Economy & business — Topics

5 Feb 2024

HDB Neighbourhood Centres Selected for Revitalisation of Shops Scheme

Ang Wei Neng asked how many HDB neighbourhood centres have been selected for the Revitalisation of Shops (ROS) scheme after the Housing and Development Act was amended in January 2023, and whether the Ministry will increase the ROS budget due to rising construction costs.
HDB is finalising the selection of sites for ROS Batch 8, which opened in November 2023, and will inform Town Councils and Merchant Associations of the results by March 2024.
There are no plans to increase the ROS budget, as HDB already increased its co-payment share for main upgrading costs from 70% to 85% in 2023, reducing shop owners' share from 20% to 5%.
Additional funding support has been introduced for optional works like shopfront improvements, and the Ministry will continue monitoring and reviewing the schemes as needed.

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5 Feb 2024

Redemption Rate of CDC Vouchers and Ways to Redistribute Unredeemed Vouchers

97.7% of 1.27 million Singaporean households claimed their 2023 CDC Vouchers, with 96.5% of the claimed value spent at participating merchants, marking the highest redemption rate to date.
The government enabled households to donate unused 2021 and 2022 CDC Vouchers to charities, resulting in nearly 10,000 households donating close to $1.2 million to support various causes.
A similar donation option was extended for 2023 CDC Vouchers from December 2023 to January 2024, allowing households to support vulnerable groups through charity contributions.
The CDC Vouchers Scheme is part of broader government efforts to assist households with daily expenses and support heartland merchants amid cost-of-living pressures.

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5 Feb 2024

Impact of Shipping Disruptions in the Red Sea on Singapore's Economy and Consumer Prices

Shipping disruptions in the Red Sea have caused rerouting via the Cape of Good Hope, adding 10 to 15 days to transit times and increasing sea freight charges, with delays affecting Singapore’s imports of petrochemicals, specialty chemicals, and machinery from Europe.
The impact on Singapore’s overall economy is currently manageable because European sea imports form a small proportion of its total global imports, with MTI still projecting 1% to 3% GDP growth for the year.
Core inflation is expected to moderate to 2.5% to 3.5% from 4.2% last year, as global commodity prices have fallen, with current forecasts already accounting for the Red Sea situation, though further escalation could pose upside risks to inflation and downside risks to GDP growth.
The government is monitoring developments closely and engaging with businesses to mitigate any potential economic impacts.

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5 Feb 2024

Global Leadership in Artificial Intelligence

Gerald Giam argued that Singapore should adopt a more proactive industrial policy with ambitious "moonshots," such as healthcare AI, and a state-led AI corporation to build local talent, ensure data sovereignty, and secure global leadership.
Senior Minister of State Janil Puthucheary countered that the government already supports similar outcomes through the National AI Strategy, emphasizing an open, collaborative ecosystem over protectionist measures and cautioning against the high costs and risks of picking specific winners.
Giam proposed stricter local hiring quotas and knowledge transfer conditions for foreign talent, while the government defended a balanced approach that remains open to global talent to complement local upskilling efforts.
The debate highlighted contrasting views on data strategy, with Giam advocating for local data sets and sovereignty, and the government stressing the necessity of cross-border data flows to maintain Singapore's competitiveness and global partnerships.
Both sides agreed on the goal of using AI to benefit Singaporeans and achieve economic growth, but diverged on the methods, with the government favoring broad-based initiatives and the MP calling for targeted, high-risk strategic investments.

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5 Feb 2024

Prevention of Proliferation Financing and Other Matters Bill

The Bill amends four key Acts—PSPM, Moneylenders, Pawnbrokers, and Legal Profession Acts—to align Singapore’s regulatory regimes for precious stones/metals dealers, moneylending, pawnbroking, and legal services with updated FATF standards on countering proliferation financing, requiring businesses to implement risk assessments and internal controls.
It strengthens the PSPM Act by expanding the definition of “precious product” to cover items priced over S$20,000 regardless of material value, excluding digital payment tokens to avoid double regulation, and introducing new offences and compliance measures.
The Bill enhances operational effectiveness for PSMDs by allowing suspension or cancellation of registration for non-operating entities, requiring record-keeping post-deregistration, and enabling digital service of documents.
During the debate, MPs raised concerns about integrating proliferation financing into national anti-money laundering and counter-terrorism strategies and ensuring meaningful industry compliance rather than box-ticking.
Dennis Tan highlighted lessons from a recent large money laundering case, questioning the adequacy of existing laws and due diligence processes to prevent illicit funds from entering Singapore and supporting the Bill’s preventive measures.

