Economy & business — Topics

26 Feb 2024

Debate on Annual Budget Statement

The Workers' Party supported the Budget but called for greater transparency in fiscal information and for the government to better accommodate diverse public views on policies, citing its own proposals that were eventually adopted.
Parliamentarians from both sides of the house emphasized investments in skills upgrading and support for mid-career workers, with debates on the effectiveness of programs like SkillsFuture and the need for more targeted measures to address retirement adequacy and cost-of-living pressures.
Concerns were raised about the sustainability of social spending, the impact of global tax changes (BEPS 2.0), and the need for structural reforms over temporary handouts, while also highlighting the importance of unity and resilience in an increasingly uncertain world.

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26 Feb 2024

Supplementary Supply (FY2023) Bill

The Bill aims to provide supplementary funding for additional government expenses incurred in the 2023 financial year.
It was presented by Second Minister for Finance Chee Hong Tat, with the President's recommendation signified, and underwent its first reading.
The Bill's second reading is scheduled after the conclusion of the 2024/2025 Estimates of Expenditure proceedings.

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26 Feb 2024

Supply Bill

The Supply Bill authorizes the withdrawal of funds from the Consolidated Fund and Development Fund to cover the government's estimated expenditures for the financial year from April 1, 2024, to March 31, 2025.
The bill is presented by the Second Minister for Finance, Mr Chee Hong Tat, following the recommendation of the President, and undergoes its first reading in Parliament.
The bill is scheduled for its second reading after the conclusion of the proceedings on the Estimates of Expenditure for the 2024/2025 financial year and is to be printed for further legislative process.

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26 Feb 2024

Reasons for Wrong Charging of GST by Government Agencies and Review of Processes to Prevent Recurrence

The Singapore government identified that 18 regulatory fees were incorrectly charged with GST due to misclassification as processing fees, and will issue refunds with 5.5% annual interest to affected taxpayers from January 2019.
The error arose from inconsistent interpretation of GST rules rather than technological gaps, and the Ministry of Finance will amend the GST Act to provide a clear statutory list of regulatory fees exempt from GST to prevent recurrence.
The government emphasized its commitment to transparency and integrity, noting that when errors are discovered, they are rectified and public trust is maintained through proactive refunds and process improvements.

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16 Feb 2024

Clarification by Deputy Prime Minister and Minister for Finance

The Deputy Prime Minister clarified that all local employees at companies hiring foreign workers must be paid at least the Local Qualifying Salary (LQS).
He corrected that the Matched Retirement Savings Scheme (MRSS) is for Singaporeans aged 55 to 70, not 55 to 75 as initially stated.
The MRSS provides dollar-for-dollar matching for cash top-ups to CPF accounts to help those with less savings save more for retirement.

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16 Feb 2024

Effectiveness of Anchor and Growth Funds in Attracting High-growth Companies to List on SGX

The Anchor Fund @ 65 and EDBI Growth IPO Fund have invested in nine companies since their 2022 establishment, with both funds actively preparing these portfolio companies for future IPOs on SGX by advising on listing requirements and facilitating market engagements.
These funds are part of broader initiatives like the MAS Grant for Equity Market Singapore scheme to reduce listing costs and boost research coverage, as well as partnerships such as the MOU with the Indonesia Stock Exchange to enhance regional capital market access.
Despite global equity market challenges including inflation and high interest rates, which reduced IPO activity worldwide, Singapore continues to strengthen its financial hub status through collaboration with industry players in fintech, AI, and sustainable finance.

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16 Feb 2024

Annual Budget Statement

The government introduced the Assurance Package and Enterprise Support Package, providing cash payouts, vouchers, and rebates to households and businesses to address immediate cost-of-living pressures and support economic resilience.
It launched the Forward Singapore agenda to enhance social mobility and support mid-career workers through the SkillsFuture Level-Up Programme, which includes top-ups for training and subsidies for full-time diplomas for those aged 40 and above.
Fiscal measures were outlined, including a Personal Income Tax Rebate, adjustments to property and stamp duties, and implementation of the BEPS 2.0 global tax rules, alongside a new Future Energy Fund to secure clean energy infrastructure.

