Economy & business — Topics

20 Mar 2023

Outcome of Consultation to Reduce Risks to Consumer While Supporting Development of Cryptocurrency Trading

Mr Desmond Choo asked the Prime Minister about the outcome and salient insights from the consultation on reducing consumer risks from cryptocurrency trading and supporting stablecoin development.
The Monetary Authority of Singapore (MAS) received substantial feedback from a wide range of respondents after the consultation closed on 21 December 2022.
MAS is currently reviewing the feedback and intends to publish its response to the consultation by mid-2023.

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20 Mar 2023

Extension of Lemon Law to Cover Used Cars Sold by Car Dealers on Behalf of Owners

Chua Kheng Wee Louis asked whether the Lemon Law would be extended to cover used cars sold by dealers on behalf of owners, and if not, whether dealers must upfront declare the nature of their transactions.
Gan Kim Yong explained that such consignment sales are consumer-to-consumer transactions not covered by the Lemon Law, but dealers misrepresenting them as business sales can be penalized under the Consumer Protection (Fair Trading) Act.
Consumers purchasing consignment cars are advised to use the Consumers Association of Singapore's checklist to assess the vehicle's condition.

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20 Mar 2023

Singapore's COVID-19 Response

The Singapore government prioritized protecting lives and livelihoods during the pandemic, implementing measures to control COVID-19 outbreaks in migrant worker dormitories, support local jobs through initiatives like the SGUnited Jobs and Skills Package, and strengthen systems for future resilience, including new dormitory standards and healthcare reforms.
The response highlighted the importance of tripartite partnerships and community support, with significant contributions from NGOs, employers, and grassroots volunteers, while also acknowledging lessons learned, such as the need for better early communication and mask availability during the crisis.
Singapore's financial strength and decisive leadership, including drawing on reserves and establishing support schemes, enabled the country to navigate the economic and health challenges, with the 4G leadership demonstrating effective governance and a commitment to emerging stronger from the pandemic.

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20 Mar 2023

Financial Services and Markets (Amendment) Bill

The Financial Services and Markets (Amendment) Bill was introduced to amend the Financial Services and Markets Act 2022 and related amendments to the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992.
The bill was presented by the Minister of State for Trade and Industry on behalf of the Prime Minister and read for the first time.
The Second Reading of the bill was scheduled for the next available parliamentary sitting on or after 2 May 2023.
The parliamentary sitting was suspended at 1:00 pm and resumed at 1:45 pm.

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20 Mar 2023

Singapore's Longer-term Inflation Expectations

Singapore’s longer-term inflation expectations remain well anchored, with professional forecasters’ five-year ahead projections stable and household expectations returning to historical levels despite a temporary rise in early 2022.
The Monetary Authority of Singapore (MAS) focuses on stabilizing near-term inflation and price expectations to prevent de-anchoring, and it continues to monitor global and domestic factors that could influence long-term inflation trends.
MAS acknowledges uncertainty about future inflation due to structural factors like demographics and technology but reaffirms its commitment to price stability through ongoing assessments and monetary policy adjustments.
Recent financial sector developments, such as the Credit Suisse takeover, are not expected to impact Singapore’s banking stability or long-term inflation, with the banking system remaining sound and resilient.
Wage pressures in Singapore are contained due to tripartite wage-setting mechanisms aligning wages with productivity, reducing the risk of a wage-price spiral, though MAS continues to monitor these developments closely.

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6 Mar 2023

Chicken Meat Products from Indonesia and Plans to Streamline Import Processes

Nadia Ahmad Samdin asked about the proportion of chicken meat from Indonesia after its 2022 export approval and plans to streamline import processes for other meat-exporting countries.
The Singapore Food Agency accredited Indonesia as a source for chilled, frozen, and processed chicken meat in June 2022, but import volumes will take time to grow.
SFA’s regulatory processes ensure food safety and there are currently no plans to change them, though efforts continue to diversify protein import sources.

