Economy & business

Christopher de Souza asked about government regulations on airfare pricing to ensure affordability for Singapore citizens amid rising inflation and airline costs. Chee Hong Tat responded that the government does not regulate airfares due to sufficient market competition in the airline industry, allowing airlines to set prices based on commercial factors.

Tan Wu Meng questioned whether government funding for SPH Media included conditions for consumer service standards, particularly regarding delivery of hardcopy newspapers. Mrs. Josephine Teo clarified that the funding supports SPH Media Trust’s talent and technology and requires the circulation of print copies of flagship titles, except on Print Holidays. SPH Media must notify the government and the public of significant delivery delays, facing penalties for excessive unplanned incidents. However, SPH Media retains autonomy over their delivery methods due to reliance on numerous vendors facing various challenges.

Assoc Prof Razwana Begum Abdul Rahim asked about resources to help families detect early signs of financial distress and the possibility of introducing unconditional cash aid. Yip Hon Weng proposed expanding the unconditional cash assistance scheme under AWWA's Family Empowerment Programme and sought clarification on its implications for social policy regarding self-reliance. Masagos Zulkifli referred to a previous parliamentary response from August 2024 for detailed answers on these issues.

Leong Mun Wai raised concerns about whether investment mandates for the Government of Singapore Investment Corporation and Temasek Holdings would be tightened due to perceived high levels of unquoted investments exceeding quoted investments. Chee Hong Tat clarified that, as of 31 March 2023, total quoted investments are actually higher than unquoted investments, refuting Leong's claim and explaining that quoted investments include government stocks. Chee expressed gratitude for the opportunity to clarify the matter.

Mohd Fahmi Aliman asked if the Ministry of Health has reviewed the pricing structure at hospital canteens, especially those run by third-party vendors, and requested data on price differences compared to local dining. Ong Ye Kung responded that public hospitals select vendors based on affordability, food variety, quality, and health options, comparing vendor prices to local establishments to ensure competitiveness. Hospitals require vendors to seek approval for price changes and welcome feedback on any high-pricing concerns in public hospital food establishments.

Chua Kheng Wee Louis asked about the government's considerations for determining the Vehicular Emissions Scheme (VES) rebates for 2025 and proposed enhancements for cleaner energy vehicles. Grace Fu Hai Yien explained that VES incentivizes lower emissions vehicles through rebates and surcharges, ensuring cleaner energy vehicles are competitively priced. She confirmed that the 2025 VES rebates will be designed to continue encouraging the adoption of cleaner energy vehicles based on ongoing reviews with the Ministry of Transport.

Melvin Yong Yik Chye sought an update on Singapore's "30 by 30" goal for local food production and concerns regarding delays from recent farm closures. Dr. Koh Poh Koon acknowledged challenges such as COVID-19 impacts, rising costs, and geopolitical tensions affecting the agri-food sector but highlighted ongoing support initiatives, including the Agri-Food Cluster Transformation Fund to enhance sustainability and productivity. He reported that local production in certain sectors, like eggs and beansprouts, is already exceeding targets, while maintaining that overall progress toward the "30 by 30" goal remains a collective effort amid uneven sector development. Suggestions for utilizing the ACT fund to help offset operating costs for farms and to aggregate demand for local produce from hawkers were discussed, with a willingness to explore partnerships and long-term contracts.

• The Red Sea crisis has forced vessels to divert around the Cape of Good Hope, causing global port congestion and "vessel bunching" as shipping networks are disrupted.
• Singapore's port has seen record container handling and increased transhipment demand, with wait times improving from 2-3 days in May 2024 to under two days in June 2024.
• Shipping lines have added 24% more capacity on the Asia-Europe route year-on-year to address shortages, while Singapore has implemented measures to manage additional container handling demand.

• The latest nominal gross monthly wage of the bottom tenth percentile of resident full-time income earners in Singapore is $1,800, up 50% from $1,200 in 2013.
• About half of the bottom tenth percentile workers are covered by the Progressive Wage Model, and another three in ten are covered by the Local Qualifying Salary.
• From July 2024, the Local Qualifying Salary was raised to $1,600, increasing wages for workers previously earning below that amount.
• Eligible lower-income workers can receive up to $4,900 per year under the Workfare Income Supplement scheme starting from 2025.

• The Ministry of Culture, Community and Youth and the National Heritage Board recognize the importance of heritage businesses and support their sustainability through grants and initiatives like the Organisation Transform Grant and Heartland Enterprise Placemaking Grant, which help businesses adopt transformation efforts and organize innovative activities.
• NHB runs programs such as Craft x Design to pair traditional craft practitioners with contemporary designers for innovative co-creation, and Street Corner Heritage Galleries to profile long-standing shops, both aimed at expanding market reach and preserving cultural identity.
• Heritage Activation Nodes and partnerships with agencies like the Urban Redevelopment Authority facilitate community-driven projects to document and celebrate heritage businesses, guiding future preservation efforts while encouraging innovation.

• Zhulkarnain Abdul Rahim asked about plans to encourage more food and beverage merchants to offer budget meal options and affordable services for CDC Vouchers Scheme 2024.
• Edwin Tong Chun Fai confirmed that CDCs and the Ministry of National Development are collaborating with coffee shop chains to provide more budget meal options.
• These coffee shops allow CDC Voucher redemptions at participating stalls, helping households stretch voucher value and manage living expenses.
• The initiative aims to maximise voucher usage by increasing affordable choices for households across Singapore.

