Lawrence Wong
Singapore
“Sir, we will provide more information. I see the value of getting Ministries to put out more information, to share more about how their resources are being used and what outcomes they have achieved.”
“Sir, I agree fully with Mr Azhar that human capacity, human capital is critical. In fact, I would say the long-term potential of Singapore, how far we go really depends on us being able to maximise our human potential. That is key and that is why we have long invested in education. And it is not just about the investments.”
“Sir, we have been maintaining that commitment of 1% for some time now. I do not think it is about saying that we just have to do more and spend more. As many have highlighted, we want to ensure good outcomes from our R&D spending as well. So, we will continue if the outcomes are good.”
“This has never been the case. Temasek, when it started, was always very clear about its mandate from the very beginning – commercial, not doing national service, focused on commercial outcomes.”
“Sir, the MOF economists when they look at fiscal projections use Government's forecast of the economy, which is also published. We would typically use the mid-point of the range and then, of course, because these are in nominal terms, you have to factor for that. And the projections are done on those basis.”
“Sir, I was relieved that Mr Loh said he only has one question, but he asked the most difficult question. To answer the question, we will continue to monitor cost of living across all segments of society.”
The complete record
Every one of 3,205 lines we hold for Lawrence Wong, in date order, each linked to its source. Free to read, in full, without an account. Page 11 of 65.
“Stamp duty is a tax on documents that effect a transfer of interest in immovable property and unlisted stocks or shares in Singapore. Buyers directly acquiring residential property in Singapore will have to pay Buyer’s Stamp Duty (BSD) of up to 6% and Additional Buyer’s Stamp Duty (ABSD) of up to 65%, based on their ABSD profile. On the other hand, those who acquire shares in a Property Holding Entity (PHE)1, pay Share Duty and Additional Conveyance Duties (ACD), if the relevant thresholds are met for the latter. ACD for acquisitions comprises BSD of up to 6% and ABSD at a flat rate of 65%. Whether property-related investment products are subject to stamp duty ultimately depends on how the specific product and transaction are structured. If an investor does not receive any beneficial interest or ownership of the underlying property, such as when the investment only entitles the investor to a part of the income generated by the property but not ownership of the property itself, then the investor will not be liable for stamp duty. Investors should consider both tax and non-tax consequences when making their investment decisions. The Government will continue to monitor the property market closely and adjust our policies as necessary to promote a stable and sustainable property market.”
“It is mandatory for financial institutions, such as licensed financial advisers, banks and insurers who provide financial advisory services, collectively, "financial advisers", to disclose to customers, at the point of sale, the commissions and distribution costs associated with the sales of investment products and life insurance policies respectively. In the case of introducers, it is also mandatory to state whether they are being remunerated by financial advisers. If asked, they must also disclose the remuneration amount. The Monetary Authority of Singapore is working with the Attorney-General's Chambers to effect legislative amendments to require introducers to disclose the remuneration amount without being asked.”
“The Government is undertaking a range of measures to address climate change. These comprise both mitigation measures, which seek to limit climate change; and adaptation measures, which seek to adapt to the effects of climate change, such as rising sea levels. The Government has no plans at the moment to fund mitigation projects using past Reserves. We will set aside the necessary resources in the annual Budgets to green our economy and society and to achieve our net-zero targets. As for adaptation measures, the Government is studying long-term solutions to protect our coastline and land mass. These include land reclamation projects, building of infrastructure, such as polders and seawalls, and the installation of equipment like pumps and localised flood barriers. The Government plans to employ a combination of funding methods to finance these measures. This includes funding from the Coastal and Flood Protection Fund, through long-term borrowing via SINGA bonds and through the use of past Reserves to fund land reclamation costs. The Government will continue to study how best to finance these measures in a way that is fiscally sustainable and equitable across generations.”
“A public consultation to advance sustainability reporting by companies in Singapore was recently concluded. One of the proposals is to expand directors' duties to cover climate-related disclosures by companies. The Ministry of Finance will study the feedback received from the public consultation and carefully consider the practices and experiences in other reputable jurisdictions, before introducing changes appropriate for Singapore's context.”
