Economy & business — Topics

22 Mar 2023

Singaporeans Diagnosed with Rare Diseases and Coverage by Rare Disease Fund

Ong Ye Kung stated that 2,000 to 3,000 people in Singapore have rare diseases, with national healthcare schemes providing most financial support and the Rare Disease Fund (RDF) assisting a small percentage.
The RDF, established in 2019, has supported nine patients (about 0.4% of those with rare diseases), focusing on life-threatening conditions with effective treatments and expanding to cover seven medications for five diseases.
The RDF expands coverage by attracting donations, which are matched three-for-one by the government and enjoy a 2.5-times tax deduction, enabling it to fund lifelong treatments for more rare conditions.

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22 Mar 2023

Research and Pilot Trials to Promote and Expand Use of Productivity-enhancing Technologies by Care Providers

The Ministry of Health supports initiatives like the $90 million Population Health Research Grant and the $18 million Community Care Digital Transformation Plan to pilot and expand productivity-enhancing technologies for care providers.
Over $70 million has been awarded through the National Innovation Challenge on Active and Confident Ageing to fund research projects that integrate technologies such as smart sensors and AI to improve caregiving and staff productivity.
The government acknowledges the need to allocate more resources to develop better technologies to assist caregivers, emphasizing cross-cutting benefits across acute, community, and digital care sectors.

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22 Mar 2023

Larger Role for Singapore in Realising ASEAN Power Grid

Singapore is committed to participating in the ASEAN Power Grid initiative through collaborations on pathfinder projects and memoranda of understanding with regional partners to advance renewable energy and cross-border electricity trading.
The government has signed an MOU with Indonesia on renewable energy cooperation and is working with the United States on a feasibility study to support regional energy connectivity and decarbonisation efforts.
The government does not plan to make direct investments in cross-border infrastructure but will focus on creating frameworks and ecosystems that enable commercial players to build the necessary infrastructure.

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22 Mar 2023

Provision of School Bus Services

The Ministry of Education is monitoring school bus services, noting a stable demand but facing challenges from a shortage of drivers and rising fuel costs, which have led to fare increases of up to 10% in 2023, with Special Education schools seeing higher hikes due to fewer providers.
To improve affordability, the school bus subsidy for lower-income students was enhanced from 60% to 65% of monthly fares, and additional financial support is available through schools, while eligible Special Education students can apply for the Enabling Transport Subsidy.
The Ministry is engaging with stakeholders to address the industry's viability, including the fragmentation with many sole proprietors and potential aging exits, and Special Education schools specify required skills in contracts rather than MOE providing direct operator training.

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21 Mar 2023

Inclusion of Other Qualifying Full Banks as Fixed Deposit Banks under CPFIS

MP Chua Kheng Wee Louis asked whether the CPF Board has considered adding more banks beyond the three local ones to the CPF Investment Scheme's fixed deposit bank list, how many Qualifying Full Banks have applied, and if the Board has approached eligible banks.
Minister Tan See Leng confirmed that one Qualifying Full Bank has applied for inclusion, and the CPF Board welcomes more applications, with criteria and process details available on its website.

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21 Mar 2023

Singapore's COVID-19 Response

The government secured early vaccine access through a diversified portfolio and advance purchase agreements, acknowledging the cost of expired doses as an insurance premium against greater economic and health losses.
Minister Gan highlighted efforts to secure essential supplies and maintain hub status, including ramping up mask production and keeping borders open, while noting the economic impact on businesses and the simplification of safe management measures.
DPM Lawrence Wong emphasized the effectiveness of the overall response, citing lower mortality and faster economic recovery relative to spending, and stressed the importance of preserving social trust and flexibility for future crises.

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21 Mar 2023

Control Over MAS on Choice of Monetary Regime or Total Level of Reserves Held

Assoc Prof Jamus Jerome Lim inquired about the extent of government guidance or control over MAS's choice of monetary regime and the total level of reserves, given MAS's status as an independent central bank.
The Minister of State clarified that MAS has full autonomy over monetary policy instruments and formulations within its mandate to maintain price stability, and it independently assesses the adequacy of Official Foreign Reserves based on international measures and Singapore's economic openness.
The Minister further explained that MAS operates with considerable autonomy without interference from other government agencies, but it is part of the broader Public Service and coordinates with other ministries for national benefit, differing from the statutory independence model of many other central banks.
Assoc Prof Lim sought clarification on whether this principle of operational autonomy within the government applies to other independent bodies, such as the Chief Valuer, but the Minister focused his response on MAS's specific structure and historical context.

