Economy & business — Topics

19 Sep 2023

Public Trustee's Collection of Fees Charged for Administration of Unnominated CPF Monies

Mr Leong Mun Wai asked for 2022 fee collection data, average fees and amounts per estate, and why the Public Trustee does not use a flat fee model.
The Public Trustee explained that fees are statutory, tiered, and kept low to avoid taxpayer burden, and that averaging is not feasible due to case complexity.
The Public Trustee advised CPF members to nominate beneficiaries to avoid fees and ensure direct distribution by the CPF Board.

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19 Sep 2023

Use of Smaller-capacity Buses to Increase Frequency of Service

Assoc Prof Jamus Jerome Lim proposed using smaller-capacity buses to increase off-peak frequency for bus lines with low occupancy and 15 to 20 minute intervals.
Chee Hong Tat, representing the Minister for Transport, rejected the idea, stating it would raise operating costs for commuters and taxpayers.
He explained that smaller buses would require separate procurement since larger buses are still needed for peak periods, and each would need a dedicated bus captain, increasing staffing costs.
Additionally, smaller buses have different maintenance needs, adding complexity to operations and driving up maintenance expenses.
The minister concluded that deploying smaller buses at higher frequencies is not feasible due to these financial and operational challenges.

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19 Sep 2023

Support for Business Sectors Still Reliant on Cheques to Transit to Digital Payment Methods

The Prime Minister announced that MAS will eliminate all corporate cheques by end-2025, reflecting a sharp decline in cheque usage and a significant rise in e-payments, with cheque transactions falling from 32% in 2016 to 4% in 2022.
MAS and the banking industry have engaged high-cheque-usage sectors like property, insurance, and law, leading to new digital solutions for deferred payments and electronic cashier’s orders to be implemented by 2025.
Government agencies reviewed and amended regulations in 2021 to remove digital payment hurdles, particularly for retail cheque transactions in areas like property conveyancing and CPF transactions.
Ongoing collaboration between Government agencies and the banking sector will continue through programmes like SMEs Go Digital and Seniors Go Digital to support small businesses and individuals in adopting e-payments.

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19 Sep 2023

Scale of Dormant Bank Accounts in Local Financial Institutions and Protocols for Handling Such Accounts

There are approximately 215,000 dormant individual deposit accounts in Singapore's three local banks, holding a total of about $300 million.
These dormant accounts represent 2% of the total number of deposit accounts and 0.07% of the total deposit value in these banks.
The Monetary Authority of Singapore (MAS) does not currently prescribe specific protocols for handling dormant accounts, though it is reviewing the issue.
Some banks proactively send notification letters to account holders when accounts become inactive, but there is no mandatory requirement for extensive tracing.
Account holders or their representatives can contact the banks at any time to reactivate accounts or claim funds from dormant accounts.

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19 Sep 2023

Insurance Coverage for Individuals with Mental Health Conditions

Dr. Tan Wu Meng and Ms. He Ting Ru raised concerns about Singaporeans with mental health conditions, such as bipolar disorder, being denied insurance coverage or facing stigma from insurers.
Senior Minister of State Janil Puthucheary responded that all Singaporeans are covered by MediShield Life regardless of pre-existing conditions and that insurers must conduct fair, objective underwriting, with appeals possible through insurers or the Monetary Authority of Singapore.
The Ministry of Health and MAS are collaborating to regulate the insurance industry, and the Minister is considering a suggestion for a public portal to share experiences with insurers, while noting that updated mental health survey data will be released in the future.

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19 Sep 2023

Help Measures for Households and Businesses Given Continued Rise in Food and Fuel Prices

The Minister of State for Trade and Industry outlined that inflation in Singapore has eased, with CPI-All Items inflation at 4.1% in July, and is expected to average 4.5% to 5.5% for the full year, though upside risks remain from global shocks and commodity prices.
The government has implemented a multi-pronged approach to support households and businesses, including the Assurance Package for cost-of-living support, enhanced financing schemes for businesses, and energy efficiency grants to mitigate rising costs.
To address rising rice prices due to export bans and supply issues, the government has diversified food import sources, strengthened local production, and secured waivers from India for rice imports, while encouraging consumers to use tools like the Price Kaki app for price comparisons and consider alternative rice varieties.
Monetary policy remains focused on maintaining a strong Singapore dollar to dampen imported inflation, with the Monetary Authority of Singapore set to review its stance in October.
Officials emphasized continued monitoring of inflation trends and readiness to provide further support to Singaporeans and businesses if necessary.

