Economy & business

Pritam Singh asked if JTC Corporation can lease industrial properties to local SMEs at discounted rates and whether there are plans to expand such schemes. Gan Kim Yong responded that JTC rentals are already about 12% below market rates and typically do not offer rental rebates except during COVID-19. The government supports SMEs through various programs, including a $1.3 billion Enterprise Support Package and sector-specific grants for automation and innovation. An Alliance for Action on Business Competitiveness has been established to explore ways for businesses to remain competitive and will release recommendations by late 2024.

Carrie Tan asked the Minister for Trade and Industry about the possibility of requiring renovation and interior design companies to have a director with relevant qualifications or experience. She also inquired about annual statistics on prepayment losses from incomplete renovations and disputes reported to the Consumers Association of Singapore (CASE), including recoveries and enforcement actions. Gan Kim Yong reported that CASE received approximately 120 complaints per year related to such issues, with a recovery success rate of about 50%. The government currently does not mandate minimum qualifications for personnel in the renovation sector but encourages consumers to engage accredited contractors for better protection. There has been a 19% decrease in complaints against renovation contractors reported by CASE in 2023.

Saktiandi Supaat requested updates on the vacancy rates of business parks and their outlook for occupation rates. Gan Kim Yong reported that as of Q1 2024, the overall vacancy rate for business parks was 22.0%, reflecting a slight increase from 21.6% in the previous quarter and higher than the historical average of around 16%. The rise in vacancy rates is attributed to increased supply from new developments and a slowdown in sectors like technology. Vacancy rates are expected to remain stable or slightly increase in the coming year, but no inherent sector weaknesses are indicated. JTC will continue efforts to enhance the attractiveness of business parks.

Yip Hon Weng asked the Minister for Health about the possibility of mandating transparent fee schedules from health insurers to aid patients in making informed decisions for private healthcare. Ong Ye Kung explained that mandatory fee schedules are not applicable since fees depend on individual patient conditions and procedures, but noted that healthcare providers could publish agreed-upon fees with insurers. The Ministry of Health has created benchmarks for about 30 common conditions to guide reasonable fees and provides historical bill sizes on its website. Additionally, the Ministry monitors claims processing durations for private insurance and publishes this information online for public access.

Chua Kheng Wee Louis asked the Prime Minister about the effectiveness of current measures to enhance the attractiveness of the Singapore equities market and whether the Government would encourage its investment vehicles to promote listings in Singapore. Lawrence Wong explained that the Government has implemented various initiatives, including funding schemes and partnerships with the Singapore Exchange (SGX) to support high-growth companies and facilitate listings. Despite these efforts, challenges remain for the Singapore equities market due to global trends, with many firms choosing to remain private or list in the United States. The Government will continue to encourage local companies to list in Singapore, but final decisions on listings will depend on each company's commercial objectives.

Saktiandi Supaat asked about reasons for mid-sized factory closures, Singapore's manufacturing recovery relative to countries like South Korea and Vietnam, and the sector's challenges and outlook. Gan Kim Yong replied that Singapore does not track factory closures specifically, but more manufacturing entities have been established than closed in the past five years, with closures attributed to market dynamics and global production shifts. Singapore's manufacturing output was 16% above pre-pandemic levels as of Q1 2024, outperforming South Korea and Vietnam, and recovery is expected as inventory and external demand normalize. The Ministry is focusing on enhancing competitiveness through AI and digitalization, aligning with the Manufacturing 2030 vision to position Singapore as a hub for advanced manufacturing.

Cheryl Chan Wei Ling asked about Singapore's strategy to enhance its competitiveness as a leading destination for meetings, incentives, conventions, and exhibitions (MICE). Gan Kim Yong outlined Singapore's strengths in infrastructure, quality services, and global connectivity as key components of its MICE value proposition. The Singapore Tourism Board plans to support this initiative through three main areas: trust by hosting major events, innovation by leveraging technology, and sustainability to establish a leading eco-friendly MICE destination. The Singapore MICE Advantage Programme (SMAP) will provide incentives for event organizers, while long-term plans will address infrastructure and workforce needs, with the tourism workforce recovering to 86% of pre-pandemic levels and initiatives in place for skills upgrading in the sector.

