Economy & business

• The Payment Services Act 2019 prohibits unlicensed persons from providing payment services, and selling WorldCoin accounts as a business may require a license, with police currently investigating seven individuals for such suspected offences.
• Authorities have issued public advisories warning that selling WorldCoin accounts could lead to misuse for criminal activities like money laundering and terrorism financing.
• The Personal Data Protection Act governs the handling of personal and biometric data, requiring organisations to implement strong data protection and security measures.
• Consumers are cautioned against transferring access to their digital payment token wallets or World IDs due to risks of misuse by third parties.

• Eight charities have been invited to apply to participate in the OHAS pilot from January 2025 to December 2028.
• Eligibility requires charities to have enhanced governance controls and objectives allowing support for overseas emergency humanitarian causes while still benefiting the Singapore community.
• Donors can receive 100% tax deductions for cash donations made through designated charities toward approved fundraising appeals.
• The list of designated charities will be publicly available starting January 2025.
• The scheme aims to encourage more support for overseas humanitarian assistance through tax incentives.

• Christopher de Souza questioned why electricity and gas tariffs rose from July to September 2024 despite global oil prices dropping.
• Gan Kim Yong explained that tariffs are based on average fuel prices from the preceding quarter, with the July–September rates reflecting April–June prices.
• The fuel cost component increased by about 1% between the first and second quarters of 2024, leading to a 0.3% rise in electricity tariffs and a 1.3% rise in gas tariffs for the third quarter.

• Foo Mee Har questioned whether the increased housing grants for first-time resale buyers could drive up HDB resale prices as sellers might raise their asking prices in response to the additional support.

• Chua Kheng Wee Louis asked for data on HDB loan-to-value ratios by flat type and a breakdown of HDB resale price trends by flat type over the past five years, to which Minister Desmond Lee responded that the market has moderated but resale prices rose over 4% in early 2024, though detailed flat-type breakdowns are not available due to low transaction volumes.

• Minister Lee explained that the lowered loan-to-value limit from 80% to 75% is expected to promote prudent borrowing and dampen demand at the higher end of the market, particularly for larger flats, while the increased Enhanced CPF Housing Grant is targeted at lower-income first-timers without inflating the broader resale market, as sellers are unaware of the grant amounts.

• The Bill introduces the $5 billion Future Energy Fund to finance low-carbon energy infrastructure and supports centralised gas procurement via a new Gasco entity to enhance supply security and diversify sources.
• It grants the Energy Market Authority expanded powers to direct access to critical infrastructure, approve repurposing of energy assets, and implement power rationing as a last resort during emergencies.
• The framework allows cost recovery for energy security and decarbonisation initiatives, subject to Ministerial approval and an advisory committee, while safeguards and appeals processes are built in to protect stakeholders.

• The Central Provident Fund (Amendment) Bill was introduced to update the Central Provident Fund Act of 1953, aiming to enhance the fund's governance, flexibility, and alignment with current economic needs.
• Key changes include allowing for greater flexibility in withdrawal rules and improving the fund's administrative efficiency to better serve members' retirement and healthcare needs.
• The debate highlighted the importance of balancing financial security for members with the long-term sustainability of the fund amid changing demographics and economic pressures.
• Some members raised concerns about the potential impact on vulnerable groups, urging safeguards to ensure equitable access to funds.
• The government emphasized the amendments' role in strengthening the CPF's relevance and resilience, committing to ongoing reviews to address emerging challenges.

• The Multinational Enterprise (Minimum Tax) Bill aims to implement the Global Anti-Base Erosion Model Rules (Pillar 2) to introduce a domestic minimum top-up tax for multinational enterprises.
• The bill was presented by the Second Minister for Finance, Mr Chee Hong Tat, and received its first reading in Parliament, with a second reading scheduled for the next available sitting.
• The proposal includes amendments to other Acts and aligns Singapore’s tax framework with international standards to prevent base erosion and profit shifting.

• The Income Tax (Amendment) Bill was introduced to amend the Income Tax Act 1947.
• It was presented by the Second Minister for Finance, Mr Chee Hong Tat, with the President's recommendation signified.
• The bill was read for the first time and scheduled for a second reading at the next parliamentary sitting.

• He Ting Ru clarified that during a previous question time, she misquoted the capital adequacy ratio (CAR) requirement for Income Insurance, noting that the baseline set by the Monetary Authority of Singapore (MAS) is 100%, not 120% as mentioned in her earlier reference to a Zero One report.
• She acknowledged that from 1 January 2024, Income Insurance is subject to higher capital requirements because MAS designated it as a domestic systematically important insurer.
• The clarification was made to correct her earlier statement regarding Income Insurance's reported CAR of 193% being in excess of the regulatory requirement, which she now understands is based on the 100% baseline plus any additional MAS-imposed amounts.

• Yip Hon Weng questioned whether record hawker stall rents exceeding $10,000 per month indicate a rising trend and how this affects food affordability for Singaporeans.
• Dr Koh Poh Koon clarified that high tender prices are not the norm, with median rents at $1,800 and many stalls awarded at or below $500, and NEA uses measures like no reserve rent and disallowing subletting to keep rentals fair.
• The government provides support such as staggered rentals for new hawkers, cost certainty through management models, and rent adjustments after the first tenancy to ease financial pressure on stallholders.

