Economy & business — Topics

2 Aug 2023

Court Decision in Herbalife International Singapore Pte Ltd vs Comptroller of Goods and Services Tax on Revenue Collection Leakages

Deputy Prime Minister Lawrence Wong noted that the High Court’s decision in the Herbalife case is specific to its facts and not directly comparable to other direct selling cases.
IRAS will continue studying various business models and industry arrangements to determine if there are gaps in the current GST legislation.
The Minister did not disclose the number of similar revenue collection leakage cases, the total amount involved, or specific actions taken on such cases.
IRAS is assessing potential updates to the GST Act based on the judgment but has not announced any concrete plans yet.

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2 Aug 2023

Impact of Artificial Intelligence on Trading Platforms in Financial Markets

Dr Tan Wu Meng questioned MAS on the risks of AI-induced herding and potential conflicts of interest in trading platforms, where AI systems might prioritize platform interests over customer interests without disclosure.
Lawrence Wong responded that MAS requires financial institutions to have technology-neutral controls to mitigate conflicts of interest and has established FEAT Principles since 2018 to guide responsible AI use, including fairness and transparency disclosures.
MAS currently assesses the herding risk as low due to the nascent stage of AI adoption in Singapore but continues to monitor AI risks and works with the industry to align systems with FEAT Principles.

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2 Aug 2023

Fair Assignment of Ride Hail Cases to Drivers Given Recent Acquisition of Trans-Cab by Grab

Ms Yeo Wan Ling raised concerns about fair assignment of ride-hail cases to drivers following Grab's acquisition of Trans-Cab.
The Ministry of Transport will address these concerns alongside related questions filed by Ms Foo Mee Har and Mr Yip Hon Weng.
The Ministry referenced a prior report on evaluating Grab's acquisition for anti-competitive practices.

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2 Aug 2023

Companies Reported for Employing "Phantom Workers"

From 2021 to June 2023, MOM received about 2,000 reports of companies using "phantom workers" to inflate foreign worker quotas, with only 10% substantiated and referred for investigation.
The top three sectors for such companies were food and beverage, personal services (e.g., beauty salons and spas), and manufacturing.
Workers who suspect incorrect income tax due to phantom CPF contributions should inform IRAS with supporting documents for review, while those receiving unknown CPF contributions should report to the CPF Board.

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2 Aug 2023

Impact of Arrest of Hotel Properties Ltd's Managing Director on Temasek Holdings' Investment in Real Estate Assets of Singapore Press Holdings

MP Zhulkarnain Abdul Rahim asked if the arrest of Hotel Properties Limited’s Managing Director affects Temasek Holdings’ investment in Singapore Press Holdings’ real estate assets, which was made through a consortium with HPL in March 2022.
Deputy Prime Minister Lawrence Wong declined to comment on the ongoing CPIB investigation but noted the Government typically does not address individual Temasek investments.
A public statement from the consortium Cuscaden Peak Pte Ltd indicated the situation is not expected to impact its business operations, including SPH assets.
Members of Parliament were directed to refer to Cuscaden Peak’s statement for further details on the matter.
The response emphasized that the government’s position is based on public information and does not speculate on the investigation’s outcomes.

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2 Aug 2023

Drivers of Corporate Income Tax Revenue of $23.1 Billion in Financial Year 2022/2023

The $23.1 billion in Corporate Income Tax (CIT) revenue for FY2022/2023 was driven by higher business profits from a strong economic recovery, notably in financial and insurance, services, wholesale and retail, and manufacturing sectors.
CIT revenue growth over the past decade has generally aligned with GDP growth, and year-to-year comparisons are available on data.gov.sg.
Despite recent revenue upsides, the government maintains that the scheduled GST increases are necessary to fund medium-term spending needs, such as rising healthcare costs and an ageing population, and deferring them would worsen future fiscal challenges.

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2 Aug 2023

Variance between Expected and Actual Grants Disbursed to Businesses and Individuals and Steps to Enhance Accessibility and Usage of Unused Funds

The lower-than-expected MOM expenditure for FY2022/2023, amounting to about $3.3 billion, was primarily due to reduced COVID-19-related spending, specifically the under-utilisation of the Jobs Growth Incentive (JGI), as the economy and job market recovered faster than anticipated.
Application processes for grants have been streamlined through automated wage support schemes like JGI, Enabling Employment Credit, and Senior Employment Credit, which disburse funds without requiring applications, while manual reviews are selectively used for risk management.
The unused funds from JGI and other grants will be re-deployed across the government's term to support SMEs and workers, with plans potentially including upskilling initiatives, productivity boosts, and local employment measures, subject to parliamentary approval through the annual Budget process.

