Economy & business — Topics

6 Nov 2023

Manufacturing Sector's Projected Share of GDP and Labour Force in Coming Decade

Patrick Tay Teck Guan asked the Ministry of Trade and Industry for projections on the manufacturing sector's share of GDP and the labour force over the next 10 years.
Gan Kim Yong responded that manufacturing currently accounts for about 22% of Singapore's GDP and 13% of total employment.
The Ministry aims to maintain manufacturing's share of GDP at around 20% in the coming decade.
The Ministry also plans to continue creating good manufacturing jobs for Singaporeans, focusing on employment within the sector.
The debate centers on sustaining the manufacturing sector's economic contribution and employment opportunities over the next 10 years.

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6 Nov 2023

Prevention of Bank Data Centre Failures and Outages

Yip Hon Weng asked the Prime Minister about MAS’s oversight of banks and plans to prevent future data centre outages following a 14 October 2023 incident where cooling system failures at a data centre caused service disruptions for DBS and Citibank.
Lawrence Wong explained that the outages affected up to 810,000 digital banking attempts and 2.5 million transactions, and while banks activated disaster recovery plans, technical issues at backup data centres delayed full recovery until the early hours of 15 October 2023.
MAS requires banks to have disaster recovery plans tested regularly, with critical systems restored within four hours, but it does not oversee external service providers; banks are responsible for ensuring their vendors meet MAS standards on operational resilience.
MAS held DBS and Citibank accountable for falling short of resilience requirements, noting DBS had five disruptions in eight months, and imposed measures including fines, additional capital requirements, and a six-month ban on non-essential IT changes and new ventures for DBS.
MAS has instructed both banks to investigate root causes, implement remediation measures, and provide regular system availability reports, while the government studies strengthening data centre resilience and customers are advised to have contingency plans for banking disruptions.

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6 Nov 2023

Revising Local Banks' Risk-based Capital Adequacy Requirements to Reflect Climate Risks

Mr Don Wee asked if MAS will revise capital adequacy requirements for local banks to include climate risks, following European standards.
MAS stated its rules align with Basel Committee standards, which already allow banks to incorporate climate risks in credit assessments affecting regulatory capital.
MAS noted the European proposal reflects existing Basel clarifications and emphasized the need for international coordination for any major changes.
Beyond capital rules, MAS has issued supervisory guidance on environmental risk management and is consulting on transition planning guidelines for banks.
MAS will continue reviewing its approach to align with global best practices and collaborate with other regulators.

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6 Nov 2023

Expanding Eligible Age Groups and Amounts for Workfare Income Supplement Scheme

Mr Gan Thiam Poh questioned if the Government will expand the Workfare Income Supplement scheme to cover more age groups and increase payment amounts.
The Ministry of Manpower highlighted recent enhancements, including extending Workfare to workers aged 30–34 and raising maximum annual payments to $4,200, while noting that workers below 30 are excluded due to their potential for future wage growth.
The Government announced further Workfare enhancements to be detailed in next year’s Budget, alongside a $1.1 billion Cost-of-Living Support Package to alleviate inflation and GST impacts for lower- and middle-income households.

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6 Nov 2023

Suspected Money Laundering Cases Detected, Investigated and Reported since Integrated Resorts Commenced Operations

Since the integrated resorts began operations in 2011, authorities have detected 11 cases of suspected money laundering, all of which resulted in prosecutions and convictions.
The Gambling Regulatory Authority does not directly receive such cases, as they are reported to and investigated by the Police; the GRA instead requires casino operators to implement safeguards like customer due diligence and transaction monitoring.
The GRA conducts regular inspections and can impose regulatory actions, including financial penalties, for non-compliance, while the legal framework under the CDSA has been enhanced with tougher penalties and new offences to deter money laundering.

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6 Nov 2023

Option to Take CPF Accounts Offline as Safeguard against Loss through Scams and Malware Fraud

Sylvia Lim asked whether CPF members can take their accounts offline to protect against scams and malware fraud.
The CPF Board is collaborating with government agencies and banks to enhance security, including implementing Singpass Face Verification and requiring bank verification for withdrawals.
The Board is developing additional measures, such as options to limit or disable online withdrawals, to further safeguard members’ savings.

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6 Nov 2023

Citizens Who Are Eligible to Receive Assurance Package Seniors' Bonus and Have Received Payout

All 800,000 eligible seniors have received the Assurance Package Seniors’ Bonus and the 2023 Cost-of-Living Seniors’ Bonus.
Seniors who did not receive the payout are ineligible due to criteria such as assessable income or property ownership.
The Ministry of Finance encourages reporting of residents whose information may be outdated to ensure they receive the payout.