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19 Sep 2023

Projection of FY2023 Tax Revenue Growth and Impact on Additional Help for Singaporeans to Deal with Inflationary Costs

Mr Ang Wei Neng asked whether the tax revenue growth trend is expected to continue and if the government will provide additional monetary payouts to combat inflation before the next Budget.
The Senior Minister of State for Finance replied that tax revenue growth is linked to GDP and economic recovery post-COVID, but the trend's continuation is uncertain due to global economic uncertainties. The government has enhanced the Assurance Package to $9.6 billion and is studying further enhancements to provide more support.
Mr Ang Wei Neng sought clarification on Q1 FY2023 tax revenue comparisons and whether the enhanced Assurance Package would be in the form of cash or vouchers, noting the economic impact of each.
The Senior Minister of State reiterated that tax collections reflect past economic activity and the global outlook remains challenging. The government is considering how to best enhance the Assurance Package, including the mix of cash, vouchers, and other assistance, to maximize impact.

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19 Sep 2023

Proposal to Review CPF Withdrawal Limit for Singaporeans who Have Not Met Full Retirement Sums in View of Inflation

Leong Mun Wai proposed increasing the $5,000 CPF withdrawal limit to match inflation, arguing it is too small for Singaporeans to meet aspirations and cope with rising costs.
The Minister for Manpower rejected the increase, stating it would reduce future retirement payouts and that the government’s priority is long-term retirement adequacy through the CPF system.
The Minister emphasized that other government measures, such as the Assurance Package and U-Save rebates, are designed to provide immediate support for cost-of-living pressures instead of altering CPF withdrawal limits.

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19 Sep 2023

Proposal for Age-based Only Benefits Irrespective of Income and Housing Type in Majulah Package

Edward Chia and Denise Phua proposed that the Majulah Package include benefits based solely on age, without considering income or housing type, and the Ministry of Finance will consider these suggestions as it finalizes the package details.
The Majulah Package is designed to support Singapore Citizens born on or before 31 December 1973, focusing on younger seniors with lower incomes and less wealth to boost retirement and healthcare adequacy.
Denise Phua suggested learning from the inclusive design of the Merdeka and Pioneer Packages, which offered broad benefits like cash payouts and health screenings, to make the Majulah Package more comprehensive and age-focused.

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18 Sep 2023

Change in Wage Level of Workers at Tenth Percentile in Last 10 Years and Their Profile

The real gross monthly income of workers at the 10th percentile grew by 47.9% (annualised 4%) from 2012 to 2022.
The occupations of these workers are detailed in Table 1, with examples including service and sales workers, cleaners, and elementary occupations.
The age profile shows a higher concentration of older workers, while the education profile indicates that many have secondary or lower qualifications.
The government has implemented policies like Progressive Wages and the Workfare Income Supplement to support lower-wage workers.
These measures aim to uplift the wages and skills of workers at the 10th percentile over time.

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18 Sep 2023

Extension of Earn and Save Bonus Component of Majulah Package to Self-employed Seniors

Murali Pillai asked whether the Earn and Save Bonus will be extended to self-employed seniors and how false claims will be prevented.
Tan See Leng confirmed that details on eligibility are being finalised by the Ministry of Manpower and Ministry of Finance.
The government will announce more information on the Majulah Package in Budget 2024.

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18 Sep 2023

Availability of Accommodation and Employers' Commitment to Productivity Targets Before Approval of Work Passes for Foreign Workers

Mr Yip Hon Weng asked whether the Ministry of Manpower ensures sufficient accommodation for foreign workers before approving work passes, collaborates with employers committed to productivity measures, and how effective past schemes have been in reducing reliance on foreign workers.
The Ministry responded that employers must provide acceptable accommodation, and 17,000 new dormitory beds have been added since December 2022; productivity transformation is supported through Industry Transformation Maps and grants, but requiring individual firm commitments before approving passes is impractical.
The Ministry instead calibrates foreign workforce policies, such as reducing Dependency Ratio Ceilings for sectors like Construction and Process, to incentivize productivity improvements and reduce foreign worker reliance.

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18 Sep 2023

Annual Expenditure on Advertising Costs for Content Featuring Political Officeholders for Social and Mainstream Media

The government spends a substantial amount on paid communications materials but does not track spending based on whether political officeholders are featured.
The majority of these paid communications do not feature political officeholders, and no annual breakdown is available by ministries or media type.
This lack of specific tracking means figures on advertising costs for content featuring political officeholders for social and mainstream media cannot be provided.

