Economy & business

Desmond Choo and other members asked the Minister for Transport about the sustainability and monitoring of the Point-to-Point Transport (P2P) sector's capacity and driver earnings. The Senior Minister of State for Transport, Amy Khor, explained that the government allows P2P driver supply to adjust based on market demand and does not set fares or cap driver numbers. Although the number of active P2P vehicles has increased, demand for rides has not kept pace, leading to declining earnings for drivers as fares have moderated. The government is reviewing the P2P sector to ensure it operates efficiently and is considering measures to support drivers facing low fares and challenges with vehicle leasing contracts.

• Dr Koh Poh Koon clarified that hawkers who bid high rents like $10,000 or $8,000 in their first tenancy term will keep that price for that term but will be adjusted to the assessed market rent afterwards.
• The adjusted market rent for subsequent tenancy terms is about $1,200, based on the median for non-subsidised cooked food stalls, making it more sustainable for hawkers long-term.
• This correction was issued to address a supplementary question from MP Mr Yip Hon Weng during Question Time on 9 September 2024.

• Member Kwek Hian Chuan Henry proposed exploring short-term repayment freezes for housing loans and insurance premiums for unemployed Singaporeans.
• Minister Tan See Leng stated that HDB homeowners can seek financial counselling for deferment or restructuring of loans, while private homeowners should approach lenders for solutions.
• The Minister added that individuals facing insurance premium difficulties can consult insurers for options like premium loans or holidays, complemented by the SkillsFuture Jobseeker Support scheme.
• He noted that the JS scheme provides temporary support but is not sized for full household financial distress, with ComCare available for those in need.

• Mr Don Wee asked the Minister for Manpower about alternative support measures for companies employing Singaporeans with special needs, beyond using foreign worker quota adjustments to address operational challenges.
• Minister Tan See Leng outlined existing support measures, including the Open Door Programme with free recruitment services, job redesign grants covering up to 90% of modification costs, and training subsidies for employers hiring persons with disabilities.
• The government also mentioned the enhanced Enabling Employment Credit providing wage support for employers hiring PwDs earning below $4,000 monthly and committed to reviewing measures to better support inclusive employment.

• The Founders' Memorial is projected to cost $335 million for development, covering construction, fit-out of galleries and spaces, and a 5-hectare public garden.
• The memorial is scheduled to open by the end of 2028 and will serve as a space for reflection and unification for Singaporeans.
• Annual operating costs are still being determined alongside the development of operational plans.

• Yip Hon Weng asked whether the government would introduce additional cooling measures for private condominiums, such as raising the Additional Buyer’s Stamp Duty or tightening loan limits, to ease demand and help moderate HDB flat prices.
• He also inquired about restricting HDB flat owners from owning private properties to prioritize owner-occupation and reduce investment demand.
• Desmond Lee referred to a prior government reply dated 9 September 2024, indicating the matter had already been addressed in written answers on housing affordability and the residential property market.

• Joan Pereira asked when the next review of the $300 monthly basic subsidy for working mothers with Singapore citizen children in full-day childcare will be held and what factors will be considered for any increase.
• Masagos Zulkifli explained that the government regularly reviews preschool affordability and has enhanced it through other means, such as raising the income ceiling for additional subsidies and imposing fee caps on supported preschools.
• He noted that fee caps for full-day childcare at Anchor and Partner Operators were lowered in 2023, reducing household preschool expenses as a percentage of income, and further reductions are planned for 2025 and 2026.
• The government is also expanding the number of Government-supported preschool places, aiming for 80% coverage by 2025, which is seen as more effective than increasing the basic subsidy alone.
• Masagos emphasized that these broader measures have already lowered out-of-pocket expenses for most families and will continue to do so, making preschool more affordable without relying solely on subsidy adjustments.

• Mr Don Wee asked how the Ministry for Social and Family Development can better support small enterprises in hiring Singaporeans with special needs and how the effectiveness of these measures will be evaluated.
• The Government, through SG Enable, offers various supports including the Open Door Programme with job matching, job coaches, and grants covering up to 90% of job redesign costs, and the Enabling Employment Credit providing wage support up to 20% for hiring persons with disabilities.
• Additional initiatives include the Place-and-Train programme with high wage and course fee subsidies, the Enabling Business Hub at Jurong for logistics sector opportunities, and partnerships with business federations and banks to engage SMEs in inclusive hiring.
• The effectiveness of these measures is tracked through the annual Comprehensive Labour Force Survey, with a goal to increase the employment rate of persons with disabilities from 32.7% in 2022/2023 to 40% by 2030.

• CAD seized $15.16 million and US$4.97 million from Sunshine Empire, released all funds including interest to liquidators after a High Court order in September 2020.
• Professional liquidators are assessing over 4,000 creditor claims and expect to conclude the liquidation by mid-next year.
• The process involves verifying complex claims and ensuring fair distribution to entitled claimants.

• Member of Parliament Patrick Tay asked for the cumulative growth from 2016 to 2024 of unit labour cost, unit business cost, and unit net operating surplus for Singapore’s overall economy on a seasonally adjusted basis.
• Minister Gan Kim Yong provided data on growth in unit labour cost for the overall economy and unit business cost for the manufacturing and services sectors from 2016 to 2023 and the first two quarters of 2024.
• The minister stated that data on unit net operating surplus is not available.
• The response included a reference to Figure 1 for the detailed breakdown of unit labour and business cost growth.
• The reply clarified the timeframe covered up to the first half of 2024 for the available cost metrics.