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6 Mar 2023

Plans to Curtail Cross-border Scams Given Ease of Money Transfers through Real-time Payments

The Government plans to balance the benefits of faster, cheaper cross-border payments with stricter anti-scam controls, such as lowering transaction notification thresholds and daily transfer limits for real-time transfers.
Internationally, Singapore collaborates with counterparts like the Asset-Recovery Interagency Network-Asia Pacific and INTERPOL to exchange information, conduct joint operations, and disrupt cross-border scam syndicates.
MAS and the Singapore Police Force will continue working with the financial industry to monitor scam trends and enhance anti-scam measures as needed.

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6 Mar 2023

Civil List

The Senior Minister of State for Finance proposed to increase the Civil List figures for the President's Office, raising Class II expenditures from $4,532,400 to $6,696,700 and Class III from $2,762,300 to $3,342,200.
The adjustments are due to rising operating costs over the last decade, including higher manpower and IT security expenses, with the last changes made in FY2012 and FY2010 respectively.
Class I and Class IV expenditures will remain unchanged, and the increased budgets are expected to cover needs up to FY2025.
The proposal was put to a vote and agreed to by Parliament, varying the Schedule of the Civil List and Gratuity Act 1970.

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6 Mar 2023

Acknowledgement to the Chair

The Minister for Finance highlighted that the Budget 2023 debate covered extensive ground over two weeks, with over 70 hours of discussion and 661 cuts, positioning Singapore for a post-pandemic future amid global challenges like inflation and geopolitical tensions.
Key fiscal policies endorsed include strengthening climate resilience, supporting workers and businesses through economic transformation, enhancing healthcare and retirement adequacy, and boosting family support measures such as increased childcare and paternity leave.
The Speaker acknowledged the collaborative spirit of Parliament, emphasized the importance of substance over form in policymaking, and urged leaders to focus on evidence-based decisions to secure Singapore's continued progress and reputation.

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6 Mar 2023

Supplementary Supply (FY2022) Bill

The Second Minister for Finance introduced the Supplementary Supply (FY2022) Bill to allocate additional funds for expenditure exceeding the limits set by the Supply Act 2022.
The supplementary sums were approved by Parliament through the Supplementary Estimates of Expenditure for the financial year from 1 April 2022 to 31 March 2023.
The Bill was read a second time and passed after the motion was put to question and agreed to by the House.

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6 Mar 2023

Supply Bill

The Second Minister for Finance moved the second reading of the Supply Bill to approve government appropriations for the financial year from 1 April 2023 to 31 March 2024 from the consolidated and development funds.
The bill outlines heads of expenditure as per the Constitution and earlier approved estimates, with a schedule detailing the sums for each head.
The minister emphasized the bill's purpose is to empower the minister to issue warrants for authorized expenditure.
The house agreed to the second reading, and the bill was read a second time.
The bill was subsequently read a third time and passed without debate.

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6 Mar 2023

Committee of Supply – Total Sums for Main Estimates, Development Estimates and Resolutions

The Committee of Supply approved the sum of $116.14 billion for the Main Estimates and $34.12 billion for the Development Estimates for the financial year 2023-2024.
The resolutions were reported to Parliament by the Second Minister for Finance and agreed upon without debate.
The sums were supplied to the Government under the Heads of Expenditure for Public Services as detailed in Paper Cmd 20 of 2023.

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6 Mar 2023

Committee of Supply – Heads B, C, D, G and Z

The Chairman proposed to approve the Main Estimates for Heads B, C, D, G and Z, and the motion was agreed to.
The Chairman also proposed to approve the Development Estimates for Heads B and C, and the motion was agreed to.
No amendments were tabled for these heads of expenditure, leading to their approval en bloc.
The approvals are based on the estimated expenditure schedules in Paper Cmd 20 of 2023.

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6 Mar 2023

Estimates of Expenditure for the Financial Year 1 April 2023 to 31 March 2024

The Deputy Speaker chaired the session as the Committee of Supply commenced consideration of the 2023–2024 expenditure estimates on its seventh allotted day.
The debate focused on the government’s proposed budget allocations and expenditures for the financial year from 1 April 2023 to 31 March 2024.
Members were expected to scrutinize and discuss the spending plans across various ministries and agencies within the allocated parliamentary time.