• The SkillsFuture Jobseeker Support Scheme targets lower- to middle-income workers earning up to $5,000 monthly who are involuntarily unemployed, with eligibility assessed via automated checks and case-by-case appeals, and provides stepped-down payouts up to $6,000 over six months to encourage timely re-employment.
• The scheme is designed as a better alternative to unemployment insurance, avoiding moral hazard by requiring jobseekers to actively seek work, and complements other government support like ComCare and the SkillsFuture Level-Up Programme without overlapping as social assistance.
• Permanent Residents are eligible alongside Singapore Citizens to support their economic contributions, with the government funding the $200 million annual cost from the operating budget, and no plans to convert it into an insurance scheme for long-term sustainability.

Hazel Poa and Joan Pereira asked the Minister for Culture, Community and Youth about the estimated costs and budget management for hosting the 2025 World Aquatics Championships in Singapore. The Minister emphasized that hosting such events aims to provide economic and social benefits, attracting overseas spectators and boosting tourism. Detailed planning and budget measures have been implemented, but specific budget figures cannot be disclosed due to ongoing sponsorship negotiations. The organizing committee is focused on ensuring international standard venues and plans to maximize the use of facilities for future events, including the World Aquatics Masters Championships.

Christopher de Souza raised concerns about high rental costs for residential and commercial properties amid rising interest rates and market uncertainties. Desmond Lee outlined several measures the government is implementing to alleviate rental pressures, including increasing housing supply with nearly 100,000 residential units expected by 2025 and offering rental support schemes for low-income families. Additionally, the government has relaxed occupancy caps for larger HDB and private flats to accommodate more tenants, which has contributed to stabilizing rental prices. The supply of commercial space is also set to increase significantly, helping to ease commercial rental pressures, with current trends showing stabilization in both private and commercial rents. The government will continue to monitor and adjust policies as needed.

Zhulkarnain Abdul Rahim raised concerns about the liquidation or scaling down of high-tech farms in Lim Chu Kang and Tuas, questioning whether the Singapore Food Agency is studying the reasons behind these issues despite government support. He also asked about the impact of these farm closures on Singapore's "30 by 30" goal, which aims to produce 30% of the nation's nutritional needs by 2030. Grace Fu Hai Yien stated that these issues will be addressed together with similar questions in an upcoming Parliament Sitting on 7 August 2024 for a comprehensive response.

Dr. Tan Wu Meng questioned the Deputy Prime Minister about updating the Industry Transformation Maps (ITMs) to account for the effects of artificial intelligence (AI) on apprenticeships and on-the-job training, and whether this could include Industry Training Continuity Maps for highly skilled workers. Gan Kim Yong stated that the 23 ITMs were recently refreshed to adapt to disruptive technologies like AI, and emphasized the development of Jobs Transformation Maps (JTMs) to help understand job evolution and workforce reskilling. As of April 2024, 17 JTMs have been published, and initiatives such as SkillsFuture courses and Career Conversion Programmes are in place to support this transition. Companies like Oracle and Amazon Web Services are also enhancing AI training initiatives for students and professionals in Singapore.

Saktiandi Supaat raised concerns about whether additional regulatory measures would be implemented for "super apps" like Grab following its acquisition of Chope, to avoid negative impacts on competition and consumer welfare. Gan Kim Yong responded that the Competition and Consumer Commission of Singapore (CCCS) previously found no significant competition concerns regarding "super apps" during a 2020 study, as they still face competition from specialized providers. CCCS has since updated its guidelines to clarify how competition laws apply to these platforms and assess potential anti-competitive behavior. The Government will continue monitoring the e-commerce sector to determine if further reviews are necessary.

Louis Ng Kok Kwang requested data from the Deputy Prime Minister regarding grant applications under the Enterprise Sustainability Programme over the past five years, specifying the breakdown by company size. Gan Kim Yong responded that around 1,500 unique companies received support from the Programme between 2021 and 2023, including training and funding for sustainability projects. Green, micro, small, and medium-sized companies represented 20% to 30% of the companies supported under the Programme.

Joan Pereira raised concerns about measures to minimize risks of cross-border scams and fraud in instant money transfer initiatives, particularly for vulnerable groups like the elderly. Gan Kim Yong stated that the Monetary Authority of Singapore (MAS) has established real-time payment linkages with India, Malaysia, and Thailand for low-value payments, enabling users to make instant, low-cost transactions. Financial institutions involved have implemented anti-scam controls, including a transaction notification threshold of $100 and a daily limit of $1,000 to mitigate scam risks. Users are encouraged to remain vigilant and adopt good online banking practices to protect themselves against fraud.

Saktiandi Supaat asked about the availability of global carbon credits that meet Singapore's criteria, the comparison of this availability to local demand due to a significant increase in carbon tax, and plans to boost eligible carbon credits for companies. Grace Fu Hai Yien responded that it is premature to assess the amount of eligible carbon credits under Singapore's framework due to ongoing international negotiations. Singapore is actively supporting the development of international carbon markets, establishing partnerships with over 20 countries, and facilitating capacity building for high-integrity carbon credit projects. The government encourages private sector participation and organized a business mission to Ghana to promote Article 6-compliant carbon credit projects.

Chua Kheng Wee Louis asked about the interest on Retirement Account funds used for CPF LIFE after payouts begin, the assumptions behind monthly payouts, and variations based on retirement sums and plan choices. Tan See Leng confirmed that the CPF LIFE premium continues to earn interest, which is included in the monthly payouts. Payout amounts are determined by independent actuaries and depend on the actual Retirement Account savings rather than the designated retirement sums. The assumptions for calculating payouts are consistent across different CPF LIFE plans.