Chee Hong Tat
Singapore
“The National Parks Board (NParks) resumed crow shooting operations in March 2026 across nine districts, including Yishun. These sites were prioritised based on several factors, including the volume and severity of public feedback on crow-related issues, as well as the technical feasibility of conducting shooting operations safely at each…”
“To drive sustainable construction and reduce reliance on conventional diesel generators, the Housing and Development Board (HDB) has required the use of battery energy storage systems (BESS) or synchronised generator set systems at Build-to-Order construction worksites for all building tenders called since February 2025.”
“The Housing and Development Board (HDB) tracks resident feedback on maintenance-related issues, including spalling concrete and structural cracks within HDB flats. Such issues are much less common in younger flats, compared to older flats above 30 years old.”
“The Building and Construction Authority (BCA) provides resources on its website to guide building owners and Management Corporations Strata Title (MCSTs) on lift modernisation.”
“Private retail developments sold through the Government Land Sales Programme are intended to complement the commercial offerings in public developments undertaken by agencies, such as the Housing and Development Board.”
“The National Parks Board (NParks) is reviewing both the Animals and Birds Act and the Code of Animal Welfare (COAW). The former will include pet sector businesses and the latter will include and start with pet groomers.”
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Every one of 1,840 lines we hold for Chee Hong Tat, in date order, each linked to its source. Free to read, in full, without an account. Page 27 of 37.
“Mr Speaker, I thank Ms Foo for her questions. As to the amount of the tax that is payable, it is too early for me to give a number now because the investigations are still ongoing. But if there are cases where the rightful amount of ABSD is not paid fully, as I mentioned in my reply, IRAS will be able to ask the buyers to pay for the full amount and may impose a 50% surcharge in such cases. Taxpayers who wish to come forward voluntarily to disclose and make good any underpayment of taxes may do so. Of course, IRAS will look into each case on a case-by-case basis, depending on the circumstances. But in general, I would say that if you come forward in such cases to voluntarily disclose, IRAS will look at the case more favourably.”
“Mr Speaker, I mentioned the aggregate percentage of all the private residential property transactions. And I said in my main reply that this is about 0.5% where we observe such arrangements and we have sent out letters to those cases that we want to look into further. As the investigations are still ongoing, I seek the Member's understanding that I am unable to reveal more details at this point in time. But we do want to take a close look and get a better understanding on the transactions on a case-by-case basis, because the circumstances for each case will be important for IRAS to determine whether this is a genuine case or whether there are tax avoidance concerns.”
“Mr Speaker, I mentioned in my main reply that we will be looking at the different groups of individuals who are involved. And I said in my reply that we take a serious view against individuals who promote or facilitate such tax avoidance arrangements. So, besides the CEA which oversees real estate agents, if there are other groups of individuals who are involved in such arrangements, certainly, I think we will work with the relevant regulatory authorities on this matter.”
“Mr Speaker, the main concern that we have is about tax avoidance and not so much on the risk to banks. The financial institutions do not assume additional credit risks for mortgage loans structured in a "99-to-1" arrangement. This is because the borrowers are jointly and severally liable for the mortgage loans, regardless of the proportion of legal ownership of the property; and any party will be fully liable for the mortgage loan.”
“We thank them for their contributions to our fair and progressive system of taxes and transfers, where individuals with greater means will contribute more and those who are vulnerable and earn a lower income will receive more help.”
“The Inland Revenue Authority of Singapore (IRAS) adopts a risk-based approach to detect and enforce against non-compliance and tax avoidance. As part of its surveillance efforts, IRAS detected a small but rising number of "99-to-1" arrangements in recent years. It has therefore initiated audits of such transactions to better understand the circumstances of each case and ensure that buyers fulfil their rightful stamp duty obligations. Whether a "99-to-1" arrangement involves tax avoidance depends on the facts and circumstances surrounding the specific case. Should IRAS determine that tax avoidance has occurred, it will recover the rightful amount of stamp duty from the buyers and may impose a 50% surcharge on the additional stamp duty payable. There is no statutory time limit for stamp duty audits. As these "99-to-1" arrangements make up a very small proportion of the overall residential property market transactions, their impact on the residential and mortgage markets in Singapore is not significant. Other than the buyers, the Government also takes a serious view against individuals who promote or facilitate such tax avoidance arrangements. IRAS will refer those identified of doing so to the relevant regulatory agencies. In the case of property agents, which Members asked about, IRAS will refer them to the Council for Estate Agencies (CEA) for investigation and disciplinary action in accordance with CEA's Code of Ethics and Professional Client Care. Depending on the severity of the breach, agents may face financial penalties and/or suspension of their registrations. IRAS takes a firm stance against tax evasion and avoidance. The large majority of taxpayers are compliant and pay the taxes that are due.”
“Thank you. Sir, my response to these Parliamentary Questions will also address the Parliamentary Quesiton filed by Mr Desmond Choo1, that is scheduled for a subsequent Sitting. Mr Choo may wish to withdraw his Parliamentary Question after this Sitting, if he is satisfied with the reply to his question. When a residential property is jointly purchased by two or more buyers, the Additional Buyer's Stamp Duty (ABSD) rate arising from the buyer with the highest ABSD profile will apply on the entire value of the purchase. Hence, when a single purchase is split up into two or more steps to reduce the tax payable, the Commissioner of Stamp Duties is empowered, under section 33A of the Stamp Duties Act, to disregard the individual steps and assess stamp duty as a single joint purchase and to recover the rightful amount of ABSD due. The "99-to-1" property purchase arrangements typically involve individuals without any prior property count buying residential properties in their name initially and then, within a very short period of time, selling the 1% interest to another individual who has a higher ABSD profile. From 2018 to 2021, about 0.5% of private residential properties transacted involved such "99-to-1" or similar arrangements, where the owners sold a partial interest in their property to another buyer within a short period of time. The buyers were typically spouses or other immediate family members, with a higher ABSD profile, but with the ability to secure financing for the property. By structuring the transaction in this manner, the parties involved have effectively reduced the ABSD on the purchase of the property. Individuals may enter into various property purchase arrangements for different reasons, both tax and non-tax-related.”
