Economy & business

• The Insolvency, Restructuring and Dissolution (Amendment) Bill aims to make the Simplified Insolvency Programme (SIP) a permanent feature, refining it to assist a broader range of companies, particularly micro and small enterprises (MSCs) facing financial distress.
• Key changes include streamlining eligibility criteria to a $2 million liability threshold, reducing the number of required documents, and allowing a simplified process for debt restructuring and winding up, which will be administered by licensed insolvency practitioners.
• Concerns were raised regarding the potential disadvantages for creditors and employees, the risk of abuse in the declaration of eligibility, and the reduction of the moratorium period from 90 to 30 days, prompting calls for stronger safeguards and a longer grace period.
• The Minister emphasized that the changes are designed to balance the interests of stakeholders while facilitating quicker exits for non-viable companies, and that the existing priority of debts will remain unchanged.
• The debate highlighted the need for ongoing education and support for SMEs regarding the new SIP framework, as well as considerations for improving individual bankruptcy processes in the future.

• The Ministry for Transport emphasized that the entry of two new ride-hailing operators in 2025 will increase choices for drivers and commuters, driven by demand for point-to-point trips rather than a cap on operator numbers.
• The Ministry has no plans to cap the number of platform operators, as regulations promote open competition, multi-homing for drivers, and transparency in fares and commissions to benefit both drivers and commuters.
• COE prices are influenced by multiple factors, including macroeconomic conditions and quota supply, and the Ministry cannot draw a causal link between new ride-hail operators and COE prices.
• The government noted that COE supply for Categories A and B is projected to increase quarterly until 2026, with demand largely from local individual buyers.

• The President concurred on 21 November 2024 with a parliamentary resolution passed on 12 November 2024 to increase the specified amount for Government Securities and Treasury Bills to S$1,515,000,000,000.
• The resolution aligns with Article 144(1)(a) of the Singapore Constitution and section 11(2) of the Government Securities (Debt Market and Investment) Act 1992.
• The change aims to facilitate higher issuance and management of government securities and treasury bills in Singapore’s debt market.

Gerald Giam Yean Song asked about the take-up rate of the Enabling Mark since its introduction in 2020 and whether financial incentives would be considered to encourage employer participation. Masagos Zulkifli reported that the number of accredited organisations has risen significantly from 89 in 2021 to 246 in 2024, indicating an upward trend in adoption. The Enabling Mark serves as a framework for organisations to improve disability-inclusive employment and enhance their corporate image. Measures to support employers include customized employment support, wage offsets for employees with disabilities, and the upcoming Employer Development Grant effective January 2025 to bolster inclusive hiring capabilities.

See Jinli Jean asked about the composition of the workforce in the creative industries, including the proportion of employees versus freelancers, the employee-to-freelancer ratio in different types of enterprises, and the value-added per worker compared to average pay over the past decade. Gan Kim Yong responded that in 2022, there were approximately 76,000 workers in the creative industries, with 82% being employees and 18% freelancers. Among employees, 44% worked in micro-enterprises, 32% in small enterprises, and 24% in medium to large enterprises, generating a value-add of about $184,000 per worker. Data on freelancers' engagement and their value-add is not tracked by the ministry.

Leong Mun Wai questioned the Prime Minister about the projected investment and interest income for the Pioneer Generation Fund and Merdeka Generation Fund, as well as their ability to cover estimated liabilities. Chee Hong Tat responded that the Government regularly reviews the funds' estimated liabilities and utilization trends to ensure sufficiency, noting that any necessary top-ups to the funds will occur to honor commitments to seniors. As of March 31, 2024, the estimated liabilities for the PG and MG Funds are $6.11 billion and $5.78 billion, while their current balances are $5.52 billion and $5.55 billion, respectively. The projected income figures are not published as they depend on fund utilization and remaining balances.

Jean See Jinli asked the Prime Minister about the possibility of expanding SGX's sustainability reporting to include human capital management disclosures, emphasizing the importance of fair worker treatment. Gan Kim Yong responded that SGX-listed companies are already required to disclose significant business impacts, including aspects of human capital management in line with international standards. He stated that companies frequently report on areas such as working conditions and diversity, and that SGX will continue to monitor international practices.

