Economy & business — Topics

7 May 2024

Use of Strong Currency to Manage Imported Inflation and Export Competitiveness

The Monetary Authority of Singapore kept the Singapore dollar on a gradually appreciating path to curb imported inflation and ensure medium-term price stability, which it argued supports a conducive business environment.
The government attributed Singapore's weak 2023 export performance primarily to subdued global demand rather than a strong currency, noting that the exchange rate was a minor factor for manufacturing firms.
It emphasized that long-term export competitiveness depends on productivity, innovation, and moving up the value chain, supported by strong human capital, infrastructure, and institutions.

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7 May 2024

Third-party Independent Panel for Appeals on Discriminatory Practices in Insurance Provision for Disabled and Neurodivergent Persons

Chong Kee Hiong proposed creating an independent panel with disability experts and representatives to hear appeals about discriminatory insurance practices for disabled and neurodivergent individuals.
Lawrence Wong, for the Prime Minister, stated that insurers must assess applications fairly using objective data, with new guidelines formalizing this responsibility, but the government will not compel them to use a third-party panel.
Insurers are encouraged to use in-house and external expertise, and the Life Insurance Association has issued a guide and engaged with autism charities, while handling complaints through their own channels and with MAS oversight.
Individuals can appeal to their insurer and, if unsatisfied, escalate to MAS, which has not found unfair underwriting practices to date but will hold insurers accountable and improve communication of decisions.

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7 May 2024

Regulation of Charges by Banks and Payment Service Providers on Merchants using PayNow for Transactions

Hazel Poa inquired about the monitoring or regulation of charges by banks or payment service providers on merchants using PayNow, steps to prevent merchants from passing costs to consumers, and the potential for legislation to ban such charges.
Lawrence Wong responded that PayNow, launched in 2017, is widely used by over 300,000 businesses, with major banks currently waiving transaction fees for end-consumer payments, while minor fees apply only for additional services like notifications.
The Association of Banks in Singapore (ABS) prohibits merchants from imposing surcharges on customers using PayNow, and any violations should be reported to the merchant's PayNow Financial Institution or ABS for corrective actions, including termination of services.

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7 May 2024

Measures to Enhance Insurance Protection and Coverage for SMEs

The Prime Minister emphasized that SMEs must adopt proactive cybersecurity measures such as using the SG Cyber Safe Programme, anti-virus software, and the ScamShield app to protect against internet crimes and scams.
Insurance is currently not an effective solution for covering losses from internet crimes and scams due to the difficulty in quantifying risks and the exclusion of losses from contributory negligence.
Public vigilance and education are critical, with SMEs encouraged to subscribe to the Singapore Police Force's scams bulletin to stay updated on the latest scam typologies.
The government will continue to strengthen public education and collaborate with stakeholders to enhance protection against internet crimes and scams.
The pipeline of Singaporean actuaries managing such risks was not directly addressed in the response.

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7 May 2024

Regulation of Financial Advisers who Advertise Their Estate Planning and Investment Services in Heartlands

Financial advisory firms are regulated under the Financial Advisers Act (FAA) for investment advice, but pure estate planning services like will writing are not regulated, while any financial advice within estate planning must comply with the FAA.
The Monetary Authority of Singapore (MAS) requires financial advisory representatives to disclose their identities when prospecting in public and implements additional safeguards for seniors, such as call-backs or in-person checks to ensure understanding of products.
MAS mandates that advertisements for financial advisory services must be truthful and not misleading, with a proposed requirement for senior management approval currently under review following a 2023 public consultation.
MAS aims to publish feedback responses by the first half of 2025 on the proposed advertising approval rules.

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7 May 2024

Digital Platform for Collaborative Sharing of Money Laundering, Terrorism and Proliferation Financing Information

Murali Pillai proposed expanding a digital sharing platform similar to MAS’s COSMIC to gatekeepers like law firms and accountants to better detect financial crimes and protect Singapore’s reputation.
Lawrence Wong explained that COSMIC is currently designed for banks to share information and disrupt financial crime, with strong safeguards for confidentiality and a phased rollout starting with six major banks.
The government will focus on implementing COSMIC within the banking sector first, learn from its operation, and then consider extending the model to other sectors like law and accounting firms if feasible.

