Economy & business — Topics

3 Jul 2023

Oversight of Administrative Fees Charged by Pawnbrokers and Moneylenders

The Ministry of Law oversees pawnbrokers and moneylenders through distinct regulatory regimes, with specific limits on administrative fees: pawnbrokers can charge up to $2 per pawn ticket for cashless transactions, while moneylenders may charge up to 10% of the loan quantum.
The administrative fee for pawnbrokers was introduced in January 2023 to support digitalization and offset costs from adopting cashless payment services, whereas the fee for moneylenders helps cover operational risks such as loan defaults.
The Registries of Moneylenders and Pawnbrokers conduct regular inspections and investigate alleged misconduct; non-compliant licensees may face warnings, prosecution, or licence suspension or revocation.
Members of the public who believe they have been wrongfully charged can report the issue through the Ministry of Law’s website.

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3 Jul 2023

Plans to Mitigate Risk of Singapore Going into Technical Recession

The Ministry of Trade and Industry acknowledged that global economic slowdowns, a deep electronics downturn, and tightened monetary policy have led to declines in Singapore's exports, but noted that Singapore's underlying competitiveness remains strong, with recent rankings showing it as a top global hub.
For 2023, the economy is projected to grow between 0.5% and 2.5%, with the government not expecting a technical recession but acknowledging the possibility due to increased global risks; near-term support measures like enhanced financing and energy grants are available for businesses.
To maintain trade competitiveness, Singapore is expanding its network of free trade agreements, helping companies access new markets, and embedding itself deeper into global supply chains, while also refreshing industry transformation maps for long-term economic upgrades.

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3 Jul 2023

Ways to Ensure Availability of Budget Cooked Food and Halal Food Options at HDB Coffee Shops

Miss Cheryl Chan raised concerns about ensuring budget cooked food and halal options at HDB coffee shops, suggesting the Ministry act as an anchor operator or centrally source ingredients for small operators.
Desmond Lee stated that HDB’s Budget Meals initiative already requires rental coffee shops to offer at least four budget meals and two budget drinks, with one halal option included.
HDB declined to directly participate in the food industry, citing its core mandate, but will collaborate with agencies to support SMEs in upgrading capabilities.
A halal stall has been required in HDB rental coffee shops since 2005, and the new budget meal rule reinforces this with at least one halal meal among the four.

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3 Jul 2023

Exemption from Additional Buyer’s Stamp Duty for Property Purchases by Nationals of Selected Countries under Singapore-European Association Free Trade Agreement

Lawrence Wong explained that nationals and permanent residents of Iceland, Liechtenstein, Norway, and Switzerland are exempt from Additional Buyer’s Stamp Duty (ABSD) due to the national treatment obligation in the Singapore-European Free Trade Association Free Trade Agreement, which also applies to the US-Singapore FTA.
These agreements were signed nearly two decades ago, before ABSD was introduced, and were part of a balanced package to secure meaningful benefits for Singapore in trade and investment with these countries.
From 2018 to 2022, an average of about 250 property transactions per year received ABSD remission under these FTAs, representing roughly 2.5% of all ABSD-liable transactions.
The annual value of ABSD remitted over this period averaged around $150 million.

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3 Jul 2023

Carbon Footprint for Retrofitting Old Buildings Compared with Demolition

The Building and Construction Authority (BCA) guidelines require sustainable practices that include retaining and reusing existing building structures, and the voluntary Green Mark scheme recognizes projects that do so to reduce carbon emissions.
The Urban Redevelopment Authority (URA) offers financial incentives such as tax concessions and additional floor area to encourage the retrofitting of conserved buildings for new uses.
Building owners can apply for BCA’s Green Mark Incentive Scheme for Existing Buildings 2.0 to receive co-funding for energy efficiency retrofits, supporting efforts to reduce the carbon footprint of older buildings.

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3 Jul 2023

Bretton Woods Agreements (Amendment) Bill

Members expressed support for the Bretton Woods Agreements (Amendment) Bill but raised clarifications on Singapore’s financial commitments, the IMF’s role in climate change initiatives, and the use of Special Drawing Rights (SDRs) for foreign assistance.
The Minister of State explained that the IMF has incorporated climate considerations into its operations and that Singapore contributes to IMF trusts like the Resilience and Sustainability Trust, while also addressing questions on the funding of IMF offices in Singapore and the removal of certain parliamentary safeguards.
The amendments streamline processes for Singapore’s financial support to the IMF, including handling SDRs and loan agreements, with assurances that prudence and oversight mechanisms remain in place.