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2 Aug 2023

Plans on Use of Surplus from FY2022/2023 Revenues Net of Expenditures to Support Transformation and Growth of SMEs and Workers

The Deputy Prime Minister and Minister for Finance highlighted that the FY2022/2023 surplus exceeded projections and will be used to address immediate concerns, strengthen the social compact, and support SMEs and workers.
The government is collaborating with agencies to formulate plans for utilizing the surplus, with spending estimates to be presented for parliamentary approval during the annual Budget process.
The response also addressed a related parliamentary question by Edward Chia Bing Hui, ensuring coordinated consideration of the surplus’s role in national transformation and growth initiatives.

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2 Aug 2023

Permitting One-year Renewals of Certificate of Entitlement in Addition to Five-year and 10-year Renewal Options

Joan Pereira asked if the Ministry of Transport would consider adding one-year COE renewals alongside the existing five and ten-year options.
The Minister for Transport, through Chee Hong Tat, explained that current policy allows five and ten-year renewals as a concession, with each renewal reducing the COE pool for new buyers.
The Ministry opposes one-year renewals because they could worsen COE price cycles by allowing owners to deregister vehicles strategically when prices are low, further tightening supply when prices are high.

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2 Aug 2023

Former Formula One CEO Bernie Ecclestone's Alleged S$650 Million Trust in a Singapore Bank Account

Ms He Ting Ru asked whether the Singapore government received any UK requests for assistance regarding Bernie Ecclestone's alleged S$650 million trust and what support was provided, while Mr Chua Kheng Wee Louis inquired if MAS was satisfied with the bank's anti-money laundering measures.
Lawrence Wong, speaking for the Prime Minister, stated that the government does not comment on specific foreign assistance requests but confirmed that MAS, the police, and the Attorney General's Chambers collaborated with UK authorities on the Ecclestone case, with Singapore proactively sharing information to aid the investigation.
MAS conducted a 2017 inspection of the bank involved, finding room for improvement in anti-money laundering processes but no systemic weaknesses, and noted the bank had enhanced monitoring of Ecclestone's account since 2013.

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2 Aug 2023

Temasek Holdings' Investment Performance

Members of Parliament questioned Temasek Holdings’ investment performance, including its returns compared to market benchmarks, shifts in asset portfolio, and the performance of unlisted assets.
The Senior Minister of State for Finance noted that Temasek’s long-term returns have generally outperformed indices like the MSCI World Index, though comparisons are complex due to differing mandates and investment approaches; unlisted assets have delivered higher internal rates of return over the past decade.
On the $21 billion portfolio shrinkage from 2022 to 2023, the government attributed the decline to mark-to-market losses from global investment reversals and emphasized accountability for long-term returns rather than annual fluctuations.
The government explained that Temasek’s unlisted assets are valued at book value with uplifts recognized only upon listing or sale, and that Net Investment Returns Contribution calculations are based on long-term expected returns, not annual performance.
Officials stated that the government does not set specific return thresholds but holds Temasek accountable for overall long-term performance, leaving investment decisions—including geographic allocation—to Temasek’s board and management.

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2 Aug 2023

Implications of Strong Singapore Dollar on Monetary Authority of Singapore's Losses, Exposure to Investment Risks and Moves to Encourage Higher Level of Savings

The government explained that MAS’s S$30.8 billion loss was primarily due to currency translation effects from a stronger Singapore dollar and interest expenses from money market operations, which were necessary to moderate appreciation and curb inflation.
Officials emphasized that the strong dollar policy successfully dampened imported inflation, with core inflation falling from a peak of 9.1% to 2.2%, and that losses are a normal consequence of central bank operations focused on price stability.
MAS clarified that government bonds and bills are market-determined and not issued by MAS, and that the reported losses do not affect the Net Investment Returns framework or the government’s budget due to smoothing mechanisms.

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2 Aug 2023

Measures to Mitigate against Concert Ticket Scams

The Ministry of Home Affairs is combating concert ticket scams through a multi-faceted approach, including working with platforms to remove scam content, public advisories, the E-commerce Transaction Safety Ratings, and the Online Criminal Harms Act, while urging the public to use the "Add, Check, Tell" scam prevention steps.
Desmond Choo suggested that concert operators could implement measures like non-transferable tickets or enhanced verification to protect Singapore's reputation as an entertainment hub, and requested data on total losses from such scams over the past five years.
The Minister of State responded that efforts to improve ticket security are ongoing in collaboration with organizers and platforms, and provided estimated scam losses from 2018 to 2023, with a significant increase in recent years, including $518,000 lost up to July 2023.

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6 Jul 2023

Quantifying Contributions of Family Offices to Singapore's Economy

The Prime Minister’s Office stated it has limited data on family offices, focusing on those under tax incentives, and revealed that 1,400 jobs were created for Singaporeans and PRs, with about 900 in the last three years, mostly earning above $5,000 monthly.
Plans are underway to survey family offices for their broader economic contributions, such as revenue generation and support for local enterprises, as current data on these aspects is lacking.
The Global Investor Programme (GIP) requires significant investment commitments from applicants to support Singapore-based businesses, and each residency application is assessed holistically, not solely based on family office setup.
Recent tax incentive changes aim to encourage family offices to invest more in local enterprises, sustainable development, and charitable activities, enhancing their benefits to Singapore.
Data is not collected on the residency status of family office owners, and the government will continue reviewing schemes to ensure meaningful contributions to the economy.

