Economy & business — Topics

2 Apr 2024

Criteria to Grant Deadline Extension for Additional Buyer's Stamp Duty for Cuscaden Reserve and Other Projects

The government considers case-by-case requests for extensions to the ABSD remission timelines for housing developers, with details kept confidential, and has approved extensions for 44 projects (12% of those with deadlines from 2021 to 2023) due to extenuating circumstances like unforeseen site-specific delays.
Extensions are granted to ensure timely development and sale of residential units while encouraging prudent land bidding, with most developers meeting timelines even after COVID-19 relief measures.
The criteria for approving such requests focus on whether delays are beyond the developer's control and are unforeseen, as seen in the appeal approvals for specific projects.

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2 Apr 2024

Update on Enhanced Pre- and Post-Transaction Safeguards Undertaken by Financial Advisers

The Monetary Authority of Singapore will consult publicly by mid-2024 on legislative amendments to enhance pre- and post-transaction safeguards for certain financial adviser clients.
The revised standards are targeted for issuance by Q4 2024, with industry implementation no later than the second half of 2025 after a nine-month transition period.
Existing safeguards, such as pre-transaction client call-backs to ensure understanding of product features and risks, are already in place and will be further strengthened by requiring a trusted individual’s presence and audio recording of call-backs.

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2 Apr 2024

Data on Government's Financial Literacy Initiatives for Young Persons

The Government incorporates financial literacy education across all levels of schooling, with modules and activities at polytechnics, institutes of technical education, and autonomous universities covering sound financial habits and investment basics, and the Ministry of Education regularly updates these programmes.
Beyond formal education, MoneySense supports youth through talks, virtual carnivals, social media collaborations, and engagement sessions on topics like investing, overspending, and scams, partnering with the Ministry of Culture, Community and Youth and the National Youth Council.
The MoneySense National Financial Capability Survey 2021 indicates that youths generally have higher financial literacy than the general population, and Monetary Authority of Singapore warnings about digital assets are amplified through MoneySense social media efforts.
The Government monitors participation rates and effectiveness metrics through surveys like the NFCS, though specific percentage data for youth participation was not provided in the response.

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2 Apr 2024

Ensuring Healthcare Costs Do Not Rise Proportionally Despite Expansion of MediShield Life Coverage

Mr Yip Hon Weng questioned how the Ministry of Health will prevent healthcare costs from rising in step with the expansion of MediShield Life coverage and suggested audits for treatments like robotic surgery.
Minister Ong Ye Kung explained that MediShield Life expansion is a response to rising healthcare costs, not a cause, and that measures like value-based care and right-siting of patients are used to keep costs sustainable.
The Ministry also uses Health Technology Assessment to ensure subsidies and insurance coverage are limited to clinically- and cost-effective treatments.

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2 Apr 2024

Building Owners Applying to Accessibility Fund to Offset Cost of Construction of Lactation Rooms

Louis Ng asked for data on building owners who applied for grants from the Accessibility Fund for lactation rooms or pods over the past five years and, if unavailable, whether the Ministry would start collecting it.
Desmond Lee stated that the Code on Accessibility since 2013 mandates lactation rooms in certain new and retrofitted buildings, with pre-2013 private buildings eligible for up to 60% co-funding via the Accessibility Fund.
Since 2019, two building owners have applied for the fund to retrofit lactation rooms, and the Ministry encourages more owners and tenants to use the fund to enhance inclusivity.

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2 Apr 2024

Appeals to Authorities for Purchase of Insurance Coverage for People with Disabilities, Individuals on Autism Spectrum and People with Mental Health Issues

Miss Rachel Ong inquired about the number of appeals made to the Monetary Authority of Singapore (MAS) from 2015 onwards regarding insurance coverage issues for people with disabilities, individuals on the autism spectrum, and people with mental health issues.
Lawrence Wong, representing the Prime Minister, stated that over the past three years, MAS received fewer than 10 consumer appeals or complaints related to these groups.
Prior to the last three years, MAS averaged less than one such case per year.

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2 Apr 2024

Extension of Additional Buyer’s Stamp Duty Deadline to Developers

Mr. Chua Kheng Wee Louis asked whether the developer of the Cuscaden Reserve received an extension for the Additional Buyer’s Stamp Duty deadline and how many such extensions have been granted since the remission rules began, excluding COVID-19 extensions.
Deputy Prime Minister Lawrence Wong stated that requests for ABSD remission deadline extensions are evaluated case-by-case, with details kept confidential, and that the vast majority of developers met the sale timeline with existing extensions.
Excluding COVID-19 measures, 44 projects (12% of those with deadlines from 2021 to 2023) received extensions due to unforeseen, site-specific delays beyond the developer's control.

