Economy & business — Topics

3 Aug 2023

Total Rent Received and Expenses Incurred on Black and White Bungalows in 2022

Hazel Poa asked the Minister for Law for the total rent received and expenses incurred on black and white bungalows in 2022.
The Second Minister for Law directed her to earlier parliamentary statements on 3 July 2023 that detailed the management of these heritage properties.
The minister confirmed that in FY2022, the total rent collected from these bungalows exceeded the total expenses, including maintenance and marketing costs.

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3 Aug 2023

Monies Lost to Concert Ticket Scams

Minister K Shanmugam reported that monies lost to concert ticket scams in Singapore were $84,000 in 2018, $66,000 in 2019, $9,000 in 2020, $3,000 in 2021, and $175,000 in 2022.
Losses from these scams have spiked in 2023, exceeding $518,000 between 1 January and 10 July alone.
The Ministry intends to educate the public and prevent such scams by referring to earlier written answers detailing measures to pre-empt the rise in concert ticket scams on e-commerce platforms.

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3 Aug 2023

Revised Regulatory Cap on Retail Deposits for Digital Full Banks and Other Safeguards for Consumers

MAS has increased the initial aggregate deposit cap of $50 million for digital full banks like GXS Bank and MariBank, but does not disclose specific caps for each bank.
Each individual depositor in a digital full bank is protected by a S$75,000 cap under the deposit insurance scheme, aligning with prevailing limits.
Additional safeguards include restrictions on proprietary trading and prudential requirements on capital and liquidity, similar to other full banks in Singapore.

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3 Aug 2023

Compensation for Hawkers and Market Stallholders Affected by Closures due to Repairs or Renovations

Chua Kheng Wee Louis asked the Minister for Sustainability and the Environment about the amount and basis of compensation for hawkers and market stallholders affected by closures due to repairs, redecoration, or renovations in MSE- and HDB-owned centres.
Hawker centres undergo cyclical Repairs and Redecoration every six to eight years, typically closing for two to three months, with affected stallholders given advance notice.
During closures, stallholders receive rental remission, and service and conservancy charges are waived for the duration.
The National Environment Agency assists stallholders who wish to apply for temporary stalls in other hawker centres during the closure period.
The response does not specify a fixed monetary compensation amount, focusing instead on rental remissions and charge waivers as the primary support measures.

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3 Aug 2023

Causes for $1 million Overpayment to Scheme Supporting Companies in Aviation Industry during COVID-19 Pandemic

The overpayment of $1 million occurred due to erroneous claims by aviation companies, such as ineligible employees and non-qualifying amounts like employer CPF contributions, which were not caught by external auditors.
CAAS has since strengthened controls by appointing an independent external auditor to verify claims and implementing additional checks to prevent recurrence.
Full recovery of the over-disbursed amount is expected within three months, as CAAS is engaging the companies and their auditors to rectify the errors.

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3 Aug 2023

Households Receiving Lower GST Voucher Payouts Due to Revision in Annual Valuation of Property

Assoc Prof Jamus Jerome Lim questioned how many households saw their GST voucher payouts reduced from $500–$700 to $250–$350 due to the Annual Valuation revision and whether this undermines the voucher’s purpose.
Lawrence Wong explained that the 2022 Annual Value of residential properties determined this year’s GST voucher payouts, with all HDB flats having an AV below $13,000, qualifying them for the higher tier.
The Ministry is reviewing the AV thresholds for social support schemes to ensure needy Singaporeans receive appropriate support and will provide updates once ready.
The exchange highlights concerns that valuation changes may unintentionally reduce support for lower-income households.
The government acknowledges the need to adjust criteria to maintain the effectiveness of the GST voucher scheme.

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3 Aug 2023

Supporting Local Farms to Increase Demand and Reduce Wastage of Produce

Edward Chia asked how the Government plans to support local farms to increase demand and reduce wastage, including better collaboration with retailers to improve distribution and product displays.
Grace Fu responded that the Singapore Food Agency partners with the Singapore Agro-Food Enterprises Federation to boost demand for local produce through initiatives like the Alliance for Action.
The Alliance brings together stakeholders to develop solutions for raising demand and supports the Farm-to-Table Recognition Programme, which awards logos to businesses using locally farmed produce.
These efforts aim to help consumers identify and support establishments that use local ingredients, ultimately enhancing Singapore’s food security.

