Economy & business — Topics

3 Oct 2023

Cumulative Impact of Series of Price Increases on Households and Small Businesses

Liang Eng Hwa raised questions about the cumulative impact of price increases on households and small businesses, risks of an inflationary spiral, adequacy of government support, and potential further fiscal measures.
Lawrence Wong explained that the recent Cost-of-Living Support Package is designed to cushion the impact, with household inflation expected to rise by less than 0.3 percentage points and business operating costs by less than 0.1% due to specific price adjustments.
The government asserted that combined support measures would fully cover inflation-induced spending increases for lower-income households and substantially cover them for middle-income households, while maintaining a targeted approach to avoid fuelling inflation.
For businesses, support includes extended financing schemes and grants, with plans for further measures to aid transformation and efficiency to be announced in Budget 2024, as the government continues to monitor the situation.

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3 Oct 2023

Number of Singaporeans Aged 55 Unable to Attain Basic Retirement Sum with CPF Savings and Strategies to Enhance Retirement Adequacy

The Basic Retirement Sum (BRS) remains a relevant indicator for basic retirement adequacy as it is regularly adjusted for inflation and household expenditure, and members can set aside up to the Enhanced Retirement Sum for higher payouts.
In 2022, about 12,400 CPF members aged 55 did not meet the cohort BRS, with 5,400 being male and 7,000 female; all active CPF members have positive balances and will receive some CPF LIFE payout, with those meeting BRS expecting at least around $850 monthly from age 65.
Strategies to enhance retirement adequacy include ensuring a competitive economy and good jobs, supporting lower-wage workers through Workfare and Progressive Wage moves, and providing targeted support through schemes like the Silver Support Scheme and family top-ups matched by the government.
Older generations aged 65 and above benefit from Pioneer and Merdeka Generation Packages, while those aged 50–64 receive support from the Majulah Package; younger Singaporeans below 50 save more due to wage growth and have longer to benefit from CPF enhancements.
Future enhancements to the Workfare Income Supplement, Silver Support Scheme, and Matched Retirement Savings Scheme will be detailed next year to further protect retirement adequacy.

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3 Oct 2023

Use of Artificial Intelligence in Supervision of Financial Institutions

The Monetary Authority of Singapore (MAS) uses AI and machine learning to improve risk targeting for supervisory and enforcement actions, such as identifying potential market manipulation and high-risk financial advisory representatives.
MAS applies natural language processing to analyze textual data from financial institutions and scan social media or news reports, flagging issues for supervisors' attention and enhancing efficiency.
Advanced data analytics and machine learning help MAS identify suspicious networks related to money laundering or terrorism financing, enabling proactive engagement with financial institutions.
MAS plans to responsibly explore and deploy newer technologies, including generative AI, to further enhance its financial supervision framework.

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3 Oct 2023

Income Tax (Amendment) Bill

Keith Chua highlighted Denmark’s collaborative and trust-based societal model, suggesting Singapore adopt a longer runway for philanthropy and consider co-creation in policy-making to support an aging population and collaborative giving.
Nadia Ahmad Samdin discussed aligning tax policy with international standards, sought clarity on the Enterprise Innovation Scheme and philanthropy incentives, and emphasized the need for public discourse on taxation to balance social harmony and economic progress.
Yip Hon Weng raised concerns about the effectiveness of the Enterprise Innovation Scheme for SMEs, potential disincentives from changes to the Working Mother’s Child Relief scheme, and the implementation of income reporting for self-employed persons.
Louis Ng advocated for extending Working Mother’s Child Relief to single unwed parents and broadening philanthropic tax incentives to encourage giving at all societal levels, not just for high-net-worth individuals.
Senior Minister of State Chee Hong Tat responded to clarifications on tax measures, affirming that changes to foreign-sourced gains target tax avoidance without affecting genuine businesses, and outlining enhancements to support enterprises, working mothers, and Singapore’s role as a philanthropy hub.

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3 Oct 2023

Income Tax (Amendment) Bill

The Bill introduces the Enterprise Innovation Scheme, offering enhanced tax deductions and allowances for R&D, IP registration, innovation projects with qualified partners, and SkillsFuture-aligned training, aiming to boost business innovation and capability development from 2024 to 2028.
It mandates intermediaries to submit income data for self-employed persons to IRAS, simplifying tax filing and aiding administration of support schemes like Workfare, while extending fixed expense deduction ratios to delivery workers to ease compliance.
The Bill aligns Singapore’s tax regime with international standards by taxing foreign-sourced disposal gains for entities without economic substance in Singapore, and introduces a philanthropy tax incentive scheme for family offices to strengthen Singapore’s role as a regional philanthropy hub.