“Mr Speaker, may I have your permission to answer Question Nos 10 to 14 together?”
“(proc text)] [(proc text) Resolved, (proc text)] [(proc text) That this Parliament, pursuant to section 7 of the Civil List and Gratuity Act 1970, resolves that the Schedule to that Act be varied by deleting the figures "$4,532,400" and "$2,762,300" in the second column and substituting for them the figures "$6,696,700" and "$3,342,200" respectively. (proc text)]”
“Mr Speaker, Sir, I beg to move, That this Parliament, pursuant to section 7 of the Civil List and Gratuity Act 1970, resolves that the Schedule to that Act be varied by deleting the figures "$4,532,400" and "$2,762,300" in the second column, and substituting for them the figures "$6,696,700" and "$3,342,200" respectively. Sir, the Civil list was last adjusted for FY2012. Operating costs have risen over the last decade. The President's Office has been able to manage within its budget by re-allocating savings across expenditure across Classes II, III and IV. It is provided for under section 5(2) of the CLGA. To enable the President's Office to continue to meet its expenditure needs, I propose to vary the sums in Class II and Class III of the Civil List. The provisions for Class I expenditures relating to the President's salary and entertainment allowance and Class IV expenditures concerning special services will remain unchanged. For Class II expenditures, in respect of the salaries of personal staff, these were last increased for FY2010. The proposed increase more than 10 years later is to cater for increases in expenditure on manpower, including the Civil Service salary adjustments announced last year. Therefore, I propose an increase from $4,532,400, to $6,696,700 for Class II expenditures. For Class III expenditures, which provide for the expenses of household, I propose an increase from $2,762,300 to $3,342,200. This is to cater for higher IT costs, including IT security. We expect this round of increase to be sufficient for up to FY2025. Sir, I beg to move. [(proc text) Question put, and agreed to.”
“Sir, I think I have explained this several times. The appeal process is to consider the circumstances of each transaction case by case. I hope the Members, both Assoc Prof Jamus Lim and Mr Lim Biow Chuan understand why it is very difficult for us to spell out upfront what are all the detailed situations, because it is going to be case by case. But as I had given Mr Lim the assurance, if there are genuine cases and the changes are not major, they are minor changes, do surface to IRAS and IRAS will consider if there are justifications to provide flexibility.”
“Sir, I think what Assoc Prof Jamus Lim raised is different from what Mr Lim Biow Chuan raised. Mr Lim is not asking about the duration. We do provide some time in the conditions that the OTP is exercised on or before 7 March, or within the validity period, whichever is earlier. So, it is not that there is no grace period provided. But what Mr Lim Biow Chuan asked is a slightly different thing. He is asking if there is a variation to the OTP that has been signed. As I explained, we do need to cater to a range of scenarios and possibilities, so we state the conditions upfront, so we do allow appeals and IRAS has approved the majority of appeals it has received so far.”
“Sir, I think the Member raised a valid point that in some situations, the variations to the OTPs are genuine and minor. So, for this kind of situations, as I mentioned in my main reply, they can submit an appeal to IRAS and IRAS will consider if there is justification to provide flexibility. IRAS has done so for the majority of appeal cases it received so far. However, when we set the criteria, we have to cater to a range of different possibilities, including cases where people are deliberately trying to avoid paying higher BSD. So, I think we need to strike a balance.”
“Mr Deputy Speaker, the revised Buyer’s Stamp Duty or BSD, rates will make our BSD regime more progressive by having higher rates when buyers purchase more expensive residential and non-residential properties. The transitional provision and its three conditions are similar to those implemented for the Budget 2018 BSD rate adjustments, and past Additional Buyer’s Stamp Duty or ABSD, rate adjustments. These conditions are designed to ensure that the prior BSD rates apply only to pre-existing Options to Purchase or OTPs, that are granted on or before 14 February 2023, even though they are exercised shortly later. There is a condition that the OTP should not be varied on or after 15 February 2023 to minimise gaming by buyers hoping to circumvent the revised BSD rates. Buyers who are unable to fulfil the conditions of the transitional provision due to extenuating circumstances may submit an appeal to the Inland Revenue Authority of Singapore (IRAS).”
“MPA, the Employment and Employability Institute (e2i) and Workforce Singapore (WSG) have designed training programmes to groom local seafarers to become harbour craft captains and chief engineers. The programme fees are fully funded, and trainees receive training allowances. MPA will continue to strengthen the training and support for our local seafarers and work with tripartite partners to attract and retain locals for these roles. So, I hope our young people will take up maritime-related courses and consider making maritime your port of call.”