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21 Mar 2023

Impact of Recent MediShield Life Coverage Revisions on Out-of-Pocket Payments for Cancer Treatment and Drugs

The Ministry highlighted that the Cancer Drug List has reduced drug prices by an average of 30%, covering 90% of approved treatments, with efforts to expand the list and options for patients facing costs for the remaining 10% through insurance, alternative drugs, or subsidized care.
In response to concerns about MediSave use for late-stage cancer services, the Ministry indicated that current MediSave limits are sufficient for co-insurance under MediShield Life and financial assistance remains available for those in need.
The annual MediShield Life claim limit for cancer drug services was recently raised from $1,200 to $3,600, covering 90% of subsidized bills, with ongoing monitoring to ensure affordability and policy adjustments as needed.

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21 Mar 2023

Proposal for Transfer of Investments Bought Using CPF Special Account or Ordinary Account to Nominee Rather than Estate of Deceased CPF Member

Vikram Nair questioned why CPF investments made with Special or Ordinary Account funds go to the estate rather than the nominee upon death, and asked if this could be changed to allow direct transfer to the nominee.
The Minister explained that CPFIS investments go to the estate to let beneficiaries decide on asset sale timing for optimal value, while CPF cash is disbursed quickly via nomination, and members are informed that nominations do not cover CPFIS investments.
Nair raised concerns about bankruptcy cases where CPFIS investments go to creditors instead of nominees, complicating matters for vulnerable families, and suggested allowing investments to go directly to nominees for better control.
The Minister acknowledged the suggestion and noted that Singtel discounted shares already follow a different treatment, but emphasized that CPF should not manage asset sale timing to avoid adverse financial impacts, while remaining open to considering improvements.

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21 Mar 2023

Enforcement Actions under Consumer Protection (Fair Trading) Act for Greenwashing

The Consumer Protection (Fair Trading) Act (CPFTA) allows enforcement against greenwashing, but the Competition and Consumer Commission of Singapore (CCCS) and the Consumers Association of Singapore (CASE) have received no specific complaints on the issue so far.
The government is monitoring global developments on greenwashing and may introduce further measures, while currently relying on the Singapore Code of Advertising Practice to guide environmental claims.
Consumers with greenwashing complaints can approach CASE, which may refer serious cases to CCCS for investigation, and the government is studying whether specific regulations or guidance are needed.

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20 Mar 2023

Budget Meal Criteria in New Lease Renewal Requirements for HDB Rental Coffee Shops

The Minister stated that the budget meal price is proposed by operators and reviewed by HDB to remain affordable, typically around $3 to $3.50, balancing business sustainability with residents' needs.
Existing operators under the Price-Quality Method must continue providing six budget meals and one budget drink, while other operators are only required to offer four budget meals and two drinks upon lease renewal until further review.
HDB is offering a 5% rent discount for one year to ease the transition for operators and stallholders in meeting the new budget meal requirements.

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20 Mar 2023

Impact of Higher Interest Rate on HDB Mortgage Rates and Loan Repayments

The concessionary HDB mortgage rate is currently 2.6% per annum, pegged to the CPF Ordinary Account rate, and existing credit measures aim to ensure prudent borrowing even amid rising interest rates.
HDB offers financial assistance measures such as temporary reduction or deferral of loan instalments, arrears repayment plans, and loan tenure extensions for homeowners facing repayment difficulties.
For loans from financial institutions, homeowners are encouraged to seek early assistance, with standardized interventions including potential loan restructuring and referrals to social service agencies.

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20 Mar 2023

Expenditure on Mental Health Promotion, Prevention and Treatment

Dr Shahira Abdullah asked the Ministry of Health for the total expenditure and percentage of overall healthcare spending on mental health treatment, and on mental health promotion and prevention, for the years 2020, 2021, and 2022.
Minister Ong Ye Kung stated that an average of $385 million was spent annually on mental health from FY2020 to FY2022 and provided a breakdown of the expenditure on treatment versus promotion and prevention.