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7 May 2024

Submission of Skills Transfer Roadmaps by Companies That Receive More Than $5 million in Government Grants

Gerald Giam asked whether companies receiving over $5 million in grants must submit skills transfer roadmaps with specific local upskilling targets, if future grant tranches depend on meeting skills milestones, and what terms ensure such transfers.
Gan Kim Yong responded that grants support business upgrades and growth, with local employment and training considered case-by-case, and pointed to a prior parliamentary reply on skills transfer programmes.
He emphasized that specific grant conditions are tailored to each project rather than applied uniformly, and directed the member to existing government upskilling initiatives for details.

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7 May 2024

Effective Measures to Deter Unfair Practices by Hairdressing Salons

Liang Eng Hwa inquired about the effectiveness of CCCS's warning to a hairdressing salon and whether stronger enforcement powers are needed.
Gan Kim Yong reported that consumer complaints about hair salons decreased after the warning, with fewer cases received in recent months.
The hair salon involved has given an undertaking to stop unfair practices, and CCCS is prepared to take firm action including court injunctions if necessary.
The government plans to continue monitoring the industry with CASE and will consider additional deterrent measures for serious misconduct.

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7 May 2024

Key Messages in Recent Briefings to International Banks and Plans to Tighten Anti-money Laundering Regulations

The government clarified that recent briefings to international banks were part of routine, decades-long engagements to explain policies, address concerns, and gather feedback on topics like geopolitics, domestic issues, and money laundering cases.
The Financial Times article claiming "unusual" briefings was dismissed as poorly sourced, with the government noting that such engagements are publicised and conducted with various groups, not just banks.
The Inter-Ministerial Committee plans to provide an update in the coming months on findings regarding potential tightening of anti-money laundering regulations and sentencing guidelines.

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7 May 2024

Proposal for Household Income Assessment for Residential Long-term Care Subsidies to Exclude Variable Earnings

Ms Sylvia Lim proposed that variable earnings such as bonuses and commissions be excluded from the per capita household income assessment for residential long-term care subsidies.
The Minister for Health, Ong Ye Kung, opposed the proposal, stating that variable income components should be included to provide a complete picture of a household's financial resources.
The Minister explained that means-testing uses an average of the past 12 months' income and is valid for two years to account for fluctuations.
He noted that individuals can appeal for a reassessment if their financial circumstances change or apply for further assistance if they still face difficulties after subsidies.

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7 May 2024

Enhancing Penalties against Bank Employees who Engage in Poor or Misleading Sales and Advisory Practices

Dennis Tan Lip Fong asked whether the Government would enhance penalties for bank employees found to have mis-sold banking products, referencing cases at the Financial Industry Disputes Resolution Centre.
Lawrence Wong, speaking for the Prime Minister, stated that MAS takes firm enforcement actions against errant financial institutions and their representatives, independent of FIDR cases.
Under the Financial Advisers Act, representatives must disclose product information, provide reasonable recommendations, and avoid misleading statements, with MAS imposing penalties like public reprimands, composition fines, or prohibition orders.
In egregious cases, MAS refers matters to the Attorney-General's Chambers for criminal prosecution or to the Police for investigation if cheating or other offences are involved.
MAS has imposed prohibition orders up to seven years and publishes enforcement actions to deter misconduct, while continuously reviewing and updating penalties as needed.

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7 May 2024

Investigations into "99-to-1" Arrangement for Stamp Duty Payment for Property Purchases

IRAS has reviewed 187 "99-to-1" cases, found tax avoidance in 166, and will recover about $60 million in Additional Buyer's Stamp Duty and surcharges.
About 10 cases with evidence of potential property agent involvement are under review by the Council for Estate Agencies.
The Government is not currently assisting with compensation for misadvised individuals but is focusing on enforcement and recovery.