“It allows the haulier community to exchange data, job pool and integrate solutions, for trips made by their trucks. Currently, each truck makes up to 12 trips a day on average, but about 30% are empty trips. With dynamic job allocation and job pooling provided by the app, the number of empty trips will be reduced by up to 50%. This will also reduce the carbon footprint of the trucks – equivalent to planting up to 300,000 trees a year. Sir, we need to enhance our competitiveness to provide good jobs and career opportunities for our people. At the same time, we need to continue building a future-ready workforce with the right skills and expertise. 11.45 am In response to Ms Janet Ang, we have put in place several schemes over the years to attract and develop a steady pipeline of maritime talent. Last year, I announced that MPA and our tripartite partners would fund a new Sail Milestone Achievement Programme – we call it SailMAP – to support the earnings of our local seafarers. Ms Nur Farhana was one of the 41 seafarers who benefited from this programme. Under SailMAP, she received $5,000 for attaining her Class 1 Certificate of Competency (CoC). This is the highest level of certification. This helped to offset her training costs for CoC Class 1 and will support her plans to pursue a Master of Science in Maritime Studies at the Nanyang Technological University (NTU). I agree with Mr Gan Thiam Poh that we need a pipeline of local seafarers to support our essential harbour craft sector. SailMAP is designed to deal with the challenges unique to ocean-going seafarers who sail for extended periods while our seafarers within the harbour craft sector can disembark and return home to their families more frequently.”
“I will share three examples. First, we are reviewing our transhipment procedures at the land checkpoints to reduce the number of permits companies need to apply for and help businesses save costs. Second, we are simplifying the requirements for exports at our air checkpoint to reduce the level of screening required for goods from companies with strict safety and security processes in place. Third, for goods moving between land checkpoints and our seaports, our operators are exploring ways to improve efficiency. Currently, cargo coming in from Malaysia or Malaysian-registered trucks need to be unloaded and loaded onto a Singapore-registered container truck with a Singaporean or work permit driver before they are allowed to enter our container terminals. PSA is working with the industry to allow non-Singapore-registered and non-Singaporean drivers under local logistics and haulier companies to access the container terminals. These companies and drivers will be subject to PSA's approval after attending workplace safety training and assessments. With this initiative, local logistics and haulier companies approved by PSA will now be able to directly transport the goods from Malaysia to the container terminals in Singapore, saving time and money. As we adopt a tripartite approach to review our regulations and create a pro-business environment, I also urge companies to make full use of the Government's support to improve their efficiency, including through digitalisation. (In English): Mr Chairman, I am also glad to know that PSA, the Singapore Transport Association (STA), the Container Depot and Logistics Association (Singapore), and Enterprise Singapore have worked together to develop the OptETruck app in November 2022.”
“Finally, we are exploring ways to move goods more efficiently between land checkpoints and our seaports, to support multi-modal connectivity. Currently, only Singapore-registered container trucks, and Singaporean or work permit drivers are allowed to enter our container terminals. Trucks from Malaysia that are not Singapore-registered and/or have foreign drivers will have to offload their containers outside the port after entering Singapore and load them onto Singapore-registered trucks with Singaporean or work permit drivers, before these containers are allowed to enter our container terminals. This double-handling is not productive, as it leads to increased manpower requirements and business costs. We are also short of local drivers. PSA is working with the industry to allow non-Singapore registered trucks and non-Singaporean drivers under local logistics and haulier companies to access the container terminals and handle containers. They will do this in a phased approach to ensure safety and security. The companies and drivers will be subject to PSA's approval, after attending workplace safety training and assessments. Allied Container Services is the first company that PSA has approved under this new arrangement. Allied Container Services will now be able to directly transport the goods of its customers from Malaysia to the container terminals in Singapore, without double handling. Mr Chairman, in Mandarin, please. (In Mandarin): [Please refer to Vernacular Speech.] Chairman, while Maritime Singapore does not compete on cost alone, there are areas where we could help businesses to save time and money by reviewing our rules and regulations. The Government will continue to work with industry partners and unions to achieve this. The work is ongoing.”
“Mr Chairman, while Singapore does not compete on costs alone, there are areas where we could help businesses to save time and money by reviewing our rules and regulations. The work is ongoing. I will share three examples. First, we are reviewing our transshipment procedures at the land checkpoints. Currently, the transshipment of goods through our land checkpoints at Woodlands and Tuas is considered import to be re-exported. Companies must apply for two permits from Customs – one for importing the goods, and another for exporting them, resulting in higher administrative and compliance costs. The review streamlines land transshipment procedures through the use of transshipment permits, similar to existing practices for air and sea transshipment. This will reduce the number of permits that companies need to apply for, with potential cost savings of up to S$40 for each transshipment. The total savings for the industry could amount to S$2 million annually. Next, we are reviewing the requirements for exports at our air checkpoint. Companies are required to screen their cargo before export, which may involve physically opening the cargo for inspection. Companies with appropriate supply chain security controls in place can apply to the Police, for consideration to receive a reduced level of screening on their cargo. These requirements were put in place for good reasons – to ensure safety and security. They have served us well, upholding Singapore's position as a trusted supply chain hub. However, there is scope to further calibrate the requirement based on risk management. For example, we could reduce the level of screening for goods exported through Singapore, if they come from overseas companies with strict safety and security processes in place.”