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20 Mar 2023

Cost of Placing Child in Juvenile Rehabilitation Centre and Place of Safety

The average monthly cost of placing a child in a juvenile rehabilitation centre was $5,400 and $3,000 for a place of safety over the past five years, with median costs at $5,100 and $3,200 respectively.
The Government fully funds 100% of the cost for juvenile rehabilitation centres.
For places of safety, the Government fully funds court-ordered cases and covers 75% of the cost for cases not ordered by the courts.

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20 Mar 2023

Performance of Companies under Global Trader Programme

There are about 400 companies on the Global Trader Programme (GTP), but the Government will not disclose their detailed tax or financial data to protect economic competitiveness.
Companies on GTP receive a concessionary tax rate of either 5% or 10%, based on the scale of their economic investments in Singapore.
The GTP will continue to be relevant for multinational enterprises (MNEs) below the 750 million euro revenue threshold, as Singapore’s domestic top-up tax under the GloBE rules targets larger MNEs.

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20 Mar 2023

Difference in Income Tax Payable for Working Mothers from New Working Mother's Child Relief

Mr Chua Kheng Wee Louis asked the Minister for Finance for Year of Assessment 2022 data on the percentage of working mothers who would pay higher, unchanged, or lower income tax under the new Working Mother’s Child Relief (WMCR) formula.
The Deputy Prime Minister explained that the WMCR change is part of broader family support measures, shifting to a fixed-dollar relief to benefit all eligible mothers and is complemented by enhanced Baby Bonus and Child Development Account benefits.
A simulation by IRAS using YA2022 data showed that about 97% of mothers with newborns in 2021 would be better off or no worse off when accounting for the WMCR change and the increased Child Development Account First Step Grant.

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20 Mar 2023

Budget Allocation for Mental Health of Civil Servants

Shahira Abdullah asked the Government whether a mental health budget exists for civil servants and what the allocations were for the past three years.
Chan Chun Sing, speaking for the Prime Minister, stated that while a general staff welfare budget is provided for activities enhancing physical and mental well-being, no specific budget is allocated solely for mental health.
The Government funds various well-being initiatives through the general staff welfare budget, which agencies use to support both physical and mental health.

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20 Mar 2023

Number and Assessment of Applications to Set Up Single Family Offices in Singapore

Chua Kheng Wee Louis asked about the number of pending Single Family Office (SFO) applications, whether there is a growing backlog, and if the Monetary Authority of Singapore (MAS) conducts due diligence and Know Your Client (KYC) checks on applicants.
Tharman Shanmugaratnam responded that Multi-Family Offices (MFOs) are regulated and have only one pending licence application, while SFOs are not licensed but must apply for tax incentives, which involves MAS screening for money laundering and terrorism financing risks.
About 200 SFO tax incentive applications are currently pending approval, and MAS and banks conduct due diligence to verify the purpose, beneficial owners, and sources of funds for each SFO applicant.

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20 Mar 2023

Standardised Forms for Required Documents to Accompany Applications for Government Business Grants

Assoc Prof Jamus Jerome Lim asked if samples or standardised forms for documents required for Government business grant applications could be made available.
Gan Kim Yong explained that most grant applications are handled through the Business Grants Portal, which offers step-by-step guidance, standardised forms, and simplified processes like the Productivity Solutions Grant.
Agencies provide templates or checklists on their websites for more complex schemes, aiming to balance convenience with accountability for public funds.
Applicants can seek help via the Government Assistance e-Adviser on the GoBusiness portal or by contacting the relevant grant administering agency directly.

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20 Mar 2023

Share of Sophisticated Investment Products Sold to Retail Investors as Percentage of All Financial Products Sold

Sophisticated investment products, such as structured products or derivatives, constitute less than 5% of all investment products sold to retail clients in Singapore.
Financial institutions must adhere to MAS conduct requirements, ensuring product suitability, disclosing material information including risks, and typically offering a seven- to 14-day option to unwind purchases, which applies to about 85% of transactions.
For more complex products, institutions must assess a client’s investment knowledge; if deemed insufficient, they must advise against purchase and escalate for higher approval if the client insists, requiring written confirmation of understanding the risks.

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