Economy & business

• Gan Kim Yong explained that hawker food price increases in 2022 and 2023 were driven by higher import costs due to global supply disruptions, and that inflation has since moderated to 3.7% in May 2024, broadly in line with overall CPI.
• The government introduced support measures including an enhanced Assurance Package with CDC Vouchers, a Cost-of-Living Special Payment, and initiatives like the BudgetMealGoWhere website and Price Kaki app to help consumers access affordable food.
• The Committee Against Profiteering has investigated and resolved 16 cases of alleged GST misrepresentation by food outlets since 2022, with no such feedback received since March 2024.

• The Singapore Food Agency conducts due diligence on farms and companies before awarding grants by assessing financial statements, track records, project merits, and alignment with food security goals, with funds released in tranches tied to performance indicators and progress reports.
• Measures to ensure effective use of grant funds include requiring recipients to meet key performance indicators on production and efficiency, submitting half-yearly progress reports, and disbursing funds through reimbursement only after milestones are achieved.
• The "30 by 30" goal remains achievable as the total number of farms has stayed stable at about 250 since 2019, with increased support for land access, energy efficiency, and demand aggregation, though the business environment has become more challenging.

• MP Gan Thiam Poh proposed enhancing the Assurance Package to provide monthly assistance scaled by per capita income to help low-income families cope with rising costs.
• Senior Minister Chee Hong Tat explained that the Assurance Package, recently enhanced by $1.9 billion, uses criteria like individual income and housing type, not per capita income, but still provides more support to lower-income and larger households.
• Chee noted that lower-income households with children can receive around $5,500 in combined benefits from the Assurance Package and GST Voucher scheme in FY2024, alongside other subsidies for public services.
• The Government continues to monitor living costs and regularly reviews support measures to address Singaporeans' concerns.

• Six family offices linked to individuals convicted in the $3 billion money laundering case were identified as having received tax incentives from the Monetary Authority of Singapore.
• Tax benefits for these family offices were withdrawn starting from the financial year the owners or their spouses were charged or convicted, with no clawback of prior benefits unless conditions were breached.
• Enforcement actions resulted in the forfeiture of assets from convicted individuals linked to these family offices, with the total value exceeding any tax benefits they had received.

• Ms Hany Soh questioned how HDB will prevent landlords from profiteering or price gouging, which could negate the $300 rental voucher benefit for eligible families.
• Minister Desmond Lee explained that the PPHS Voucher is a temporary support measure, disbursed directly to households without involving landlords, and families need not disclose voucher use during negotiations.
• He added that families can consult HDB InfoWeb or private listing platforms to understand market rental rates and make informed decisions before signing rental contracts.

• Ong Hua Han asked if the Enabling Masterplan 2030 could be refreshed to include financial services accessibility, aligning with the Convention on the Rights of Persons with Disabilities.
• Masagos Zulkifli B M M responded that the plan already evolves to support persons with disabilities, including efforts to improve financial services accessibility through infrastructure, systems, and staff training.
• Financial institutions have enhanced accessibility with features like ramps, lowered counters, and Talking ATMs with Braille and audio guidance for visually impaired customers.
• The Monetary Authority of Singapore updated its Guidelines on Fair Dealing in May 2024, formalizing expectations for objective assessments of financial product applications.
• The government confirmed that improving financial services accessibility remains a focus under the ongoing development of the Enabling Masterplan 2030.

• Patrick Tay requested full Ministry of Education funding for students in Human Resources, Capital and Employment, or Industrial Relations courses to cover Institute for Human Resource Professionals certification costs since they are not eligible for SkillsFuture credits yet.
• Chan Chun Sing explained that graduates from specific polytechnic diplomas in HR Management with Psychology and Business automatically qualify for the IHRP-CA certification with reduced assessment costs.
• He noted that nine degree and diploma programs offer partial exemptions, cutting certification assessment costs by over 85%.
• Chan added that higher-level IHRP certifications require at least three years of HR work experience, and the Ministry of Manpower provides subsidies for Singaporeans and Permanent Residents to obtain them.
• The response highlighted existing support mechanisms rather than addressing the call for full Ministry of Education funding directly.