“When fully operational in 2025, it will provide real-time security monitoring and disseminate information to mitigate cyber threats, advise on post-incident measures, facilitate information-sharing and training for stakeholders. Sir, I will now touch on environmental sustainability. Decarbonising is critical for Maritime Singapore's long-term competitiveness. However, the transition to a greener future will involve costs and trade-offs. Similar to digitalisation, the Government will walk this journey with our companies, but it is also important for businesses and business owners to take action and start to embark on the journey. From 2030, new harbour craft operating in our port waters must be fully electric, be capable of using B100 biofuels, or be compatible with net-zero fuels, such as hydrogen. MPA has made good progress in supporting the electrification of harbour craft. Pilots for the first full-electric ferry by the consortium led by Keppel Offshore & Marine Limited (KOM) and full-electric lighter craft by the consortium led by SeaTech Solutions International will commence later this year. MPA is also working with terminal and harbour craft operators to pilot the implementation of charging stations. The first charging station will be deployed by Shell at the Shell Energy and Chemicals Park Singapore on Pulau Bukom by the first half of 2023, to support full-electric ferries owned and operated by Penguin International. This will form part of a larger charging infrastructure implementation master plan, which MPA will roll out by 2025. The transition to a sustainable future will take time. We need to start now to achieve our 2050 net-zero emissions targets.”
“MPA worked with the China Maritime Safety Administration to develop and trial standards for the exchange of electronic certificates and port clearance data, to facilitate efficient vessel clearance. The standards will be operationalised for ships travelling between the Port of Guangzhou and Singapore later this year. China and Singapore have also submitted a joint paper to the IMO, to promote global adoption of these standards. Another key enabler is common data infrastructures. They facilitate trusted and secure data sharing, resulting in better visibility and increased efficiency across the supply chain. Ms Janet Ang asked about the development of the Singapore Trade Data Exchange (SGTraDex). Last year, MPA co-funded a data-sharing pilot for ship supplies procurement and lighterage logistics with SGTraDex, Jurong Port and other partners. The pilot reduces manual data reconciliation and can save the industry over S$20 million annually. In 2022, MPA expanded the Industry Digital Plan to all Sea Transport sub-sectors. More than 3,000 small- and medium-sized enterprises can now apply for funding support to adopt pre-approved digital solutions and I encourage them to do so. Sir, I agree with Mr Saktiandi that digitalisation will increase cyberattack risks. We need robust cyber defences. First, for critical information infrastructure in MPA and our port operators, we have upgraded the existing Maritime Security Operations Centre (MSOC) with more advanced capabilities to enhance early threat detection, monitoring, response, information sharing and analysis. As cyber threats evolve, we will continue to expand our capabilities. Next, MPA will establish a Maritime Cyber Assurance and Operations Centre, in collaboration with the industry.”
“We remain optimistic about the medium- to longer-term outlook for Maritime Singapore, which will be boosted by the development of Tuas Port and the growth of our International Maritime Centre. However, there are driving forces we need to prepare for. Governments and companies are reconfiguring supply chains to enhance resilience. Port operators and shipping lines are integrating adjacent functions and tapping on digitalisation and technology. There is also an increased emphasis on environmental sustainability. The IMO could announce a higher level of ambition to reduce greenhouse gas emissions later this year. Corporates and individuals are becoming more conscious of their carbon footprint. Mr Raj Joshua Thomas filed a cut on how we will ensure the relevance and competitiveness of our maritime sector. We plan to do so in three ways: enhancing digitalisation, improving sustainability and streamlining business costs. Mr Saktiandi Supaat asked for an update on our digitalisation plans. We are on track to provide full 5G coverage in our anchorages, fairways, terminals and boarding grounds by mid-2025. Twelve maritime 5G base stations will be set up, of which three will be ready by 2023 to support the testing and development of new applications, such as remote pilotage and digital bunkering. MPA will launch its Next Generation Vessel Traffic Management System in 2025. This uses data analytics and machine learning to enable our port to safely handle more complex and numerous vessel movements. We will launch a tender to develop the system prototype this year, for testing in a real-time operating environment. Mr Saktiandi also asked about digitalOCEANSTM.”
“The bus timings are, therefore, subject to more variability along the journey, which may lead to reduced reliability and longer waiting times for commuters. 11.30 am About 10% of commuters use intra-town feeder services to travel to another part of the town. The large majority of commuters use them to connect to the Mass Rapid Transit (MRT) and other bus services at key transport nodes. This means, that their commuting needs will be better served with a hub-and-spoke model instead of using the intra-town feeder services. The hub-and-spoke model is also more flexible in meeting new demand, for example, when a new Built-To-Order (BTO) estate is constructed within the town. Mr Gan Thiam Poh asked about City Direct Services. For City Direct Service 671 from Sengkang to Central Business District, the ridership has been increasing as more residents move into the new BTO blocks at Sengkang West. I am happy to share with Mr Gan that LTA will add an additional trip during the morning peak in the second quarter of this year. Ms Yeo Wan Ling asked for an update on the transport options for our workers at Tuas Port. There is currently one public bus service from Tuas West Road MRT station to Tuas Port. PSA also operates shuttle services for its staff between Tuas Port and about 50 locations across Singapore. The MPA will form a tripartite committee with Government agencies, industry partners and unions to discuss and jointly propose practical solutions to improve accessibility to Tuas Port. Sir, let me now speak about Maritime Singapore. Like waves in the ocean, the global maritime sector has experienced ups and downs over the years.”