“Since 2018, all officers new to the procurement function are required to complete a compulsory e-learning training module, which covers the standard procedures for Government procurement. While training is important, it cannot completely prevent lapses, especially given the large number of procurement transactions undertaken each year. The Government will continue to find ways to reduce such procurement-related lapses. For example, the Finance and Procurement Academy, set up by the Ministry of Finance, regularly shares with procurement officers the lessons from past lapses as well as the good practices to adopt.”
“This question will be answered in my reply to Ms He Ting Ru's Parliamentary Question filed for the Sitting on or after 4 October 2023. [Please refer to "Encouraging Locally Incorporated Tech Companies to Choose Singapore Exchange over Foreign Stock Markets for IPOs", Official Report, 4 October 2023, Vol 95, Issue 114, Oral Answers to Questions section.]”
“The Singapore Exchange's (SGX's) Central Depository (CDP) is the depository only for shares that are traded on SGX. CDP does not deal with shares of foreign companies that are traded on foreign venues. All customers who wish to trade in shares will need to open a trading account with a securities broker. Securities brokers are required to put in place robust anti-money laundering and counter-financing of terrorism measures. This includes conducting customer due diligence, such as verifying the identity of their customers and establishing the sources of wealth and funds of higher-risk customers, undertaking ongoing monitoring of customer accounts to effectively detect suspicious customer transactions or activities, and reporting these to the authorities in a timely manner.”
“The Monetary Authority of Singapore (MAS) has explained that the amount of official foreign reserves (OFR) needed to ensure confidence in Singapore's exchange rate-centred monetary policy and in Singapore's macroeconomic stability is between 65% to 75% of gross domestic product. The OFR ensures that MAS has the wherewithal to defend the Singapore dollar against speculative attacks. But we need to prepare for more extreme tail-risk scenarios. That could include a crisis of unprecedented scale that causes an outflow of capital in excess of what MAS holds. It could also be emergency scenarios precipitated by state or non-state actors that threaten our economy and livelihoods or even our existence as a nation. Recent events around the world have underscored that our peace and security should not be taken for granted. Just as our defence forces do not reveal the full extent of our weaponry and military capabilities, it is not in Singapore's interest to disclose the full size of our Reserves.”
“Where necessary, the Government will complement these measures with targeted one-off support to help Singaporeans manage immediate cost of living pressures. This includes the recently announced $1.1 billion Cost-of-Living Support Package. The Government is committed to supporting Singaporeans, especially those in need. As the needs of Singaporeans evolve, we will continue to regularly review our social support schemes to ensure that they remain relevant and adequate.”
“The Government regularly reviews the scope, coverage and payout quanta of our social support schemes. Such reviews do take into account macroeconomic trends, such as inflation. This approach allows us to carefully assess the overall landscape of social assistance and ensure that our support is sized appropriately and targeted at those who need it more. For instance, the Ministry of Social and Family Development (MSF) reviews ComCare payouts every two to three years, referencing price data from the Department of Statistics and other sources and factors in projected inflation. Domain experts in areas, such as nutrition and transport, and community stakeholders who work closely with lower-income families, are also consulted in the reviews. MSF recently raised the amount of cash assistance and the monthly per capita household income (PCHI) benchmark for ComCare in August 2022 and July 2023 respectively. The Ministry of Manpower (MOM) also reviews the Silver Support Scheme regularly. The scheme was recently enhanced in 2021, where MOM raised the quarterly payouts by 20% and expanded the thresholds for lifetime wages and monthly PCHI to cover more seniors. The Government will continue to review and update the Silver Support Scheme and we will share more details in due course. Our regular reviews go beyond updates to scheme parameters. We also analyse longer-term trends and introduce new schemes to address emerging or new areas. For example, we introduced the Majulah Package to boost the retirement and healthcare adequacy of "young seniors" who are currently in their 50s and early 60s, with more support given to those with lower incomes and less wealth.”
