years. NGEMR will replace over 100 legacy IT systems, improving care coordination by allowing doctors access to comprehensive patient records across institutions. The system will also enhance operational efficiency and health outcomes through the use of analytical tools.

The Second Minister for Finance introduced amendments to the Customs Act to enhance Singapore Customs' regulatory and enforcement capabilities, with the last amendment having occurred in 2018. These amendments include granting additional powers to Singapore Customs, such as authorizing auxiliary police officers to perform search and seizure actions and allowing customs to compel licensees to remove dutiable goods from warehouses. New offences will be established to deter individuals from facilitating customs violations and to prosecute those obstructing investigations. Additionally, penalties for certain offences will be increased to strengthen deterrence. The proposed changes aim to improve enforcement effectiveness and reinforce Singapore’s trade integrity.

The Food Safety and Security Bill aims to consolidate and update existing food-related legislation to strengthen Singapore's food safety and security framework. The Bill introduces a Minimum Stockholding Requirement (MSR) to ensure essential food supplies in times of disruption, while also establishing clearer regulations and penalties to enhance accountability throughout the food supply chain. Different stakeholders expressed concerns regarding the potential impacts on local farmers, food suppliers, and small businesses, emphasizing the need for support mechanisms such as subsidies and training to mitigate compliance costs. The proposed legislation also aims to promote better public health outcomes through more stringent food safety measures and clearer delineation of responsibilities between health and sustainability agencies. Overall, the Bill is seen as a crucial step toward improving food resilience for Singaporeans in an increasingly unpredictable global environment.

Desmond Choo raised concerns about the impact of the Johor Bahru-Singapore Rapid Transit System (RTS) Link on various sectors in Singapore, including retail and the job market. The Minister of State for Trade and Industry, Alvin Tan, referenced a previous written response and acknowledged merchants' concerns regarding the potential benefits skewed towards one side. Hany Soh suggested a comprehensive approach to improve the overall appeal of areas like Woodlands to attract Malaysian visitors, while Alvin Tan highlighted existing Government efforts to enhance neighbourhood centres and support local businesses. Lim Biow Chuan emphasized the broader implications for all retail industries, pointing out that Singaporeans are likely to shop in Johor due to lower prices, and urged the Ministry to consider strategies for the entire retail sector.

• Ms. Yeo Wan Ling inquired about the historical use of the Co-operative Societies Liquidation Account (CSLA) funds to support the co-operative movement and future plans for such usage.
• The Minister for Culture, Community and Youth, Edwin Tong, confirmed that CSLA funds can be used to promote co-operative principles and benefit co-operative societies.
• The CSLA is currently funding the Empowering Communities Fund, which supports co-ops in community initiatives aimed at assisting vulnerable groups and enhancing social cohesion in Singapore.

• Patrick Tay Teck Guan inquired about the review of MediSave limits for baby delivery expenses in the context of promoting parenthood.
• The Minister for Health, Ong Ye Kung, announced an increase in MediSave withdrawal limits for delivery expenses effective from April 1, 2025.
• The MediSave limit for a typical delivery will rise from $2,750 to $4,280, and the MediSave Grant for Newborns will increase from $4,000 to $5,000 for Singaporean citizens.

• The Competition and Consumer Commission of Singapore (CCCS) has taken enforcement action in 16 cases against 30 suppliers for unfair practices under the Consumer Protection (Fair Trading) Act (CPFTA) since 2020.
• Most cases involved multiple misleading and false representations, with 12 cases resolved through warnings and voluntary undertakings, while 4 cases required court declarations and injunctions.
• A breakdown of the top five specific unfair practices under the CPFTA was provided by the Ministry during the debate.

• The debate focused on the economic cooperation and bilateral trade relations between Singapore and the United States over the past five years, highlighting the impact of the US-Singapore Free Trade Agreement.
• Bilateral trade between Singapore and the US increased significantly from $175 billion in 2018 to $287 billion in 2022, with the US maintaining a trade surplus with Singapore.
• The US is Singapore's largest foreign investor, with American investment in Singapore nearly doubling from $292 billion in 2018 to $574 billion in 2022, while Singapore's investment in the US also grew.
• Singapore has collaborated with the US in emerging areas such as the digital economy and critical technologies, and is part of the Indo-Pacific Economic Framework for Prosperity.
• The Singapore government expressed its commitment to continue strengthening economic ties with the new Trump administration.

• Ms. Hazel Poa inquired about regulatory requirements from the Monetary Authority of Singapore (MAS) regarding the closure of joint accounts upon the death of one account holder and suggested allowing surviving holders, particularly the elderly, to retain account numbers.
• Gan Kim Yong, representing the Prime Minister, stated that MAS does not mandate banks to close joint accounts after a joint account holder's death, and practices vary among banks.
• Some banks permit surviving joint account holders to continue using the account, while others assist in withdrawing or transferring funds if the account is closed.
• MAS is actively engaging with the banking industry to explore better harmonization and simplification of practices related to joint accounts and estate settlement after death.

