Economy & business — Topics

4 Jul 2023

Amount of Support Provided to Seniors in Past Five Years

Between 2018 and 2022, the Government provided an estimated $25.7 billion in support to senior households, covering healthcare, social support, and housing-related transfers like the GST Voucher and Pioneer Generation Packages.
The Government has introduced cost-of-living support measures, including cash payments of up to $700, MediSave top-ups of up to $450, and further Assurance Package payouts in 2023 to help seniors cope with rising expenses.
To improve outreach, particularly for frail and solitary seniors, efforts include multi-channel publicity and leveraging Silver Generation Ambassadors as key contact points to connect seniors with financial, healthcare, and housing assistance.

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4 Jul 2023

Tangible Outcomes of Grants Provided Under SMEs Go Digital

Over 88,000 SMEs have benefited from the SMEs Go Digital programme since 2017, with digital adoption rates among firms rising from 78% to 93% between 2018 and 2022.
The programme has improved productivity and value-add, with 85% of participating SMEs reporting time savings and 75% noting alleviated manpower challenges, while specific grants like the Productivity Solutions Grant led to increases in value-add per worker and revenue.
The government is developing a Digital Enterprise Blueprint and refreshing Industry Digital Plans to provide more tailored solutions, deepen digitalisation, and address emerging challenges like cybersecurity and the use of new technologies such as generative AI.

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4 Jul 2023

Regulatory Sandboxes for Small-Scale Carbon Offsetting Projects

The Minister confirmed that regulatory sandboxes for carbon credit projects have been in place since 2021 to support carbon market development and infrastructure, in line with Article 6 of the Paris Agreement and in collaboration with international partners and the private sector.
Singapore is actively working to establish itself as a trusted carbon services and trading hub by fostering international partnerships, signing MOUs with over 10 countries, and developing an International Carbon Credit registry with stakeholder consultations.
The government is collaborating across multiple agencies and ministries to enhance carbon trading, as exemplified by IRAS's treatment of carbon credits for GST purposes, with a focus on growing the green economy and creating jobs in the sector.

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4 Jul 2023

Safeguards to Prevent Loss of CPF Savings Through Malware-related Scams

Since January 2023, over 700 malware scam reports have been received, with nine cases involving CPF withdrawals and a net loss of $124,000, leading to added safeguards like Singpass Face Verification for CPF e-services.
The scams typically involve victims downloading malware-infected apps from unauthorised sites and enabling accessibility services, which allows scammers to control their phones and steal credentials for unauthorised withdrawals.
The government is working with banks and other agencies on parallel initiatives, including a Shared Responsibility Framework and a public consultation paper in Q3 2024, to further protect against such frauds and explore insurance options.
Victims of these scams are primarily aged 55 to 80, and while the new face verification measure may add some inconvenience, it is deemed necessary to prevent losses, with ongoing public education on vigilance and safe app downloads.

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3 Jul 2023

Root Causes of Employers Defaulting on Making Correct and Prompt CPF Contributions

An average of about 2,800 employers per month (1.75% of active employers) in the last three years have failed to make correct CPF contributions promptly, with non-compliance detected via automated systems, proactive audits, and employee reports.
Common root causes include administrative lapses such as missed deadlines or insufficient funds, cash flow issues, and misunderstandings of CPF obligations, including confusion over which wage components are subject to contributions.
The CPF Board addresses defaults through education campaigns, late payment interest, composition amounts, and enforcement actions like prosecution for egregious cases, while ensuring most employers eventually fulfill their obligations.

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3 Jul 2023

Worker Accommodation Expenses as Percentage of Overall Cost of Employing Foreign Workers

Mr Yip Hon Weng asked the Ministry for Manpower about the proportion of overall employment costs attributed to foreign worker accommodation, the trend in accommodation costs over the past five years, and how the government plans to manage rising costs while ensuring affordability for projects and decent living conditions.
The Ministry of Manpower tracks only rental rates for commercial dormitories, not other accommodation types or broader business expenditure, with median monthly rents for new dormitory beds rising from about $280 in early 2019 to $420 in early 2023 due to inflation and strong post-pandemic demand.
Although the government has added nearly 17,000 dormitory beds since late 2022, the surge in foreign worker numbers—up 18% from pre-pandemic levels and 35% since early 2022—has outpaced supply, prompting calls for employers to adopt productivity measures or consider building their own dormitories to ease cost pressures.

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3 Jul 2023

Applications under Temporary Bridging Loan Programme and Defaults in Repayment

Ms He Ting Ru sought annual data from 2020 to 2022 on applications and approvals under the Temporary Bridging Loan Programme (TBLP), including interest rates, lender institutions, and ESG’s risk exposure.
From 2020 to 2022, the government supported about $23 billion in loans under TBLP to assist local companies with cashflow issues during the pandemic, with a median interest rate of 2.8% and risk sharing by ESG of 70–90%.
The default rate for TBLP has been below 2%, and EnterpriseSG has paid about $100 million in claims to financial institutions for defaulted loans to date.

