Economy & business — Topics

4 Oct 2023

Mandatory Disclosure of Quanta of Commissions Paid or Earned to Promote Better Transparency in Financial Services Sector

Murali Pillai proposed that the Monetary Authority of Singapore mandate financial institutions, advisers, and introducers to disclose commission amounts to clients without being asked, to improve transparency.
Lawrence Wong, representing the Prime Minister, stated that financial advisers already must disclose commissions and distribution costs at the point of sale for investment products and life insurance policies.
For introducers, it is currently mandatory to disclose that they are remunerated, with amount disclosure required only if asked; the MAS is working to amend laws so introducers must disclose remuneration amounts proactively.

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4 Oct 2023

Update on Use of Additional Funds Received by National Research Foundation and Increase in Disbursements for Its Manpower Horizontal Programme in FY2023

Assoc Prof Jamus Jerome Lim queried the disbursement plans for the S$0.9 billion top-up to the National Research Fund and the reasons for the sharp rise in Manpower Horizontal Programme spending.
The Prime Minister explained that the top-up was made in FY2022 to support long-term RIE programmes, with disbursements tracked to ensure committed budgets are spent.
The 11-fold increase in Manpower Horizontal disbursements was largely due to the RIE SGUnited Jobs programme, which provided COVID-19 training opportunities and will taper off after claims are processed.

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4 Oct 2023

Inflation Impact on Assets Resulting from Billion-dollar Money Laundering Case Currently under Investigation

Mr Saktiandi Supaat questioned whether studies would be initiated to examine the inflation impact of the billion-dollar money laundering case on assets like real estate, and if not, why not.
Mrs Josephine Teo responded that the query relates to recent anti-money laundering operations and Singapore's framework, and referred to a previous Ministerial Statement dated 3 October 2023 that addressed the issue.
The debate highlighted concerns about potential asset price distortions from seized proceeds but did not indicate any new studies being planned by the authorities.

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4 Oct 2023

Use of Past Reserves to Fund Projects to Mitigate Climate Change

The Government is not currently considering using past Reserves to fund climate mitigation projects but will instead allocate resources through annual Budgets to achieve net-zero targets.
For adaptation measures like protecting against rising sea levels, the Government is studying long-term solutions such as land reclamation, seawalls, and flood barriers.
Funding for these adaptation measures will come from a mix of sources, including the Coastal and Flood Protection Fund, long-term borrowing via SINGA bonds, and the use of past Reserves for land reclamation costs.
The Government aims to ensure that financing these measures is fiscally sustainable and equitable across generations.
No specific projects are currently funded by past Reserves, but the approach to financing adaptation will continue to be studied.

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4 Oct 2023

Enhancing Awareness among Youths about Risks and Consequences Associated with Becoming Money Mules

The Minister outlined that the Police conduct public education events like the "Youths Against Scams" competition and collaborate with the Ministry of Education on school talks and events such as the Anti-Scam and Cybersecurity Makeathon to raise awareness about the risks of becoming money mules.
The Government has amended the Corruption, Drug Trafficking, and Other Serious Crimes (Confiscation of Benefits) Act to strengthen enforcement against money mules, with the Police and Monetary Authority of Singapore working with banks to enhance advisories for customers, including youths, about account misuse liabilities.
Collaborative measures with financial institutions include enhancing advisory messages during bank account openings to deter youths from engaging in such activities, such as flagging risks when individuals open multiple accounts across different banks in a short period.

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4 Oct 2023

Expansion of CPF Education Loan Scheme for Payment of Non-degree or Diploma Courses

Assoc Prof Jamus Jerome Lim proposed expanding the CPF Education Loan Scheme to include certification courses from approved institutions and non-degree courses from accredited foreign universities.
Minister Tan See Leng reaffirmed that CPF's primary purpose is to support retirement, healthcare, and housing, and the education loan scheme is strictly limited to basic tertiary education at local institutions to safeguard these core needs.
The Minister stated there are no plans to broaden the CPF Education Loan Scheme beyond current boundaries, encouraging use of alternative financing like study loans from financial institutions or SkillsFuture subsidies for shorter training courses.

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4 Oct 2023

Free Trade Zones (Amendment) Bill

The Free Trade Zones (Amendment) Bill introduces a licensing regime for FTZ operators, regulates cargo handlers and agents with new data submission requirements, and enhances enforcement powers for customs officers to combat illicit activities like money laundering and trade-based crime.
The amendments aim to balance improved security and oversight with maintaining Singapore's pro-business environment, with phased implementation and transitional periods to minimize costs and operational disruptions for businesses, including SMEs.
While supporting the bill, some parliamentarians raised concerns about potential increases in business costs, the adequacy of penalties, the need for clear guidelines on suspicious activities, and ensuring the amendments effectively address evolving threats without undermining competitiveness.

