Economy & business — Topics

18 Sep 2023

Assets Managed by In-house and Third Party Asset Managers for Dynamic, Balanced, Stable and Lifecycle Funds under Home Affairs Uniformed Services INVEST Fund

The Dynamic, Balanced, Stable, and Lifecycle Funds under the Home Affairs Uniformed Services INVEST Fund are fully managed by external fund managers under an Outsourced Chief Investment Officer model, with no assets managed directly by in-house teams.
The current asset-class composition and reference portfolios for these funds are provided in tables (content not detailed in the debate text).
The debate does not include a comparison of current versus target asset-class compositions, as only current data is referenced.

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18 Sep 2023

Assets Managed by In-house and Third Party Asset Managers for Dynamic, Balanced and Stable Funds under SAVER-Premium Fund

Chua Kheng Wee Louis asked for a breakdown of assets managed in-house versus by third-party managers for the Dynamic, Balanced, and Stable funds under the SAVER-Premium Fund, and for a comparison of their current versus target asset class compositions.
Ng Eng Hen explained that the Board of Trustees entrusts cash and cash equivalents to MINDEF’s in-house SAVER-Premium Fund Department, while equities and bonds are managed by external fund managers.
Ng Eng Hen provided that the current and target asset allocations for the funds are detailed in Table 1 and Table 2 respectively.

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18 Sep 2023

Support for Singapore to be Regional Philanthropy Hub

Singapore aims to be a regional philanthropy hub by leveraging its wealth management sector and growing philanthropy ecosystem, with government agencies like MAS working to channel wealth to purposeful causes.
Key building blocks include developing philanthropy advisory talent, facilitating partnerships among ecosystem players, and enhancing tax and regulatory frameworks to encourage giving locally and overseas.
The government maintains strong public trust in the charity sector through governance codes, training, and support, ensuring donor confidence and attracting more philanthropic activities to Singapore.

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18 Sep 2023

Work Passes for Those who can Work in Singapore during Non-peak Hours and Return to Homes in Johor Bahru or Batam in the Day

Mr Don Wee proposed increasing work passes for specific night-shift jobs like production operators and truck drivers, allowing workers to live in Johor Bahru or Batam and commute daily.
The Ministry of Manpower explained that loosening Dependency Ratio Ceilings could make businesses overly reliant on foreign workers and that enforcing daily cross-border commutes would be impractical.
Employers needing temporary foreign manpower can instead use the Manpower for Strategic Economic Priorities scheme, which offers flexibility while supporting Singapore's economic goals.

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18 Sep 2023

Measures to Mitigate Supply Disruptions from Recent Indian Rice Export Ban due to El Nino Wave

The Government has secured a waiver from India's rice export ban to protect Singapore's domestic food security, while maintaining a multi-pronged approach of diversifying import sources, local production, and stockpiling essential items.
Industry and consumers are encouraged to play their part by adopting business continuity plans and diversifying supplies, and by being flexible with food options during disruptions.
While the full impact of El Niño on food production is uncertain, the Government acknowledges that extreme weather events can affect global supplies and is prepared to mitigate such risks through existing measures.

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18 Sep 2023

Impact of Weaker Outlook for Export-driven Manufacturing Sector on Job Market and Prospects of Sector

The export-driven manufacturing sector faces a weaker outlook due to dampened global demand and an electronics downturn, though some segments like aerospace show bright spots, with the sector adding 4,400 jobs and retrenchments declining in the first half of 2023.
Key uncertainties for the industry include volatile global trade conditions and the electronics downturn, but employment in the sector is expected to remain resilient in the medium term, with manufacturing continuing as a long-term economic pillar.
Short-term measures include government schemes like the Enterprise Financing Scheme, Productivity Solutions Grant, and Enterprise Development Grant to support cash flow and automation, while long-term policies focus on encouraging companies to transform, develop new capabilities, and undertake higher value-added activities to enhance competitiveness and resilience.

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18 Sep 2023

Increasing 60% Deemed Expense Ratio for Private Hire Car and Taxi Drivers Given Higher Operating Costs

MP Mariam Jaafar asked if the 60% deemed expense ratio for private hire car and taxi drivers could be raised due to higher operating costs.
Deputy Prime Minister Lawrence Wong explained that the 60% Fixed Expense Deduction Ratio was introduced to simplify tax filing and was recently reviewed.
IRAS found the ratio remains sufficient for most drivers as revenue increases have offset higher expenses, with an option to claim actual expenses if needed.
The government will continue monitoring the situation for any future adjustments to the ratio.