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3 Jul 2023

Bretton Woods Agreements (Amendment) Bill

The bill clarifies that safeguards for grants under the Bretton Woods Agreements Act apply only to funds supporting IMF arrangements for member countries, not to grants financing IMF offices in Singapore, which are instead managed under MAS's annual budget.
It amends the early repayment requirement for loans to the IMF to waive it when using IMF standard-form agreements or for arrangements that cannot be suspended or terminated, while retaining other safeguards like Singapore’s exposure being to the IMF and the IMF’s preferred creditor status.
The amendments maintain Singapore’s prudent support for global financial stability through the IMF, ensuring proper exercise of MAS’s powers without reducing existing protections for loans and grants.

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3 Jul 2023

Update on CPIB Investigation into Seatrium

CPIB is investigating Seatrium and individuals for alleged corruption offences in Brazil, but no further details can be provided as the probe is ongoing, with the government reaffirming its zero-tolerance stance on corruption.
Temasek's capital injection into Sembcorp Marine during the pandemic was based on public disclosures and due diligence, with the decision driven by commercial considerations to protect jobs and value, without prior knowledge of the specific Brazilian allegations.
The government emphasises ongoing vigilance and engagement with portfolio companies like Seatrium to enforce anti-corruption standards, acknowledging that while controls are in place, corruption can remain hidden and requires constant review.

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10 May 2023

Evaluation, Proceeds and Costs of Pasar Malam Tenders

Leong Mun Wai sought details on pasar malam tenders since 2018, including the proportion with a tender sum weightage over 50%, total proceeds, and costs incurred by the People’s Association.
Edwin Tong explained that pasar malams are organized by various entities and each trade fair differs in specifications and considerations.
He noted that costs and proceeds vary significantly across different trade fairs due to their unique characteristics.
The response highlighted that no single weightage criterion applies uniformly to all tenders, as evaluations are tailored to each event.

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10 May 2023

Framework and Indicators to Guide Levels of Additional Buyer's Stamp Duty

The Minister outlined that the ABSD is calibrated based on factors like economic conditions, property market outlook, price and income trends, and buyer profiles, with recent increases implemented in April 2023 following earlier measures in December 2021 and September 2022.
The ABSD revisions aim to moderate demand and prioritize owner-occupation by Singaporeans, affecting only about 10% of transactions in 2022 and not impacting first-time local buyers, who constitute 90% of transactions.
The government does not expect the ABSD changes to significantly impact the rental market, as most foreigners rent rather than buy, and upcoming housing completions (40,000 in 2023 and 100,000 by 2025) are expected to ease rental pressures.
The ABSD adjustments are also not expected to affect the commercial property market significantly, as it is driven by business considerations and has historically remained stable after past ABSD increases.
Authorities will continue monitoring both residential and commercial property markets to ensure stability and sustainability, taking further steps if necessary.

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10 May 2023

Projected Manufacturing Outlook for Rest of 2023 Given Contraction in First Quarter

Shawn Huang Wei Zhong asked for the projected manufacturing outlook for the rest of 2023 and potential wider economic knock-on effects after a 6% year-on-year contraction in the first quarter.
Gan Kim Yong responded that the manufacturing sector contracted by 5.6% year-on-year in Q1 2023 and outlook remains weak due to global economic slowdown and electronics downcycle.
The manufacturing downturn is expected to dampen performance in related sectors like wholesale trade and water transport, indicating wider knock-on effects on the Singapore economy.

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10 May 2023

Tightening Processes Involving Decoupling by Families or Couples Wishing to Buy An Additional Property

The government acknowledges that families may arrange property ownership differently for various reasons while considering tax implications, with Additional Buyer’s Stamp Duty (ABSD) applied based on specific arrangements.
ABSD is tiered for Singapore citizens and permanent residents, with no ABSD on first residential property, while foreigners face a flat 60% ABSD regardless of property count or ownership structure.
Even if foreign families distribute properties across members to avoid ABSD, each property still incurs the 60% ABSD, and the government will continue monitoring the market for necessary adjustments.

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10 May 2023

Rationale for Latest Round of Property Cooling Measures Given Still-high Prices and Rising Interest Rates

The Ministry of National Development raised Additional Buyer’s Stamp Duty rates pre-emptively to moderate investment demand and prioritize owner-occupation for Singaporeans, following earlier cooling measures in December 2021 and September 2022.
Despite moderating effects from previous measures and rising interest rates, private housing prices accelerated in Q1 2023 due to strong local and foreign investment demand, prompting action to prevent prices from running ahead of economic fundamentals.
The ABSD changes are expected to affect only about 10% of transactions and will not impact first-time local buyers, who comprise the majority of the market, while rental pressures are expected to ease with upcoming residential completions.

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10 May 2023

Impact of Tight Labour Market and Strong Singapore Dollar on Singapore's Competitiveness in Securing Investments

Sharael Taha inquired whether the tight labour market and stronger Singapore dollar have negatively impacted the country's competitiveness in attracting investments.
The Minister for Trade and Industry affirmed that despite economic headwinds, Singapore remains competitive and is on track to meet its medium-term investment goals barring any unforeseen events.
The government reiterated its commitment to sustaining efforts in attracting investments, fostering growth, and creating quality jobs for Singaporeans.