Indranee Rajah expressed gratitude to hawkers attending the extended debate before moving to adjourn Parliament. Assoc Prof Jamus Lim highlighted the importance of decarbonizing Singapore’s corporations amid ambitious carbon reduction targets, emphasizing that all businesses, regardless of size, need to address their carbon emissions comprehensively. He discussed the significance of carbon taxation, mandatory climate disclosures for companies, the need for enhanced green skills training, and the role of sustainable finance in facilitating this transition. Minister Alvin Tan affirmed the government’s commitment to achieving net-zero emissions by 2050 while supporting businesses during their sustainability efforts, highlighting strategies for decarbonization and the critical nature of community involvement in these initiatives.

The debate highlighted the integral role of hawker centres in Singaporean culture and the need to support hawkers amid rising costs and pressures. Senior Minister of State Koh Poh Koon emphasized the unique character of hawker centres and outlined key objectives: maintaining affordability for consumers, ensuring decent livelihoods for hawkers, and preserving local hawker culture. There are ongoing tensions between lowering food prices and supporting hawkers' income, as well as challenges in hiring local versus foreign workers without compromising the cultural identity of hawker centres. Proposed amendments to reinforce government support for hawkers and regular reviews of related policies were agreed upon, reflecting a bipartisan commitment to sustaining this vital cultural institution.

Keith Chua emphasized the importance of hawkers in Singapore's food landscape, noting that over 80% of residents consume hawker food weekly. He discussed the affordability of hawker food despite rising costs in rentals and raw materials, highlighting the need for supportive government policies to sustain the hawker industry. Liang Eng Hwa advocated for building more hawker centers to stabilize market prices and preserve the income levels of hawkers, while addressing succession challenges as older hawkers retire. Ang Wei Neng shared experiences from supporting hawkers after a market fire, underscoring community collaboration in fostering local food options. Denise Phua stressed the necessity of upgrading hawker center infrastructure and proposed improved resource management for iconic locations, while also recognizing the societal value of hawker culture in bringing communities together.

Leong Mun Wai initiated a debate in Parliament urging the Government to review its policies on hawkers and hawker centres to better support and preserve Singapore's hawker culture. He noted that while hawker culture has received UNESCO recognition, hawkers face challenges like high rents, harsh working conditions, and a lack of sufficient support from the Government. He proposed several measures, including phasing out the social enterprise hawker centre model, implementing a fixed rental structure, allowing hawkers to employ more foreign workers, and providing targeted food discounts funded by the Government rather than the hawkers themselves. Various Members of Parliament expressed support for the motion, highlighting the importance of affordable hawker food for Singaporeans, while also noting the need to address the sustainability and future of the hawker industry amidst rising costs and an ageing workforce.

Melvin Yong Yik Chye raised concerns about the regulation of online "finfluencers" who share financial advice, asking the Prime Minister about complaints received against them and the need for regulatory review of the Financial Advisers Act. The Minister of State, Alvin Tan, stated that if finfluencers give financial advice, they must be licensed under the Financial Advisers Act, and that MAS has received an average of less than five complaints per year regarding finfluencers, most of which were not related to regulated financial advice. Yong emphasized the potential risks for consumers related to unregulated advice and proposed that MAS establish industry guidelines to clarify the responsibilities of finfluencers and protect consumers. In response, Tan reiterated that only licensed financial advisory firms may provide financial advice and encouraged consumers to report any wrongdoing to MAS.

Ang Wei Neng asked for updates on the Revitalisation of Shops (ROS) scheme, specifically the selection of neighbourhood centres and funding adjustments due to rising construction costs. The Senior Minister of State, Sim Ann, confirmed that 11 centres have been selected for upgrading, with HDB increasing its co-payment share for owners to reduce their financial burden. Ang Wei Neng raised concerns about implementation timelines for shop owners, ongoing high construction costs despite increased subsidies, the possibility of installment payments for co-payments, and the repercussions for shop owners who refuse to pay. Sim Ann responded that local committees are being set up to facilitate the ROS, and that HDB has been empowered to collect unpaid upgrading fees as arrears.