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16 Feb 2024

Inland Revenue Authority of Singapore (Amendment) Bill

The Bill formalizes IRAS's role in administering broad-based enterprise grants, granting it new powers to investigate fraud and recover overpaid funds to safeguard public monies.
Amendments provide IRAS with enforcement powers similar to tax investigation authorities, including access to premises and arrest, to combat grant abuse and ensure timely recovery of wrongly disbursed amounts.
The Minister clarified that penalties will be imposed per offender, interest charged only on late repayments, and safeguards like informant protection are included to balance enforcement with fairness.

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16 Feb 2024

Review of Consumer Protection (Fair Trading) Act to Prohibit Greenwashing by Businesses

Assoc Prof Razwana Begum asked if the government would review the Consumer Protection (Fair Trading) Act to explicitly prohibit greenwashing and fund consumer education programmes, with the Minister responding that existing laws already cover false or misleading environmental claims and that agencies are developing guidelines and educational tips.
The debate highlighted the need to align consumer protection with the Singapore Green Plan, with the Minister noting ongoing efforts to improve consumer education and business guidelines while welcoming public feedback to enhance these measures.
The Minister outlined steps consumers can take, such as approaching CASE for assistance, reporting to the Advertising Standards Authority for misleading ads, and noted recent complaints about greenwashing have been received by authorities.

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16 Feb 2024

Guidance to Listed Firms on Fair Contracting of Freelancers Outlined in Tripartite Standard

The Ministry of Manpower will partner with freelancer associations to promote the Tripartite Standard on fair contracting, with over 2,600 companies already adopting it.
The government is cautious about setting growth targets for adoption, emphasizing competitive dynamics and the role of freelancers as self-employed individuals.
The Public Service aims to lead by example in adhering to the Tripartite Standard and may consider it in awarding contracts to listed firms.

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7 Feb 2024

Rationale for Differing Treatment of Sale Proceeds for Investments Made Using Funds from Different CPF Accounts

The sale proceeds from investments made using the Ordinary Account (OA) remain in the CPF Investment Account to facilitate quicker reinvestment, as OA funds can be used for a wider range of investments with shorter settlement periods, unlike the Special Account (SA) which is focused on retirement savings.
Agent banks manage the OA Investment Account to reduce processing time for transactions, and members can request a refund to the OA if they do not wish to reinvest, with automatic transfers occurring after two months of inactivity.
The differing treatment reflects the distinct purposes of the OA and SA, with SA funds being more safeguarded for retirement and thus having proceeds automatically credited back to the SA.

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7 Feb 2024

CPF Members with CPF Investments in Singapore Government Securities

As of 30 September 2023, about 1.01 million CPF members, or 23% of the total 4.49 million members, have opened a CPF Investment Account.
Of those with an Investment Account, around 50% are actively investing their Ordinary Account savings through the CPF Investment Scheme.
Approximately 4% of the members with an Investment Account are currently investing their Ordinary Account savings in Singapore Government Securities and Treasury Bills.

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7 Feb 2024

Adoption of Farm-to-Table Recognition Programme among Businesses

Minister Grace Fu reported that 50 food businesses have joined the Farm-to-Table Recognition Programme (FTTRP) since its launch in March 2023, with the programme open to coffee shops and hawker centres.
The government uses Government procurement weighted criteria to support FTTRP, giving recognised caterers additional points for securing contracts, while the Singapore Food Agency also helps farms adopt technologies.
The Ministry supports industry initiatives to aggregate supply and demand for local produce, aiming to build farm capabilities and offer quality products at competitive prices, though affordability measures for businesses and consumers are not explicitly detailed.

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7 Feb 2024

Reviewing CDC Vouchers Scheme to Support Larger Households Based on Household Size

Mr Yip Hon Weng questioned if the CDC Vouchers Scheme could be adjusted to better support larger households based on size.
Lawrence Wong explained that government support is holistic across multiple schemes, with the CDC Vouchers Scheme designed broadly for all households, while other targeted schemes like cash payments and seniors' bonuses address individual needs.
The government commits to regularly reviewing support measures to ensure they effectively help all Singaporeans, including larger households.

