Economy & business — Topics

10 Jan 2024

Effectiveness of Grants for Technology Solutions to Improve Productivity and Workplace Safety and Health

About 700 companies received government grants for workplace safety and health technology solutions in the last two years, with a total of $8.4 million disbursed.
The grants support solutions like Fleet Safety Management and Lorry Crane Stability Control Systems to improve safety and reduce incidents.
Exact effectiveness of individual technologies is hard to measure due to industry-specific risks and company practices.
Technology alone cannot improve workplace safety without complementary processes and proper worker training.

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10 Jan 2024

Support for SMEs to Manage Rising Vehicle Costs

The Minister explained that there are no specific schemes to help SMEs with rising COE prices for commercial vehicles, but broad-based and sector-specific programmes like the Enterprise Financing Scheme-Working Capital Loan and Enterprise Development Grant are available to support operational cash flow and business growth.
Regarding the pilot for consolidating last-mile delivery via third-party logistics, the Urban Logistics Offsite Consolidation Centre pilot in 2018 had low adoption with only 13 companies participating, as businesses preferred maintaining existing logistics contracts for control over delivery frequency and did not achieve cost efficiencies due to multiple handling of goods.
The Ministry indicated that while the pilot had limited success, SMEs can explore existing support schemes through the GoBusiness portal, and no specific plans were announced to further encourage adoption of 3PL services based on the pilot’s outcomes.

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10 Jan 2024

Feasibility of Making Integrated Shield Plan Insurance Fully Portable

Dr Tan Wu Meng asked for an update on the feasibility of making Integrated Shield Plan insurance fully portable, particularly when employees change jobs and lose corporate coverage.
Minister Ong Ye Kung noted that portability concerns have been largely addressed by MediShield Life, but switching insurers without underwriting is challenging as it could disadvantage insurers with pre-existing conditions, likely requiring government regulation.
The study is ongoing, weighing potential benefits like price competition against risks such as reduced benefits or higher premiums, while considering international experiences.

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10 Jan 2024

Impact of Higher Property Prices on Property Taxes Payable by Religious, Heritage and Cultural Organisations

Ms Mariam Jaafar questioned the Finance Minister about how rising property prices might affect property taxes for religious, heritage, and cultural groups.
Lawrence Wong clarified that registered charities, including those used for public worship or heritage, are exempt from property tax if the properties are solely for charitable purposes.
The recent rise in market rentals, which influences a property’s Annual Value, does not affect the property tax for these exempt organisations.

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10 Jan 2024

Healthcare Subsidy Savings Achieved with Use of Residential Property Annual Value for Means Testing

Gerald Giam asked the Minister for Health about the total healthcare subsidy savings since September 2022 from using residential property Annual Value for means-testing and whether the Ministry would consider removing it as a criterion.
Ong Ye Kung clarified that means-testing aims to target subsidies to those who need them most as subsidy amounts increase, not to save money.
He noted that patients struggling with bills after subsidies, insurance, and MediSave can apply for financial assistance like MediFund, which is assessed holistically.

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10 Jan 2024

Use of GST U-Save Vouchers to Pay for Other Living Expenses

Mr Gan Thiam Poh asked if households can use GST U-Save vouchers for expenses like service and conservancy charges.
Lawrence Wong stated that U-Save rebates are exclusively for utilities, can be rolled over, and separate rebates already offset S&CC charges.
He noted multiple existing support measures, such as Assurance Package cash payouts and CDC vouchers, to help with living expenses.

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10 Jan 2024

External Auditors for Verifying Charges Generated by Ride-hailing Platforms' Technological Systems

Murali Pillai proposed that the Land Transport Authority require licensed ride-hailing operators under the Point-to-Point Passenger Transport Industry Act to appoint external auditors to regularly verify fare data and compliance with regulatory standards.
Chee Hong Tat, representing the Minister for Transport, stated that operators must comply with fare pricing policies set by the Public Transport Council and face penalties such as fines up to $100,000 for non-compliance.
The Minister clarified that the Land Transport Authority does not prescribe specific methods for operators to meet regulatory standards, focusing instead on enforcement of compliance.