“For businesses, including our small and medium enterprises, we had provided targeted support at Budget 2023 with the extension of the Enterprise Financing Scheme and the Energy Efficiency Grant until March 2024. The Government is reviewing various measures to help businesses transform and become more productive and efficient. This is a more effective and sustainable way to help businesses manage cost pressures in the longer term and prepare for the future, amidst Singapore's manpower, carbon and other constraints. We will announce further plans at Budget 2024. The Government will continue to monitor the inflation situation carefully and stand ready to do more, if needed.”
“Mr Liang Eng Hwa filed his Parliamentary Question prior to the announcement of the $1.1 billion Cost-of-Living Support Package last week. Regardless, allow me to briefly recap how the design of the Cost-of-Living Support Package supports Singaporeans and addresses Mr Liang's concerns. We expect the increases in water price, public transport fares and residential Service and Constituency Charges to add less than 0.3 percentage points to household inflation over the next two years. For businesses, the increase in water price is expected to increase total operating business costs of manufacturing and services sectors by less than 0.1% by 2025. The enhanced support in the Cost-of-Living Support Package will help to cushion the impact on households. The package builds on existing support provided to households at Budget 2023, such as the enhancements to the permanent Goods and Services Tax (GST) Voucher scheme and the Assurance Package. Combined, the support provided this year will, on average: (a) fully cover the increases in spending by lower-income households this year due to inflation and the GST rate increase; and (b) substantially cover the increases in spending by middle-income households. The Government had provided this assurance at Budget 2023 and we remain committed to it. All Singaporean households will receive relief from the Cost-of-Living Support Package, with lower- to middle-income families receiving more. This targeted approach ensures that we provide sufficient support to those who need it, without adding unnecessarily to inflationary pressures or triggering an inflationary spiral.”
“MAS also uses NLP to scan social media and industry or media analysis reports for news and developments that may warrant supervisory attention. Apart from AIML, MAS also uses advanced data analytics to identify networks of suspicious activity in our financial system, which may indicate money laundering, terrorism financing or other financial crimes. MAS then engages FIs to warn them of potential threats and to assess the robustness of their controls. Such data analysis techniques combined with more powerful machine learning tools can help MAS sift out high-risk networks and transaction patterns more effectively. MAS will continue to explore how latest technologies, including AIML and generative artificial intelligence solutions, can be deployed responsibly and securely to enhance financial supervision.”
“Financial supervision is primarily a data-driven activity. The Monetary Authority of Singapore (MAS) adopts a risk-based approach to its supervision, which entails focusing more supervisory resources on riskier financial institutions (FIs), as identified by our data, frameworks and processes. The advancement of data analytics techniques like artificial intelligence and machine learning (AIML) has expanded the toolkit for MAS to make better sense of the various risk signals in the voluminous data it receives. This has allowed us to automate certain tasks that used to require manual processing, as well as better identify outliers or suspicious networks for closer scrutiny. I will illustrate with two broad areas that have yielded meaningful results for us. First, MAS has developed tools using machine learning to improve our risk targeting for supervisory or enforcement action. For example, MAS has trained a machine learning model, using traits identified by human experts, to analyse market trading data to help enforcement officers identify and prioritise potential market collusion or manipulation for investigation. MAS also employs machine learning to help supervisors identify financial advisory representatives who may present higher risks of exhibiting bad behaviours, such as mis-selling investment or insurance products. FIs with a greater number of representatives presenting higher risks of engaging in mis-selling will be prioritised for deeper supervisory engagement. Second, MAS also applies natural language processing (NLP) to help supervisors work more efficiently. Instead of having supervisors manually trawl through voluminous textual data, such as reports submitted by FIs, MAS uses NLP to analyse the texts and flag issues for supervisors' attention.”
“These regulations mainly pertain to retail cheque transactions, and the relevant Government agencies will complete the necessary amendments to better facilitate the use of digital payment options. In the meantime, Government agencies and the banking sector will continue to collaborate with the SMEs Go Digital and Seniors Go Digital programmes to help small businesses and individuals use e-payments safely and confidently.”