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4 Oct 2023

Encouraging Locally Incorporated Tech Companies to Choose Singapore Exchange over Foreign Stock Markets for IPOs

The Minister of State outlined existing initiatives such as the Anchor Fund @ 65, EDBI Growth IPO Fund, and MAS grants to support listings on SGX, while noting that companies' decisions are ultimately commercial and influenced by factors like valuation and market access.
He Ting Ru sought clarification on whether agencies track data on startups that receive support but later list overseas, emphasizing the need to understand these tensions to improve Singapore’s equity market.
The Minister confirmed that such data is not collected and reiterated that listing decisions are driven by commercial considerations, with the government focusing on broader financial sector development.
Louis Chua raised concerns about delistings exceeding IPOs and asked about the government’s stance on mandatory local listings, to which the Minister responded that Singapore does not adopt Indonesia’s approach and that delisting reasons vary.
The debate highlighted the balance between government support and market forces, with a focus on enhancing Singapore’s equity market without imposing prescriptive rules that might hinder company growth.

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4 Oct 2023

Change in Cost of Producing NEWater and Desalinated Water, and Support for Businesses facing New Water Recycling Requirements

The government announced a 50-cent increase in water prices over 2024 and 2025, citing rising costs in electricity, chemicals, maintenance, and construction since 2017, while introducing rebates to offset impacts on households and mandating water recycling for industries to manage demand.
Businesses face new water recycling requirements starting next year, with enhanced funding support for efficiency projects, though concerns were raised about supporting existing investments and preventing cost pass-through to consumers.
Debates highlighted the need to balance water pricing with affordability, considering a progressive pricing system and ensuring long-term cost stability post-2061 when the Johor water agreement expires.

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4 Oct 2023

Increase in Postal Rates despite Profitability Recorded by SingPost

The Senior Minister of State explained that SingPost’s core domestic postal business incurred a $16 million operating loss despite overall profitability, justifying the first postage rate increase since 2014 to better reflect delivery costs and sustain its public postal obligations.
IMDA approved the rate hike, noting that after the increase, Singapore’s postage rates remain comparable to other countries, and households will receive 10 stamps to mitigate the impact for an average household for about a year.
The government acknowledged concerns from SMEs and specific industries reliant on mail, stating SingPost will provide bulk discounts and honor pre-hike stamps, while emphasizing that corporate entities account for 80% of mail volume.
A fundamental government review on the future of the postal service is underway to ensure long-term sustainability, alongside SingPost’s own cost and operational review, as mail volumes have dropped significantly due to digitalization.
The government clarified that cross-subsidisation from profitable overseas businesses to the domestic postal service is not sustainable for a publicly listed company and that the government itself is a very small proportion of total mail volume in Singapore.

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3 Oct 2023

Security Measures to Prevent Scams Siphoning Off Funds from CPF Accounts

Leong Mun Wai questioned the CPF Board's reimbursement framework for scam victims, the lack of bank-like security measures such as transaction limits and kill switches, and suggested implementing proactive screening, transaction delays, and the ability to freeze online transactions.
Tan See Leng stated that Singpass Face Verification has been added for CPF e-services, withdrawals above the Full Retirement Sum are paid to verified bank accounts with SMS/email notifications, and no CPF savings have been lost directly from the system.
The CPF Board is considering further security measures based on industry solutions and public suggestions, but cannot disclose details for security reasons, and will continue collaborating with other agencies and banks to enhance member protection.
For victims of unauthorized CPF withdrawals, the CPF Board is assisting the Police with investigations to track down those responsible for the scams.

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3 Oct 2023

Considerations for Extensions of Electric Vehicle Early Adoption Incentive and Additional Registration Fee Floor from 1 January 2024

The government extended the Electric Vehicle Early Adoption Incentive and Vehicular Emissions Scheme rebates to reduce the upfront cost difference between cleaner energy and internal combustion engine cars, supporting the 2040 target for all vehicles to run on cleaner energy.
The Additional Registration Fee floor for electric cars was extended to allow them to maximize combined rebates of up to $40,000, meaning many mass-market models will not need to pay ARF.
These extensions and adjustments aim to continue subsidizing cleaner energy vehicles and encourage wider adoption by making them more financially accessible.

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3 Oct 2023

Data on Profitability of Public Transport Operators and Their Generated Returns on Invested Capital

Chua Kheng Wee Louis asked the Minister for Transport for data on the profitability of each public transport operator over the last three years and their respective returns on invested capital.
Chee Hong Tat, speaking for the Minister for Transport, responded that the question had already been addressed in the 3 October 2023 sitting.
The debate highlighted the Member's request for specific financial performance metrics of public transport operators.
The Minister's representative indicated that the information was previously provided in a prior parliamentary session.
The exchange underscores ongoing parliamentary interest in the financial transparency of public transport operators.

