Economy & business — Topics

5 Jul 2023

Financial Institutions Investigated for Breaching Anti-money Laundering and Anti-terrorism Financing Rules

From June 2018 to June 2023, Singapore's financial regulator opened 20 investigations into financial institutions for breaches of anti-money laundering and counter-terrorism financing rules, taking enforcement action against 17 of them.
Of these, 14 faced composition penalties, including four recent cases linked to the Wirecard scandal, one institution had its licence revoked, and two received reprimands.
The regulator had already been supervising controls against risks seen in the Wirecard case prior to the scandal, with institutions strengthening their measures through these interventions.
Enhanced collaboration between regulators, financial institutions, and law enforcement—including through the upcoming COSMIC platform in late 2024—aims to improve early detection and sharing of suspicious financial activities.

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5 Jul 2023

Total Value of Unauthorised Credit Card Charges in Last Five Years

The Prime Minister’s office explained that specific data on the total value of unauthorised credit card charges over the last five years, including those from BIN attacks, is not tracked, although banks monitor credit card dispute cases which include fraud and scams.
Low-value transactions are often used in BIN attacks to test card details, and merchants without one-time password authentication bear liability, while cardholders are not liable if they report promptly.
The Monetary Authority of Singapore expects card issuers and schemes to implement strong security measures such as real-time fraud monitoring, transaction alerts, OTP authentication, and chargeback mechanisms to protect consumers.

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5 Jul 2023

Evaluating Prevailing Societal Values towards Single Unwed Parents and Adjusting Provision of Children-related Tax Reliefs for These Parents

Louis Ng asked the Ministry for Social and Family Development to assess prevailing societal views on single unwed parents and consider revising tax reliefs like the Working Mother’s Child Relief and Parenthood Tax Rebate for them.
The Minister responded that the government regularly updates policies based on changing societal norms, using statistical and survey data to gauge attitudes toward single unwed parents.
Single unwed parents already have access to all government benefits for their children, including subsidies for education, healthcare, childcare, infant care, and the Child Development Account.
Low-income single unwed parents can seek assistance from Social Service Offices, and the Ministry collaborates with community groups to bolster support for those in need.

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5 Jul 2023

Probe into Recent Disruptions of DBS' Digital Bank and Physical ATM Services and Preventive Measures Implemented

The May 2023 DBS disruption, caused by human error during system maintenance, led to intermittent service outages for six and a half hours, following an earlier March disruption due to software bugs.
The Monetary Authority of Singapore (MAS) deemed these incidents unacceptable and required DBS to extend its board-led review with independent third-party oversight.
MAS may impose additional capital requirements on DBS and other regulatory actions based on ongoing reviews, while mandating that all retail banks ensure resilience and quick recovery for critical digital banking systems.

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5 Jul 2023

Government Agencies' Expenditure on Management Consultancy Services

From 2018 to 2022, Ministries spent about $125 million annually on consultancy services, while Statutory Boards spent about $145 million each year, averaging around 1% of total government procurement.
Consultancy services included design and feasibility studies for construction, IT system development and implementation, environmental studies, and organisational improvements.
The government does not have a breakdown of how many contracts were specifically for management consultancy services.

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5 Jul 2023

Review of Past Cases Given Recent Advisory on Malware-related Unauthorised Bank Transactions

Gerald Giam asked about the number of fraudulent bank transactions in the past year due to SMS OTP diversions, whether MAS will set a timeline to phase out SMS OTPs for high-risk transactions, and if customers can opt out of SMS OTPs while using other MFA methods.
Tan Wu Meng asked whether MAS will review previously closed cases of customer disputes where unauthorized transactions occurred despite OTPs not being divulged or received, in light of recent malware-related bank fraud advisories.
Tharman Shanmugaratnam responded that while SMS OTP diversions were reported before 2021, such risks have been largely addressed, and banks are already phasing out sole reliance on SMS OTPs for high-risk transactions, with MAS setting a deadline for completion.
MAS does not support allowing customers to opt out of SMS OTPs, as it remains a useful authentication layer for low-risk activities and helps maintain security for customers without advanced devices.
The response emphasized that scams involving malware infections are growing, and customers should follow security advisories, contact banks immediately if fraud is suspected, and that MAS expects banks to treat customers fairly when reviewing dispute cases.