• More than 50% of eligible HDB households (about 607,000) have claimed their Climate Vouchers, with around 90,000 households having started using them, and the top products redeemed are direct current fans, washing machines, and refrigerators.
• To expand the retailer base, authorities are onboarding more retailers, including heartland ones, with support for setting up point-of-sale systems through the Productivity Solutions Grant.
• The programme currently covers only HDB households, with no immediate plans to extend it to private properties, though the scheme is periodically reviewed for refinements and coverage.

• Dr Tan Wu Meng questioned whether insurers excluding pre-existing conditions when applying for new Integrated Shield Plans could lead to dominant market positions and whether panel doctor lists might be scrutinized under the Competition Act.
• The Ministry of Health, after consulting the Competition and Consumer Commission, found no evidence of collusion or abuse of dominance, as the market has seven insurers with no single player holding a dominant share.
• The real issue is that insurers avoid covering high-risk customers with pre-existing conditions due to higher claim probabilities, which is a social security concern rather than a competition problem.
• The government addresses this through subsidies, MediShield Life coverage for all regardless of pre-existing conditions, and MediFund as a safety net for those unable to afford care.
• Panel doctor arrangements are not anti-competitive, as they do not restrict price or product competition, and both doctors and patients retain choice in selecting providers.

• The Corporate Service Providers Bill mandates all entities providing corporate services in Singapore to register with ACRA, expands regulatory oversight to include those not transacting with ACRA, and introduces stricter penalties, including fines up to $100,000 for non-compliance and liability for senior management.
• The Bill addresses the misuse of nominee directors by requiring CSPs to ensure individuals are "fit and proper" and restricts nominee directorships to those arranged by registered CSPs, with penalties for breaches.
• The Companies and Limited Liability Partnerships (Miscellaneous Amendments) Bill enhances transparency by requiring companies to verify and update controller information annually, impose higher penalties for inaccurate registers, and disclose nominee arrangements to ACRA while protecting nominator identities.
• MPs raised concerns about compliance costs for small businesses, clarity on "fit and proper" criteria for nominee directors, and the balance between anti-money laundering measures and business competitiveness, with the Minister emphasizing a whole-of-society approach and support for training.

• The Anti-money Laundering and Other Matters Bill seeks to update Singapore’s legal framework to better prevent, investigate, and prosecute money laundering, terrorism financing, and the financing of weapons of mass destruction proliferation, in line with recommendations from the Financial Action Task Force.
• The bill introduces provisions for the handling of seized property to preserve its value and amends the procedures for managing such property.
• It also includes consequential amendments to the Organised Crime Act 2015 to align with the updated framework.
• The bill was presented by the Minister of State for Home Affairs and read for the first time, with a second reading scheduled for the next parliamentary sitting.

• The Inter-Ministerial Committee will consider how criminals calculate their risk of detection and sentencing precedents when proposing tighter anti-money laundering regulations and enforcement to safeguard Singapore's financial stature.
• The committee will examine the growing nexus between money laundering and organized crime, including cybercrime, and explore applying Singapore's full policy levers to address these sophisticated threats.
• The IMC will assess claims of "Singapore-washing" and work to prevent abuse of corporate structures, enhancing due diligence by financial institutions and other gatekeepers like real estate agents and lawyers.

• Pritam Singh questioned the Ministry of Home Affairs' assessment of the deterrent effect of Singapore's anti-money laundering laws, citing public concerns about the proportionality of sentences in the largest money laundering case.
• The Minister of State for Home Affairs responded that the government considers the existing range of sentences adequate, with actual sentences determined by the courts based on case specifics, and noted that asset forfeiture beyond charged amounts deprives criminals of assets.
• Dr. Tan Wu Meng asked broadly whether potential money launderers calculate risks and if the Inter-Ministerial Committee would review the evidential process and penalties, to which the Minister of State replied that the ongoing committee review focuses on preventing abuse of corporate structures, enhancing financial controls, and strengthening monitoring capabilities.