“Sir, I will first address cuts by Members on public transport. Mr Faisal Manap asked about bus services in Kaki Bukit. On bus services 137 and 137A, LTA introduced service 137A in 2019 to provide more trips during the morning peak. This reduced the headway from 15 minutes, which is within Bus Contracting Model standards, to a maximum of 10 minutes during the morning peak. Some of the headways are within five minutes. Commuters can also use the MyTransport app to estimate bus arrival timings and further reduce their waiting times at the bus stop. In January 2023, the average heaviest one-hour loading for Service 137 at the bus stops before the Bedok North station was 58%, which is within acceptable levels. However, on a few days in January 2023, the operator reduced two trips for Service 137A due to manpower shortages and this resulted in the higher loading levels which Mr Faisal described. These trips have been restored and the situation has improved. I want to assure Mr Faisal that LTA will continue to monitor and we will introduce additional bus trips if necessary to meet higher commuter demand during peak periods. The second issue was on "Townlink feeder services". This was the previous name used before the Bus Contracting Model was introduced in 2016. We now refer to such arrangements as "intra-town feeder services", where feeder services would travel around the town usually in two loops from the bus interchange. There are trade-offs to run such services, which is why they are no longer introduced for new routes. First, these services often ply a much longer route, compared to a conventional hub-and-spoke model with shorter feeder services connecting different parts of the town to key transport nodes.”
“Sir, I think I had explained this in my response to Mr Yip Hon Weng earlier, and also in my main reply. Property is an asset, and I hope Mr Lim agrees with me on that. An asset is part of your wealth. So, I think we do need to consider that a person's assets are a proxy measurement of the person's wealth. This does not mean, therefore, that we do not empathise with the situation that I am sure Mr Lim's residents face. I also have residents who are in a similar situation. We do understand that they are retirees, they may not be able to earn a lot of income because they are not working. So, the way to help them is not to have a lower PT, because that is something that we need to put in place as part of our fair and progressive tax system, but to find other ways of helping them. I mentioned some examples earlier, in AP, and also when we look at certain schemes that we design. In our polyclinics, for example, we do not means test based on your property type, but when you go to a polyclinic, we look at your age and seniors do receive additional subsidies.”
“Mr Speaker, AV is determined based on the rental transactions for comparable properties with similar attributes, such as location, age and condition. The way that IRAS goes about computing AV is that they will, generally, exclude very high and outlier rentals that the properties may fetch. And so, I think this is a way to ensure that the data and the statistics are not skewed by some of these outliers.”
“Mr Speaker, I mentioned some examples in my reply earlier. In addition to what I mentioned, we also provide certain assistance and certain help schemes, that are applicable to all households, regardless of housing type. For example, the $300 Community Development Council (CDC) voucher that was given out in January this year, the Household Utilities Credit that was given out last year. And for seniors who are in the Merdeka Generation or the Pioneer Generation, they can also receive additional MediSave top-ups and healthcare subsidies when they visit the polyclinics, when they go see the general practitioner (GP), when they go to the hospital. Sir, I think the design of our tax and benefits system is based on a concept of it being fair and progressive. And by that, what we mean is that everybody will contribute, but those who are wealthier and earn a higher income, will contribute more. As I mentioned in my reply earlier, the PT is a form of wealth tax on immovable assets. And if we look at the retirees who are staying in private properties, especially higher-end private properties with higher AVs, compared to retirees who are staying in rental flats or smaller HDB flats, I think there is a difference in their wealth.”
“We do so not by lowering PT rates for residential properties owned by retirees, but by supporting our seniors in other ways. We have various schemes to help retirees, whether living in private residential properties or Housing and Development Board (HDB) flats. For example, through the Assurance Package (AP), seniors living in private properties can receive AP cash, AP MediSave and the cost-of-living special payment.”
“Thank you, Sir. Property tax, or PT, is our primary means of taxing wealth. PT payable is based on the applicable PT rate, applied to the Annual Value, or AV, of the property, where AV is a proxy for the property value and, thus, the owner's wealth. In line with the wealth tax intent of PT, the PT on residential properties is taxed on a progressive schedule. Properties with AVs of up to $8,000 pay no PT, while properties with higher AVs pay PT at progressively higher rates of taxation. Owner-occupied residential properties enjoy concessionary PT rates and are taxed at rates lower than non-owner-occupied ones. Sir, over the years, the Government has received feedback, including from Members of both sides of this House, to enhance our wealth taxes. This is what we have been doing. As announced in Budget 2022, PT rates have been raised for higher-end owner-occupied residential properties, with AVs above $30,000 in 2023 and 2024. The new rates affect less than one in 10 owner-occupied residential properties. The AV is a proxy of the value of a property and is determined based on the rental transactions for comparable properties with similar attributes, such as location, age and condition. A property that earns more rental income has greater value. And therefore, the AV and the PT payable will be higher. The median PT for owner-occupied private residential properties in Singapore, grew at a compound annual growth rate (CAGR) of around 7% from 2020 to 2023. The growth rate is similar for owner-occupied private residential properties within and outside the central region. I understand Members' concerns that some retirees may face financial difficulties. The Government remains committed to supporting retirees.”
“Mr Speaker, may I have your permission to answer Question Nos 3 and 4 together?”
“Sir, these are ongoing engagements and communications with our seniors. Part of it, we will go through the Silver Generation Office. The face-to-face interactions between our Silver Generation Ambassadors and the seniors would be helpful, to explain to them some of these schemes and what they are eligible for. We also rely on other means of communications, including the mass media.”
“Mr Speaker, MOF had earlier issued a media statement to explain that the criteria for the Government’s social support schemes in 2023 will not be affected by the latest Annual Values (AVs) revision, as the AVs as of 2022 are used to determine scheme eligibility. We are also working with the Silver Generation Office (SGO) to engage seniors and provide them this assurance. For many of our social support schemes, no application is required and Singaporeans receive the support automatically as long as they are eligible. These include the cash payments and MediSave top-ups under the GST Voucher scheme and the Assurance Package. The Government regularly reviews our social support schemes, including the AV thresholds, to ensure that Singaporeans in need of support receive it.”
