Economy & business — Topics

7 Feb 2024

Introducing Separate COE Category for Point-to-Point Vehicle Services

Yip Hon Weng asked for an update on the review of point-to-point services, including the feasibility of a separate COE category for private-hire cars, the expected timeline, and the impact on occasional private-hire drivers.
Dr Amy Khor responded that the review targets completion by the second half of 2024 and is examining the broader industry structure, including a separate COE category, but noted trade-offs such as quota allocation and effects on COE prices and ride fares.
Yip further inquired about potential additional regulations, licensing costs for new entrants, and unintended consequences for the broader transportation ecosystem, including privately owned cars.
Dr Amy Khor emphasized that while a separate COE category is not ruled out, careful study is needed to avoid misallocating quotas, which could tighten supply in other categories or lead to insufficient private-hire car availability.
The review is comprehensive, covering availability, resilience, and inclusivity of point-to-point services, and involves engagement with tripartite partners, commuters, and drivers.

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7 Feb 2024

Review of Computation of Monthly CPF Interest Payment

Chua Kheng Wee Louis questioned whether the CPF Board would review the computation of monthly interest to include pro-rated contributions and balances based on the number of days they reside in the account.
The Minister for Manpower highlighted that the CPF system provides guaranteed minimum interest rates and extra bonuses, which already offer members higher returns compared to bank deposits, making changes to the computation method unnecessary.
In a supplementary, Chua noted that current CPF interest computation might cause members to lose potential interest compared to other investments, but the Minister maintained that the CPF’s features ensure sustainable, higher long-term returns.
Assoc Prof Jamus Lim raised concerns that allowing sophisticated members to transfer CPF funds to safer instruments could exacerbate inequality, though the Minister did not directly respond to this point.

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7 Feb 2024

Standardising "Use By" and "Best Before" Date Labels for Food to Reduce Confusion

He Ting Ru proposed standardising "Use By" and "Best Before" labels to reduce confusion and food waste, suggesting partnerships with supermarkets for pilot campaigns.
Dr Koh Poh Koon opposed standardisation, citing international Codex standards, potential increased costs for consumers, and risks to Singapore's food import diversity and security.
The debate highlighted concerns that mandatory labelling could restrict food choices, raise prices, and fail to address varying global standards, while emphasising consumer education on food safety.

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7 Feb 2024

Assistance for Stallholders at Coffee Shops Faced with Increasing Rentals and Business Overheads

The Ministry of National Development outlined measures to support coffee shop stallholders, including stable HDB rental rates with a 1.6% median rent increase over five years and a 5% rental discount for operators adopting budget meals by 2026, while noting that privately owned coffee shops are not regulated.
HDB has not sold coffee shops since 1998 and uses a Price Quality Method for new tenders to balance rent and quality, emphasizing the need to maintain affordable food availability without direct government control over cooked food pricing.
In response to concerns about rising rents and food prices, the Ministry commits to studying specific cases of HDB-owned coffee shops and considers interventions, while highlighting the importance of market principles and broad F&B availability as a safeguard against price hikes.

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6 Feb 2024

Singapore Shipping Industry's Green Transition while Maintaining Competitiveness

The Ministry of Transport outlined that Singapore's shipping sector is aligning with the IMO's net-zero emissions target by 2050 while pursuing competitiveness through workforce upskilling and leveraging green transition opportunities.
According to the 2022 Maritime Census, 85% of ship owners and operators in Singapore by revenue had a decarbonisation strategy or tracked emissions, with this proportion expected to grow.
The Maritime and Port Authority of Singapore is collaborating with tripartite partners to enhance Singapore's role as a competitive hub port and international maritime centre amid the green transition.

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6 Feb 2024

Regulating and Ensuring Fair Practices and Consumer Protection in Car-sharing Industry

Dr Wan Rizal sought steps to ensure fair practices and consumer protection in the car-sharing industry and how the Ministry balances regulation with promoting innovation.
The Ministry of Transport and Land Transport Authority monitor the industry and will consult stakeholders to address potential concerns.
Car-sharing operators must ensure all vehicles meet roadworthiness standards, complementing the public transport network.