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2 Apr 2024

Update on Goal to Keep House Price-to-Income Ratio of Four for HDB BTO Flat Buyers

Ms Hazel Poa asked whether the government still aims for a House Price-to-Income ratio of four for HDB BTO flat buyers, a goal first announced in 2013.
Minister Desmond Lee affirmed the government’s commitment to housing affordability and stated they monitor a range of indicators, including the Mortgage Servicing Ratio (MSR), which is considered a better measure than the HPI.
The government adjusts subsidies as needed to keep BTO flat prices affordable, and over 90% of first-timer families with HDB loans had an MSR below 25% last year, indicating manageable mortgage payments.

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2 Apr 2024

Continued Affordability and Accessibility to MediShield Life for All Singaporeans Despite Rising Premiums

The Ministry of Health will ensure MediShield Life remains affordable and accessible by using MediSave for premiums, providing premium support and top-ups for those in need, and guaranteeing no loss of coverage due to genuine affordability issues.
To balance expanding coverage for groundbreaking treatments with affordable premiums, the MediShield Life Council will only include treatments assessed as clinically and cost-effective, using risk pooling to manage high-cost, low-incidence procedures.
MOH will enhance public awareness by offering resources to help Singaporeans understand their premiums and coverage, and provide a comparison of Integrated Shield Plans on its website to support informed decisions.

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2 Apr 2024

Accounting of Singapore's Official Foreign Reserves and Reserves Management Government Securities Assets

Leong Mun Wai asked whether Official Foreign Reserves and Reserves Management Government Securities are fully counted as net assets in Past Reserves for calculating the Net Investment Returns Contribution, given the Currency Act 1967 requirement that MAS assets must not be less than currency in circulation.
Lawrence Wong explained that when MAS accumulates foreign reserves from capital inflows, the increase in assets is matched by higher bank deposits (liabilities), leaving net assets unchanged.
He stated that transferring excess foreign reserves to GIC via Reserves Management Government Securities also does not change MAS's or the Government's net asset position, as asset increases are offset by corresponding liabilities.
Wong emphasized that the Net Investment Returns Contribution calculation already includes MAS's assets like foreign reserves and government securities, as well as its liabilities such as currency in circulation.
He used an analogy to clarify that moving funds between accounts to seek higher returns does not create new net assets, underscoring that transfer mechanisms like RMGS do not magically increase reserves.

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2 Apr 2024

Companies that Provided Extra Two Weeks of Government-paid Paternity Leave Announced in Budget 2023

Mr. Louis Ng asked how many companies have offered the extra two weeks of Government-paid paternity leave announced in Budget 2023, and if the data is unavailable, whether the Government would collect it.
The Minister responded that the voluntary leave provision took effect on 1 January 2024, with fathers having up to one year to use it and employers three months after that to submit claims, making the data currently unavailable.
The Government is monitoring the utilisation of the leave and will collate the data when it becomes available.

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2 Apr 2024

Co-operative Societies (Amendment) Bill

The Co-operative Societies (Amendment) Bill aims to facilitate co-op operations, provide legislative clarity, and make technical updates to support the sector's development.
Key changes include allowing co-ops to use reserves for dividends and honoraria with Registrar approval, expanding exemptions for bonus certificate payouts, and simplifying processes for by-law amendments.
The amendments also clarify contributions to the Central Co-operative Fund, empower the Minister to exclude Government grants, and digitalize registration processes by removing the need for a physical seal.
Public consultation was conducted, and feedback was incorporated, with further suggestions for future review, emphasizing the importance of good governance and co-ops' social mission.

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2 Apr 2024

Goods and Services Tax (Amendment) Bill

The Bill amends the GST Act to clarify when Government and statutory body fees should be subject to GST, by centrally prescribing a non-taxable list of regulatory fees and ending agency self-assessment.
It includes a validation clause to legally uphold past GST charges on certain fees where agencies had inconsistent interpretations, while excluding 18 previously identified erroneous fees that will be refunded.
For fees that should now attract GST but currently do not, the Government will absorb the GST initially and freeze fee increases until end-2025, with gradual adjustments thereafter.

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2 Apr 2024

Unveiling of Shared Responsibility Framework for Phishing Scams

The Shared Responsibility Framework (SRF) for phishing scams is expected to be implemented later this year after reviewing public feedback, with the government studying international models to avoid unintended consequences like moral hazard.
The Money Lock feature, which protects a portion of funds from digital scams, has seen significant uptake with over 78,000 accounts and S$6.6 billion locked, with awareness efforts targeting all age groups, especially seniors.
MAS has no plans to mandate Money Lock for all banks, as most retail banks will offer it by mid-2024, while the SRF will consider evolving scam types like deepfakes and incorporate parliamentary suggestions.

