Economy & business — Topics

21 Apr 2023

Time-limited Special Funding Support for Town Councils to Deal with Higher Cost of Maintenance

Murali Pillai asked for details on the time-limited special funding support for Town Councils announced on 2 March 2023 to address higher maintenance costs and external factors like energy price spikes.
Desmond Lee explained that the Government already provides substantial annual grants of around $240 million to Town Councils through various schemes, and had offered additional support in May 2022 for projects amid cost increases from COVID-19, the Russia-Ukraine conflict, and supply issues.
The Government plans to offer further time-limited special funding to cushion the impact on residents if Town Councils adjust their Service and Conservancy Charges rates for long-term sustainability, with more details to be shared later.

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21 Apr 2023

Proposal to Make Adult Monthly Travel Card Cheaper to Encourage Switch to Public Transport

Ms Mariam Jaafar proposed lowering the price of the Adult Monthly Travel Card to encourage more people to use public transport as their default mode of travel.
The Minister for Transport highlighted that public transport in Singapore is already heavily subsidized to keep fares affordable for all commuters.
He noted that the Adult Monthly Travel Pass is designed to reduce costs for frequent users and that any price cut would reduce revenue, potentially requiring fare hikes for other commuters.
The Minister emphasized that the Public Transport Council regularly reviews the pass price as part of its annual fare review exercises to balance affordability and financial sustainability.

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21 Apr 2023

Banking Disruptions That Have Lasted More Than An Hour in Last Five Years

Since 2018, seven major banks reported 17 digital banking disruptions lasting over an hour, mostly resolved within two to four hours, with causes including system upgrade lapses, software bugs, and misconfigurations.
The Monetary Authority of Singapore (MAS) mandates banks to ensure IT system robustness, eliminate single points of failure, and promptly restore services, while conducting inspections and sharing lessons through advisories and forums.
Following two major DBS disruptions in November 2021 and March 2023, MAS directed independent reviews and required DBS to enhance system resilience, strengthen expertise, and report progress, with further supervisory actions pending completion of the latest investigation.

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21 Apr 2023

Upgrading Plans for Changi Airfreight Centre

Dennis Tan inquired about plans to upgrade the Changi Airfreight Centre and whether expansion plans would be resumed or increased with the restart of Changi Airport Terminal 5 construction.
The Ministry of Transport and Civil Aviation Authority of Singapore are reviewing air cargo demand post-COVID to determine necessary upgrades, considering global trade and supply chain shifts.
Air freight operators are adopting automation and digitalisation to enhance productivity and capacity at the Changi Airfreight Centre.
Planning for the Changi East Industrial Zone has resumed, expected to double air cargo handling capacity to 5.4 million tonnes annually by the mid-2030s.

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21 Apr 2023

Debate on President's Address

Parliament debated the GST policy, with Workers' Party clarifying they accepted the 7% rate but opposed the hike to 9%, while PAP highlighted the evolution of party positions and the need for clarity on policy stands.
Dennis Tan raised concerns about rising COE prices impacting private buyers and small businesses, and urged faster adoption of electric vehicles and better support for logistics companies and parallel importers in the green transition.
Pritam Singh outlined WP's role as a responsible opposition, listing policy proposals adopted by the government, calling for transparency in foreign talent policies, and advocating for English proficiency as a criterion for new PRs and citizens to aid integration.

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21 Apr 2023

Ensuring Stall Rentals at Trade Fairs and Bazaars Remain Affordable

The Minister explained that trade fairs on state lands are run by professional operators appointed through open tenders, with the People's Association setting conditions for safety and suitability, while operators set stall rental rates based on market factors.
For the Geylang Serai bazaar, which Wisma Geylang Serai now organizes, a tender is used to select an operator considering both price and expertise, with support measures like low-cost stalls for home-based businesses and complimentary space for community groups.
In response to concerns about stallholder profitability at the Geylang Serai bazaar, the Minister noted that stallholders know rental rates in advance and must assess their own business viability, with anecdotal evidence suggesting varied outcomes.
Mr. Muhamad Faisal Bin Abdul Manap asked if the People's Association would conduct and publish a study on stallholder losses, break-even rates, and profits at the Geylang Serai bazaar to address public concerns.
The Minister declined committing to such a study, reiterating that the market-based tender process and operator expertise aim to ensure a conducive environment, and that feedback will be gathered for future improvements.

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21 Apr 2023

Companies Facing Difficulties Re-negotiating Contracts Signed Before PWM Wage Rungs Were Set

Tripartite cluster committees have negotiated multi-year wage schedules for PWM sectors to give service providers and buyers advance notice, but some companies still face challenges renegotiating contracts signed before these wage rungs were set.
The government supports businesses through the Progressive Wage Credit Scheme, funding up to 75% of wage increases for five years, and encourages outcome-based contracting to improve sustainability and productivity.
Service buyers who threaten to blacklist contractors over renegotiation concerns are discouraged, and the government calls on unions to mediate, while noting that commercial contracts remain between parties without direct government intervention.