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3 Oct 2023

Steps to Prevent Money Launderers from Purchasing Luxury Cars in Singapore to Launder Money

Mr Murali Pillai inquired about measures to stop money launderers from using luxury car purchases in Singapore for laundering.
Mrs Josephine Teo directed the query to a prior Ministerial Statement on Singapore’s Anti-Money Laundering Regime dated 3 October 2023.
The referenced statement is expected to detail existing steps or planned actions to prevent such transactions.
This highlights reliance on established anti-money laundering frameworks and legislative updates to address specific vulnerabilities.
The exchange emphasizes parliamentary efficiency by referencing comprehensive prior responses rather than reiterating details.

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3 Oct 2023

Strengthening Role of Singapore Exchange in Helping SMEs Gain Access to Overseas Capital Markets

The debate addressed how the Singapore Exchange (SGX) can strengthen its competitiveness amid easier access to overseas capital markets for SMEs, as posed by Desmond Choo.
Lawrence Wong, responding for the Prime Minister, deferred the answer to a previously filed parliamentary question on encouraging tech companies to list on SGX.
The deferred response would cover SGX’s competitiveness and its longer-term role in helping SMEs tap overseas markets.
The core concern was ensuring SGX remains an attractive listing venue despite global competition for capital.
The reply would link SGX’s strategies to broader policies on supporting local companies and maintaining Singapore’s financial hub status.

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3 Oct 2023

Measures to Detect Ownership of Movement of Foreign Shares to Foreigners with Securities Accounts in Singapore

Don Wee questioned the Prime Minister on whether MAS requires SGX to monitor the transfer of foreign shares to foreigners with Singapore securities accounts and their subsequent encashment.
Lawrence Wong, responding for the Prime Minister, clarified that SGX's Central Depository only handles shares traded on SGX, not foreign shares traded on foreign venues.
He stated that securities brokers in Singapore must implement robust anti-money laundering measures, including customer due diligence and monitoring of suspicious transactions.
These brokers are also required to report any suspicious activities to the authorities in a timely manner.

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3 Oct 2023

Proposal for Dedicated Funds to Subsidise Early Childhood Sector's Manpower Costs

Carrie Tan proposed allocating funds to subsidize early childhood sector manpower costs to raise salaries and improve talent quality.
The Minister highlighted that ECDA already supports salary uplifts for educators through government funding to ensure market competitiveness and retention.
ECDA also provides resources for educators’ professional development and career advancement to deepen expertise.

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3 Oct 2023

Impact of Recent Regional Manufacturing and Trade Slowdowns on Singapore's Economy

Geopolitical tensions have raised trade barriers and lowered confidence, affecting global and regional manufacturing and trade flows.
Singapore’s manufacturing output and non-oil domestic exports fell 6.6% and 16.2% year-on-year from January to August 2023.
GDP growth is projected to be 0.5% to 1.5% for 2023, down from 3.6% in 2022.
The government will continue with the Manufacturing 2030 plan to position Singapore as a global hub for advanced manufacturing.

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3 Oct 2023

Necessity of Not Publishing Total Assets under GIC's Management to Defend the Singapore Dollar against Speculative Attacks

Gerald Giam asked if it is still necessary to keep the total assets under GIC's management unpublished given that official foreign reserves already exceed the typical range needed to defend the Singapore dollar.
Lawrence Wong explained that reserves must be sufficient for both routine exchange rate defense and extreme tail-risk scenarios, including large capital outflows or emergencies that threaten national security.
He emphasized that disclosing the full size of reserves could undermine Singapore’s ability to deter speculative attacks, similar to how military capabilities are kept confidential to protect national interests.

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3 Oct 2023

Frequency of Government Reviews to Ensure Support Scheme Payouts Remain Adequate in Light of Inflationary Pressures

The Government regularly reviews social support schemes, factoring in macroeconomic trends such as inflation, with specific bodies like the Ministry of Social and Family Development and Ministry of Manpower conducting periodic assessments.
Payouts are not automatically indexed to inflation, but reviews consider price data, projected inflation, and expert consultations to adjust support appropriately, as seen in recent ComCare and Silver Support Scheme enhancements.
The Silver Support Scheme saw a 20% payout increase in 2021, with ongoing reviews planned, and the government has introduced new initiatives like the Majulah Package while providing targeted one-off support such as the $1.1 billion Cost-of-Living Support Package.

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