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2 Apr 2024

Ensuring Bulk of New Jobs Created Will Go to Singapore Citizens and Residents, Including Those Above Age 40

The Minister clarified that non-resident employment growth does not reduce opportunities for Singaporeans, noting low resident unemployment rates and high employment rates compared to other advanced economies.
He explained that the majority of non-resident job growth was in sectors like construction and process industries, which are not typically preferred by Singaporeans, while resident PMET roles have grown steadily.
The Minister emphasized that foreign talent complements the local workforce and is essential for economic growth, which ultimately creates more jobs and improves wages for Singaporeans.
When pressed for specific percentages, the Minister highlighted that resident employment growth in PMET roles remains strong and that foreign PMET numbers are still below pre-pandemic levels.
The debate concluded with the Minister rejecting the notion of a zero-sum game between locals and foreigners, stressing that a thriving economy benefits all residents.

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2 Apr 2024

Progress on Areas of Collaboration Identified during Inaugural Meeting of India-Singapore Ministerial Roundtable

The Minister provided an update on the five collaboration areas from the 2022 India-Singapore Ministerial Roundtable, highlighting the launch of the digital payments linkage between PayNow and UPI in February 2023 and a pilot shipment using the TradeTrust framework to digitalise trade documents.
Ongoing discussions are taking place on other initiatives, such as increasing food trade between India and Singapore, with India's rapid economic growth offering opportunities for Singapore companies.
The business community, including chambers of commerce and trade associations, plays a key role in achieving outcomes, as seen through delegations led by the Singapore Business Federation and Singapore Indian Chamber of Commerce to events in India in January 2024.

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2 Apr 2024

Increasing Quantum and Income Ceiling of HDB's Open Market Rental Voucher Scheme for Lower-income Families and In Response to Higher Rentals

The government introduced a one-year PPHS Open Market Voucher Scheme starting July 2024, offering $300 monthly to eligible lower-income families renting in the open market, with a $7,000 income ceiling, to provide temporary relief amid rising rents.
Open market rents for HDB flats increased significantly—by 35% in 2022 and 10% in 2023—due to supply constraints and post-pandemic demand, prompting measures like doubling PPHS rental flats to 4,000 units by 2025.
The minister stated no plans to raise the voucher quantum or income ceiling, emphasizing the need to avoid inflating rents further, but will consider case-by-case assistance for households with exceptional circumstances.

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7 Mar 2024

Using Revenues from Adjustment in Foreign Worker Levy to Subsidise Training of Lower-wage Work Permit Workers

Gan Thiam Poh proposed using revenues from adjustments in foreign worker levy rates to subsidise training for lower-wage Work Permit holders, particularly in workplace safety and health.
The Government does not earmark revenues for specific uses but allocates them based on overall needs, including support for workforce transformation and training.
Existing measures like SkillsFuture Enterprise Credit and lower levy rates for upskilling already assist employers in training both local and foreign workers, including Work Permit holders.

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7 Mar 2024

Updates on Funds Disbursed under and Key Successes of Exploiting Distributed Generation Programme

About $14 million has been awarded to four research projects under the $20 million Exploiting Distributed Generation Programme since its launch in 2018, through grant calls in 2019 and 2023.
The first grant call funded projects on microgrid design and distributed energy management, with findings to be tested at SIT's Punggol Campus for potential energy efficiency and cost savings.
The second grant call funded a three-year project testing vehicle-to-grid technology to intelligently manage electricity demand through large-scale adoption.

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7 Mar 2024

Financial Institutions (Miscellaneous Amendments) Bill

The Financial Institutions (Miscellaneous Amendments) Bill seeks to enhance the Monetary Authority of Singapore's (MAS) investigative, supervisory, and enforcement powers across multiple financial legislation to address regulatory gaps and ensure effective oversight in a growing financial sector.
Key amendments include harmonizing MAS's investigative powers, such as the ability to enter premises without a warrant under specific conditions and to transfer evidence with other law enforcement agencies, which aims to improve efficiency in combating misconduct and financial crimes.
The Bill also strengthens MAS's supervisory authority over capital markets services license holders, including issuing directions for unregulated business activities and enhancing approval requirements for key personnel and external auditors, to mitigate risks and align with standards for other systemically important financial institutions.
During the parliamentary debate, members raised concerns about potential overreach, compliance costs for small businesses, and the need for safeguards; the Minister of State clarified that public consultations were conducted, safeguards are built into the provisions, and MAS will provide guidance and support to industry stakeholders.

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