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6 Jul 2023

Review of Means-tested Thresholds for Annual Values of Properties Following Revision of Annual Values

Mr. Gerald Giam questioned why means-testing thresholds for healthcare subsidies haven't been raised despite IRAS's 2023 upward revision of property annual values (AVs) and asked why 2022 AVs are used instead of 2023 values for households with zero per capita income.
The Senior Parliamentary Secretary confirmed that agencies continue using 2022 AVs for 2023 means-testing due to the recent revision, with a review of social support schemes planned later in the year, and assured that households with zero income will not be worse off even if their 2023 AV is unavailable.
Mr. Giam further asked whether households with minimal income (e.g., $1) are still subject to AV criteria, to which the response indicated that while a cut-off exists, assessments aim to be fair and non-draconian, with appeals and backend processes ensuring support for those in need.
The Ministry clarified that removing the AV component for low-income households is under broader consideration, but AV remains a proxy for means, and alternative non-means-tested support exists for seniors, such as higher outpatient subsidies and Pioneer/Merdeka Generation benefits.

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6 Jul 2023

HDB Flats with Annual Value of $13,000 or More

Gerald Giam asked the Minister for Finance for the number of HDB flats with an Annual Value (AV) of $13,000 or more, how many have zero per capita household income, and the figures for 2022 before AVs increased in 2023.
The Senior Minister of State for Finance replied that in 2022 all HDB flats had AVs below $13,000, but due to rising market rents, about 430,000 flats (40%) now have AVs of $13,000 or more.
An estimated 36,000 resident households with zero monthly income from work live in HDB flats with AVs of $13,000 or more.
The Ministry of Finance is using 2022 AVs for social support scheme eligibility and is reviewing AV thresholds to ensure needy Singaporeans receive appropriate support, with an update to come when ready.

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6 Jul 2023

Actions and Lessons Resulting from SPH Media Trust's Internal Review of Overstated Circulation Numbers

The Minister confirmed that the overstatement of circulation figures occurred before SPH Media Trust (SMT) was formed and before any government funding was disbursed, so no public funds were affected, and a police report has been filed for investigation.
SMT is implementing several measures to address the issues, including benchmarking reporting to international standards, improving internal controls and risk management, and committing to regular updates, with the government expecting full compliance.
The government will continue its $900 million funding support for SMT, emphasizing digital transformation and public trust, with safeguards in the funding agreement allowing for audits and potential funding adjustments if accountability is not met.

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6 Jul 2023

Cost of Running Day Activity Centre Services for Adults with Disabilities

The per capita cost of running Day Activity Centre (DAC) services for adults with moderate to high needs varies by centre, while the average Government grant provided per client was about $14,000 in FY2022, with funding being tiered and means-tested.
A member highlighted that charities face funding challenges as costs can reach up to $30,000 per year, leading to fee caps that discourage higher-income households from using services, and proposed a workgroup to analyse and develop alternative financing models, such as a universal base subsidy.
The Senior Parliamentary Secretary acknowledged the issues, noted the introduction of fee caps in October 2021, and mentioned the upcoming pilot of an Enabling Services Hub to provide learning, social activities, and respite care closer to communities.

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5 Jul 2023

Returns for Dynamic, Balanced and Stable Funds under Home Affairs Uniformed Services INVEST Fund

The Minister for Home Affairs stated that the Home Affairs Uniformed Services INVEST Fund is a superannuation fund with a long-term focus to achieve returns exceeding inflation over time, and provided a table showing the returns for the Dynamic, Balanced, and Stable funds for the last five and 10 years and since inception.
The question from Mr Chua Kheng Wee Louis asked for the returns of the three funds in their first year, fifth year, 10th year, and since inception, as well as their performance benchmarks and relative performance against those benchmarks.
The Minister’s response included the returns data but did not explicitly list the performance benchmarks or detailed comparisons against those benchmarks in the provided text.

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5 Jul 2023

Returns for Dynamic, Balanced and Stable Funds under Saver Premium Fund

The Dynamic, Balanced, and Stable funds under the Saver Premium Fund have delivered annualised returns exceeding the 1.6% long-term average core inflation over the last five years, 10 years, and since inception.
Performance benchmarks for the funds are based on long-term average core inflation, and all three funds have outperformed this benchmark across the respective time periods.
The SAVER-Premium Fund is designed to generate sustainable long-term returns that outpace inflation, and detailed annualised returns for each fund plan are provided in a table referenced in the response.

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