• Mr. Saktiandi Supaat inquired about the unutilized amounts and percentages of the Qualifying Child Relief and Parenthood Tax Rebate for the Year of Assessment 2024, highlighting concerns about parents not optimizing their claims.
• Chee Hong Tat explained that parents can choose how to share the reliefs and rebates, and the government does not interfere in their decisions as long as conditions are met.
• The Parenthood Tax Rebate can be carried forward indefinitely if not fully utilized, unlike annual tax reliefs that must be claimed each year.
• IRAS provides various online tools to help taxpayers understand their tax obligations and manage their claims, including a Tax Reliefs Checker and an Individual Income Tax Calculator.
• IRAS is committed to enhancing its digital services to improve user experience and support for taxpayers.

• An average of 790 cases of credit card fraud were reported annually in Singapore from 2021 to 2023, resulting in average losses of $2.1 million per year.
• Enhanced security measures, such as the 3-D Secure protocol and real-time transaction monitoring, have been implemented by banks and card schemes to protect consumers from fraud.
• The Shared Responsibility Framework is deemed unsuitable for credit card fraud, as existing rules already limit cardholder liability to $100 under certain conditions.
• Consumers are protected by the Association of Banks in Singapore's Code of Practice and chargeback mechanisms, allowing them to dispute unauthorized transactions.
• Cardholders are encouraged to remain vigilant, monitor transactions, and promptly report any unauthorized activity to their banks.

• Mr. Gan Thiam Poh raised concerns about the adequacy of current government assistance schemes for low- and medium-income workers in light of rising living costs due to inflation.
• Chee Hong Tat, representing the government, stated that social support schemes are regularly reviewed and have been enhanced to better support lower- and middle-income workers, including increases in the Workfare Income Supplement.
• The government has introduced additional measures, such as the Assurance Package and various rebates, to assist families with the cost of living.
• Chee emphasized that increasing real wages over time is crucial for helping workers cope with living costs, highlighting efforts to grow the economy and promote skills upgrading.
• The government will continue to monitor economic conditions and adjust support measures as necessary to ensure they meet the needs of workers.

• The Singapore-Johor Bahru Rapid Transit System (RTS) Link is expected to enhance connectivity and expand the market for businesses on both sides of the border.
• Local retailers have expressed concerns about increased competition from Johor retailers and online platforms, prompting the government to consider their needs.
• The government is providing support to local retailers through grants and initiatives aimed at building capabilities and enhancing offerings to attract overseas demand.
• Upgrading efforts for heartland shops and neighbourhood centres are ongoing to improve the shopping environment and appeal to Singaporean consumers.
• The Community Development Council (CDC) Voucher scheme has been implemented to support households and heartland enterprises, with significant funds allocated to participating businesses since its launch.

• The Progress Singapore Party (PSP) proposed a hybrid Certificate of Entitlement (COE) system that incorporates both economic and social factors to make car ownership more equitable, particularly for families with specific needs.
• The proposed system would distribute COE credits to adult Singapore citizens and permanent residents, allowing them to bid for COEs based on their needs, with additional credits for families with children, seniors, and individuals with disabilities.
• PSP suggested implementing a base fee for COEs to maintain government revenue, with options for a fixed fee or a percentage of the car's market value, while also proposing an additional tax for households owning multiple cars.
• The Senior Minister of State for Transport, Dr. Amy Khor, expressed concerns about the complexity and potential inefficiencies of the proposed credit system, emphasizing the effectiveness of the current COE system in managing vehicle population and congestion.
• The government plans to increase COE supply through various measures to address high prices while promoting a car-lite vision that prioritizes public transport and shared mobility solutions.

• The Protection from Scams Bill aims to empower the Police to issue Restriction Orders (ROs) to banks, allowing them to temporarily restrict banking transactions of individuals suspected of being scam victims, in order to prevent further financial losses.
• The Bill addresses the rising number of scams in Singapore, with 86% of reported cases in early 2024 involving victims willingly transferring money to scammers, resulting in significant financial losses.
• Concerns were raised about the potential intrusiveness of the Bill, the need for safeguards to protect individual autonomy, and the effectiveness of the proposed measures in preventing scams.
• Various Members of Parliament suggested improvements, including the need for a streamlined appeals process, better training for bank staff, and the inclusion of community support in the intervention process.
• The Minister of State acknowledged the need for a whole-of-society approach to combat scams and indicated that the Bill is a crucial step, while also emphasizing the importance of public education and collaboration with financial institutions.