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5 Jul 2023

Status of Discussions for Potential Johor-Singapore Economic Region

The potential Johor-Singapore economic region was announced by Malaysia’s Economy Minister in May 2023, prompting Singapore to express welcome for closer economic cooperation with Johor and Malaysia
Singapore plans to discuss the proposed region with Malaysia at the 16th Joint Ministerial Committee for Iskandar Malaysia Meeting scheduled for 14 July 2023
The meeting will be co-chaired by Singapore’s Minister for National Development Desmond Lee and Malaysia’s Minister of Economy Rafizi Ramli
The debate highlighted that discussions are pending and will occur at the upcoming ministerial meeting to address the status of the proposed economic region

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5 Jul 2023

Viability of Singapore Post’s Domestic Post and Parcel Business

The Minister outlined the decline in domestic letter volumes due to digitalization and the challenge of maintaining SingPost's viability without direct government funding, while committing to a review of postal service obligations and potential postage rate adjustments.
Assurance was given that a quality of service framework is in place and will be enforced by the regulator, with discussions on rate adjustments considering costs, volume decline, and the operating environment.
The government emphasized its role as a regulator rather than a funder of SingPost, with recourse through licence conditions, and noted that job preservation and worker considerations are part of ongoing discussions with unions and the company.

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5 Jul 2023

Notice to Government for Grab Holdings' Recent Decision to Cut 1,000 Jobs

Saktiandi Supaat asked the Ministry of Manpower (MOM) when it became aware of Grab’s decision to cut 1,000 jobs, the proportion held by Singaporeans, and whether it is helping displaced workers transition to new roles.
The Senior Minister of State for Manpower responded that MOM was informed on 20 June 2023 and is working with agencies and NTUC to provide career coaching and employment facilitation for affected workers.
The Minister clarified that the workforce profile before and after the retrenchment remains largely similar, but declined to give exact figures on Singaporean workers impacted.
He noted that while the tech sector faces softness, job vacancies in infocomm remain high, and MOM is focusing on supporting displaced workers through existing schemes and partnerships.
MOM emphasized maintaining a cautiously optimistic outlook on the tech sector while preparing for potential slowdowns and leveraging current demand for tech skills across the economy.

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4 Jul 2023

Assistance to Parallel Importers to Promote Sales of Electric Vehicles

Dennis Tan Lip Fong asked if the government can provide more assistance to parallel importers to boost electric vehicle sales, including a review of potentially disadvantageous rules and documentary requirements.
The government has implemented incentives like the Electric Vehicle Early Adoption Incentive and enhanced Vehicular Emissions Scheme, offering up to $45,000 off the Additional Registration Fee for electric cars.
The Land Transport Authority applies the same technical requirements for importing electric vehicles to both parallel importers and authorised dealers, ensuring compliance with international safety standards.

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4 Jul 2023

Registered Companies with over $500 Million in Shareholders' Equity with Singaporeans as CEOs

Leong Mun Wai asked the Minister for Finance how many companies with over $500 million in shareholders' equity have Singaporean CEOs as of end-2022.
Lawrence Wong replied that 413 such companies have filed CEO or MD information with the ACRA.
About 40% of these CEOs or MDs are Singapore Citizens.

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4 Jul 2023

Coffee Shop Operators that are Independent or Part of a Chain

Assoc Prof Jamus Jerome Lim inquired if the Ministry for National Development considers whether coffee shop operators are independent or part of a chain when awarding contracts.
Desmond Lee explained that HDB uses the Price-Quality Method framework for tenders, evaluating business concepts, innovation, affordability, and community proposals, but not whether the operator is part of a chain.
HDB ensures a good supply of coffee shops across estates and towns to maintain healthy competition.

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4 Jul 2023

Provision of Medical Insurance Coverage for Consumers as Licensing Condition for Food Caterers and Suppliers

Ms Hany Soh proposed requiring medical insurance for consumers as a licensing condition for food caterers, especially those serving vulnerable groups like children and the elderly, following gastroenteritis outbreaks.
Government agencies are collaborating to reduce gastroenteritis incidents, with a significant decrease in cases compared to the previous year.
The Ministry has no plans to mandate medical insurance for all caterers, citing increased compliance costs despite the industry's generally good track record.
Consumers can rely on existing healthcare subsidies, MediShield Life, and MediSave for medical expenses, including for children.
The response emphasizes that current measures and available financial support are sufficient without imposing additional licensing conditions.

