Economy & business — Topics

2 Jul 2024

Impact of Increased Trend of Contract Work on Income Security and Government Policies for Singaporeans

Saktiandi Supaat raised concerns about whether the growing trend of contract work might affect income security and longstanding government schemes like CPF and HDB home ownership for Singaporeans.
Tan See Leng clarified that the proportion of resident employees in contract work has actually declined to 6.6% in 2023, with more residents taking permanent jobs, and highlighted existing government support such as employment facilitation and reskilling programmes.
The Minister assured that CPF retirement adequacy is improving across cohorts, including contract workers, and that targeted support continues for those with less retirement savings, while contract workers enjoy equal access to housing grants and loans.

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2 Jul 2024

Rationale for Discrepancy in HDB's Treatment of Occupier's Income in Determining Housing Grant Quantum

Chua Kheng Wee Louis asked about the rationale for the discrepancy in how HDB considers an occupier's income for housing grants but not for loan assessments.
Desmond Lee explained that household income, including that of occupiers, is considered for housing grants to prioritize subsidies for households in need.
For HDB loans, only the incomes of flat buyers (the borrowers) are considered since they are responsible for servicing the mortgage, while occupiers' incomes are not factored in.
The differing approaches reflect the distinct purposes of subsidies versus loan eligibility assessments.
This policy aims to ensure fairness in allocating housing support based on financial need and loan repayment capability.

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2 Jul 2024

Impact of Foreign Investment on Shophouse Prices and Government Measures for Property Market Stability

Derrick Goh asked about the effects of foreign investment on shophouse prices, potential measures to moderate foreign demand, and support for local business tenants facing rising rents.
Desmond Lee responded that shophouses make up a small portion of commercial space, with transaction volumes and values declining recently, and over 80% of shophouse buyers in the past five years were local entities.
He noted that businesses can rent alternative commercial spaces and there is ample supply of retail and office space expected in the coming years to meet demand.
The government will monitor the property market and adjust policies as needed to ensure stability and sustainability.

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2 Jul 2024

Funding for Institute of Mental Health Studies on Suicide and Self-Harm and Outcome of Studies

Dennis Tan asked about the funding provided to the Institute of Mental Health over the past three years for studies on suicide and self-harm risk and prevention factors, and when the study outcomes would be publicly reported.
Ong Ye Kung stated that the Ministry of Health gave about $1.6 million for two such research studies in the past three years.
He confirmed both studies are ongoing and their outcomes are projected to be ready by the end of 2025.

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2 Jul 2024

Estimated Cost Impact on Public Healthcare System from Adding Risdiplam on List of Subsidised Drugs

Ong Hua Han inquired how the Ministry of Health's Drug Advisory Committee estimated the annual cost impact of listing risdiplam on the subsidised drugs list to be $5 million to $10 million in the first five years.
Ong Ye Kung directed the questioner to a prior official reply given on 2 July 2024 regarding the annual cost of risdiplam for spinal muscular atrophy treatment and the Drug Advisory Committee's decisions.
The debate summary indicates that the specific cost estimation methodology was not reiterated in this session but referenced to an earlier documented parliamentary response.

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2 Jul 2024

Total Government Expenditure on Permanent Resident and Non-Resident Students in FY2022 and FY2023

Leong Mun Wai requested a detailed breakdown of government spending on permanent resident and non-resident students across primary, secondary, and pre-tertiary institutions for FY2022 and FY2023.
Chan Chun Sing stated that Singapore Citizen students receive the highest per capita expenditure, followed by permanent residents and international students, with corresponding fee structures.
He emphasized that total government spending on Singapore Citizen students exceeds that for permanent residents, which in turn exceeds spending on international students.

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2 Jul 2024

Progress of "30 by 30" Goal and Grant Funding Disbursed

Ms Hany Soh questioned whether the "30 by 30" goal is on track following recent farm closures.
She also asked for the total grant funding disbursed for the "30 by 30" initiative.
Minister Grace Fu directed her to previous parliamentary replies from 2 July 2024 for answers.

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2 Jul 2024

Success of Hawkers' Development Programme

Mr. Chua Kheng Wee Louis queried the Minister for Sustainability and the Environment on the number of applicants who have enrolled, completed training, completed apprenticeship, started business operations, and remained in operation under the Hawkers' Development Programme.
The programme, launched in 2020 by the National Environment Agency, combines training, apprenticeship, and mentorship for aspiring hawkers.
As of 30 April 2024, 566 aspiring hawkers enrolled and completed classroom training, with 120 completing their apprenticeship.
Out of the 29 who started business operations in hawker centres, 16 remain in operation.