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3 Oct 2023

Economic Expansion Incentives (Relief from Income Tax) (Amendment) Bill

The Bill seeks to amend the Economic Expansion Incentives (Relief from Income Tax) Act 1967 with consequential changes to the Income Tax Act 1947.
It was presented by the Minister for Trade and Industry, Mr Gan Kim Yong, with the President's recommendation signified.
The Bill has been read for the first time and is scheduled for a second reading in a future Parliament sitting.

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3 Oct 2023

Singapore's Anti-Money Laundering Regime

The government announced a major anti-money laundering operation that resulted in ten arrests and the seizure of assets worth over S$2.8 billion, demonstrating the strength and effectiveness of Singapore's detection and enforcement capabilities.
Officials outlined Singapore's three-pronged anti-money laundering strategy—prevention, detection, and enforcement—which involves robust legal frameworks, mandatory suspicious transaction reporting, and strong action against violators across financial and non-financial sectors.
An inter-ministerial committee will be formed to review and strengthen the regime, focusing on areas such as corporate structures, financial institution controls, and the roles of gatekeepers like real estate agents and corporate service providers.

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3 Oct 2023

Update On Effectiveness Of Additional Levy On Cars Sold Between Fourth And Sixth Month Of Ownership

The Senior Minister of State explained that an Additional Levy is applied if a vehicle is transferred between four and six months after registration and the current COE quota premium is higher than the original, with the measure being part of broader efforts to discourage COE speculation.
Over the last five years, about three waiver requests were received annually, with only one granted for a deceased owner's estate, and very few vehicles (about 0.3%) are transferred within this period, indicating the policy's limited but targeted impact.
Alternatives exist to avoid the levy, such as transferring to a registered motorcar dealer for resale within 12 months, and the government is open to reviewing waiver conditions for exceptional hardships like sudden disabilities, while stressing the need for stringent criteria to maintain the levy's effectiveness.

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3 Oct 2023

Uptake of Progressive Wage Mark Accreditation and Its Impact on Volume of Business

More than 3,600 firms have been accredited with the Progressive Wage Mark since its January 2023 launch, covering approximately 56,000 low-wage workers, representing about 20% of the estimated low-wage workforce.
The government has made the PW Mark a contractual obligation for new tenders since March 2023 and will extend this to government quotations from March 2024, though it does not track exclusive business commitments by service buyers.
While the government does not intervene in commercial contract renegotiations, it adheres to tripartite advisories and encourages agencies to support fair practices, urging the reporting of unscrupulous requests to the National Trades Union Congress or the Ministry for Manpower.

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3 Oct 2023

Cases Referred to Committee Against Profiteering Per Quarter Since Reconvening in March 2022

The Committee Against Profiteering (CAP) has received over 350 feedback submissions since March 2022, with 32 cases involving GST misrepresentation investigated and resolved, and no repeat complaints against the same businesses.
The government encourages the public to report potential profiteering through online, hotline, or community club channels, and acknowledges a suite of cost-of-living support measures alongside efforts by businesses to absorb costs and maintain fair pricing.
While acknowledging concerns about price increases linked to water and electricity costs, CAP monitors inflation and GST impacts, though there is no specified formula to distinguish profiteering from general price rises, relying instead on feedback and existing monetary and fiscal policies.

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3 Oct 2023

Budget Meals As a Proportion of All Meals Sold Hawker Stalls

Mariam Jaafar questioned the proportion of budget meals sold at hawker stalls and whether hawkers are struggling to sustain them due to rising food prices.
Dr Koh Poh Koon stated that while prices are not regulated, affordable options remain, with many stalls offering at least one budget meal, supported by rental rebates and other measures.
Jaafar noted increasing price divergence between budget and regular meals, with some budget options creeping above $4, and asked if rebates would be extended.
Koh responded that no price regulations exist, but NEA provides rental assistance and monitors costs, encouraging productivity and cost-of-living support packages to help hawkers and consumers.

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3 Oct 2023

Impact of Deferring Public Transport Fare Increments

The Public Transport Council approved a 7% fare increase for 2023, far below the maximum allowable 22.6% under the fare formula, deferring the remaining 15.6 percentage points to future years while the government provides $300 million in additional subsidies to cover the funding gap.
Officials argued that expunging the deferred fare increases or freezing future fares is not sustainable, as it would require higher permanent government subsidies funded by taxpayers or strain the financial sustainability of transport operators, affecting service reliability.
To ease the impact on vulnerable groups, the government will reduce prices for hybrid monthly concession passes and introduce a new discounted pass for Workfare Transport Concession Scheme users, benefiting about 60,000 commuters, while Public Transport Vouchers will be increased from $30 to $50.