Ms. See Jinli Jean asked the Minister for Education about the breakdown of Skills Development Fund (SDF) usage over the past three years by workforce sector and sought insights into anticipated changes due to technology intensification. Chan Chun Sing clarified that the SDF, fed by employer contributions and government top-ups, supports local workforce upskilling, with around $290 million collected annually and approximately $1.02 billion spent each year on workforce development. He noted that comparisons of SDF utilization across sectors are not meaningful due to varying skills needs and that course fee subsidies reach up to 70% for younger learners and 90% for those aged 40 and above. The Ministry has no plans to increase subsidies or lower minimum age criteria, emphasizing a commitment to prudent SDF use for lifelong learning and upskilling.

The Transport Sector (Critical Firms) Bill seeks to enhance the resilience of Singapore's transport services by establishing a regulatory framework for essential transport entities within air, land, and sea transport sectors. The Bill introduces measures that require designated entities to obtain approval for ownership and management changes, while also mandating notification of events that may affect service continuity. There is an emphasis on safeguarding against potential national security threats and ensuring reliable transport services in both normal times and crises. Concerns were raised by various members regarding the potential impact of increased regulation on business competitiveness, innovation, and foreign investment in the sector, while the government reassured that the Bill aims to balance security needs with economic viability. The Bill was supported overall but included calls for further clarification on specific provisions and their implications for the transport sector.

Kwek Hian Chuan Henry asked for updates on discussions with Malaysia regarding the Johor-Singapore Special Economic Zone (JS-SEZ) and how SMEs can benefit from it, as well as support for local SMEs facing potential spending shifts to Johor. The Minister of State for Trade and Industry reported ongoing discussions on initiatives like passport-free QR code clearance and a one-stop service centre since the MOU was signed in January 2024. The JS-SEZ aims to enhance economic connectivity and investment, benefiting Singapore-based companies and SMEs. Support measures for heartland enterprises include the Heartland Enterprise Placemaking Grant and business advisory services to promote competitiveness.

Poh Li San raised concerns about the impact of VertiVegies' withdrawal on Singapore's 30-by-30 food security goals and inquired about measures to boost local vegetable production, which currently accounts for 4% of food consumption. Cheryl Chan asked whether the government would support local agricultural firms in acquiring necessary intellectual property and provide assistance for scaling up operations. Dr. Koh Poh Koon highlighted ongoing efforts to develop the agri-food ecosystem, including the Agri-food Cluster Transformation Fund, which has committed significant resources to boost production capabilities. He emphasized the need for collaboration between larger farms and community farms, noting that larger farms are better suited to meet the demands of retailers for consistent quality and quantity. The Ministry is open to different models and partnerships to help local farms scale effectively and enhance their market reach.

Nadia Ahmad Samdin raised concerns about ensuring clear communication from Cordlife to affected parents regarding potential ramifications of transferring cord blood units to other banks. Chua Kheng Wee Louis questioned the Ministry of Health's (MOH) plans for compensation for customers with damaged cord blood units and the criteria for such compensation. Saktiandi Supaat inquired about the MOH's regulatory actions regarding Cordlife and assistance for parents wanting to transfer their units. Dennis Tan Lip Fong asked about possible legislation to protect parents seeking refunds when services fail. Senior Minister of State Janil Puthucheary highlighted that the MOH's role is limited due to the contractual nature of services and outlined the ministry's regulatory actions and engagement with other cord blood banks regarding unit transfers.

• Sitoh Yih Pin questioned the Minister for Transport on potential concerns regarding the bicycle-sharing market after SG Bike's exit, which leaves only Anywheel and HelloRide, and whether this would affect users in terms of price and service experience.
• Chee Hong Tat responded that LTA does not expect a significant impact on shared bicycle services, noting SG Bike's small fleet of 1,500 bicycles compared to Anywheel and HelloRide's combined 40,000 bicycles.
• LTA will continue to monitor the industry despite the reduction in operators.