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2 Jul 2024

Loans Taken Up at Licensed Moneylenders by Singaporeans Aged 18 to 25 and Above 65

Ms Mariam Jaafar asked for data on the number of licensed moneylender loans over the past three years and whether there has been an increase among Singaporeans aged 18 to 25 and above 65.
The Minister for Law stated that unsecured personal loans from licensed moneylenders were approximately 308,600 in 2021, 338,300 in 2022, and 370,500 in 2023.
Loans to Singapore Citizens aged 18 to 25 increased from 11,300 in 2021 to 13,200 in 2023.
Loans to Singapore Citizens aged above 65 increased from 19,800 in 2021 to 28,700 in 2023.

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2 Jul 2024

Carbon Tax Allowances Granted and Impact on Singapore's Emissions Profile

He Ting Ru asked about the number of firms granted carbon tax allowances for 2023–2025, the average proportion of emissions covered, and the expected impact on Singapore's emissions profile.
Gan Kim Yong stated that no allowances were granted in 2023, while over 20 companies from Emissions-Intensive Trade-Exposed sectors were notified of eligibility for allowances from 2024 onwards.
Aggregated information on allowances will be released later to avoid undermining the competitive position of Singapore-based manufacturers.
Carbon tax allowances are part of a broader strategy to support the transition to net-zero emissions by 2050, helping companies transform operations and reduce emissions.
The government will continue monitoring and reviewing eligibility for other companies to ensure the policy supports emissions reduction targets.

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2 Jul 2024

Increase in Residential Property Tax by Housing Type Since 2023 and Projected Reduction from January 2025

Residential property tax increased from 2023 due to higher market rents and higher tax rates for valuable private properties, but the government provided rebates in 2023 and 2024 to cushion the impact, such as zero tax for one- and two-room HDB owner-occupiers in 2024.
From January 2025, the government will raise all Annual Value bands for owner-occupier residential property tax rates, with the change applied prospectively and taking into account the prior rebates.
For a 4-room HDB flat with a constant Annual Value of $15,500, the monthly property tax is projected to fall from about $25 in 2024 to about $12 in 2025 without rebates.
For an owner-occupied landed property with a constant Annual Value of $50,000, the monthly property tax is projected to fall from $200 in 2024 to $140 in 2025.

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2 Jul 2024

Progress of Inter-Ministerial Committee Reviewing Singapore's Anti-Money Laundering Framework

The Inter-Ministerial Committee reviewing Singapore's anti-money laundering framework was established in end-2023 to draw lessons from the billion-dollar money laundering case and focuses on preventing corporate structure abuse, enhancing financial institution controls, strengthening gatekeeper vigilance, and improving detection capabilities.
The government is committed to upholding Singapore's status as a trusted financial hub with a zero-tolerance stance toward money laundering, engaging stakeholders like financial institutions, real estate agents, and corporate service providers to understand challenges and support their controls.
The committee will share full findings and recommendations in Q4 this year, while agencies are already implementing aligned regulatory changes, such as the Corporate Service Providers Bill to increase penalties and require "fit and proper" nominee directors.

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2 Jul 2024

Measures to Ensure Independent Access to Banking Services for Visually Impaired Persons

Banks have introduced talking ATMs with audio guidance and Braille, trained staff to assist visually impaired customers, and enhanced digital banking apps for better compatibility with voice command software.
From 2021 to 2023, MAS received four cases of feedback about visually impaired persons facing issues with internet and phone banking, which were resolved with bank assistance.
Visually impaired individuals can contact their banks for help, and MAS expects financial institutions to handle all customer feedback effectively and promptly.

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2 Jul 2024

Initiatives to Engage Retail Investors and Encourage Greater Participation in Singapore Exchange

The Government and SGX offer diverse investment products including Government Bonds, ETFs, and access to international markets through platforms like robo-advisors, alongside cash equities on SGX.
SGX and MoneySense run free educational talks and seminars on investing basics, passive income, and sector-specific topics, with nearly 180 events reaching over 21,000 participants in the past year.
The Research Development Grant Scheme supports over 900 research reports covering more than 130 SGX-listed companies to provide retail investors with detailed analysis, accessible via SGX’s website and social media.