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7 May 2024

Consumer Protection and Anti-scam Safeguards for Users of E-commerce Platforms

Melvin Yong inquired if TikTok Shop would be added to the E-commerce Marketplace Transaction Safety Ratings and whether legislation would be considered to enforce anti-scam measures on platforms that lack them.
K Shanmugam responded that TikTok Shop is excluded from the ratings because it accounted for less than 1% of e-commerce scams in Singapore in 2023, but it will be monitored and added if warranted.
The Minister highlighted that the Online Criminal Harms Act enables the government to issue Codes of Practice requiring online services to implement anti-scam measures, with these codes to be published later in the year.
The debate centered on enhancing consumer protection through updated safety ratings and potential legislative action to ensure e-commerce platforms adhere to recommended anti-scam safeguards.
The government emphasized a monitoring approach for platforms like TikTok Shop and a legal framework to compel compliance with anti-scam measures.

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7 May 2024

Programmes to Assist Migrant Workers Manage Their Finances Responsibly

Assoc Prof Razwana Begum Abdul Rahim asked the Ministry for Manpower to consider collaborating with non-profit organisations to enhance programmes that help migrant workers manage their finances safely and responsibly.
The Ministry of Manpower has been working with community partners and NGOs to develop and promote financial management programmes for migrant workers, including the Settling-in Programme and outreach roadshows at recreation centres.
These programmes aim to increase awareness of risks like unauthorised remittance services and suspicious bank account activities, while educating workers on setting financial goals and using good budgeting tools.

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7 May 2024

Enforcement against Errant Hairdressing Salons for Unfair or Improper Sales Practices

The Police will only investigate reports against hairdressing salons if a criminal offence, such as cheating, is disclosed.
For cases involving unfair or improper sales practices without a criminal element, the Police advise complainants to seek help from the Consumers Association of Singapore.
Enforcement actions are not taken by the Police for non-criminal sales practice issues.

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7 May 2024

Regulation of Discretionary Decisions for Capital Allocations of Index-linked Funds

The Prime Minister stated that Singapore’s financial benchmarks regime under the Securities and Futures Act already regulates index setting and prohibits manipulation of indices administered in Singapore or abroad.
Index-linked funds offered to retail investors must meet strict disclosure and representativeness requirements, while fund managers are mandated to conduct due diligence on index providers and address risks and conflicts of interest.
MAS has not designated any index-linked funds as systemically important, as the largest such funds constitute a small share of the retail fund market, though the overall framework aims to safeguard benchmark credibility and investor interests.

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7 May 2024

Regulation of Licensed Money Lenders' Loan Repayment Terms for Low-income Borrowers

Henry Kwek proposed amending laws to let low-income borrowers repay partially on unsecured loans under $15,000 to ease repayment and cut interest and fees.
Minister Shanmugam explained the regulatory goal is to balance credit access with borrower protection, noting moneylenders already negotiate repayments and mandates could raise costs and restrict credit.
The Ministry encourages moneylenders to restructure loans or refer borrowers to social agencies for help, with queries directed to the Registry of Moneylenders.

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7 May 2024

Companies and Limited Liability Partnerships (Miscellaneous Amendments) Bill

The bill aims to update the Companies Act 1967 and the Limited Liability Partnerships Act 2005 to ensure that companies, foreign companies, and LLPs keep their controller particulars accurate and current.
It was presented by the Second Minister for Finance, Ms Indranee Rajah, and passed its First Reading in Parliament.
The bill will undergo a Second Reading during the next available parliamentary sitting before being printed.

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7 May 2024

Corporate Service Providers Bill

The Corporate Service Providers Bill seeks to regulate businesses and individuals offering corporate services to prevent money laundering, terrorism financing, and proliferation financing.
The bill was presented by the Second Minister for Finance, Ms Indranee Rajah, and read for the first time in Parliament.
The bill is scheduled for a second reading at the next available parliamentary sitting and will be printed for further legislative review.

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7 May 2024

ACRA (Registry and Regulatory Enhancements) Bill

The ACRA Bill aims to amend the Accounting and Corporate Regulatory Authority Act and related statutes to enhance the business registry and regulatory system.
The bill was presented by the Second Minister for Finance, Ms Indranee Rajah, and formally read for the first time in Parliament.
The legislation is scheduled for a second reading at the next available parliamentary sitting and will be printed for public record.

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