• The temporary relaxation of the occupancy cap from six to eight unrelated persons for larger HDB flats and private properties was implemented to address rental demand-supply mismatches.
• The Minister highlighted that the measure, along with other policies, has shown early signs of success, with median rents for 4-room and larger HDB flats stabilizing in Q1 2024.
• This stabilization contrasts with the average quarterly rent increases of about 5.3% seen from 2022 to 2023, indicating the measure's effectiveness in curbing rent hikes.
• The government will continue to monitor the property market and may recalibrate measures as needed.
• The debate focused on assessing the relaxation's impact on open market rents, which have now stabilized rather than continued rising sharply.

• Ms. Hazel Poa questioned the impact of rising interest rates and operating costs on Singapore's high-tech farming sector.
• She also asked whether traditional open farm-style agriculture could receive similar support to meet the 30% local food production goal by 2030.
• Minister Grace Fu deferred the response to the next parliamentary sitting for a holistic reply.
• The official report on the "30 By 30" food production goal was referenced for further details.

• Gan Thiam Poh asked if the Significant Investments Review Act 2024 safeguards would apply to the sale of a majority stake in Income Insurance Ltd to Allianz, ensuring the company continues to serve national social interests.
• Gan Kim Yong responded that Income Insurance Ltd and Allianz Europe BV are not designated entities under the Act, so its ownership and control provisions do not apply.
• The debate focused on whether the Act could be invoked to review the transaction, with clarification that it does not cover this specific sale.
• The question highlighted concerns about preserving the social mandate of Income Insurance despite the change in ownership.

• The government acknowledges that some companies are restructuring or reducing their office footprint due to evolving business models and hybrid work arrangements, but maintains that Singapore remains highly competitive, as evidenced by its top ranking in global competitiveness and ongoing large-scale investments from firms like Amazon Web Services, AstraZeneca, and semiconductor companies.
• To counter perceptions of declining appeal, Singapore is implementing strategies such as the new Refundable Investment Credit in Budget 2024 to anchor high-value economic activities, while continuing to invest in R&D, talent development, and supporting enterprises in new growth areas.
• Beyond financial incentives, proactive measures focus on fostering an innovative and productive ecosystem, including transforming the economy to attract new investments and helping companies adapt to market changes, which is expected to renew business activities in Singapore despite some operational relocations.

• Hazel Poa questioned the Deputy Prime Minister on the estimated impact of Malaysia’s 56% diesel price hike in June 2024 on Singapore’s inflation, particularly food prices.
• Gan Kim Yong responded that the increase is unlikely to significantly affect Singapore’s inflation, given that land imports from Malaysia make up only 6.3% of total imports and 14.4% of food imports in 2023.
• The exchange highlights Singapore’s limited direct exposure to Malaysian diesel price changes due to the small share of imports from Malaysia.
• It underscores the government’s assessment that domestic inflation pressures remain manageable despite regional energy price fluctuations.
• The debate focuses on monitoring cross-border cost impacts while maintaining economic resilience.

• Nine Single Family Offices have applied or expressed interest in the Philanthropy Tax Incentive Scheme since its launch, but no donation data is yet available as the first reporting cycle will occur next year.
• Feedback indicates the scheme is useful for encouraging philanthropy and growing Singapore's philanthropic ecosystem, with suggestions to streamline requirements.
• The Monetary Authority of Singapore will continue engaging stakeholders, monitor uptake, and review the scheme for potential enhancements.

• A faulty security update from a global vendor caused IT disruptions, but major Singapore financial institutions faced limited or no impact on critical customer-facing systems, with only some internal systems affected.
• The Singapore Exchange experienced a temporary disruption to post-trade services, leading to a limited number of trades being rolled over, but other trading and clearing services continued normally.
• Operations at affected financial institutions were restored to normal by the next business day, Monday, 22 July 2024.
• The incident underscores the need for financial institutions to implement robust risk management processes, especially for third-party dependencies, and to build rapid recovery capabilities to minimise customer impact.
• The Monetary Authority of Singapore expects all financial institutions to strengthen their operational resilience and will continue to work with them on these improvements.

• MAS assesses the proposed divestment of Income Insurance to Allianz based on regulatory criteria such as the buyer's financial strength, track record, and governance, while noting that Income's Board had processes to manage conflicts of interest during the deal.
• The deal is not expected to adversely impact competition or affordability, as Singapore's insurance market is highly competitive with over 50 insurers, and Income holds less than 10% market share in both life and general insurance, with no significant business overlap with Allianz.
• MAS confirms that existing policyholders' contracts will remain unchanged, and Income and Allianz are expected to honor all obligations, with robust regulatory safeguards in place to protect policyholders' interests.

• MAS does not restrict the hiring of ex-offenders broadly but issues prohibition orders only to individuals who have committed serious financial misconduct; ex-offenders without such orders may be hired if assessed as fit and proper by financial institutions.
• MAS does not track the number of ex-offenders hired by financial firms or require reporting of candidate rejections, and financial institutions may consider the relevance of past offences to the role.
• Employers, including financial institutions, must follow fair employment guidelines and assess candidates on merit; ex-offenders facing discrimination can seek assistance from TAFEP, which may require corrective action or refer serious cases to the Ministry of Manpower.