• Mr Neil Parekh Nimil Rajnikant asked about common misconceptions regarding the closure of the CPF Special Account for members aged 55 and above from early 2025, steps to clear doubts, and the role of trade associations and tripartite partners in addressing concerns.
• Minister Tan See Leng clarified that misconceptions include beliefs that the closure aims to save on interest payments, that interest does not accrue to CPF LIFE members transferring funds to the Retirement Account, and that the government is locking up savings, and he emphasized that the closure aligns with long-term savings principles and allows most members to transfer funds to continue earning higher interest.
• The Minister explained that interest continues to accrue on CPF LIFE premiums and is factored into monthly payouts, with unused premiums refunded to beneficiaries, and that withdrawable SA savings will be transferred to the Ordinary Account while other savings will increase retirement payouts from age 65.
• Trade associations, chambers of commerce, and tripartite partners are encouraged to direct members to online resources, work with employers to support senior workers, and leverage schemes like the Matched Retirement Savings Scheme to assist with retirement planning.

• The Cultural Matching Fund provides dollar-for-dollar matching grants specifically for private cash donations to registered arts and heritage charities and Institutions of Public Character (IPCs), aiming to encourage philanthropic giving and create a sustainable arts scene.
• Grants are restricted to registered charities and IPCs due to their high standards of governance, transparency, and accountability, which ensure proper use of public funds and engender public trust.
• CMF grants only support expenses that directly contribute to programme delivery and impact, such as direct programme costs, and exclude staff bonuses, welfare benefits, legal fees, and similar expenses.
• The CMF is part of a broader suite of government schemes that provide holistic support for the arts and heritage sector, including various grants from the National Arts Council and National Heritage Board.

• Melvin Yong asked if the Ministry of Health would allow non-surgical dental treatments, which can be essential yet costly, to be claimable under MediSave.
• Ong Ye Kung responded that the Ministry is reviewing the extension of MediSave for non-surgical dental procedures like root canal treatments, but any changes must balance affordability with ensuring sufficient MediSave for future healthcare needs.
• He noted that patients facing financial difficulties after subsidies and MediSave use can seek assistance from medical social workers for MediFund and other support.

• Singapore's trade with ASEAN grew 14% to $295.6 billion in 2023, and direct investment into the region rose 37% from 2018 to 2022.
• Enterprise Singapore supported about 2,000 expansion projects into ASEAN in 2023, up from around 700 in 2019, and operates eight overseas centres in the region.
• Companies face challenges such as uncertain demand, unpredictable business environments, manpower shortages for overseas markets, and high internationalization costs.
• Enterprise Singapore collaborates with partners like the Singapore Business Federation to provide advisories and facilitate business projects, with GlobalConnect@SBF offering over 550 advisories and 100 projects since 2022.
• The government continues to use various tools and networks to help Singapore companies overcome these hurdles and expand into ASEAN.

• Saktiandi Supaat asked about the expenses incurred to preserve assets seized in a major anti-money laundering operation in August 2023 and how these costs would be covered.
• K Shanmugam responded that expenses include storage, maintenance, safeguarding of properties, vehicles, and luxury items, with about $646,282 incurred by Police as of March 2024.
• He explained these expenses are borne by the state and covered by forfeited cash and proceeds from the sale of forfeited non-cash assets, which are channeled to the state.

• As of April 2024, IRAS has reviewed 187 "99-to-1" arrangements and found 166 cases of tax avoidance, leading to approximately $60 million in Additional Buyer's Stamp Duty and surcharges being clawed back.
• The Commissioner of Stamp Duties can disregard individual transactions under section 33A of the Stamp Duties Act and recover the rightful ABSD plus a 50% surcharge for tax avoidance.
• About 10 of the 166 tax avoidance cases involving potential property agent involvement are under review by the Council for Estate Agencies.

• Murali Pillai asked the Deputy Prime Minister and Minister for Finance about the percentage of total income tax contributed by the top 5% earners for 2021, 2022, and 2023.
• Lawrence Wong responded that the top 5% earners contributed close to 70% of personal income tax collections for each of those years.
• The information was based on data from the Inland Revenue Authority of Singapore regarding all taxpayers.
• The data covers the Years of Assessment 2021, 2022, and 2023.