“Sir, I would like to clarify a point from my earlier response to Mr Gerald Giam's Parliamentary Question (PQ), where I said that the Auditor-General's Office's (AGO) audits go beyond procedural compliance and include value-for-money (VFM) audits. [Please refer to "Analysis of Government's COVID-19 Procurement and Expenditure", Official Report, 1 March 2023, Vol 95, Issue 89, Oral Answers to Questions section.] To be precise and accurate, AGO's audits cover VFM insofar as ascertaining whether there has been excess, extravagance or gross inefficiency leading to waste and whether measures to prevent them are in place.”
“Sir, I think we were talking about Government spending. So, what I cited earlier in terms of the $72.3 billion, I mentioned in my reply that the bulk of it, 90%, was not meant for procurement, but as support – Job Support Scheme, the COVID-19 relief grants and so on and so forth – that we give to families, workers and businesses. The $8 billion – I have given Mr Giam a breakdown of which are single quotes. This is Government expenditure, this is from the Government. If I turn to what is, I think, Mr Giam's larger question, is it whether you think that Temasek companies should be included in this overall Government expenditure? No? Okay. Thank you.”
“Sir, the first question from Mr Giam, yes, there were contracts that were awarded to Temasek-linked companies. I think some of these were also previously discussed in this House. The second question on whether the audits would cover not just to make sure that the transactions were done in accordance with proper procedures – I think that was what the Member was saying – but also to ensure value-for-money, yes, I think the audits, both the AGO's and also the internal audits, will look to cover both areas. [Please refer to "Clarification by Senior Minister of State for Finance", Official Report, 1 March 2023, Vol 95, Issue 89, Clarification section.]”
“Speaker, from January 2020 to July 2022, agencies adopted Emergency Procurement procedures to directly contract with suppliers instead of going through open sourcing. I hope the Member understands why such an arrangement was necessary during the COVID-19 pandemic, for the Government to respond swiftly to the crisis. Of the $72.3 billion COVID-19 pandemic-related spending, about 90% was not for procurement of goods and services, but to provide support for families, workers and businesses. Of the $8 billion of procurement, none were made without a quote, and about $1.1 billion was made with a single quote, for the purchase of testing and swabbing services, as well as food and medical supplies. For those procurement contracts that were entered into with single quotes, no procurement was made to related parties, which refers to companies that are directly owned by the Ministries or Statutory Boards. Government agencies are expected to ensure proper and impartial evaluation is done and seek the necessary approvals for all procurement, including those done under Emergency Procurement procedures. All procurement transactions are further subjected to independent checks by agencies’ internal audit teams and the Auditor-General’s Office (AGO).”
“— agencies to empower the officers. What we want to do is continue this process of working closely with them, letting our officers know that when you bring up such suggestions, you will be supported. We will facilitate experimentation, trying out some of these new ideas. And even if some of them were to fail along the way, because we are doing some pilots and it is not guaranteed that all of these would succeed, it is okay. It is okay to try because we are all working towards a better outcome.”
“Mr Chairman, Mr Saktiandi raised an important point because we do not just focus on the large ticket items. Those are very important, because, as I mentioned in my speech earlier, we managed to save $1 billion dollars through the process together with experts from private sector and academia. But many of the smaller projects on their own, may not yield a lot of savings. But if you add them all up and there are many of them, could make a positive impact on our overall value-for -money outcome. So, we have been encouraging the Ministries and —”
“Mr Chairman, the current payment term for the Government to pay our suppliers is within 30 days. And this is a standard that I would say, is comparable, if not, better than some of the other governments and even private sector companies. But we will want to work towards, where possible, to shorten the payment period. Because, as the Member correctly pointed out, this will directly benefit our SMEs in terms of cashflow. I would want to caveat that a little bit by saying that it depends really on the nature of the contract. There are some that are more straightforward – the service has been provided, the product has been delivered, everything is okay, we can try and speed it up. But there are some that may require more evaluation because it is not so straightforward, or if the amounts are much bigger and we need to be careful, with due diligence, in order to ensure value for money and prudent spending. Rather than to have sort of a blanket yes or no, we will certainly aim to work towards where we can – for simpler, more straightforward contracts, smaller amounts, we try our best to go within 14 days. But larger amounts, more complex contracts, we may need to give the agencies a bit more time so that they also can safeguard the interests of public funds.”
“When you remove some of these, then they do not have to apply, do not have to pay. This is something we want to keep doing and it has to be a partnership with our businesses and our trade associations, because the Government may not know fully where are all the pain points and where are all the areas for improvement. But from the users' point of view, the businesses will know. That is why I mentioned in my speech earlier that I want to work closely with SBF and ASME, not just to improve on the tender processes by introducing Tender Lite, which is one of the ways to help businesses, but also on other pro-business initiatives.”