“The Monetary Authority of Singapore (MAS) announced in July this year that all corporate cheques will be eliminated by end-2025. This comes as cheque volumes have declined sharply in recent years. In contrast, e-payment transaction volumes have grown significantly as both corporate and retail users increasingly use e-payments to transact. The share of the cheque transaction volume as a proportion of payments using Fast and Secure Transfers (FAST), Inter-bank GIRO and cheques has shrunk from 32% in 2016 to only 4% in 2022. Since 2021, a workgroup led by MAS and the banking industry has actively engaged businesses from industry sectors with high cheque usage, including the property, insurance and legal sectors. The workgroup found that most businesses have already adopted digital payments as they found these channels efficient, convenient and suitable to meet their payment needs. Nevertheless, some businesses asked if an alternative payment solution can be developed to enable them to make deferred payments. To meet this request, the banking industry will implement solutions by 2025, which will allow businesses to make a deferred payment or issue a cashier’s order electronically without the need for paper cheques. Separately, all Government agencies have reviewed their regulations to ensure that there are no regulatory hurdles preventing businesses and individuals from making payments digitally. This review, which was carried out in 2021, identified a few regulations that had to be amended, including those relating to property conveyancing services and Central Provident Fund (CPF) transactions.”
“There are about 215,000 deposit accounts of individuals in our three local banks, holding a total of about $300 million, that have been dormant for at least 15 years. They constitute 2% of the total number of deposit accounts in the three banks and 0.07% of total deposit value. The Monetary Authority of Singapore (MAS) currently does not prescribe how banks should treat their dormant deposit accounts but has been reviewing the issue. In practice, some banks send notification letters to holders of deposit accounts to inform them that their accounts have been inactive for a period of time. Beyond a certain point, it would not be practical for banks to continue efforts to trace these account holders. But account holders or their authorised personal representatives may at any time contact banks to reactivate their accounts or to claim the funds on behalf of the estate of the deceased account holder.”
“The IPP conducts forums, events and research to raise awareness of philanthropic causes and practices, galvanise giving and encourage philanthropic partnerships. Third, we encourage giving through our tax and regulatory frameworks. Recent enhancements by MAS and the Ministry of Finance (MOF) to the tax incentive schemes for single family offices include recognising donations to qualifying local charities as eligible spend as well as the launch of the Philanthropy Tax Incentive Scheme (PTIS) for qualifying donors to claim tax deduction for overseas donations. These enhancements complement the 250% tax deduction rate for qualifying donations made to Institutions of a Public Character and eligible institutions, which MOF recently extended by another three years till end-2026. Fourth, we maintain strong public trust in the Singapore charity sector. This will provide donors confidence to give to local charities and help attract entities to conduct philanthropic activities out of Singapore. The Commissioner of Charities’ Office works with partners and stakeholders to strengthen local charities’ capabilities and governance through the implementation of the Code of Governance for Charities, learning programmes, shared services and funding support through the Charities Capability Fund. As Singapore attracts more wealth from around the world to be managed here, there is both opportunity and purpose in putting some of this wealth to philanthropic use both locally and in the region. MAS and the relevant Government agencies will continue to work with industry players to help achieve this objective.”
“Singapore has the potential to be Asia’s centre for philanthropy. We have a vibrant wealth management sector and growing philanthropy ecosystem. The Monetary Authority of Singapore (MAS) and the relevant Government agencies have been working with the industry on several building blocks to shepherd wealth to purposeful causes locally and in the region. First, we are building up philanthropy advisory talent and resources. MAS, together with the Institute of Banking and Finance, published in 2021 a set of technical skills and competencies that financial sector and family office professionals should possess in order to provide philanthropy advisory services. These include, for example, the capability to evaluate and identify appropriate philanthropic structures to help potential donors achieve their wealth and legacy planning goals. Locals who attend training courses benchmarked against these skills and competencies can obtain co-funding support for their course fees. MAS is also working with the industry to develop an online portal for donors to carry out the necessary due diligence on local and overseas charities and measure the impact of their contributions. Second, we facilitate partnerships across various philanthropic ecosystem players. The Economic Development Board has been engaging private foundations to undertake purposeful and effective philanthropy through Singapore, as well as international non-profit organisations who can be ready partners for philanthropists keen to make an impact here and across the region. The Wealth Management Institute and the private banking industry, with support from MAS, launched the Impact Philanthropy Partnership (IPP) to bring together high net worth individuals and families.”