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18 Sep 2023

Success Rate of Self-employed Applicants for HDB Loans

From January 2020 to August 2023, about 13,000 self-employed applicants were successful in obtaining HDB loans, while 5,000 were unsuccessful.
HDB assesses applications using factors beyond CPF contributions, including job stability, monthly cash savings, age, income, existing loans, and repayment history.
Mortgage rules such as a 25-year loan tenure, 80% loan-to-value limit, 30% mortgage servicing ratio, and a 3% interest rate floor also apply to all applicants.
The Minister encouraged flat buyers to be prudent with borrowing due to the long-term financial commitment involved.

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18 Sep 2023

Steps to Ensure Growth of Real Estate Tokenisation Industry Does Not Distort Prices of Property in Local Market

Usha Chandradas inquired about measures to prevent real estate tokenisation from distorting local property prices.
Desmond Lee responded that the industry remains nascent and unlikely to currently impact prices.
He stated that authorities are monitoring the situation and will adjust policies as necessary.

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18 Sep 2023

Provision of Infrastructure to Create Structured Work Environments and Work Processes to Support Persons with Disabilities

SG Enable administers the Open Door Programme to provide grants and job support for hiring persons with disabilities, averaging 500 placements yearly from 2020 to 2022.
The programme includes a Job Redesign Grant for workplace modifications like calm rooms and assistive technology, and offers workshops to train employees in inclusive practices.
An Enabling Business Hub will launch in Jurong later this year to showcase inclusive hiring practices and support employers, starting with the logistics industry.

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18 Sep 2023

Payment of Land Costs for New Hawker Centres Built

Leong Mun Wai asked whether land costs for new hawker centres are paid into past reserves, the total amount paid in the last decade, and if land cost affects the frequency and location of new centres.
Grace Fu Hai Yien clarified that standalone hawker centres are built on state land used by the Ministry of Sustainability and the Environment, so no land cost is paid into past reserves as there is no disposal.
For hawker centres in integrated developments, the ministry pays rent to the land or building owner.
Land cost is not a factor in deciding how many new hawker centres are built or where they are located; decisions are based on residential catchment and the availability of dining options.

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18 Sep 2023

Statistics on Hawkers Paying Market and Subsidised Rents

Leong Mun Wai asked for yearly statistics since 2010 on the number and percentage of hawkers paying market versus subsidised rents, as well as their median monthly rent.
Grace Fu Hai Yien stated that the percentage of hawkers paying subsidised rent has dropped from about 40% to 30% over the past decade due to retirements and new entrants.
Subsidised stallholders pay between $192 and $384 monthly based on upgrade works, while non-subsidised stalls have a stable median rent of about $1,250 per month over the last 10 years.

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18 Sep 2023

Managing Significant Investments in Critical Entities to Protect National Assets and Critical Industries

Foo Mee Har questioned how the government plans to manage significant investments in critical entities to protect national assets and industries.
Gan Kim Yong emphasized the need to safeguard Singapore's economic resilience and national security while maintaining its attractiveness as a business hub.
Current sectoral regulations require approvals for investments in critical sectors like electricity, telecommunications, and banking.
Many countries, including traditionally open economies, are tightening investment screening for national security, prompting Singapore to review and explore new tools.
The Ministry will seek industry feedback to balance security needs with minimizing impact on businesses and investors.

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18 Sep 2023

Tracking and Identifying Suspicious Transactions Involving Money Laundering Activities

Multiple MPs raised concerns about tracking and preventing money laundering through high-value retail, auctions, luxury goods, property, yachts, and other non-traditional assets, asking about current measures and additional steps.
Questions were posed about enhancing inter-agency and cross-border cooperation, including extending the COSMIC platform to regional banks and forming a multi-Ministry task force to strengthen monitoring.
Specific queries addressed the verification of employment pass applications, the use of landed homes in Sentosa Cove, and the role of professionals like estate agents, lawyers, and accountants in preventing money laundering.
Requests were made for data on suspicious transaction reports and prosecutions, as well as for better tools and training for real estate agents to conduct customer due diligence.
The Minister indicated that a comprehensive Ministerial Statement would be issued in October 2023 to address all the queries on Singapore's anti-money laundering framework.

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