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6 Nov 2023

Raising Corporate Governance Standards for Singapore-listed Companies

The Monetary Authority of Singapore collaborates with industry bodies like the Singapore Exchange and the Corporate Governance Advisory Committee to maintain and regularly review corporate governance standards for listed companies.
Current requirements, including board composition, director independence, and remuneration disclosure, are embedded in the SGX Listing Rules and the Code of Corporate Governance, with recent amendments limiting independent director tenure and requiring detailed remuneration disclosures.
The government acknowledges the Singapore Governance and Transparency Index as a benchmarking tool but notes that key governance metrics are already reflected in regulatory rules and that some governance qualities, such as board diversity, are better assessed qualitatively than through scorecards.

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6 Nov 2023

Central Provident Fund (Amendment) Bill

The Bill ceases non-residents' participation in CPF schemes to focus the system on Singapore Citizens and Permanent Residents, with non-residents required to transfer their savings by April 2024, after which balances will be moved to the General Moneys of the Fund with reduced interest.
It streamlines CPF administration by allowing nominees and beneficiaries under intestacy laws to access deceased members' CPF information without prior authorization, aligning with industry practices and reducing administrative burdens on families during bereavement.
The amendments grant CPF Board greater flexibility in document service and notice forms, enabling electronic communication and simplifying processes for members and employers.

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6 Nov 2023

Significant Investments Review Bill

The Significant Investments Review Bill is introduced to safeguard Singapore's national security by regulating major investments and control over critical entities.
The bill is presented by the Minister of State for Trade and Industry on behalf of the Minister for Trade and Industry.
The bill undergoes its First Reading in Parliament and is scheduled for a Second Reading at the next available sitting.

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6 Nov 2023

Moneylenders (Amendment) Bill

The Moneylenders (Amendment) Bill aims to update the existing Moneylenders Act 2008 to enhance regulatory oversight and consumer protection in the moneylending industry.
The bill was introduced by the Senior Parliamentary Secretary to the Minister for Law, Ms Rahayu Mahzam, on behalf of the Minister for Law, and received its first reading in Parliament.
The bill will undergo a second reading in the next available parliamentary sitting, following standard legislative procedure.

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6 Nov 2023

Costs, Lessons and Further Safeguards Arising from Recent Disruptions to Digital Banking Services

The disruptions on October 14, 2023, affecting DBS and Citibank were caused by a cooling system malfunction in a shared data centre, leading to failed recovery attempts at backup sites and impacting nearly 810,000 access attempts and 2.5 million transactions.
MAS imposed penalties including fines, increased regulatory capital requirements, and restrictions on DBS’s IT changes and business activities, while emphasizing that banks are accountable for ensuring service resilience and compensating customers fairly.
MAS requires banks to maintain robust business continuity plans and test recovery systems regularly but does not directly regulate external service providers like data centres, instead holding banks responsible for oversight.
The government is studying whole-of-Government measures to strengthen data centre resilience, and MAS will incorporate lessons from the incident into future supervisory approaches and industry-wide exercises.
Consumers are advised to maintain contingency payment options, while banks must improve transparency, communication during outages, and ensure services remain accessible for those less adept with technology.

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6 Nov 2023

Study on Sodium Taxes in Countries with Such Measures and Potential Recommendations for Singapore

The Ministry of Health has studied international sodium tax measures but does not plan to implement them, instead focusing on a multi-pronged approach tailored to Singapore’s context, where sodium mainly comes from sauces and eating out.
HPB is working with manufacturers and food operators to promote lower-sodium ingredients through grants and engagement, with some wholesale prices already comparable to regular products and growing market uptake.
Public education campaigns will emphasize that reducing salt can enhance natural flavors and aim to shift consumer perceptions, while future phases may consider mandatory labelling for sodium content.
The government is engaging hawkers, restaurants, and industry associations to encourage the use of healthier ingredients and ensure that efforts to reduce sodium do not significantly increase business costs or food prices.

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6 Nov 2023

Outlook for COE Prices and Proposal for Support for Persons and Firms who Rely On Vehicles to Continue Their Trade

The government reaffirmed its zero-vehicle growth policy to manage land scarcity and carbon emissions, emphasizing that public transport remains the core strategy while COE prices are driven by supply and demand dynamics, with recent increases attributed primarily to strong resident demand rather than speculation or foreign buyers.
To address high COE prices, the government announced a significant 35% increase in supply for Categories A and B in Q4 2023, using a "cut-and-fill" approach to bring forward future quotas, though this involves trade-offs such as potential short-term increases in vehicles on the road.
Concerns about support for commercial vehicle owners and SMEs were noted, with the government highlighting existing measures like lower taxes for motorcycles and light goods vehicles, and commitments to study further support through agencies like Enterprise Singapore, while maintaining that market mechanisms and COE allocation must be preserved.
The government is reviewing point-to-point services, including private hire vehicles, to ensure they complement public transport, but has no plans for a separate COE category for car-leasing companies due to risks of supply volatility and impact on commuters.
Members raised suggestions for motorcycle COE adjustments, usage-based charging, and reallocation of COE categories, with the government indicating ongoing studies but emphasizing the need to balance congestion management, equity, and system stability.