“Mr Chairman, I thank Mr Liang for asking this very important question. The Government deals with quite a lot of businesses: in our capacity as regulator, when they are applying for licence, they need our permit to operate; or as a buyer, when we procure services and then they are our suppliers. In both instances, there is scope for us to continue to look for ways in which we can do better in our interactions with businesses especially smaller businesses, the SMEs, because they do not have a lot of resources. So, when we design our licensing framework, when we design our rules and procedures, we also want to make sure that they are able to comply with not too much difficulty. Sir, I want to highlight that this is not just an MOF effort. This is actually a whole-of-Government effort. And my colleagues from the other Government Ministries and agencies, have also been embarking on this initiative. One of the initiatives, Mr Liang is aware, is the Pro-Enterprise Panel under the Ministry of Trade and Industry (MTI) where we regularly solicit feedback from businesses and from trade associations on where are some of the pain points and where are some of the areas for improvement. I recall, a few years ago, when I was with MTI, I shared an example of how we used business process, re-engineering and digital transformation to implement Go-Business licensing portal where we shortened the processing time for food-related businesses when they applied for licenses by up to 14 days and we cut down the number of forms that they need to submit. Previously, I think it was 14 altogether, more than 800 data fields. We did some consolidation and we reduced it to one form with fewer than 90 data fields, and we removed some of the duplicate licences and helped them to save on licensing fees.”
“This will then provide the social cohesion and stability for us to pursue pro-growth policies and enlarge our economic pie, generate more opportunities and provide more resources that we can then use to invest in our collective future and support the vulnerable amongst us. In this way, we can strengthen our social compact and grow our economy at the same time. The two objectives will reinforce and support each other, allowing us to move forward while staying together.”
“Not only through taxation and redistribution which are done through policies and laws but also through philanthropy and volunteerism which come from willing hands and loving hearts. MOF provides funding support for many community and ground-up programmes which contribute to the development of the social sector. There are many existing efforts by agencies working with intermediaries like the Community Foundation of Singapore and ComChest, as well as beneficiaries to link up donors with suitable charitable causes. I have also met wonderful people such as those from Utama and Majurity Trust, who started initiatives to help raise donations from high net worth individuals and corporations to fund worthy social causes like caring for vulnerable seniors and providing opportunities for children from lower-income families. The Government provides broad-based support in the form of 250% tax deductions for qualifying donations to Institutions of a Public Character (IPCs) and the Corporate Volunteer Scheme (CVS) supports volunteerism efforts by businesses in IPCs. The Government also provides matching grants to encourage charitable giving. For example, we allocated a top-up of $100 million to the Tote Board’s Enhanced Fundraising Programme which in turn provides dollar-for-dollar matching on eligible donations received by charities. Sir, to build stronger social resilience, the Government will continue to encourage our community especially those who have done well to engage in sustained giving and volunteerism. Through such efforts, we will strengthen our social compact and build a more caring and inclusive Singapore.”
“Businesses also need to accelerate their pace of digitalisation, a point which Mr Liang made. The Government will implement InvoiceNow as the default e-invoice submission channel for all Government vendors within the next few years. Using InvoiceNow will help businesses improve efficiency and reduce cost, by eliminating the need for manual processing and it also reduces errors. Businesses transacting on InvoiceNow can save $8 per invoice compared to the manual process. InvoiceNow also facilitates the direct transmission of invoices in a structured and standardised digital format that is accepted internationally across finance systems, and this helps businesses access overseas markets more easily. Today, about 55,000 businesses have adopted InvoiceNow, supported by 200 service providers. I encourage more businesses to come on board. Sir, Mr Liang and Ms Foo Mee Har asked how MOF will support and encourage more philanthropy and volunteerism from corporations and the community. Philanthropy and volunteerism are key elements for building a strong social compact. There is something intangible and different in how we build up the character of our society, when people go beyond what they are required to contribute under our fair and progressive tax and benefits system, where everyone contributes something and those who are better off contribute more. Many Singaporeans and also foreigners and companies who are based here, have an interest in philanthropy and are keen to help others in society. We have been strengthening our ecosystem to encourage their contributions and participation to maximise the positive impact to our local communities. This is a good way to keep our society cohesive and strengthen our solidarity as one united people.”
“Members such as Mr Derrick Goh have highlighted during the Budget debate that Government can help prepare SMEs for new requirements and opportunities in environmental sustainability. We agree. The public sector is supporting our suppliers’ efforts to adopt greener practices which are increasingly in demand by other major buyers. Over the years, the Government has incorporated environmental sustainability requirements into our procurement such as requiring information and communication technology (ICT) equipment and air conditioners to meet energy efficiency standards. Our target is to include environmental sustainability requirements and evaluation criteria into all Government procurement within the next five years, in a manner that keeps pace with industry readiness and international developments. Starting from FY2024, for tenders of construction projects and ICT projects with minimum estimated procurement value of $50 million and $10 million respectively, we will set aside up to 5% of the evaluation points for sustainability-related considerations. The Government will further engage the industry stakeholders on the details of these measures. Another capability that is increasingly sought after is sustainability reporting. Businesses that can provide good sustainability-related information can gain competitive advantage, expand into markets and potentially access cheaper funds through green financing. To drive sustainability reporting efforts for the industry, Accounting and Corporate Regulatory Authority (ACRA) and the Singapore Exchange Regulation established the Sustainability Reporting Advisory Committee in June 2022. The Committee will embark on its public consultations later this year.”