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3 Aug 2023

Review of Oil and Gas Industry's Presence in Singapore

Minister Gan Kim Yong highlighted that the Energy and Chemicals sector contributes over S$90 billion to manufacturing output and employs more than 25,000 workers, with the government regularly reviewing strategies to align with Singapore’s net-zero target for 2050.
The government closely monitors sector developments and works with stakeholders to address challenges, though no specific recent review of the oil and gas industry’s presence was explicitly mentioned.
Potential impacts of a key company exit, such as Shell, on suppliers and ancillary services were acknowledged as a concern, but detailed mitigation plans were not outlined in the response.

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3 Aug 2023

Lease Agreements for Retail Premises Bill

The Lease Agreements for Retail Premises Bill mandates compliance with the industry-developed Code of Conduct for retail leases, aiming to create a fairer negotiation process between tenants and landlords, with the Fair Tenancy Industry Committee (FTIC) overseeing updates and enforcement.
The Bill establishes an accessible dispute resolution mechanism through mediation and adjudication for non-compliance issues, while allowing mutual deviations from certain leasing principles with declarations to the FTIC.
Members of Parliament largely supported the Bill but raised concerns about data transparency, compliance for smaller landlords, and the need for public rental databases, with the Minister assuring ongoing industry engagement and education efforts.

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3 Aug 2023

National Productivity Fund (Amendment) Bill

The government proposes amending the National Productivity Fund (NPF) Act to expand its scope to include investment promotion, with a $4 billion top-up, to anchor quality multinational enterprise investments and strengthen Singapore's economic competitiveness amid global challenges like the US-China rivalry and BEPS 2.0.
Members support the Bill but raise concerns about ensuring effective use of funds for productivity gains, preventing abuse, and balancing allocations across productivity enhancement, continuing education and training (CET), and investment promotion, with calls for safeguards and transparency.
The government clarifies that the NPF's three pillars—productivity, CET, and investment promotion—are complementary and mutually reinforcing, and funds will be targeted at high-value sectors like advanced manufacturing and digital economy, with robust governance to deter fraud and monitor outcomes.

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3 Aug 2023

Public Utilities (Amendment) Bill

The Bill introduces mandatory water recycling requirements for new water-intensive projects in the wafer fabrication, electronics, and biomedical industries to manage growing water demand, with targeted recycling rates and enhanced funding support for companies.
It imposes charges on large private water suppliers, such as private desalination plants and large rainwater harvesters, to align their treatment with public water pricing and ensure sustainable growth, with phased implementation starting in 2025.
The Bill also enhances PUB’s operational powers, including cost recovery for emergency works, requirements for diversion plans, and updated service rules to promote digitalisation, all aimed at safeguarding Singapore’s water security.

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3 Aug 2023

Impact of Financial Product Marketing Tactics on Less Financially Literate Consumers

Monetary Authority of Singapore (MAS) has issued standards for financial institutions (FIs) to ensure responsible marketing, with plans to make safeguards mandatory, including cooling-off periods and limiting gifts.
Consumers can lodge complaints with FIs, who must investigate and offer redress for mis-selling; unresolved disputes can be escalated to FIDReC or reported to MAS for regulatory action.
Additional protections for vulnerable consumers, such as seniors or non-English speakers, include supervisor call-backs and proposals for trusted individuals to be present during sales.
A question was raised about recourse for commodity-related products not covered by FIDReC, with the minister committing to provide further clarification.
MAS may take regulatory action against FIs for breaches, but compensation is handled on a case-by-case basis rather than through retroactive measures.

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3 Aug 2023

Evaluation of Grab's Proposed Acquisition of Trans-Cab for Anti-Competitive Practices

CCCS will evaluate Grab's acquisition of Trans-Cab for anti-competitive effects, following a two-phase review process with stakeholder consultation.
The assessment will consider potential impacts on competition in the taxi, private hire, and overall point-to-point transport markets, including effects on fares, waiting times, and driver incomes.
Public feedback is invited to inform CCCS's decision, with the process allowing for detailed phase-two review if competition concerns arise.