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18 Sep 2023

Mechanism for Monetary Authority of Singapore to Quickly Avail Itself of Reserves Managed by GIC

MAS holds Official Foreign Reserves (OFR) for monetary policy, with the optimal buffer assessed at 65–75% of GDP; current OFR is S$455.5 billion or 70% of GDP.
If OFR becomes insufficient in a crisis, MAS can redeem its Reserves Management Government Securities (RMGS) with the Government to boost OFR, which currently holds S$237.6 billion in RMGS.
In a hypothetical unprecedented crisis where OFR needs exceed RMGS redemption capacity, MAS can seek additional support from the Government, which will decide how to meet the need using assets managed by GIC.

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18 Sep 2023

Reasons for and Barriers Leading to Lower Demand for SME Grants in FY2022/2023

Edward Chia asked for reasons behind lower SME grant demand in FY2022/2023, barriers to accessing them, and the impact of under-utilisation on grant effectiveness.
Gan Kim Yong noted that SME support through capability-building grants doubled from 2019 to 2022, and 2023 applications have already surpassed 2019 levels.
The Minister highlighted strong business investment in innovation and internationalisation, affirming ongoing government support for SME transformation.

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18 Sep 2023

Support for Lower- and Middle-income Workers Facing Stagnant Wages to Cope with Inflation

Gan Thiam Poh asked for sustainable long-term measures to help lower- and middle-income workers with stagnant wages cope with inflation.
Lawrence Wong emphasized boosting real wages through economic growth, job creation, and continuous education and training, supported by SkillsFuture, Company Training Committees, and Jobs-Skills Integrators.
The government has enhanced Workfare and the Progressive Wage Model, with most lower-wage workers covered and real income growth for lower-wage workers outpacing median income growth from 2017 to 2022.
Through the Forward Singapore exercise, further support for workers to gain skills for better jobs and higher wages is being considered.

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18 Sep 2023

Proposal for Firms that Hire Seniors or Persons with Special Needs to be Given Dependency Ratio Ceiling Bonus

Mark Lee proposed that firms hiring a certain percentage of seniors or persons with disabilities be granted a Dependency Ratio Ceiling bonus to support a balanced workforce.
The Minister for Manpower, Tan See Leng, rejected the idea, citing risks such as firms hiring these employees solely for quota benefits and the need to sustain foreign workforce limits in land-scarce Singapore.
The Ministry instead supports inclusive employment through existing schemes like the Enabling Mark, Senior Employment Credit, and Enabling Employment Credit, emphasizing that employers should value inclusivity inherently.

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18 Sep 2023

Incentives for Local Publishers to Assist Singapore Authors with Obtaining Representation by International Publishers

Usha Chandradas asked about incentives for local publishers to help Singapore authors get international representation and publishing deals.
Edwin Tong stated that the National Arts Council (NAC) provides grants like the Presentation and Participation (Publishing) grant and Market and Audience Development grant to support local and international publishing of Singaporean literature.
Between 2020 and 2022, NAC supported over 140 publishing grants, with about 3% for international publications of Singaporean works, and five grants for marketing Singapore literature abroad.
NAC’s Our SG Arts Plan emphasizes internationalisation, including featuring Singapore writers at the 2023 Frankfurt Book Fair through the Singapore Book Publishers Association.
Details on NAC’s grants are available on its website, supporting the visibility of Singapore literature and authors internationally.

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18 Sep 2023

Impact of Grab's Acquisition of Trans-Cab on Fares, Quality of Service and Drivers' Livelihoods

The Minister emphasized that the regulatory framework for point-to-point (P2P) transport ensures an open and contestable market, preventing exclusive arrangements that lock in drivers and allowing commuters to choose between different services and prices.
The acquisition of Trans-Cab by Grab is under review by the Competition and Consumer Commission Singapore, and if approved, drivers can still operate across platforms, while quality of service standards for safety and performance will continue to apply.
The growth of e-commerce, ride-hailing, and car-sharing has not significantly altered the vehicle population, as the Vehicle Growth Rate remains at 0% for cars and Electronic Road Pricing manages congestion, with no current plans to adjust the COE system.
The P2P industry is undergoing a review to adapt to changing commuter and driver needs, ensuring service availability, resilience, and inclusivity in collaboration with stakeholders.

