Economy & business — Topics

6 Aug 2024

Investigations into Bankers, Property Agents and Others Linked to Property Transactions in Multi-billion Dollar Money Laundering Case

Dennis Tan asked whether investigations have started into bankers and property agents who facilitated property transactions for convicted persons and failed to conduct proper money laundering checks.
Gan Kim Yong stated that law enforcement has identified specific individuals who facilitated financial and property transactions and will deal with them according to the law.
Sector regulators are also investigating regulated entities and individuals to assess compliance with anti-money laundering standards.
Where non-compliance is found, regulators will take firm and appropriate action against entities or individuals.

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6 Aug 2024

Anticipated Revenue from Increase in Carbon Tax to $25 Per Tonne of Emission

Foo Mee Har asked the Minister for Sustainability and the Environment about the anticipated revenue, decarbonisation efforts, and the plan to increase the carbon tax to $45 per tonne in 2026.
Grace Fu Hai Yien stated that carbon tax revenues are published annually in the Revenue and Expenditure Estimates, with refined estimates for 2024 to be published in the 2025 Budget Book.
The carbon tax provides an economy-wide price signal to improve energy and carbon efficiency, supports low-carbon investments, and revenue will be used to facilitate decarbonisation solutions, support businesses, and cushion household impacts without expecting additional net revenue this decade.
Singapore remains on track to raise the carbon tax to $45 per tonne in 2026 to support the net-zero emissions target by 2050.

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6 Aug 2024

Amount of Government Funds Extended to MENDAKI for Tertiary Tuition Fee Subsidy Scheme and Amount Not Disbursed

From 2020 to 2023, the Government disbursed about $65 million annually to MENDAKI for the Tertiary Tuition Fee Subsidy (TTFS) scheme, which supports eligible Malay students at local tertiary institutions.
Over 9,000 Malay students in local institutes of higher learning received TTFS subsidies each year, accounting for more than two-thirds of Malay students in these institutions, with most receiving subsidies for their full tuition fees.
Undisbursed TTFS funds are transferred to MENDAKI’s Education Development Fund to support other educational assistance schemes, with over 90,000 beneficiaries benefiting from MENDAKI’s programmes in 2023.
The Government reaffirms its commitment to ensuring no Malay student is denied tertiary education due to financial difficulties, with MENDAKI and the Ministry of Education offering additional financial assistance and study loans.

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6 Aug 2024

Impact of Recent High-tech Farm Delays and Failures on "30 by 30" Plan

The debate focused on whether delays and failures in high-tech farms jeopardize the "30 by 30" goal of producing 30% of Singapore's nutritional needs locally by 2030.
Questions were raised about the realism of the 2030 target and whether the Lim Chu Kang Masterplan implementation should be delayed.
Concerns were also expressed about the need to revise the local farming sector strategy and assist businesses with high costs like land leasing and energy.
The Minister indicated that a comprehensive reply would be provided in the next parliamentary sitting on 7 August 2024, addressing both the impact on the "30 by 30" goal and government support measures.

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6 Aug 2024

Workers with Special Needs Hired in Progressive Wage Model Sectors

From 2019 to 2024, about 1,200 employers in Progressive Wage Model sectors hired approximately 3,500 employees with disabilities, with support available through the Open Door Programme, grants, and wage subsidies.
Employers can redesign jobs, adjust wages, and appeal online to SG Enable for exemptions from PWM requirements, with outcomes provided within 15 working days, and no feedback has been received on difficulties with the appeal process.
The government offers wage subsidies up to 20% under the Enabling Employment Credit, plus additional time-limited support, to encourage hiring of persons with disabilities while ensuring alignment with PWM standards where possible.

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6 Aug 2024

Impact of Upcoming Office Supply in Punggol Digital District on Occupancy Rates at Changi Business Park

Liang Eng Hwa asked for an update on occupancy rates at Changi Business Park, whether new supply from Punggol Digital District would increase vacancies, and if business park offerings need improvement.
Gan Kim Yong reported that Changi Business Park's occupancy fell to 69.6% in Q1 2024, below the previous quarter's 71% and the decade average of 82.4%.
JTC does not expect Punggol Digital District to significantly impact Changi Business Park vacancies, as the two cater to different industries—CBP to financial back-end support and PDD to emerging tech sectors.
Overall business park occupancy remains healthy at 78%, with no specific sectoral weakness, though older or distant estates show lower rates.
JTC will continue working with other agencies to enhance the value and appeal of business parks to attract a wide range of tenants.

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6 Aug 2024

Expectations on Companies Tapping Anchor Fund @ 65 and Growth IPO Funds

The Government established the Anchor Fund @ 65 and Growth IPO Funds to support high-growth companies and encourage listings on the SGX, with over $500 million invested in nine companies to date.
Investment decisions are made by fund managers on a commercial basis, targeting companies with strong potential and listing interest, but the final decision on when and where to list remains with the companies themselves.
Challenging global market conditions, including high inflation and interest rates, have led to a decline in IPOs worldwide, prompting the Monetary Authority of Singapore to review measures to strengthen the local equities market.