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5 Feb 2024

Reviewing F1 Contracts with Singapore Government and Strengthening Guidelines for Investment-oriented Agencies that Engage with Private Entities

Members of Parliament raised concerns about the structuring and audit of F1 contracts, potential non-compliance by officials, and the impact of corruption allegations on Singapore’s economic agencies and international reputation.
The Minister confirmed that the Ministry of Trade and Industry (MTI) is reviewing the F1 contracts and that the Singapore Tourism Board will audit the 2022 race, while noting that any further details may be subject to ongoing legal proceedings.
Economic agencies are required to follow the Public Service Code of Conduct, and the government will maintain its commitment to the F1 Grand Prix while monitoring investor confidence and responding robustly if needed.

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10 Jan 2024

SMEs Tapping into StartSAFE Programme and Its Effectiveness in Improving Workplace Safety

Approximately 4,000 SMEs have participated in StartSAFE since its launch in 2018.
Close to 800 participants have advanced to bizSAFE Level 3 or higher, indicating improved workplace risk management.
The government plans to continue encouraging more SMEs to join the fully subsidised programme to strengthen workplace safety.

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10 Jan 2024

CPF Members Owning Private Annuities and Exempted from CPF LIFE

Melvin Yong asked the Ministry of Manpower for the annual number of CPF members exempted from CPF LIFE over the last five years due to owning private annuities.
Tan See Leng explained that members with qualifying private annuities bought using cash can apply for full exemption if their annuity payouts are at least as good as their cohort's Full Retirement Sum payouts under CPF LIFE.
The CPF Board approves such exemptions if the conditions are met.
Over the last five years, no member has applied for this exemption option from CPF LIFE.

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10 Jan 2024

Tax Deductions for Companies and Individuals Participating in Corporate Volunteer Scheme

Ms See Jinli Jean asked for statistics on company participation in the Corporate Volunteer Scheme (CVS) since 2017, including the number and percentage of participating companies, the proportion hitting the annual deduction cap, and common qualifying expenditures.
She also inquired whether individuals volunteering at Institutions of Public Character (IPCs) could receive a 2.5 times tax deduction, similar to the scheme for companies.
The Minister responded that the CVS, introduced in 2016, allows a 250% tax deduction for companies whose employees volunteer at IPCs, with enhancements in 2024 expanding eligibility and raising the expenditure cap.
About 170 companies have used the CVS, with salary expenses as the most common deduction, and no company has exceeded the $250,000 cap.
The government currently has no plans to extend the CVS to individuals.

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10 Jan 2024

Statistics on Cost of Land Reclamation Project and Proceeds from Sale of Reclaimed Land

From 2000 to June 2023, approximately 74.5 square kilometres of land were reclaimed at a total cost of around $13 billion, funded from Past Reserves.
About 0.5 square kilometres of the reclaimed land were sold via Government Land Sales, generating proceeds of approximately $462 million.
The proceeds from selling the reclaimed land are returned to Past Reserves, as the land forms part of them.

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10 Jan 2024

Strengthening Healthcare Services (Cord Blood Banking Service) Regulations 2021 to Enhance Consumer Protection

Hazel Poa asked the Ministry of Health to consider strengthening the Healthcare Services (Cord Blood Banking Service) Regulations 2021 to enhance consumer protection due to the irreplaceable nature of cord blood.
Ong Ye Kung explained that private cord blood banking is a for-profit, elective service where parents pay to store their child's cord blood, with 14 withdrawals for transplants since 2001.
He stated that the 2021 Regulations set licensing requirements for banks to ensure the viability of cord blood for transplants, and the Ministry will review areas for strengthening these regulations following the Cordlife incident.

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10 Jan 2024

Possibility of Seniors Purchasing Assistive Devices with CPF or Government-endorsed Financing Arrangements

Ms See Jinli Jean proposed allowing seniors to use CPF or government-endorsed financing to purchase assistive devices like hearing aids to support active ageing and work productivity.
The government currently offers subsidies through the Seniors’ Mobility and Enabling Fund, vouchers via Project Silver Screen, and subsidies for listed medical implants.
Seniors can also use MediShield Life and MediSave for implant costs, with further assistance available through healthcare providers or Agency for Integrated Care Link.

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10 Jan 2024

Statistics of Hawker Centres Operated by Social Enterprises and Relevant Costs Compared to Ones Operated by NEA

As of 31 December 2023, there are 12 hawker centres operated by Socially-conscious Enterprise Hawker Centre (SEHC) operators.
The National Environment Agency (NEA) regulates SEHC stall rents by assessing bids and ensuring operators do not deviate from stated costs; median stall rentals and ancillary fees are comparable to NEA-operated centres.
The government monitors SEHC costs to keep them reasonable and affordable, but specific pricing is managed through the tender process rather than direct price controls.