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3 Jul 2023

Application from Singapore Airlines for Assessment of Joint Venture with Garuda Indonesia

Gerald Giam Yean Song asked the Minister for Trade and Industry whether the Competition and Consumer Commission of Singapore had received an application from Singapore Airlines for assessment of a joint venture with Garuda Indonesia.
The Minister for Trade and Industry, Gan Kim Yong, responded that no such application had been received by the Competition and Consumer Commission of Singapore.
The exchange highlights the procedural requirement for airlines to seek regulatory approval for joint ventures in Singapore.
The response confirms that as of the debate, Singapore Airlines had not submitted a formal application for assessment of the proposed joint venture with Garuda Indonesia.

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3 Jul 2023

Anti-competitive Effect of Cooperation Partnership between Singapore Airlines and Malaysia Airlines

Gerald Giam asked the Minister for Trade and Industry about the latest CCCS assessment of the Singapore Airlines and Malaysia Airlines partnership and what aspects of airline cooperation deals could be deemed anti-competitive.
The Minister responded that CCCS conditionally cleared the partnership on 10 May 2022, pending further assessment as air travel recovered.
The parties submitted an updated proposal to CCCS on 24 March 2023, which is currently under review.
The partnership is subject to CCCS oversight to ensure compliance with competition laws as market conditions evolve.
The review will evaluate any potential anti-competitive effects, such as price coordination or market allocation, in airline cooperation deals.

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3 Jul 2023

Pre-payment Collection by Businesses and Losses Suffered by Consumers from Non-delivery of Goods and Services

From 2020 to 2022, the top three sectors with the highest prepayment losses reported to CASE were due mainly to business closures, as detailed in a table provided by the Minister.
The Government is not considering legislation to restrict prepayment collection for services over six months, as it could reduce consumer options and increase prices for goods requiring advance payment.
The current approach focuses on consumer education and risk management, such as through CASETrust accreditation which offers prepayment protection, and ongoing monitoring with CASE to adjust measures as needed.

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3 Jul 2023

Rationale for DBS' $30 Billion Loan to Monetary Authority of Singapore

Leon Perera asked the Prime Minister for the rationale behind DBS’ $30 billion loan to MAS, whether other local banks made similar loans and in what amounts, how frequently MAS expects such loans in future, and if the Government would consider channeling such loan capital to support micro, small, and medium-sized enterprises.
Tharman Shanmugaratnam, representing the Prime Minister, clarified that the $30 billion figure refers to DBS’ participation in MAS’ daily money market operations (MMOs) to absorb excess Singapore Dollar liquidity arising from MAS’ foreign exchange interventions, not a direct loan to MAS for its own needs.
He explained that MMOs are a routine monetary policy tool conducted daily via auctions with Primary Dealers, including local banks, to manage system liquidity and that such operations do not restrict banks’ ability to lend to enterprises, which remains based on their own credit and pricing decisions.

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3 Jul 2023

Defaults in Repayment under Temporary Bridging Loan, SME Working Capital Loan and Trade Loan Programmes

The Minister for Trade and Industry provided the total default amounts for the Temporary Bridging Loan Programme and SME Working Capital Loan at $439 million (1.8% of the total loan amount) from 2020 to 2022, and for the Trade Loan Scheme at $84 million (1.2% of the total) over the same period.
These default rates are lower than the overall Enterprise Financing Scheme loan default rate of around 3.8% observed for loans given out before the COVID-19 pandemic.
The government is unable to ascertain the number of defaults specifically caused by business failure due to the COVID-19 pandemic, as companies default for various reasons.
The figures were in response to a question from MP Gan Thiam Poh regarding defaults under specific loan programmes due to pandemic-related business failures since 2020.
The default amounts and rates highlight the relative performance of pandemic-era loan schemes compared to pre-pandemic loan defaults.

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3 Jul 2023

Proposal for Computation of Additional Buyer's Stamp Duty Based on Per Square Foot

Gan Thiam Poh asked whether the Additional Buyer’s Stamp Duty could be computed on a per square foot basis.
The ABSD is currently based on purchase price or market value, tiered by number of properties to promote stable and sustainable housing.
Using a per square foot basis would disadvantage buyers of smaller properties, as they typically have higher per square foot prices.
The approach would be inequitable, allowing larger properties with lower per square foot prices to pay less duty.
The government will continue monitoring the property market and consider adjustments to support housing stability.