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10 Jan 2024

Measures to Help Hawkers Cope with Increasing Costs of Supplies and Ingredients

Edward Chia asked about support measures for hawkers facing rising supply costs and the effectiveness of past bulk-purchasing pilot programmes.
Grace Fu responded that NEA helps hawkers by moderating stall rents through no reserve rents and disallowing subletting, and offers productivity support like subsidies for dishwashing automation and co-funding for equipment.
Bulk-purchasing options exist through some hawker centre operators, but take-up has been low due to hawkers’ existing supplier relationships and preference for ingredient quality.
NEA will continue to support bulk-purchasing initiatives where feasible.

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10 Jan 2024

Extension or Cessation of 4% Interest Rate Floor for CPF Special, MediSave and Retirement Accounts beyond 2024

The government has extended the 4% interest rate floor for CPF Special, MediSave, and Retirement Accounts to 31 December 2024 due to uncertain interest rate conditions, with a current rate of 4.08% in the first quarter of 2024.
The CPF interest rate is reviewed quarterly, and the government will consider factors like global economic conditions and the interest rate environment when deciding on any future extension or revision of the floor rate.
The government remains committed to helping CPF members grow their savings, but the interest rate floor may be reduced under certain circumstances, which would be assessed through regular reviews.

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10 Jan 2024

Impact of E-cigarettes Ban on Potential Loss in Tax Revenue for Government

Assoc Prof Jamus Jerome Lim questioned whether lost tobacco tax revenue influenced the e-cigarette ban and what obstacles exist to taxing legal e-cigarettes.
Lawrence Wong stated the 2018 ban was solely based on public health goals to protect citizens, with no consideration of tax revenue loss.
He added that legalizing and taxing e-cigarettes would face similar enforcement challenges as existing tobacco products, but the government has no plans to change its approach.
The government's priority remains protecting public health and preventing harm, especially to youth, rather than pursuing tax revenue from e-cigarettes.

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10 Jan 2024

Assessment of Public Sector's Achievement of Green Targets Following Launch of GreenGov.SG Initiative

Under the GreenGov.SG initiative, the public sector is on track to meet its 2045 net-zero target, with early measures like Green Mark Platinum buildings and clean energy vehicles, though it is premature to fully assess progress.
The Ministry uses annual resource reporting and improvement plans for large private companies, plus climate reporting mandates for listed firms, to assess private sector greening efforts.
SMEs can immediately track and reduce electricity and water use, upgrade to efficient systems, and access grants and consultancy services like the Energy Efficiency Fund and PUB’s guide.
Sustainability is a whole-of-nation effort, with public and private sectors collaborating to build a greener Singapore while enhancing competitiveness and resource resilience.

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10 Jan 2024

Building an Inclusive and Safe Digital Society

The debate highlighted the urgent need for a whole-of-nation approach to build an inclusive and safe digital society, with speakers emphasizing the erosion of public trust due to rising online scams, cyber threats, and digital harms.
Key concerns included the vulnerability of seniors and other groups to financial losses from scams, the need for stronger consumer protection, and demands for banks, telcos, and tech platforms to bear more responsibility for preventing fraud and securing digital services.
Speakers called for enhanced digital literacy, accessibility for all demographics, and the adoption of advanced security measures like multi-factor authentication, while urging government agencies to coordinate more effectively and accelerate the implementation of relevant laws.

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10 Jan 2024

Inland Revenue Authority of Singapore (Amendment) Bill

The Inland Revenue Authority of Singapore (Amendment) Bill was introduced to update the Inland Revenue Authority of Singapore Act of 1992.
The bill was presented by the Senior Minister of State for Finance, Mr Chee Hong Tat, on behalf of the Deputy Prime Minister and Minister for Finance.
The bill was read for the first time and scheduled for a second reading at the next available sitting of Parliament.

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10 Jan 2024

Financial Institutions (Miscellaneous Amendments) Bill

The Bill proposes amendments to multiple financial legislation, including the Financial Advisers Act, Financial Services and Markets Act, Insurance Act, Monetary Authority of Singapore Act, Payment Services Act, Securities and Futures Act, and Trust Companies Act.
The Minister of State for Trade and Industry, Mr Alvin Tan, presented the Bill on behalf of the Prime Minister, and it received its First Reading in Parliament.
The Bill is scheduled for its Second Reading on or after 1 March 2024, as per the procedural text presented during the debate.