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3 Oct 2023

Additional Steps to Detect and Prevent Money Laundering Activities

Parliamentarians raised concerns about how movable assets like gemstones, jewellery, and luxury watches are being used for money laundering and asked about measures to prevent circumvention of regulations, such as the Precious Stones and Precious Metals Act.
Questions were posed about the investigation of foreign nationals arrested in connection with the S$1 billion money laundering case, including whether they are part of organised crime syndicates and whether landlords of private properties are required to report suspicious transactions.
MPs inquired about additional steps to protect Singapore’s real estate market, the sharing of suspicious transaction information among agencies like MAS, ICA, and the Ministry of Manpower, and the use of forfeited assets for public benefit.
The debate covered the monitoring of dormant companies and nominee directors by ACRA, the need for public-private partnerships to share intelligence, and how Singapore compares to other global financial centres in anti-money laundering efforts.
The Minister of State for Home Affairs indicated that a comprehensive ministerial statement would be delivered later to address all the questions raised in the debate.

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19 Sep 2023

Profile of Projected Number of Singaporeans Eligible for Retirement Savings Bonus

Chua Kheng Wee Louis asked for a breakdown by age bands and gender of Singaporeans projected to be eligible for the Retirement Savings Bonus.
The query seeks specific data on the profile of eligible individuals under the Retirement Savings Bonus scheme.
Tan See Leng, representing MOM and MOF, stated that details of the Majulah Package, including eligibility for the bonus, are still being finalised.
Further information will be announced during Budget 2024, indicating no current figures are available.
The response highlights that the ministries are still working on the specifics before releasing any projections.

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19 Sep 2023

Overall Average CPF Interest Rate Across CPF Accounts and Balances

Hazel Poa requested the overall average CPF interest rate across different accounts and balances for each of the past five years.
Tan See Leng responded that the overall average CPF interest rate, including Extra Interest, from 2018 to 2022 has been close to 4% per annum.
The answer provided a single figure for the five-year period rather than a year-by-year breakdown as asked.

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19 Sep 2023

Persons with Disabilities Employed by Small and Medium Enterprises

Ong Hua Han asked for data on persons with disabilities employed by small enterprises with fewer than 25 employees under the Enabling Employment Credit, including numbers from 2020 to 2022, average employment length, and disability group breakdown.
Tan See Leng stated that about 3,000 persons with disabilities were supported annually in 2021 and 2022 by enterprises with fewer than 25 employees under the EEC, representing one-third of all EEC-supported individuals.
The majority of these employees had intellectual or sensory impairments, with others including physical disabilities and autism.
The Ministry does not track the average length of employment for these employees.
The EEC was introduced in 2021, so 2020 data was not available under this scheme.

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19 Sep 2023

Full-page Advertisement in Business Times for Recipients of Singapore Business Awards 2023

He Ting Ru asked whether public funds were used for a full-page advertisement in the Business Times on 3 August 2023, which recognized recipients of the Singapore Business Awards 2023.
She also inquired about the source and amount of funds if public money was involved, and the rationale behind the advertisement.
Edwin Tong Chun Fai stated that no public funds were spent on the advertisement.

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19 Sep 2023

Impact of Additional Restrictions on Plus and Prime HDB BTO Flats on Resale HDB Flat Prices

Gerald Giam asked whether the Ministry had projections on how additional restrictions on Plus and Prime HDB BTO flats would affect resale flat prices near those flats and nationwide.
Desmond Lee referred the question to a previous oral reply in September 2023 that addressed the social and fiscal impact of the new framework.
The debate highlighted the potential influence of the new BTO categories on the broader resale market, with the Minister indicating existing documentation on the matter.

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19 Sep 2023

MediSave Withdrawal Limits for In-vitro Fertility Treatments

Louis Ng Kok Kwang asked whether the Ministry of Health has reviewed the MediSave withdrawal limits for in-vitro fertility (IVF) treatments and whether it would consider increasing them.
Ong Ye Kung stated that current financing schemes are adequate, with government co-funding of up to 75% and MediSave withdrawal limits of $6,000 per cycle and $15,000 lifetime per patient.
He noted that after co-funding and MediSave use, eight in 10 eligible couples have no out-of-pocket expense and nine in 10 pay no more than $500.
The Ministry of Health will continue to monitor affordability and review financing schemes if needed.

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19 Sep 2023

Effects of Industrial Light & Magic's Decision to End Singapore Operations

Mr Chua Kheng Wee Louis asked about the expiry dates of tax incentives for Industrial Light & Magic and the number of Singaporean and non-Singaporean staff to be made redundant.
Minister Gan Kim Yong stated that the company was not awarded any tax incentives.
The closure is expected to affect over 300 employees, with about two-thirds being locals.
The Economic Development Board and Workforce Singapore are assisting affected employees in finding new job opportunities.
The response clarified that no tax incentive schemes are involved in this case.

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