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3 Jul 2023

Assistance to Master Tenant at Block 151A Bishan Street 11 to Fill Vacant Stalls

Chong Kee Hiong asked HDB what assistance it would provide to the master tenant of the wet market at Block 151A Bishan Street 11 to fill vacant stalls and improve marketing options for residents.
Desmond Lee explained that HDB has rented the market to a private operator since 1998, with 90% occupancy and three vacant stalls, and requires the operator to maintain at least 90% occupancy.
HDB keeps rent steady upon renewal to support operators and has been engaging the private operator, who cited competition from nearby shops as a challenge in filling the vacant stalls.
The operator is making efforts to attract stallholders, and HDB will continue to work with them to explore solutions while residents still have access to competitive prices from nearly 40 stalls in the area.

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3 Jul 2023

Impact of Extension of Benchmarks on Surgeons' Fees Covering Surgical Procedures

The MOH's fee benchmarks provide a reference for reasonable fees, fostering transparency and moderating increases, though they are not mandatory and decisions on panel fees balance insurer considerations with policyholder needs.
IP insurers reference benchmarks for panel fees and have grown their panels significantly, with policyholders able to access key benefits if specialists agree to insurer terms, though some doctors may opt out if they have a large patient base.
The Ministry has introduced cost-management measures like mandatory co-payments and the Cancer Drug List, and will continue monitoring the situation to ensure health insurance costs remain affordable.

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3 Jul 2023

Review following UN Special Rapporteur's Report of Singapore-based Entities Providing Supplies to Myanmar Military

The Singapore Government takes the UN Special Rapporteur's report seriously, has requested specific evidence from the Rapporteur, and is investigating over 130 entities, with nine already deregistered and most others losing business facilities with Singapore banks.
Singapore has not imposed a trade embargo to avoid worsening the humanitarian situation, but financial institutions apply enhanced due diligence due to Myanmar's FATF blacklist status, and actions are being taken against entities that violate policies on military or dual-use items.
The Government maintains it has not sold arms to Myanmar's military and seeks more detailed transaction documents to verify the nature and use of alleged shipments, which include spare parts, dual-use items, and raw materials rather than direct weaponry.

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3 Jul 2023

Remission of Additional Buyer's Stamp Duty for Property Buyers who are Singles

Darryl David asked if Singaporean singles buying a second private property could get an ABSD remission if they sell their first property within six months, similar to the concession given to married couples.
Lawrence Wong explained that ABSD aims to moderate property demand and applies to Singaporeans purchasing a second or subsequent property, regardless of whether the first property is later sold.
An exception exists for married couples buying a replacement private property, allowing ABSD refund if the first property is sold within six months under specific conditions.
This ABSD refund concession is currently not available to other groups, including singles, and the government will continue reviewing policies for relevance.

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3 Jul 2023

Impact of Revised Land Allocation and Pricing Framework for Places of Worship on Past Reserves

The revised land allocation for places of worship (PW) will not impact past reserves, provided land is disposed of at its fair market value (FMV) as determined by the Chief Valuer.
The change from competitive tender to a fixed-price ballot for PW land requires a new method to establish FMV, using historical data from non-tender influenced PW land sales.
For public housing, HDB land valuation remains unchanged as resale transactions provide ample market data, unlike PW sites which cannot be freely sold.
The difference in treatment stems from the key distinction that HDB flats are actively traded in an open market, providing continuous valuation data, while PW sites are not.

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3 Jul 2023

Legislation on Maximum Rental Fee Adjustments by Landlords Following Lease Renewal

Assoc Prof Jamus Jerome Lim asked whether the Ministry and HDB have considered capping rental fee adjustments after lease renewals, similar to practices in countries like Australia and Germany.
The Minister stated that rental rates are stabilising, with supply expected to increase and demand easing, which should reduce rental pressures in the coming quarters.
HDB offers rental schemes for eligible Singaporeans, but open market rentals are private arrangements, and rent controls may distort the market, reduce supply, and create equity issues.
The government is monitoring the situation and remains open to options, but currently does not plan to impose rent control legislation.
The debate highlights concerns about rental affordability versus the potential negative effects of capping rental increases.

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3 Jul 2023

Assistance Extended to Schools Facing Difficulty with School Bus Contracts

The Ministry of Education is working with school bus associations to address industry challenges such as driver shortages, rising costs, and the point-to-point service model, which threaten the affordability and sustainability of school bus services.
Measures include a time-limited increase in Foreign Worker quotas for school bus drivers to achieve economies of scale, with the first batch of applications processed and more expected as school bus tenders for the next year are awarded.
The Land Transport Authority will ensure sufficient training capacity and facilitate applications for the Bus Driver's Vocational Licence to help those keen to become school bus drivers obtain their licences quickly.
MOE will evolve school bus contracts to provide operators with more flexibility, such as offering common pick-up/drop-off points and discontinuing services with insufficient demand, to aid cost management and better utilize scarce manpower.
The majority of Primary 1 students are posted to schools of their choice or within two kilometres of their homes, and many older students use public transport instead of school buses, indicating that school bus services are used by a minority of primary school students.

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