“We will continue to simplify our processes for suppliers, including SMEs, to participate in Government tenders while maintaining a level-playing field for all businesses and achieving value-for-money procurement outcomes. For procurement below $90,000, financial track record is not required. The terms and conditions are also simplified. For example, there is no requirement to provide security deposits. SMEs participate actively in our Government contracts and about 80% of these are awarded to SMEs annually. Winning Government contracts gives SMEs the opportunity to build up their track records, develop capabilities and capacity to tap into new growth areas. To further improve the access of SMEs to business opportunities through Government tenders, MOF will introduce a new category of tender by the end of 2023 called “Tender Lite”, which comes with fewer and simpler conditions. Tender Lite will allow more suppliers to participate in tenders with value higher than $90,000 but below $1 million and is estimated to cover over 70% of all Government tenders that are currently awarded to SMEs. MOF will work with representatives from Singapore Business Federation and the Association of Small and Medium Enterprises, as well as Government agencies on the design of Tender Lite. We believe this approach of Government and industry working together as partners will bring about win-win outcomes and allow us to move faster and innovate new solutions more effectively. My colleagues and I are keen to continue the partnership with our industry partners beyond Tender Lite and extend the collaboration to other subsequent areas of work that will benefit our businesses.”
“MOF and the Ministry of Trade and Industry (MTI) will work with the financial institutions and trade association and chambers to encourage adoption of eGuarantees for such transactions. Just as the use of PayNow for digital payments has allowed businesses and individuals to enjoy lower transaction costs and time savings compared to the traditional method of using cheques, the adoption of eGuarantees can bring about benefits compared to the current method of providing physical bank guarantees. Next, MOF removed the requirement for businesses with annual turnover of less than $5 million to submit audited accounts when applying for Government Supplier Registration. This benefits about 2,400 small and medium enterprises (SMEs) annually, with estimated cost savings of around $4.5 million per year. MOF continually makes improvements to GeBIZ, the Government-wide procurement system. For instance, about 3,000 businesses can benefit from the Supplier File Repository by the end of this year. Businesses no longer need to submit the same financial statements and company profile when responding to different Government quotations and tenders. We will also consider the features that Mr Saktiandi mentioned for future improvements. Sir, another example is Inland Revenue Authority of Singapore’s (IRAS) initiative to encourage businesses to use seamless filing software. Such software provides many productivity benefits for businesses, as they can automatically generate and file their corporate income tax computations and returns. This process takes only 15 minutes compared to the estimated eight hours required for manual preparation and submission. Moving on to the next area of how MOF supports businesses to develop capabilities for growth.”
“This approach also reduces the need for agencies to call separate tenders and quotations, saving at least 100,000 man-hours a year. Sir, Mr Liang, Mr Edward Chia, Ms Mariam Jafaar and Mr Saktiandi asked how MOF helps businesses to reduce costs and build capabilities for growth. The Government will continue to implement pro-business policies and measures and provide an environment that enables them to grow and succeed. Besides supporting businesses through our economic agencies and via a comprehensive suite of grants and incentives for innovation, productivity improvements and skills-upgrading, there are two additional areas where MOF’s work benefit our companies. First, by simplifying Government rules and processes, we enable businesses to save time and money when they transact with Government. Second, by helping businesses build capabilities to enhance their competitiveness and access new opportunities, both locally and abroad. Let me share some examples. We recently launched eGuarantee@Gov, a simple and secure digital process for businesses and individuals to provide a banker’s guarantee or insurance bond to Government agencies. Businesses can apply for an eGuarantee from over 20 participating financial institutions online for direct submission to Government agencies within a day. With eGuarantee@Gov, there is no longer a need to visit a bank to purchase a physical copy of the guarantee or to pay for courier services to deliver it. The new arrangement is quicker, better and cheaper. We expect up to 4,000 eGuarantees to be lodged in 2023, resulting in overall savings for all stakeholders of about $500,000 per year. There is also scope in the future for eGuarantees to extend to commercial transactions between businesses and their suppliers and customers.”
“Mr Chairman, I thank Members for their questions and suggestions. Mr Liang Eng Hwa and Mr Saktiandi Supaat asked how the Government ensures fiscal sustainability and spend prudently within our means. Besides the audits by the Auditor-General’s Office and our internal auditors, MOF conducts regular reviews of Ministries’ budgets to identify areas for improvement and ensures every Ministry uses its allocated resources efficiently and effectively. 6.30 pm Singapore’s overall performance has been good, with current Government expenditure being around 18% of GDP. Even as our expenditures grow further and exceed 20% of GDP by 2030, our Government expenditure as a percentage of GDP is significantly lower than most developed countries. At the same time, we are able to achieve positive economic and social outcomes for Singapore and Singaporeans. One example is how we reduce the costs of major Government infrastructure projects by applying a stringent cost-effectiveness evaluation together with experts from the private sector and academia. In 2022, we achieved total cost avoidance of around $1 billion through this process. This $1 billion saved means we can put it to good use and meet our spending needs in other areas. The Government also looks out for other forms of savings by integrating different projects to maximise the synergies. For example, the upcoming East Coast Integrated Depot, which incorporates three MRT depots and one bus depot, saved about 44 hectares of land. This is twice the land size of Changi Airport’s Terminal 4 or equivalent to approximately 60 football fields. Another example is VITAL’s Demand Aggregation contracts for common buys such as office supplies, catering and courier services. These saved the Government more than $50 million per annum.”
“Mr Speaker, Mr Leon Perera mentioned about the UK. The UK Corporate Governance Code limits top executives to only one FTSE 100 non-executive directorship. However, there is no such limit for chairs and non-executive directors, but individuals must allocate sufficient time to the company to discharge their responsibilities, which is similar to the requirements that we have under our Listing Rules. The point that Mr Perera made about the US – and for that matter Australia and Hong Kong – they also do not set a limit under the law for the number of directorships that a person can hold. But that the responsibility for the individuals, the directors, to be able to discharge their responsibilities diligently, I think that is common across all these jurisdictions.”