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21 Apr 2023

Policy Stance on "99-to-1" Arrangements for Stamp Duty Payment in Property Transactions and Measures to Prevent Recurrence

The Deputy Prime Minister's office confirmed that IRAS can disregard "99-to-1" arrangements to collect the correct Additional Buyer's Stamp Duty (ABSD) and may impose a 50% surcharge for tax avoidance, with audits initiated as such cases rose in recent years.
From 2018 to 2021, about 0.5% of private residential property transactions involved similar partial interest transfers, typically between immediate family members, to reduce ABSD, but officials stated these have no significant impact on the broader housing market.
IRAS refers property agents promoting such schemes to the Council for Estate Agencies for disciplinary action, which can include fines or suspension, and will collaborate with other regulatory bodies to hold facilitators accountable.
Investigations into specific cases, including the number of audits sent and the total tax avoided, are ongoing, so detailed figures are not yet available, but voluntary disclosure may be viewed more favorably.
The government emphasized that financial institutions face no additional credit risk from these structures due to joint liability for mortgage loans, and current enforcement focuses on tax avoidance rather than banking regulations.

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21 Apr 2023

Assessment of Practice where Insurers Offer Additional Coverage for Cancer Treatment through Riders

The Ministry of Health has introduced the Cancer Drug List to negotiate lower drug prices and has increased MediShield Life claim limits for cancer treatment, while noting that generous insurance riders can encourage non-cost-effective treatments and drive up costs.
The government is monitoring the impact of enhanced insurance riders on cancer drug prices and will consider further regulations with the Monetary Authority of Singapore if costs continue to escalate, while urging consumers to consider the long-term value of insurance products.
There are plans to improve price transparency for cancer drugs to help patients make informed decisions, but differential pricing by pharmaceutical companies across countries is a common practice that the government can only address through negotiation rather than legal action.

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20 Apr 2023

Debate on President's Address

Minister Ong Ye Kung outlined Singapore’s preparations for a “super-aged” society, focusing on urban planning, economic adaptation, retirement adequacy, healthcare reform, and good governance.
He emphasized adapting the economy by raising retirement ages, increasing female workforce participation, complementing local workers with foreign talent, and leveraging technology to address manpower shortages.
The debate featured exchanges between the Minister and opposition MPs on policy differences, including the GST hike, the use of reserves (NIRC), and the need for credible alternative proposals.
Minister Grace Fu highlighted the importance of sustainability and a renewed social compact across generations, citing initiatives for coastal protection, food security, and collective action on climate change.
Other speakers discussed youth engagement, inclusive meritocracy, and the business case for employing persons with disabilities, calling for active citizenry and partnerships across sectors.

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19 Apr 2023

Debate on President's Address

Derrick Goh emphasized the need for an effective Parliament, highlighted the importance of recognizing fiscal trade-offs, and called for collective responsibility from citizens, businesses, and the government to build a resilient Singapore.
Louis Chua raised concerns about inflation, advocated for redundancy insurance to protect workers, and urged solutions for housing issues, including addressing lease decay and expanding options for singles.
Melvin Yong focused on enhancing consumer protection for e-commerce, strengthening safeguards for digital payments, and regulating "Buy Now, Pay Later" schemes to prevent financial distress.
Muhamad Faisal Manap discussed the need for a level playing field in politics, the importance of agreeing to disagree respectfully, and rejecting fear-mongering to foster a healthy democracy.
Nadia Ahmad Samdin stressed collective action for climate change and mental health, called for better support for seniors and youth, and highlighted the importance of inclusive community efforts.

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17 Apr 2023

Debate on President's Address

The debate centered on the President's Address, with speakers supporting the Government's long-term plans for Singapore's future, including infrastructure, sustainability, and innovation, while emphasizing the need for consensus, trust, and unity to execute these decades-long projects effectively.
Key discussions highlighted challenges in meritocracy, social inequality, and cost of living, with calls for broader definitions of success, support for lower-wage workers, and measures to address wealth disparities, including inheritance taxes and improved social safety nets.
Education reform was a major focus, with proposals to reduce exam pressure, introduce through-train programs, and enhance financial literacy, while also stressing the importance of lifelong learning and skills development in a changing economy.
The debate underscored the need for collective responsibility, tripartite cooperation, and a refreshed social compact to ensure inclusive growth, support for vulnerable groups, and resilience in the face of global uncertainties, with the Forward Singapore exercise aimed at engaging citizens in shaping policies.

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10 Apr 2023

Ministry of Finance

The Ministry of Finance will advance Singapore's well-being through sustainable fiscal policies, prudent resource allocation, and stewarding reserves for present and future generations.
Government spending is projected to rise to 19–20% of GDP by FY2026–2030, driven by healthcare and social initiatives, requiring revenue adjustments and potential reallocations to maintain balance.
MOF will ensure a fair, progressive fiscal system, manage public sector manpower growth, and enhance procurement and digital transformation to achieve value-for-money and efficient governance.