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6 Feb 2024

Prudence in Use of Public Funds to Maximise Benefit for Singaporeans at SGPO

Yip Hon Weng asked how SGPO will ensure prudence in public fund usage, evaluate performance, report on projects, extend focus beyond social projects, and determine management responsibilities for public facilities.
Edwin Tong clarified that SGPO serves as a first stop for partnership proposals, connects citizens with agencies, and agencies assess proposals under existing funding and procurement rules.
SGPO is in early operation, tracking proposals, refining systems and metrics, and will update the public on partnership progress.

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6 Feb 2024

Accomplishments of raiSE Since Inception and Support for Social Enterprises in High Interest Rate Business Environment

raiSE has supported over 200 social enterprises with more than $16 million in funding and capacity-building programmes since 2015, boosting their collective revenue from $179 million in 2020 to $216 million in 2022.
In 2022, raiSE members employed over 1,000 individuals, including persons with disabilities and lower-wage workers, and provided $15 million in subsidies to support the disadvantaged.
To address high interest rates, raiSE will continue its accelerator programme, having already provided $900,000 to 18 social enterprises, which attracted an additional $1.4 million from private investors.
Social enterprises can also access government schemes like the Productivity Solutions Grant via the GoBusiness portal for financial support to improve productivity.

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6 Feb 2024

Update on Child Development Account Not Being Matched to CPF Ordinary Account Interest Rate

Leong Mun Wai asked why CDA interest rates are not pegged to CPF OA rates and if the government could encourage banks to match them.
Masagos Zulkifli clarified that the CDA is a spending account for child-raising costs and its interest rates are set by banks based on commercial considerations, not comparable to CPF OA.
The government does not set CDA interest rates but provides dollar-for-dollar matching on deposits up to a cap to support parents.

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6 Feb 2024

Breakdown of Food Consumption in Singapore and Ensuring Food Security Beyond 2030

Local farms in Singapore produced 609 million eggs, 4,400 tonnes of seafood, and 19,900 tonnes of vegetables in 2022, meeting 29%, 8%, and 4% of consumption respectively, while fruit and meat production is minimal and not tracked.
The 30-by-30 goal faces delays due to COVID-19, geopolitical tensions, climate change, and supply chain disruptions, though support measures like the $60 million Agri-food Cluster Transformation Fund and demand-side initiatives are in place to boost local production.
Local production is one part of a multi-pronged food security strategy, which also focuses on diversifying import sources to ensure resilience beyond 2030.

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6 Feb 2024

Impact of GST Increase on Core Inflation and Mitigating Measures for Price Stability

The GST increase is expected to contribute slightly less than one percentage point to core inflation, with overall core inflation projected to average 2.5% to 3.5% in 2024, down from 4.2% in 2023.
Other key drivers of inflation this year include higher electricity and gas tariffs due to rising oil prices and increased water prices from higher production costs.
To manage price stability, MAS will maintain a steady appreciation of the exchange rate policy band to dampen imported inflation, and the government will monitor trends and provide support to households and businesses.

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6 Feb 2024

Ensuring Security of Singapore's Global Trade Routes and Shipping Lanes Amid Geopolitical Tensions

Singapore participates in international maritime security initiatives, including the Combined Maritime Forces and Operation Prosperity Guardian, to protect trade routes and freedom of navigation.
The government engages shipping operators to ensure vigilance and precautionary measures in high-risk areas like the Red Sea, while providing information-sharing through hosted centres.
Singapore monitors global trade disruptions and is prepared to serve as a catch-up port for diverted vessels, helping businesses manage supply chains and contingency plans.

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6 Feb 2024

Allowing Banks to Adopt Singpass as Primary Method to Verify and Update Addresses of Account Holders

Yip Hon Weng asked if the government will allow banks to use Singpass as the main method for verifying and updating account holders' addresses.
Lawrence Wong, speaking for the Prime Minister, said banks are already permitted to use Singpass services like Myinfo for online banking.
The adoption of Singpass at bank branches varies and depends on each bank's considerations, such as customer profiles and IT integration needs.
The Monetary Authority of Singapore encourages banks to integrate Singpass into branch systems to give customers a choice between digital and physical verification.

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6 Feb 2024

Monthly Rentals Paid By Non-Subsidised Hawkers

Chua Kheng Wee Louis asked for the median monthly rent for stalls at NEA-appointed operator hawker centres and the difference compared to NEA-managed centres over the last 10 years.
Grace Fu Hai Yien replied that median rents at Socially-conscious Enterprise Hawker Centres (SEHCs) are comparable to NEA-managed centres, with 2023 figures at $1,700 for SEHCs and $1,625 for non-subsidised NEA stalls.
She noted that median rents at both SEHC and NEA hawker centres have remained stable since the SEHC centres began operations.