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3 Aug 2023

Opportunities for Business, Jobs, Tourism and Leisure from Proposed Establishment of Johor-Singapore Special Economic Zone

The Johor-Singapore Special Economic Zone (JS-SEZ) is expected to strengthen economic ties and create opportunities in business, jobs, tourism, and leisure, with a special task force studying collaboration and an update to be provided at the upcoming Singapore-Malaysia Leaders’ Retreat.
Lessons from Singapore’s past special economic zone projects in Asia will be applied, and the JS-SEZ will build on the Joint Ministerial Committee for Iskandar Malaysia framework to ensure mutual benefits without harming Singapore’s export competitiveness.
The initiative will leverage comparative advantages, such as complementary functions in Singapore and Johor, as illustrated by joint projects like a cold-chain halal-certified factory, while fostering closer economic cooperation and regional growth.

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2 Aug 2023

Revenues from Carrier Bag Charges

Assoc Prof Jamus Jerome Lim asked whether revenues from carrier bag charges are received by the Ministry or retained by retailers, and if profits net of bag costs are designated for environmental transition programmes.
Grace Fu Hai Yien explained that under the Resource Sustainability Act, large supermarket operators must charge at least five cents per disposable carrier bag and publish how the proceeds are used.
The Government encourages operators to channel the proceeds to environmental or social causes, and all have indicated their intention to do so.

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2 Aug 2023

Actions Taken to Reclaim Monies incorrectly Disbursed to Merchants or Citizens through SingapoRediscovers Vouchers Scheme

He Ting Ru asked about actions to reclaim money incorrectly disbursed through the SingapoRediscovers Vouchers scheme, including remedial steps and amounts recovered.
Gan Kim Yong stated that the Singapore Tourism Board has begun recovering funds from ineligible individuals and aims to complete this in the coming months, with non-repayment leading to ineligibility for future campaigns.
He added that retrospective checks showed all merchants were eligible, so no clawback is needed from merchants.

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2 Aug 2023

Impact of Termination of Black Sea Grain Deal between Russia and Ukraine on Singapore's Economy and Mitigation Measures in Place

The Minister for Trade and Industry noted that the termination of the Black Sea grain deal is expected to have a manageable direct impact on Singapore’s economy due to Ukraine’s small share of grain imports.
The Government will monitor global food market effects and strengthen food supply resilience through diversification of import sources, local production, and stockpiling.
These measures aim to keep food prices in check and ensure stability despite disruptions from the deal’s expiry.

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2 Aug 2023

Trade Relations between Singapore and Vietnam and Singapore Companies' Participation in Rapid Growth of Vietnamese Economy

Bilateral goods trade between Singapore and Vietnam grew about 11% annually from S$20.9 billion in 2018 to S$31.3 billion in 2022, while services trade rose about 14% annually from S$4.4 billion in 2017 to S$7.4 billion in 2021, with Vietnam being Singapore’s 11th largest trading partner in 2022.
Singapore’s direct investment in Vietnam reached S$31 billion as of 2021, reflecting strong economic ties.
Singapore companies are active in Vietnam’s infrastructure, manufacturing, logistics, and consumer goods sectors, with emerging opportunities in innovation, energy, and sustainability.
EnterpriseSG’s Market Readiness Assistance grant and overseas networks like the Singapore Business Federation’s GlobalConnect@SBF support Singapore firms entering and expanding in Vietnam.

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2 Aug 2023

Risk of Corporate Bankruptcies and Steps in Place to Cope with Inflation and Higher Borrowing Costs

Foo Mee Har inquired whether Singapore is experiencing a wave of corporate bankruptcies similar to the global trend since the 2008 financial crisis and how local firms are coping with inflation and higher borrowing costs.
Gan Kim Yong responded that corporate winding-up cases in Singapore have remained stable over the past three years, averaging 200 cases annually, consistent with the 10-year average.
He emphasized the government's commitment to supporting businesses through near-term challenges and promoting their long-term growth and transformation.

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2 Aug 2023

Co-funding Total Cost of Organising 2022 Formula One Singapore Grand Prix

Hazel Poa asked for the total cost of organising the 2022 Formula One Singapore Grand Prix, the amount co-funded by the Government, and the types of costs covered.
The total cost of the 2022 race was between $135 million and $140 million, similar to previous years.
The Government co-funded 60% of the total cost, covering items like racetrack maintenance, infrastructure setup such as grandstands and hospitality suites, and security and medical services.

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