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6 Aug 2024

Estimated Loss of Public Funds from Lapses in Grant Disbursements in Auditor-General's Report for FY2023/2024

The Auditor-General’s report for FY2023/2024 identified over-disbursements of $446,000 and possible abuse or irregularities in grants totaling about $1.16 million, with government agencies seeking full recovery where over-disbursement is established and blocking further claims from suspected abusers.
The Ministry of Finance has issued a grants governance framework and is working with agencies to strengthen oversight through data analytics, fraud detection, and practical tools like a fraud risk management checklist developed with the Commercial Affairs Department.
Capability building efforts, including collaboration with the Civil Service College, are ongoing to enhance grants administration and ensure good governance across the five-stage grants management process.

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6 Aug 2024

Blanket Approval and Subsidies for Residents in HDB Rental Flats to Install Energy-saving Air-Conditioning Units

Joan Pereira asked whether the government plans to subsidize or grant blanket approval for residents in HDB rental flats to install energy-efficient air-conditioning units.
Desmond Lee confirmed that HDB rental tenants must obtain consent before installing air-conditioners, which is standard practice, and HDB generally approves such requests based on tenants' circumstances.
HDB households, including rental tenants, can use $300 climate vouchers to offset the cost of energy-efficient appliances like air-conditioners from participating retailers.
The government will provide up to $950 in U-Save rebates this financial year to help eligible households offset utility expenses, covering about eight months of bills for one- and two-room flat dwellers.
These measures aim to support residents in adopting energy-saving appliances while maintaining existing approval processes and financial assistance schemes.

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6 Aug 2024

Foreign Direct Investment Commitments Secured in First Half of 2024

The Singapore Economic Development Board attracted S$1.7 billion in Fixed Asset Investment commitments in the first quarter of 2024, with second-quarter data expected later in August, and remains on track to meet its annual target of S$8 to S$10 billion.
Singapore is enhancing its value proposition by introducing measures such as a Refundable Investment Credit to support high-value economic activities amid a challenging global investment environment.
The country is doubling down on strengths like R&D and talent development, while building new growth engines in areas like AI, the green economy, and precision medicine to ensure future competitiveness and job creation.

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6 Aug 2024

Taxation Liability for Singaporeans with Businesses and Investments in Other Countries

Darryl David asked about the systems ensuring Singaporeans with overseas businesses and investments comply with local tax laws.
Chee Hong Tat explained that Singapore uses a territorial, remittance-based tax system, exempting most foreign-sourced income to avoid double taxation and attract business.
IRAS conducts regular audits and uses international information to ensure taxable overseas income is reported, though revenue risk from foreign income is low.

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6 Aug 2024

Immediate Tasks for Nine Designated Entities under Significant Investments Review Act 2024

The nine designated entities under the Significant Investments Review Act 2024 do not need to undertake any immediate tasks or additional protective measures at this time.
Actions such as notifying or seeking approval for changes in ownership, control, or key personnel, and obtaining consent for dissolution or winding up, are only required when specific triggers occur.
The Ministry has established an Office of Significant Investments Review to oversee implementation and provide guidance, and it will continue engaging with entities to facilitate compliance.

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6 Aug 2024

Addressing Record Resale Flat Prices

The Minister acknowledged that resale flat prices have risen due to pandemic-related supply disruptions and increased demand but noted the government has ramped up BTO supply, completed a record number of flats, and introduced cooling measures to moderate demand.
The government stated that most resale flats remain affordable, with high-priced transactions being a small minority often linked to unique attributes like location, size, or floor level, and found no conclusive evidence that the PLH model has driven up resale prices in non-PLH flats.
While the Minister thanked the member for suggestions like a price cap, the government emphasized its focus on supply-demand balance and targeted grants, cautioning buyers about market cycles and encouraging financial prudence.

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6 Aug 2024

Increasing Earned Income Relief Granted to Persons with Disabilities

Ong Hua Han asked whether the government would consider increasing the Earned Income Relief for persons with disabilities and allowing tax deductions for assistive technology expenses.
Chee Hong Tat highlighted existing support measures such as higher Earned Income Relief for persons with disabilities and the Enabling Employment Credit, which provides wage offsets.
The government also offers job matching and training through SG Enable and subsidies for assistive technology via the Assistive Technology Fund, which covers up to 90% of costs for eligible persons.
Personal expenses, including for assistive technology, are generally not tax-deductible, but the government provides financial assistance through targeted subsidy schemes.
The government reaffirmed its commitment to supporting employment for persons with disabilities through inclusive policies and community partnerships.

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6 Aug 2024

Data on Doctor Representation, Claim Rules and Premium Charges of Integrated Shield Insurance Plans

The Minister acknowledged concerns about rising premiums and unsustainable healthcare costs, noting that private Integrated Shield Plans are commercially driven and that MOH can only facilitate informed choices by publishing premiums and coverage annually rather than mandating fair increases.
MOH stated that expanding doctor panels or claims for more specialties could worsen cost inflation, encouraged consumers to consult insurers directly for panel information, and suggested consumer groups create platforms for sharing insurance experiences instead of a government-run system.
Policyholders have recourse through insurer appeals, the Clinical Claims Resolution Process for clinical disputes, and the Financial Industry Disputes Resolution Centre for contractual issues, with penalties for insurers that delay or deny claims unfairly.
The government emphasized that all policyholders can access subsidised public hospital care regardless of insurance disputes, and highlighted the need for co-payment, consumer education, and responsible consumption to break the cycle of rising costs.