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7 Feb 2024

Data on Non-receipt of Support Schemes and Feedback on Erroneous Disbursement of Payouts

Hazel Poa asked for the number of eligible individuals or households who did not receive automatic support scheme benefits, complaints or appeals about erroneous payouts including fraud, and cases where extra benefits were wrongly disbursed to ineligible people over the past three to five years.
Lawrence Wong responded that the vast majority of automatic disbursements are accurate, with about 20,000 enquiries or appeals for the GST Voucher scheme in 2023, mostly due to updated personal circumstances rather than errors.
The government identifies and rectifies erroneous payouts through internal audits, Auditor-General reviews, and public feedback, citing an example where 3,166 ineligible HDB households received GST Voucher–U-Save benefits in FY2021/2022.
While rare, cases of fraud have occurred, and the government has zero tolerance, conducting thorough investigations and referring matters to the police when warranted.

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7 Feb 2024

Automatic Disbursement of Support Schemes to Individuals and Households

Leong Mun Wai asked the Deputy Prime Minister and Minister for Finance about the number of financial support schemes available, how many require active applications, and the rationale for not automatically granting support where criteria are objective.
Lawrence Wong replied that the Government provides automatic subsidies for public services like education and healthcare, and listed around 60 targeted support schemes across various life stages, with slightly more than half requiring applications.
He explained that automatic disbursement is used where criteria are objectively quantifiable and administrative data is available, while some schemes require applications due to the need for holistic assessments or disability evaluations to tailor support appropriately.

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7 Feb 2024

Public Finances

Minister Indranee Rajah supported the amended motion for fiscal responsibility over the original PSP proposal, arguing that the government’s current budget and reserve policies already balance current and future needs, citing examples like COVID-19 support and social programs.
The debate featured strong disagreements over land sales proceeds and reserve transparency, with the PSP and WP urging more disclosure and alternative uses for reserves, while the government maintained that reserves are a strategic asset and full disclosure is not in the national interest.
Prime Minister Lee Hsien Loong defended the 50/50 rule for using reserve returns, emphasizing the need to protect reserves for future crises, and warned against policies that could erode this long-term fiscal prudence.
The amended motion, calling for fiscally responsible and sustainable policies to help present-day Singaporeans while planning for future generations, was passed with support from government MPs and opposition from PSP and WP members.

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7 Feb 2024

Public Finances

Progress Singapore Party (PSP) members Leong Mun Wai and Hazel Poa moved a motion urging a review of Singapore's budget and reserve accumulation policies, arguing that current practices overly burden present-day Singaporeans with high costs and taxes, and proposing greater transparency on reserve sizes, using more investment returns for current spending, and waiving land costs for HDB flats.
Workers' Party members, including Pritam Singh and Jamus Lim, supported more openness about reserves and a flexible approach to using Net Investment Returns Contribution (NIRC) beyond 50% for social needs, while maintaining the principal reserves, and proposed a parliamentary select committee for better oversight.
Government MPs and Nominated Members defended the existing framework, emphasizing fiscal prudence, the importance of reserves for crisis management and currency stability, the risks of disclosing reserve sizes, and the need for a balanced approach that secures both current and future generations, supporting amendments to ensure fiscal responsibility and sustainability.

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7 Feb 2024

Statistics on Total Employment and Trade Income of Top 1,000 Earners

Mr Chua Kheng Wee Louis asked for the 25th, median, and 75th percentiles of total employment and trade income for the top 1,000 Singapore citizen earners over the past 10 years.
The Second Minister for Finance responded that due to the effort required, only data for Year of Assessment 2023, 2019, and 2014 would be provided to show trends.
For YA2023, the percentiles were $2.4 million, $2.9 million, and $4.5 million respectively.
For YA2019, the figures were $2 million, $2.5 million, and $3.6 million respectively.
For YA2014, the figures were $1.8 million, $2.2 million, and $3 million respectively.

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7 Feb 2024

Rise in Individual Bankruptcy Applications to 18-year High

The government reassured that while bankruptcy applications reached an 18-year high in 2023, actual bankruptcy and winding-up orders remain below pre-pandemic levels and are stable, with most borrowers able to manage higher debt costs amid global interest rate rises.
Financial literacy programmes like MoneySense and existing debt counselling services (e.g., Credit Counselling Singapore, debt consolidation plans, and debt repayment schemes) are available to help distressed borrowers avoid bankruptcy, and these are being strengthened across the ecosystem with financial institutions and trade associations.
The government will continue to monitor the situation, expand financial education and debt support services, and is considering targeted measures, early intervention, and credit score education for vulnerable demographics and industries, though specific budget and timeline details are not yet specified.

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