• The government reaffirmed that GIC’s mandate is to achieve long-term returns and preserve the reserves’ international purchasing power, so it should not be directed to invest in local securities to boost the Singapore Exchange.
• Efforts to strengthen the local equity market focus on creating a pipeline of good companies for IPOs and helping existing SGX-listed firms grow globally, rather than mandating sovereign investment agencies to invest locally.
• The government is working with industry stakeholders on various measures to improve the equity market, emphasizing sustainable and viable approaches over direct directives to GIC, Temasek, or MAS.

Wan Rizal raised concerns about the challenges SMEs face in implementing flexible work arrangements and sought information on government support for these adaptations. Sharael Taha inquired about studies on the impact of flexible work arrangements on offshoring and the ministry's plans to promote a local remote working ecosystem that balances productivity, cost, and job opportunities. He also emphasized the need to enhance the skills and competitiveness of the local workforce, particularly PMETs, in light of potential offshoring. Additionally, Taha asked about promoting flexible-load and job-sharing opportunities for re-employed workers and remote working options for those with mobility challenges. Tan See Leng noted that relevant questions had been addressed in a prior parliamentary session and directed members to the official report for detailed responses.

Jamus Lim questioned the Ministry of Culture, Community and Youth about its efforts to engage specific merchants in the CDC hawkers program for the 2024 CDC Voucher Scheme, and why NTUC hawker groups like Foodfare or Kopitiam are excluded given NTUC Fairprice's participation. Edwin Tong explained that the CDC Vouchers Scheme aims to support local merchants and hawkers and has been engaging them since October 2021. CDCs are collaborating with various associations to onboard a diverse range of merchants and hawkers to provide more spending options for Singaporean households.

Lim Biow Chuan asked about the possibility of waiving refuse removal fees for hawker stalls during renovations of hawker centres. Grace Fu Hai Yien responded that the National Environment Agency (NEA) will request fee waivers from the Public Waste Collector for stallholders when a hawker centre is closed for repairs. Historically, these waiver requests have usually been approved by the PWCs.

He Ting Ru asked about Singapore's investments and trade involving the Trans-Caspian International Trade Route (TITR) since 2022 and potential expansion opportunities. Gan Kim Yong responded that the government does not specifically track such investments and trade. He noted that Singapore has signed important trade agreements with countries along the TITR, including the Turkey-Singapore Free Trade Agreement and the Kazakhstan-Singapore Services and Investment Agreement. The government will continue to support Singaporean companies interested in the region.

Liang Eng Hwa raised concerns about how Singapore's tight labor market, higher costs, and strong dollar may challenge its position as a top MICE destination. Gan Kim Yong responded that Singapore's MICE value lies in its infrastructure, quality services, and global connectivity. The Singapore Tourism Board (STB) aims to enhance MICE offerings through trust by hosting prominent industry events, innovation by promoting research and technology events, and sustainability through ambitious environmental goals. The Singapore MICE Advantage Programme (SMAP) is designed to attract key events by offering benefits to organizers and delegates, while long-term infrastructure and workforce planning is underway to meet future demands. STB collaborates with industry partners to ensure workforce skills keep pace with evolving MICE needs.

Yip Hon Weng asked about regulatory changes following the collapse of Terraform Labs, specifically regarding licensing, impact on Singapore's reputation, and preventive measures. Lawrence Wong stated that Terraform Labs was unlicensed and posed no significant risk to Singapore's financial system, as local institutions had limited exposure to cryptocurrencies. He highlighted that the collapse underscored the speculative risks of cryptocurrencies, prompting the Monetary Authority of Singapore (MAS) to strengthen consumer protection measures such as risk awareness assessments and restrictions on incentives for trading. Enhanced regulations will be implemented in phases, and consumers are reminded that MAS cannot prevent losses in cryptocurrency trading.