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4 Oct 2023

Increasing Awareness of Adequate Retirement Planning amongst Employees Following Recent NTU and Lee Kuan Yew School of Public Policy Study

The Ministry of Manpower is supporting retirement adequacy through economic competitiveness, job creation, and uplifting lower-wage workers via Workfare and Progressive Wage moves, with projections showing improved CPF retirement sums for future cohorts.
The government is increasing the statutory retirement and re-employment ages to 65 and 70 by 2030 to allow seniors to work longer and strengthen their retirement savings.
Agencies like CPF Board and MoneySENSE conduct outreach including personalized retirement planning services, social media campaigns, and community events to educate members on retirement planning.
The Institute of Financial Literacy partners with employers to deliver workplace financial literacy programs, offering free clinics and workshops on topics like CPF savings and estate planning.
Retirement planning is emphasized as a personal responsibility, supported by government and agency initiatives to provide resources and guidance for employees, especially older workers.

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4 Oct 2023

Basis of Means-testing Assessment for Medical Subsidies Provided to Elderly Persons Living with Their Families

Zhulkarnain Abdul Rahim asked whether means-testing for medical subsidies for elderly persons living with families should be based on their individual assets, savings, or income rather than household income, and consider their duration of co-residence and household expenses.
Ong Ye Kung explained that subsidies are currently assessed using per capita household income to reflect the household’s overall financial capacity, which may place elderly persons in higher subsidy tiers but also allows their family members to receive higher subsidies for supporting them.
Ong Ye Kung noted that while per capita household income may not fully capture individual circumstances, those facing difficulties can apply for discretionary financial assistance like MediFund, which considers a broader set of factors.

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4 Oct 2023

Size, Annual Income and Expenditure of Rare Disease Fund

The Rare Disease Fund (RDF) had a size of $143 million as of end-FY2022, with projected FY2023 investment income of $4.8 million and expenditure of $2.4 million for existing beneficiaries.
The RDF primarily uses its investment income to support patients on lifelong, high-cost treatments, but it has recently expanded to allow drawdown of the principal sum for one-off, high-cost Cell, Tissue and Gene Therapy Products (CTGTPs) on a case-by-case basis.
Medications like Zolgensma and risdiplam for spinal muscular atrophy are not listed in the RDF because new treatments are only approved if projected investment income is adequate to support all known patients requiring that treatment.

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4 Oct 2023

Effect of Increases in Public Transport Fares and Higher COE Prices on Inflation in 2024

Public transport fare increases are projected to contribute 0.17 percentage point to core inflation in 2024, while the impact of COE price changes on inflation cannot be projected at this time.
The government is maintaining affordability through annual subsidies exceeding $2 billion and additional measures such as $300 million in 2024 subsidies and $50 Public Transport Vouchers for lower-income households.
Broader cost-of-living support includes a $1.1 billion package with cash payments, vouchers, and rebates, building on existing assistance from Budget 2023.
Support for businesses includes enhanced financing schemes to help manage cashflow and rising costs.
The government continues to monitor inflation pressures and implement measures to mitigate impacts on living and business costs.

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4 Oct 2023

Offences under Part 3B of Consumer Protection (Fair Trading) Act 2003

Mr Melvin Yong Yik Chye asked the Minister for Trade and Industry about the number of prosecutions and the average and highest fines for offences under Part 3B of the Consumer Protection (Fair Trading) Act 2003 over the past five years.
Part 3B of the Act deals with offences related to obstructing the Competition and Consumer Commission of Singapore’s investigation into potential unfair business practices.
The Minister, Gan Kim Yong, stated that to date, no supplier has been prosecuted in Court for an offence under Part 3B of the Act.
Consequently, there have been no cases to report on for the number of prosecutions, the average fines, or the highest fines meted out by the Court.
The response effectively answers that the count of prosecutions and the associated fines are zero due to the absence of any prosecutions to date.

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4 Oct 2023

Liability of Investors for Additional Buyer's Stamp Duty and Other Taxes for Owning Multiple Properties

He Ting Ru inquired about the ABSD treatment for investment products offering fractional ownership of Singapore residential properties and whether investors are liable for ABSD and other taxes for owning multiple properties.
Lawrence Wong clarified that stamp duty applies based on the structure of the investment, with direct property buyers paying BSD and ABSD, while acquisitions of shares in Property Holding Entities may incur Share Duty and Additional Conveyance Duties.
Investors are not liable for stamp duty if they do not receive beneficial interest or ownership of the underlying property, such as when the investment only entitles them to a share of income.
The government will continue to monitor the property market and adjust policies as needed to ensure stability and sustainability.

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