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6 Mar 2023

Rationale for Adjusting Buyer's Stamp Duty Rates for Higher-value Properties

The government adjusted Buyer's Stamp Duty rates to be more progressive for higher-value properties starting 15 February 2023, with transitional provisions for Options to Purchase granted on or before 14 February 2023 to prevent gaming of the system.
The requirement that an Option to Purchase not be varied after 14 February 2023 aims to close loopholes, but MPs raised concerns about genuine minor variations not affecting stamp duty progressivity, prompting questions on flexibility.
The Senior Minister of State explained that IRAS allows appeals for genuine cases and has approved most appeals so far, balancing the need to prevent abuse while accommodating extenuating circumstances.
MP Lim Biow Chuan queried practical implications, such as financing delays, and how parties should handle variations without triggering higher rates, seeking clarity on IRAS's process.
The government maintained that upfront conditions are necessary, with case-by-case appeals ensuring fairness, and highlighted that a grace period for exercising options is already provided.

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3 Mar 2023

Review of 23 Industry Transformation Maps to Ensure Consistency with Net-zero Carbon Emissions Goal

Mr Louis Ng Kok Kwang inquired whether the 23 Industry Transformation Maps (ITMs) will be reviewed to align with Singapore’s net-zero carbon emissions goal by 2050.
He asked about the timeline for such a review if it is planned, and whether the Government would consider conducting it if not currently intended.
The debate seeks to ensure that the industry roadmaps are consistent with the national net-zero target, highlighting the need for policy coherence in climate action.

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3 Mar 2023

Placing Limits on Local Banks Refinancing Coal Power Projects Overseas

Leon Perera asked if MAS will set limits on Singapore banks refinancing overseas coal power projects.
Tharman, for the Prime Minister, highlighted the need to finance the decarbonisation of hard-to-abate sectors and a gradual phase-out of coal in Asia to avoid disrupting developing economies.
MAS guidance requires banks to base such financing on credible transition plans that reduce environmental risks and align with Paris Agreement goals.

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3 Mar 2023

Committee of Supply Reporting Progress

The Minister for Social and Family Development, Mr Masagos Zulkifli, sought and received the Chairman's consent to report progress on the Committee of Supply's review of the 2023/2024 Estimates of Expenditure.
The Chairman formally recorded the motion to report progress and sit again on Monday, 6 March 2023, and the Deputy Speaker assumed the Chair of the House.
The Deputy Speaker acknowledged the Minister's formal report that the Committee had made progress and granted leave to reconvene as requested.

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3 Mar 2023

Estimates of Expenditure for the Financial Year 1 April 2023 to 31 March 2024

The Parliament proceeded with the Committee of Supply for the Financial Year 2023/2024 on its 6th allotted day to consider expenditure estimates.
The debate was formally opened by the Speaker, who chaired the session and oversaw the proceedings.
The primary focus was on reviewing and approving the government's proposed expenditures for the upcoming financial year.

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3 Mar 2023

Average Rate of Increase in Property Tax for Private Residential Properties and Proposal to Reduce These for Properties Occupied by Elderly Retirees

Members of Parliament raised concerns about the rising property tax for owner-occupied private homes, particularly affecting elderly retirees who may be cash-poor but live in properties with high annual value due to neighborhood rental trends.
The Senior Minister of State for Finance explained that property tax is a wealth tax based on annual value, which is determined by comparable rental transactions, and confirmed a median compound annual growth rate of around 7% from 2020 to 2023.
The government stated it does not plan to reduce property tax rates for elderly retirees but instead supports them through broader assistance schemes like the Assurance Package and healthcare subsidies.
Officials emphasized that the tax system is designed to be fair and progressive, with property considered an asset and part of wealth, and noted that IRAS excludes outlier rentals when computing annual value.
Parliamentarians questioned the definition of wealth for retirees with high-value homes but low income, but the government maintained that assets like property contribute to wealth assessment and alternative support measures are preferred over tax concessions.

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