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10 May 2023

Further Measures to Moderate Rise in Consumer Price Index

The Government has introduced multiple financial support schemes, such as CDC Vouchers, Cost of Living Special Payment, enhanced GST Vouchers, and Assurance Package Cash, to help households cope with rising costs, with lower- and middle-income families benefiting significantly.
The Monetary Authority of Singapore has tightened monetary policy five times since October 2021 to appreciate the Singapore dollar and curb imported inflation, with effects expected to continue dampening price increases.
While private transport costs have risen, the Government ensures public transport affordability through subsidies and concessionary fares, with plans to monitor prices and take further action if needed.

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10 May 2023

Data on Amounts and Sources of Wealth Inflows into Singapore

The government stated it lacks comprehensive data on wealth inflows from family offices but noted that assets under management by non-retail individual clients increased by S$470 billion from 2017 to 2021, with Asia-Pacific being the top source region.
Officials emphasized that most assets managed in Singapore are invested overseas and have minimal impact on the Singapore dollar, Official Foreign Reserves, inflation, or private property markets, with foreigners accounting for only about 4% of private residential purchases.
The government indicated it is not yet able to provide data on local investments by Singapore family offices due to a two-year implementation period for new tax incentive requirements, and encouraged members to re-ask questions after this period.

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10 May 2023

Attracting Polytechnic Graduates to Work in Banking and Finance Sector and Take-up of Places in Apprenticeship Programmes for Them

The Monetary Authority of Singapore (MAS) launched the Polytechnic Talent for Finance Scheme with three tracks—Internship, Apprenticeship, and Sponsorship—to increase polytechnic graduate hiring in finance, targeting over 80% growth from 160 in 2021 to at least 300 by 2025.
MAS and the Institute of Banking and Finance will organize roundtables and outreach events like career fairs to strengthen industry-academia collaboration and raise student awareness of finance careers, addressing current low familiarity with polytechnic talent.
Employers and students have shown keen receptiveness to the scheme, with financial institutions viewing it as a way to diversify talent pools, though apprenticeship programmes remain limited compared to internships.
Polytechnic graduates can access upskilling through MAS’s Talent and Leaders in Finance Programme, which includes subsidized training, job rotations, and mentorship to support career progression without requiring a university degree.
Additional initiatives for ITE students include Work-Study Diplomas and tech-focused programmes to prepare them for opportunities in finance and technology sectors.

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10 May 2023

Suspicious Property Transaction Reports Filed and Cases Linked to Money Laundering

Member of Parliament Louis Chua asked the Minister for Home Affairs for the number of suspicious real estate transaction reports filed and money laundering convictions linked to residential and commercial properties over the past five years.
The Minister of State for Home Affairs responded that the Suspicious Transaction Reporting Office does not publicly release detailed statistics on suspicious transaction reports and that the police do not track money laundering convictions by asset class.
Chua raised a supplementary question about safeguards for secondary market transactions once new anti-money laundering rules for developers take effect in June 2023, noting potential risks if bad actors shift to secondary markets.
The Minister explained that licensed housing developers must report suspicious transactions under the Developers (Anti-Money Laundering and Terrorism Financing) Act 2018, which aligns with existing legal requirements to disclose matters suspected to involve proceeds of crime.

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10 May 2023

Criteria Used for Occupations Placed on Non-Traditional Sources Occupation List

The Non-Traditional Sources Occupation List includes seven occupations selected based on the number of S Pass holders affected by upcoming policy changes, local employment numbers, and local employment outcomes.
The Ministry of Manpower reviews the list every three years with sector agencies and tripartite partners, with flexibility for more regular reviews to support lower-wage workers and industry transformation.
Sharael Taha highlighted that the aerospace industry’s recovery is hindered by a lack of support roles like machinists and fitters, and requested these be added to the NTS list.
The Minister agreed to consider adding specific aerospace support roles, balancing industry needs with long-term productivity goals, and suggested engaging the Economic Development Board and the M-SEP scheme for manpower flexibility.

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10 May 2023

Impact on Patient Waiting Times and Service Standards with Shift to Capitation Model in Financing Public Healthcare Clusters

The Ministry of Health explained that the capitation model provides fixed funding per resident to healthcare clusters to incentivize preventive care and reduce wastage, while maintaining service quality and not restricting patient choice for hospital care.
Officials clarified that bundled payments and pay-for-performance pilots have been tested, and capitation funding includes safeguards for exceptional cases, ongoing protocol reviews, and no reduction in cluster budgets despite aging population demands.
The Ministry emphasized that capitation at the cluster level encourages investment in primary and preventive care, with close monitoring of resource allocation and health outcomes, but does not directly affect individual patient charging models.

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