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18 Sep 2023

Losses from Scams and Malware Fraud: Doing Right by Bank Customers

Ms. Sylvia Lim highlighted the rising prevalence and devastating impact of scams, urging the government to ensure banks treat customers fairly and expedite the long-awaited Shared Responsibility Framework for loss-sharing.
She proposed that Singapore adopt a model similar to the UK’s, where banks are required to fully reimburse scam victims (except in cases of gross negligence), and suggested additional safeguards such as reintroducing physical tokens for authentication and imposing stricter checks on high-risk transfers.
Minister of State Alvin Tan acknowledged the seriousness of scams and outlined Singapore’s three-pronged strategy (upstream measures, downstream bank actions, and public education), while noting that the government aims to release a consultation paper on the loss-sharing framework in the coming month.

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18 Sep 2023

Free Trade Zones (Amendment) Bill

The Free Trade Zones (Amendment) Bill was presented by Senior Minister of State for Finance Mr Chee Hong Tat on behalf of the Deputy Prime Minister and Minister for Finance, with the objective of amending the Free Trade Zones Act 1966 and making consequential amendments to the Customs Act 1960.
The bill received its First Reading in Parliament and was scheduled for a Second Reading at the next available sitting, with the proceedings to be printed for official record.
The debate focused on legislative updates to modernize and enhance the operational efficiency of Singapore’s free trade zones, ensuring alignment with current international trade standards and practices.

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18 Sep 2023

Income Tax (Amendment) Bill

The Income Tax (Amendment) Bill aims to amend the Income Tax Act 1947 and make related amendments to other Acts.
The bill was presented by Senior Minister of State for Finance Chee Hong Tat on behalf of the Deputy Prime Minister and Minister for Finance.
The bill was read for the first time and will be read a second time at the next available Parliament sitting.
Minor technical issues with the microphone occurred during the session, with apologies exchanged between the Speaker and the Senior Minister of State.
The bill is to be printed and progressed at the next available sitting of Parliament.

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18 Sep 2023

Social and Fiscal Impact from Introduction of Plus and Prime HDB Flats

The new HDB framework introduces Standard, Plus, and Prime flats based on location to improve affordability, social mix, and fairness, with Plus and Prime flats receiving additional subsidies but facing tighter restrictions like income ceilings on resale and a 10-year Minimum Occupation Period.
The government anticipates a higher fiscal impact from the additional subsidies for Prime and Plus flats, though the exact cost depends on market conditions and demand, while committed to maintaining support for home ownership through grants and priority schemes for first-timer families.
Measures include increasing the supply of 2-room Flexi flats for singles and the elderly, with plans to launch up to 14,000 such flats from 2024 to 2026, and maintaining priority for first-timer families in BTO allocations to ensure fair access across different groups.

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18 Sep 2023

Queries into and Lessons from Recent Billion-dollar Money Laundering Case

Multiple MPs raised pointed questions on the S$1 billion money laundering case, querying how such offences occurred despite robust laws, the effectiveness of suspicious transaction reports, and the adequacy of checks on high-risk individuals and properties.
The Minister of State for Home Affairs indicated that a comprehensive Ministerial Statement would be issued in October to address the wide-ranging queries across ministries, covering anti-money laundering framework enhancements, international cooperation, and public education.
Concerns were highlighted regarding the potential impact on Singapore's reputation as a wealth management hub, the need to balance anti-money laundering measures with business facilitation, and comparisons with other jurisdictions' regimes.

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3 Aug 2023

Eligibility Criteria and Amount of Cash Distributed at Festive Events Organised by People's Association and Grassroots Organisations

Mr. Gerald Giam asked for details on cash distributed by the People’s Association and grassroots organisations from 2020 to 2022, including total amounts, number of recipients, means-testing criteria, selection methods, and whether grassroots advisers personally distributed the cash.
Minister Edwin Tong responded that grassroots organisations administer various local and national financial support schemes with varying criteria, and distributions may occur during festive or non-festive occasions.
The Minister noted that the design and modality of cash distribution are left to the discretion of the local grassroots organisations, which tailor schemes to the specific needs of their communities.

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3 Aug 2023

Help Provided to Social Service Agencies Unable to Meet Sector Salary Guidelines

The Ministry has adjusted programme funding for social service agencies to reflect changes in manpower costs under the revised salary guidelines.
The National Council of Social Service offers HR clinics, workshops, and grants to help agencies implement the guidelines and improve compensation practices.
Agencies are encouraged to engage donors to align funding with salary realities, and NCSS will support this through a future playbook and new fundraising initiatives.

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