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4 Jul 2023

Total Inflow of Foreign Funds into Singapore Broken Down by Source Country

Leong Mun Wai asked the Prime Minister for the total inflow of foreign funds into Singapore from 2020 onward, broken down by source country, and for an assessment of their impact on foreign reserves, the private property market, and inflation.
Tharman Shanmugaratnam, responding for the Prime Minister, noted that foreign assets under management in Singapore increased by about S$600 billion annually in 2020 and 2021, primarily from the Americas, Asia Pacific, and Europe, with most funds being managed and invested outside Singapore.
He explained that such fund inflows have little effect on Singapore's Official Foreign Reserves, as they typically remain in foreign currencies, with reserves more directly influenced by foreign direct investments and exports.
Regarding inflation, Tharman stated it is driven by tight labour market conditions rather than foreign fund flows, and that foreign buyers account for a small share of private residential property transactions.
The government will not provide a further detailed breakdown by source country due to data limitations and the intermediary nature of Singapore’s asset management industry.

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4 Jul 2023

Investigating Recent Disruptions to DBS' Banking Services

Desmond Choo raised concerns about the recent disruptions to DBS' digital banking services and asked about MAS investigations, the adequacy of additional capital requirements, and sharing of preliminary findings from the DBS Special Board Committee.
Tharman Shanmugaratnam, responding for the Prime Minister, indicated that the question would be addressed in a reply to a separate parliamentary question scheduled for the following day.
The referenced written answer was to be found in the Official Report of 5 July 2023, focusing on the probe into DBS service disruptions and preventive measures.

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4 Jul 2023

Reason for Pegging Minimum Interest Rate of CPF Ordinary Account to Average of Local Banks' Rates

The CPF Ordinary Account interest rate is pegged to the average of the three local banks' savings and 12-month fixed deposit rates over three months to align with market returns on comparable low-risk investments, with a legislated minimum of 2.5% per annum.
The government has maintained the 2.5% floor rate despite prolonged low interest rates and provides additional interest bonuses and support schemes to bolster retirement savings, while continuously reviewing the peg's relevance in current and future rate environments.
Any potential de-linking of HDB concessionary loan rates from the CPF OA interest rate is considered carefully due to the significant implications for HDB borrowers, with changes to the OA rate requiring thorough deliberation.

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4 Jul 2023

Minimising Impact of Rising Market Rental Values on Property Taxes

The Deputy Prime Minister explained that Property Tax is based on Annual Value, which fluctuates with market rental trends, and that 2023 saw increases due to both market movements and higher tax rates for high-value residential properties.
The government mitigated the impact by providing a 60% property tax rebate to all owner-occupied residential properties, capped at $60, resulting in modest monthly increases for HDB owners and under $50 monthly for most private property owners.
The government supports Singaporeans with higher living costs through direct measures like the Assurance Package and enhanced GST-Voucher scheme rather than by reducing property tax rates.

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4 Jul 2023

Including Resident’s Record from Gambling Regulatory Authority in Credit Bureau Report

Gan Thiam Poh asked if a resident's gambling record could be added to their Credit Bureau Report to assess creditworthiness.
K Shanmugam explained that credit reports are compiled by credit bureaus licensed by MAS using data from member financial institutions, not government agencies.
He stated that the Gambling Regulatory Authority does not share data with credit bureaus, and such sharing would not be appropriate.

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4 Jul 2023

Lease Agreements for Retail Premises Bill

The bill aims to establish the Fair Tenancy Industry Committee to oversee retail lease agreements and dispute resolution.
It sets terms for leasing retail premises to ensure fairness and address concerns in the retail sector.
The bill was presented by the Minister of State for Trade and Industry and will undergo a second reading after August 1, 2023.

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4 Jul 2023

National Productivity Fund (Amendment) Bill

The National Productivity Fund (Amendment) Bill was presented by Senior Minister of State for Finance Mr Chee Hong Tat on behalf of Deputy Prime Minister and Minister for Finance, with the aim of amending the National Productivity Fund Act 2010.
The bill was read for the first time and scheduled for a second reading at the next parliamentary sitting on or after 1 August 2023, with instructions for it to be printed.
The debate focused on procedural formalities and the legislative process for amending the existing productivity fund framework in Singapore.

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