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10 Apr 2023

Ministry of Sustainability and the Environment

The Ministry of Sustainability and the Environment is implementing the Singapore Green Plan 2030 to achieve net-zero emissions, raise the carbon tax to $50–80 per tonne by 2030, and support households and businesses in reducing their carbon footprint.
The government is enhancing climate adaptation by investing in flood control, coastal protection, and urban heat mitigation measures, while increasing food resilience through local production and diversified imports.
Singapore is promoting a circular economy via the Extended Producer Responsibility framework and advancing waste reduction and sustainable production practices across industries.

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10 Apr 2023

Prime Minister's Office (National Research Foundation)

The National Research Foundation drives Singapore’s Research, Innovation and Enterprise ecosystem to foster an innovation economy and address national priorities, with past investments in areas like biomedical sciences yielding strong economic and employment benefits.
Strategic technology areas such as semiconductors and artificial intelligence are being advanced to unlock growth, create good jobs, and expand Singapore’s industrial base through collaborations with industry and research institutes.
The government is scaling up platforms to support business transformation, enhance Singapore’s position as a Global-Asia node for R&D, and grow the startup ecosystem with increased venture capital and tailored support for enterprises.
RIE investments are critical for tackling national challenges, including pandemic preparedness, climate change, food resilience, and water security, through targeted R&D in areas like vaccine development, low-carbon energy, and food technology.
Singapore is strengthening its research talent pool by nurturing local STEM interest, attracting international talent, and enhancing cross-sector mobility through initiatives like secondments and industrial postgraduate programmes.

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10 Apr 2023

Prime Minister's Office (Monetary Authority of Singapore)

MAS aims to maintain non-inflationary growth, a resilient financial sector, and Singapore's status as a leading Asian financial hub amid global economic pressures and tighter monetary policy.
The authority focuses on safeguarding financial stability through regular risk assessments, stress tests, and liquidity support, while also advancing industry transformation via digitalisation, sustainability, and new financial solutions.
MAS is enhancing cross-border payment connectivity, developing a responsible digital asset ecosystem, and upskilling the workforce to support future finance needs.

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10 Apr 2023

Ministry of Trade and Industry

MTI aims to drive sustainable economic growth amid global challenges like inflation and supply chain disruptions by strengthening Singapore's trade, manufacturing, and services sectors while leveraging digital and green economy opportunities.
The ministry will focus on economic resilience by securing critical supplies, advancing innovation in advanced manufacturing and technology, and addressing constraints such as carbon emissions and manpower.
MTI plans to support enterprises and workers through targeted strategies to boost competitiveness, internationalize promising companies, and align workforce training with industry needs.

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10 Apr 2023

Ministry of Communications and Information

The Ministry of Communications and Information (MCI) plans to develop strategic digital infrastructure through a new Digital Connectivity Blueprint and invest in research like quantum and AI, while supporting SMEs with digital transformation, cybersecurity, and international Digital Economy Agreements.
MCI aims to boost digital skills for workers and students, including upskilling in areas like 5G and AI, through partnerships with ministries and industry to ensure access to tech opportunities across the economy.
MCI will strengthen trust by protecting users from harmful content, enhancing cybersecurity, promoting digital literacy, and providing accurate information to combat scams and misinformation.
The ministry will enhance digital inclusion for all Singaporeans, especially the elderly and vulnerable groups, through subsidized devices, tailored training, outreach programs, and public-private partnerships.
MCI supports local content creation to reflect Singapore's values, including subtitling and sign language in media, to foster social cohesion and national identity in a digital future.

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10 Apr 2023

Ministry of Manpower

MOM will enhance career support for Singaporeans through tools like Jobs Transformation Maps and CareersFinder, while professionalizing skilled trades and developing more local corporate leaders to keep workers relevant amid economic changes.
The ministry will roll out the COMPASS framework for Employment Pass applications from September 2023 to encourage diverse teams and support strategic economic priorities, while also strengthening protections for platform workers with injury compensation and CPF contributions.
MOM is committed to uplifting lower-wage workers with Progressive Wages and enhanced Workfare, supporting seniors and persons with disabilities through extended employment credits, and bolstering retirement adequacy by raising the CPF salary ceiling and reviewing policies for broader coverage.

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10 Apr 2023

President's Address

The President highlighted that Singapore has emerged stronger from the COVID-19 pandemic but now faces a more dangerous global environment marked by the Ukraine war, US-China rivalry, and a fracturing international order, requiring the nation to stay vigilant, united, and adaptable.
To navigate economic headwinds and geopolitical pressures, Singapore must deepen global connectivity, invest in innovation and skills, and strengthen the tripartite partnership between government, businesses, and workers to maintain competitiveness.
The government will prioritize expanding opportunities through a broader meritocracy, enhancing social safety nets for workers and seniors, and ensuring affordable public housing, as part of the Forward Singapore exercise to refresh the social compact.
Longer-term efforts will focus on building a green, liveable city through urban renewal and technology, while upholding fiscal prudence and protecting reserves for future generations against threats like climate change.
The President called for constructive, respectful public discourse to preserve trust and unity, emphasizing that Singapore’s strength lies in its social capital and collective resolve to overcome challenges together.

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