• Patrick Tay Teck Guan asked for the share of GDP growth from 2016 to 2023 driven by resident full-time income earners across the 20th, 50th, 80th, and 90th percentiles, including employer CPF contributions.
• Gan Kim Yong responded that a breakdown of GDP growth by these income percentile groups is not available.
• The debate highlights a gap in data availability for tracking income distribution's role in economic growth.

• The government uses assessable income from the previous Year of Assessment (YA) to determine eligibility for GST Vouchers and Assurance Package payments to ensure consistency and fairness, as tax assessment data from the current year is not yet complete.
• For the 2024 GST Voucher cash payment, eligibility was based on YA 2023 income (from 2022), and the full number of Singaporeans who would qualify using YA 2024 income is not yet available because assessments are processed from April 2024 to March 2025.
• Appeals are considered on a case-by-case basis for those with income changes; about 3,000 appeals for the 2024 GSTV–Cash scheme were approved by end-August 2024, while the number for the Assurance Package cash disbursement in December 2024 is not yet available.

• Zhulkarnain Abdul Rahim asked whether the government monitors the number and value of infrastructure projects awarded to contractors across all ministries and agencies to prevent overexposure risk.
• Lawrence Wong stated that managing overexposure risk is a multi-agency effort, with the Ministry of Finance and Building and Construction Authority collaborating to diversify contractors and suppliers.
• He added that agencies structure procurement to avoid reliance on a small supplier pool and regularly monitor concentration risks.

• Christopher de Souza questioned the necessity of mandating more bank branch manpower to reduce queue times and assist seniors amid the digital shift.
• Gan Kim Yong highlighted existing measures such as digital ambassadors, literacy programs, and queue management systems to support less tech-savvy customers.
• The Monetary Authority of Singapore will supervise banks to ensure adequate attention to customer service and queue management, including manpower increases where needed.

• Miss Rachel Ong inquired if the Open Door Programme Job Redesign Grant extends to companies hiring persons with disabilities on a part-time basis and how many have used it over five years.
• The grant supports employers hiring persons with disabilities with at least one-year contracts, regardless of part-time or full-time status.
• Over 110 organizations used the grant from 2019 to 2023, but no breakdown is available for part-time versus full-time hires.

• Mr Don Wee asked if SkillsFuture Credits can be used for professional certifications like SCAQ, CFA, and IFOA to boost careers.
• Chan Chun Sing stated that the base tier credits cover over 200 approved exam-only certifications, requiring industry recognition and agency support.
• Appeals can be made for reimbursements for relevant certifications not on the approved list, including overseas bodies.
• The government will continue reviewing how the credits support industry-relevant training and certifications.

• Minister Edwin Tong outlined a multi-pronged approach to grow the arts sector, emphasizing that a competitive and sustainable ecosystem with strong companies, skilled practitioners, and supportive audiences is key to ensuring good jobs and competitive pay for arts workers, rather than setting fixed salary guidelines.
• The government has invested significantly in the arts, including a $100 million funding boost under the Our SG Arts Plan 2023–2027 and initiatives like the Arts and Culture Resilience Package, which helped the sector rebound post-pandemic with rising median incomes and sector growth.
• Support measures include strengthening arts companies through funding schemes, developing practitioner skills via frameworks and training programmes, and expanding audience bases through community outreach and international market access to boost demand and artist visibility.

• Member Melvin Yong raised concerns about the increase in bad credit card debts and asked whether consumer finance literacy can be improved and if more regulation on credit card spending is needed.
• The Minister, representing the Prime Minister, noted that credit card usage has rebounded post-COVID with increased rollover balances but emphasized that delinquency rates remain stable and below pre-pandemic levels.
• The government promotes financial education through MoneySENSE and the Institute for Financial Literacy, offering free resources, workshops, and one-on-one clinics to help consumers manage debt and spending.
• MAS has implemented safeguards to prevent over-indebtedness and will continue monitoring the situation, reviewing measures as necessary.
• The response concluded that existing safeguards are generally adequate, and consumers and employers are encouraged to actively participate in available financial education programs.

• The Government established the Inter-Ministerial Committee (IMC) for Pro-Enterprise Rules Review in April 2024 to coordinate efforts to streamline regulations and reduce compliance burdens for businesses, particularly SMEs.
• The IMC provides ministerial guidance to resolve cross-agency regulatory issues and supports individual agencies in reviewing their regulations, helping businesses navigate government rules more easily.
• The IMC works alongside the existing Pro-Enterprise Panel (PEP), which is chaired by the Head of Civil Service and brings together private sector and public service leaders to promote a pro-enterprise environment through regulatory innovation.

• Edwin Tong stated that government agencies are reviewing the facts and circumstances regarding the NTUC Enterprise and Allianz Europe BV transaction, including the issue of whether NTUC Enterprise's undertaking to hold Income Insurance shares was indefinite.
• He indicated that it would be inappropriate to answer Pritam Singh's question until the review is completed.
• The review is being conducted by relevant government agencies to establish the facts related to the representations made by former CEOs of Income Insurance and NTUC Enterprise.