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2 Jul 2024

Qualification for Fund Tax Incentive Scheme by Foreign Family Offices' Investments in Local Shophouses and Assets

Foreign family offices' investments in local shophouses and assets do not qualify for the Fund Tax Incentive Scheme.
There is little impact on local asset demand and inflation from such investments, as they are not eligible under the incentive schemes.
The government has previously explained that family offices have minimal effect on commercial and residential property markets and inflation.

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2 Jul 2024

Impact of Supply Chain Disruptions Due To Port Congestion Given Trade and Manufacturing Recovery

Saktiandi Supaat asked about the net impact of port congestion on Singapore’s trade and manufacturing recovery and whether port-related industries are benefiting from higher container traffic and shipping rates.
Gan Kim Yong stated that supply chain disruptions have not affected trade and manufacturing recovery, citing year-on-year growth in trade, exports, imports, and manufacturing output in May.
He acknowledged that port congestion has caused longer shipping times and shipment delays but noted efforts by ministries and port authorities to minimise the impact and maintain Singapore’s logistics reputation.
Gan Kim Yong said it is currently unclear if shipping, logistics, warehousing, and auxiliary port services are benefiting from increased container traffic and shipping rates.

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2 Jul 2024

Additional Financial Assistance Akin to Bursaries for Preschool Children from Low-income Families

The government provides extensive financial support for preschool children from low-income families through fee caps, basic subsidies, and means-tested additional subsidies, reducing monthly costs to as low as $1 to $3 in government-supported preschools.
Starting in late 2024, more families with monthly household income of $6,000 and below will qualify for maximum childcare subsidies, and fee caps for Anchor and Partner Operator preschools will be lowered in 2025 and 2026.
The ComLink+ Progress Package for Preschool will launch in the second half of the year, offering financial top-ups in children’s Child Development Accounts for families meeting enrolment and attendance requirements.
Additional support is available through the Child Care Financial Assistance scheme, which includes aid for childcare fees and a one-time grant up to $1,000 for enrolment and out-of-pocket costs, with Social Service Offices assisting with broader living expenses.
The government regularly reviews its schemes to ensure comprehensive support for lower-income families to give children a good start in life.

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2 Jul 2024

Delayed Effective Date for Increase in Annual Value Bands Threshold for Owner-occupier Residential Property Tax Rates

Ms Foo Mee Har questioned why the increase in Annual Value bands for owner-occupier residential property tax rates will only take effect from 1 January 2025, despite sharp rent increases since 2022.
Chee Hong Tat explained that property taxes had risen due to higher market rents and increased rates, but the government provided rebates in 2023 and 2024 to cushion the impact on households.
The Budget 2024 announced that Annual Value bands would be raised prospectively from 1 January 2025, considering the rebates already given and ongoing cost-of-living concerns.
With the 2025 revision, example property tax bills for HDB and landed properties are projected to be lower than in 2024 without rebates.
The government emphasized that tax changes are applied prospectively to ensure stability and fairness in policy implementation.

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2 Jul 2024

Annual Cost of Taking Risdiplam for Treatment of Spinal Muscular Atrophy and Decisions on Drug Advisory Committee Recommendations

The annual cost of risdiplam for spinal muscular atrophy treatment in Singapore is approximately S$375,000 per patient, with subsidies up to 75% available from August 2024 under the Medication Assistance Fund.
The Standard Drug List Subsidy Framework is supplemented by additional financial assistance options like MediFund for patients facing affordability issues post-subsidy.
The Ministry of Health regularly accepts the Drug Advisory Committee’s evidence-based recommendations, considering factors such as clinical need, effectiveness, and budget impact, with submissions made three to four times yearly.

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2 Jul 2024

Causes for Increases in Hawker Food Prices

The Ministry highlighted that raw materials and manpower are the main cost drivers for hawker food, accounting for 56% and 20% of operating costs respectively in 2022.
The National Environment Agency (NEA) supports hawker affordability by moderating rents, disallowing subletting, and considering total costs in tender awards for Socially-Conscious Enterprise Hawker Centres.
NEA provides productivity grants and programmes to help hawkers improve efficiency, while some centres offer bulk purchasing to moderate ingredient costs.

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