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6 Feb 2024

Assessing Impact of Support Measures on Firm-level Productivity Improvements

The Ministry assesses the impact of productivity support measures at the national level, noting real value-added per worker grew by 2.0% annually from 2017 to 2022.
Productivity growth over this period correlated with real median wage growth of 1.8% per annum, supporting sustainable wage increases.
Steady productivity gains have helped Singapore remain a top-five most competitive economy, underscoring the role of these measures in enhancing firm competitiveness locally and internationally.

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6 Feb 2024

Instances of Price Escalation Attributed to Recent GST Increase to 9%

Edward Chia inquired about complaints regarding price hikes linked to the GST increase to 9%, sector-wide price escalations, and potential scrutiny of competitive practices.
Gan Kim Yong stated that the Committee Against Profiteering has not observed a significant rise in complaints in January 2024 and has not received allegations of anti-competitive behaviour related to the GST hike.

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6 Feb 2024

Monitoring of General Insurers' Compliance with Singapore General Insurance Code of Practice in Processing Claims

Murali Pillai asked whether MAS monitors insurers’ compliance with Paragraph 6.2 of the Singapore General Insurance Code of Practice and investigates complaints about claim processing delays.
The Singapore General Insurance Code of Practice is issued by the General Insurance Association (GIA) and sets best practice standards for member insurers, with complaints to be first referred to GIA.
MAS supervises insurers through risk management guidelines, requiring clear claims procedures and internal dispute resolution, and tracks consumer complaints to ensure appropriate responses.

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6 Feb 2024

Prevention of Proliferation Financing and Other Matters Bill

The debate centered on the Prevention of Proliferation Financing and Other Matters Bill, with MPs Yip Hon Weng and Neil Parekh supporting it as necessary to align Singapore's laws with international FATF standards and protect its financial hub status, while highlighting concerns about compliance burdens on small businesses and emerging fintech risks.
Key concerns raised included ensuring fair implementation for SMEs, providing education and lead time for regulated sectors like jewelers and pawnbrokers, and addressing evolving threats from virtual assets and crowdfunding platforms, with calls for regular risk reviews and inter-agency coordination.
The Senior Parliamentary Secretary affirmed the government's holistic strategy, including inter-agency collaboration and private sector engagement, addressed queries on FATF engagement and recent money laundering cases, and assured that compliance measures are proportionate with guidance and support for affected businesses.

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6 Feb 2024

Application Rates for Scheme that Exempts Persons with Disabilities from Paying COE Premiums and Additional Registration Fees for Vehicles

The Disabled Persons Scheme (DPS), which exempts eligible Singapore citizens with permanent disabilities from COE premiums and Additional Registration Fees, saw applications decline from 93 in 2015 to 20 in 2023.
The government confirmed that DPS is means-tested and that the income ceiling was last updated in 2017, with a commitment to review the scheme to ensure it remains relevant.
Officials indicated that the review of DPS is timely as part of a broader effort to make public transport more accessible to all persons with disabilities, acknowledging concerns from Members of Parliament.
During the debate, questions were raised about the tiered means-testing approach and whether rising per capita household incomes have reduced the proportion of potential applicants qualifying for DPS.
The government highlighted the need to balance the scheme's purpose with the larger goal of improving public transport accessibility and will consider situations where persons with disabilities are caregivers.

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6 Feb 2024

Value of Unspent CDC Vouchers and Initiatives to Encourage Individuals to Donate these Vouchers

The CDC Vouchers Scheme 2023 saw a 97.7% claim rate from 1.27 million households, with over $360 million spent at heartland merchants, hawkers, and supermarkets, and unspent vouchers could be donated to charities until January 2024.
For 2024, interim data as of February 6 shows 95% of households have claimed vouchers, with over $255 million spent, including $99 million at merchants and hawkers and $156 million at supermarkets.
The number of charities participating in the voucher donation scheme has increased by 20% to 327, covering causes like healthcare, family support, and environmental sustainability, though donation figures for 2023 are still being compiled.
Unspent and undonated vouchers are returned to the government, and the scheme aims to prevent waste while allowing households to support those in need through donations.

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