Ang Wei Neng inquired about the eligibility and outreach methods for the $200 LifeSG credits for past National Servicemen over 60 years old under the 2024 Budget. Senior Minister of State Zaqy Mohamad confirmed that over a million NSmen would receive these credits, with 26% being over 60, and outlined support options including assistance at digital community hubs and the availability of hard copy vouchers for those not comfortable with digital methods. Ang expressed concern about ensuring the initiative does not widen the gap between digitally savvy and non-savvy individuals and emphasized the importance of support from community centers. Zaqy addressed this concern by assuring that both digital and hard copy options aim to include all NSmen and mentioned a high level of support for digital disbursements among NSmen.

Jean See inquired about the impact of increasing MediShield Life premiums on self-employed persons (SEPs), asking for statistics on those unable to meet MediSave contributions. Minister Tan See Leng reported that 1.4% of active SEPs had insufficient MediSave balances for the upcoming premiums, with half of that group unable to fulfill their contributions. The government provides support through a $4.1 billion package, including enhanced subsidies and MediSave bonuses to assist older SEPs. Assurance was given that no individual would lose MediShield coverage due to financial hardship, with support available for those unable to pay premiums.

Hazel Poa questioned the Minister for Health about the effects of proposed increases in MediShield Life deductibles on inpatient and outpatient bills, including estimated percentages of bills impacted and the number of Singaporeans affected. Ong Ye Kung explained that deductibles serve to filter out smaller bills, maintaining efficiency in the healthcare system while minimizing individual financial burdens. He noted that the inpatient deductible adjustment, the first since 2015, helps prevent significant premium increases and that most affected bills would still be manageable through MediSave. The introduction of a new outpatient deductible is intended to correspond with an expansion of coverage and increased claim limits, which are expected to mitigate financial impact for most patients. The government will allocate substantial resources to offset costs, with additional support measures, including MediSave top-ups to help citizens cope with rising healthcare expenses.

Assoc Prof Jamus Jerome Lim questioned the Prime Minister about the possibility of establishing an independent securities regulator instead of the existing SGX RegCo, which is a subsidiary of the Singapore Exchange. Gan Kim Yong responded that Singapore has a dual-level regulatory framework where the Monetary Authority of Singapore oversees financial markets, while SGX RegCo handles frontline regulatory functions as a self-regulatory organization. He noted that having an SRO allows for responsiveness to market conditions, and SGX RegCo's governance includes an independent chairman and majority independent directors. The Equity Markets Review Group is currently reviewing the regulatory framework to strengthen equity market development in Singapore.

Don Wee asked if the Monetary Authority of Singapore (MAS) would implement measures to help insurers promptly identify deceased policyholders and expedite claim payouts. Gan Kim Yong stated that insurers provide guidance on claims processes through their websites and resources on estate planning are available from MoneySense and the Life Insurance Association. Insurers proactively identify potential death claims by scanning obituaries and contacting intermediaries, and make efforts to reach out to next-of-kin for claim initiation. It is advised that policyholders inform their families about insurance arrangements and keep beneficiary information updated to facilitate the claims process.

Carrie Tan questioned the Prime Minister about the regulations that allow family offices and private banking relationship managers to proactively discuss philanthropy with clients, and whether there are plans to enhance these initiatives in Singapore. Gan Kim Yong responded that the Monetary Authority of Singapore (MAS) permits banks to provide advisory services on philanthropic giving and that efforts are being made to develop philanthropy advisory talent in the finance sector. MAS has introduced training programs and resources to support finance professionals in philanthropy advisory, including an online platform expected in 2025. Initiatives like the Impact Philanthropy Partnership aim to raise awareness among high-net-worth individuals about philanthropy, while tax incentives for family offices and donors to local and overseas charities are being enhanced. MAS and government agencies will continue to promote the channeling of wealth into philanthropic causes.

Zhulkarnain Abdul Rahim asked about measures to raise public awareness on preventing scams and seeking redress under the Shared Responsibility Framework (SRF). Gan Kim Yong addressed questions regarding refinements to the SRF and the importance of balancing customer protection with the convenience of legitimate transactions. A 12-hour cooling-off period for digital security token activation was established to help customers respond to fraudulent activities. Victims of phishing scams must report incidents to their financial institutions and the police, with specific processes in place for investigation and potential compensation. The government has consolidated anti-scam resources into the ScamShield Suite and collaborates with agencies to enhance outreach, especially to vulnerable populations.