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10 Jan 2024

Update on Private Operation of Interim Markets and Offering Subsidised Rentals at Such Markets

Leong Mun Wai questioned why interim markets are privately operated by the community rather than by the National Environment Agency (NEA) and why subsidised rentals cannot be offered at these markets.
The government fully funds permanent replacement hawker centres but not temporary ones; affected stallholders are informed early and may operate at vacant stalls in other centres if available.
Communities can collectively finance, build, and own temporary markets, as seen in the Bukit Timah case, with NEA assisting by securing land at zero cost.
Rental rates at such community-run interim markets are determined by the community itself, not by government subsidies.

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10 Jan 2024

Considerations of Applying Retail Premises Lease Agreements onto Private Hire Car Lease Agreements

The Ministry highlights that the existing Retail Premises Lease Code of Conduct is an industry-led initiative developed through collaboration between tenant and landlord representatives to address key leasing issues.
It notes that the Fair Tenancy Industry Committee, comprising industry stakeholders, currently oversees this code and suggests a similar approach could be considered for private hire car leasing.
The Government encourages private hire car industry stakeholders—including leasing companies, drivers, and relevant bodies—to explore adopting a comparable industry-led code and committee to promote fair and competitive practices.

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10 Jan 2024

Breakdown of Annual Returns Filed by Singapore-incorporated Companies over Three Years for SMEs and Non-SMEs

Mr Chua Kheng Wee Louis asked for a three-year breakdown of average and median operating, pre-tax, and net margins for SMEs and non-SMEs based on annual returns filed by Singapore-incorporated companies.
Deputy Prime Minister and Minister for Finance Lawrence Wong stated that the requested data is not readily available.
The debate centered on the lack of accessible financial performance metrics segmented by company size for Singapore-incorporated firms over the past three years.

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10 Jan 2024

Statistics on Take-up Rate of "Money Lock" Feature in Local Banks and Protective Measures Against Digital Banking Scams

Saktiandi Supaat inquired about the availability of data on the take-up rate of the "Money Lock" feature and MAS's efforts to enhance protection against digital banking scams, particularly for foreign transactions.
Lawrence Wong responded that the "Money Lock" feature has been activated on about 38,000 accounts, safeguarding over $3.2 billion, and MAS is working with more banks to introduce it.
MAS collaborates with financial institutions and agencies to counter scams, such as enhancing banking apps to block access when side-loaded apps are detected, reducing malware-enabled scams.
MAS plans to continue assessing and rolling out additional measures for high-risk transactions, including those involving overseas transfers and access.

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10 Jan 2024

Accumulation of Unsustainable Levels of Debt by Young People

Assoc Prof Razwana Begum Abdul Rahim asked if the Government is considering working with financial institutions to prevent young people from accumulating unsustainable debt.
Lawrence Wong stated that the Monetary Authority of Singapore has safeguards such as income-based caps on unsecured borrowing and debt servicing limits for mortgages to ensure borrowing aligns with income.
He added that financial education is integrated into the national school curriculum and supported by MoneySense programs to promote responsible credit use among young adults.

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10 Jan 2024

Impact of Disruptions to Shipping and Security in Red Sea Region on Singapore's Consumer Prices and Fuel Costs

Ms He Ting Ru inquired about the anticipated impact of Red Sea shipping disruptions on Singapore’s consumer prices, fuel costs, and logistical delays, as well as mitigation measures.
Minister Gan Kim Yong stated that while shipping routes are rerouted via the Cape of Good Hope, adding 10–15 days to transit, delays remain manageable and critical supplies are adequately stockpiled.
Singapore’s oil supply is largely unaffected due to reliance on the Strait of Hormuz, but sea freight costs may rise due to longer voyages and higher insurance premiums.
The government will continue monitoring the situation and assist businesses in strengthening supply chain contingency plans to manage potential longer-term disruptions.

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10 Jan 2024

Rationale for Reinstating Bus Service 167 after Discontinuation Announcement

The Minister explained that Service 167 was reinstated at a reduced frequency to give commuters more time to adjust after the Thomson-East Coast Line opened, as it serves a long trunk route affected by other service changes, and this adjustment reduced its annual subsidy from $6.2 million to $3.6 million.
The rationale for retaining Service 167 does not automatically extend to reinstating other discontinued services, such as those along Bedok Reservoir Road, because those routes have seen sustained low ridership and commuters have largely switched to the Downtown Line, making it unnecessary to restore them.
The Government will continue to monitor bus services and make adjustments, reallocating savings from service rationalisations to support new routes and feeder services for new housing estates, while noting that it is not financially sustainable to add new services without reducing underused ones.

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