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10 Jan 2024

Ensuring Licensed Remittance Companies Fulfil Commitments

Under the Payment Services Act, licensed remittance companies must ensure funds reach recipients within three to seven business days and provide proof of receipt; MAS received fewer than 100 complaints about failed remittances in 2023, representing less than 0.01% of total remittance value.
Consumers who do not receive funds should first contact the remittance company, and if unresolved, can file claims in the Small Claims Tribunals (up to S$30,000) or pursue civil action; MAS requires due diligence on intermediaries and will take enforcement action for breaches.
For remittances to China, funds are often successfully transferred but later frozen by PRC authorities; MAS has temporarily suspended non-bank and non-card transfer channels to protect consumers, while agencies engage Chinese authorities to address frozen funds and assist affected remitters.

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9 Jan 2024

Extension of Matched Retirement Savings Scheme to Cover Seniors Aged Above 70

Hazel Poa asked why the Matched Retirement Savings Scheme excludes seniors above 70 and whether there are plans to extend it to cover those still working.
The Minister for Manpower, Tan See Leng, responded that the scheme is set for enhancements as part of broader retirement adequacy measures announced in the National Day Rally and Forward Singapore report.
Specific details on the extension and other enhancements will be announced during the upcoming Budget 2024 and the Ministry of Manpower's Committee of Supply debate.

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9 Jan 2024

Number of Self-employed Persons Receiving Financial Support from Social Assistance Schemes

Ms See Jinli Jean asked for annual data since 2019 on self-employed persons receiving social assistance, including the number of applicants, the average monetary quantum, its proportion to net trade income, and the top three support schemes.
Masagos Zulkifli explained that the Ministry does not track occupation data for social assistance assessments, but during COVID-19, specific schemes like the Special Relief Fund and COVID-19 Driver Relief Fund disbursed about $390 million to 50,000 taxi and private hire car drivers.
The Self-Employed Person Income Relief Scheme provided $9,000 each to about 200,000 eligible individuals, though data on disbursement proportions relative to income is not readily available.

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9 Jan 2024

Tourist Arrivals from China and Amount of Tourism Receipts in 2023

There were 1.23 million visitor arrivals from mainland China between January and November 2023, with tourism receipts of S$1.12 billion from January to June 2023, representing 37% and 56% of 2019's figures respectively.
The lower recovery is due to Chinese travellers' preference for domestic travel and limited flight connectivity, which has only recovered to 78% of pre-pandemic levels as of December 2023.
Authorities assessed that the 30-day mutual visa exemption arrangement will boost Singapore's attractiveness, increasing visitor arrivals and spending in retail, F&B, and related tourism sectors.
The arrangement also benefits Singaporeans and businesses by facilitating leisure travel to China and supporting business exploration and networking in the Chinese market.

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9 Jan 2024

Revision of Metrics for Ensuring Appropriate Level of Household Indebtedness Given High Interest Rates

Saktiandi Supaat asked whether persistently high interest rates since 2022 require revising metrics for household debt sustainability and if more stratified data on debtors should be collected to improve debt support strategies.
Lawrence Wong responded that MAS already incorporates interest rate changes and income factors into its debt monitoring, with safeguards like the total debt servicing ratio and mortgage servicing ratio frameworks to ensure borrowing aligns with income.
He noted that in September 2022, MAS raised the medium-term interest rate for mortgage calculations to 4% to maintain prudent borrowing amid rising rates.
For unsecured credit, financial institutions must verify a minimum S$30,000 annual income and cap total unsecured debt at annual income, with suspension for late payments.
MAS tracks comprehensive household debt metrics and data indicates stable credit quality without significant deterioration in defaults, with further details provided in a November 2023 parliamentary reply.

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9 Jan 2024

Ensuring Fair and Competitive Base Interest Rates for Saving Accounts

Murali Pillai asked whether MAS would ensure the 0.05% base interest rate for savings accounts is fair and competitive in today's high-rate environment.
Lawrence Wong responded that deposit rates are market-driven, and MAS does not directly set them but expects banks to be fair and transparent with depositors.
He noted that banks offer higher-interest fixed deposits and salary-crediting accounts, and alternatives like Singapore Savings Bonds and Treasury Bills yield over 3%.
MAS will monitor deposit products and work with banks to improve communication about available options to customers.
The reply emphasizes that while basic savings rates are low, there are competitive alternatives available to savers.

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