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6 Aug 2024

Improving Access to Fertility Preservation for Young Cancer Patients

Dr. Tan Wu Meng highlighted that about 1,000 young cancer patients under 40 are diagnosed annually in Singapore, with fertility often compromised by life-saving treatments, and currently fertility preservation is not covered under MediShield Life or most insurance plans as it is deemed optional.
He proposed that the government work with insurers to cover fertility preservation under Integrated Shield Plans, arguing it restores natural biological function similar to reconstructive surgery after accidents, and suggested front-loading government co-funding for unmarried patients who need egg freezing.
Other recommendations included collaborating with banks to provide interest-free loans for young cancer patients facing cash flow issues, and enhancing philanthropic support through higher tax deductions or matching grants, similar to the Rare Disease Fund model.
Minister of State Rahayu Mahzam acknowledged the challenges faced by young cancer patients and outlined existing government support, including co-funding for assisted reproduction treatments and MediSave use, while noting that MOH will study the proposals to extend support for fertility preservation.
The debate concluded with Parliament adjourning, reflecting a commitment to continue reviewing policies to support the parenthood aspirations of all Singaporeans, including young cancer patients.

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6 Aug 2024

Anti-Money Laundering and Other Matters Bill

The Bill aligns Singapore’s anti-money laundering framework with international standards, including lowering customer due diligence thresholds for casinos and designating foreign environmental crimes as predicate offences to enhance detection and enforcement.
It enhances investigative powers by allowing greater data sharing between government agencies and financial intelligence units, and simplifies prosecution by removing the need to prove the complete trail of illicit funds.
The legislation improves processes for handling seized properties by enabling earlier sales to preserve value and introduces safeguards to prevent absconded suspects from claiming assets without cooperating with investigations.

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6 Aug 2024

Regulatory Assessment of Allianz Insurance's Planned Acquisition of Income Insurance

Members of Parliament raised concerns about whether the acquisition would preserve Income Insurance’s social mission of providing affordable insurance and asked how MAS would scrutinise the deal alongside competition authorities.
The Second Minister for Finance clarified that MAS’s primary focus is on regulatory approval criteria such as the financial soundness and track record of the proposed shareholder, ensuring policyholder protection, and that a competitive market—rather than direct price controls—is the best way to guarantee affordable insurance.
MAS assured that existing policyholders’ contracts will remain unchanged, that the regulator will hold both Allianz and Income accountable to their commitments, and that the proposed deal does not raise competition concerns due to limited business overlap.
On governance and stability, MAS noted that Allianz’s past US legal case involved a separate entity not linked to the Singapore operation, and while Income is financially viable with a healthy capital buffer, the acquisition is seen as a way to strengthen it for long-term obligations.
Regarding employees and future operations, MAS stated it does not regulate employment matters but expects full compliance with labour laws, while emphasising that it is too early to speculate on job losses given the deal is not yet approved.

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6 Aug 2024

Implication of Allianz Insurance's Proposed Acquisition of Income Insurance on Affordable Insurance for Singaporeans and Government's Support of Co-operatives

Parliament debated the proposed sale of NTUC Enterprise's majority stake in Income Insurance to foreign insurer Allianz, with MPs questioning whether this would compromise the affordability of essential insurance for Singaporeans and the social mission of a co-operative founded to serve workers.
Minister of State Alvin Tan emphasized that the insurance landscape has evolved with strong public social safety nets and competition, while NTUC and Allianz have committed to maintaining affordable schemes and fulfilling charitable pledges, but noted that social enterprises must be financially sustainable.
The government reaffirmed its support for the co-operative movement through legislative updates, grants, and training, but stated it would not designate "social purpose" companies as critical entities requiring state approval for ownership changes, as this is reserved for national security concerns.
Concerns were raised about the lack of a long-term written commitment from Allianz on preserving Income's social mission and whether the government is prioritizing financial viability over social objectives, with the minister highlighting NTUC's historical track record and the deal's necessity for long-term viability.

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2 Jul 2024

Plans for Consumer-friendly Electric Vehicle Ownership and Progress in Developing Charging Infrastructure

The government has introduced financial incentives like the Electric Vehicle Early Adoption Incentive and Enhanced Vehicular Emissions Scheme, reducing upfront EV costs by up to $40,000 in 2024, and enacted the Electric Vehicles Charging Act to ensure a safe and reliable charging network.
Progress on EV charging infrastructure includes over 7,100 charging points installed across Singapore, with more than a third of HDB carparks equipped with chargers and over 1,100 chargers supported in non-landed private residences.
The EV Common Charger Grant co-funds installations at non-landed private residences, and the government encourages more such properties to utilize remaining grant support for around 900 additional chargers.
As a result of these measures, EV adoption has significantly increased, with about one out of three new cars sold in Singapore in 2024 being an EV, compared to 18% in 2023.

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