“Since Year of Assessment 2019, private hire car and taxi drivers have the option to claim income tax deduction based on a Fixed Expense Deduction Ratio (FEDR), set at 60% of their gross driving income, in lieu of claiming the actual amount of expenses incurred. The intent of the FEDR is to ease the tax filing compliance for private hire car and taxi drivers. The Inland Revenue Authority of Singapore (IRAS) regularly reviews the FEDR to ensure it remains relevant and reflective of actual expenses of the drivers. IRAS recently completed a review in 2023 and concluded that the current 60% FEDR remains sufficient for the vast majority of the drivers. While operating expenses for the drivers have increased, revenue, too, has grown due to increases in meter and mileage rates. For those whose actual deductible expenses exceed the 60% ratio, the option remains for them to claim deductions based on the actual expenses they incurred. We will continue to monitor if there is a need to adjust the FEDR.”
“The Monetary Authority of Singapore (MAS) holds Official Foreign Reserves (OFR) for the conduct of monetary policy. It has assessed that the amount of OFR needed to ensure confidence in the Singapore dollar in the event of a severe crisis in the global economy and financial markets is between 65% to 75% of gross domestic product (GDP). MAS’ OFR has been sufficient to manage any impact on the Singapore dollar arising from past crises. These include the Asian Financial Crisis, Dot-com crash, SARS, the Global Financial Crisis, the Eurozone sovereign debt crisis and the COVID-19 pandemic. Separately, the foreign reserves MAS accumulates in excess of its needs have been transferred to the Government for investment by GIC for higher returns. In return, the Government issues Reserves Management Government Securities (RMGS) to MAS. MAS’ current OFR stands at S$455.5 billion and 70% of GDP, well within the optimal range. Nonetheless, in unlikely tail-risk scenarios where MAS’ OFR buffer might prove insufficient, MAS will be able to redeem its RMGS holdings from the Government in exchange for OFR. Today, MAS’ RMGS holdings amount to S$237.6 billion, or 52% of current OFR. If MAS redeems this, it would bring the level of OFR up to 106% of GDP. Should a crisis of unprecedented scale emerge that causes MAS’ OFR requirements to exceed what RMGS redemptions can provide, MAS can approach the Government for further support. The Government, as owner of the assets that GIC manages, will then decide how best to meet MAS’ need for additional OFR in a timely manner.”
“Through the Forward Singapore exercise, the Government is considering further moves to strengthen our support for workers so that they have the skills to take on better jobs and earn higher wages over time.”
“The most effective way to help lower- and middle-income workers cope with inflation is to enable them to increase their real wages over time. The Government will strive to achieve this by growing the economy, creating good jobs and supporting Singaporeans to take on these jobs through continuing education and training. We have made continuing education and training more affordable for workers through significant course fee subsidies and the SkillsFuture Credit. We are getting companies to be more involved in SkillsFuture to ensure that the training leads to industry-relevant skills. Initiatives like the Company Training Committees, led by the National Trades Union Congress, as well as the Jobs-Skills Integrators, announced in this year’s Budget, will also help to achieve more effective training, job placement and employment outcomes. In addition, we will press on with efforts to uplift the wages of lower-income workers. We recently enhanced Workfare to cover more lower-wage workers and increase the support they receive. We have also expanded the Progressive Wage Model, and the Government co-shares the cost of wage increases with employers through the Progressive Wage Credit Scheme. Today, up to nine in 10 lower-wage workers are covered by Progressive Wage measures. These moves have helped our workers increase their earnings. From 2017 to 2022, real median income grew at 1.8% per annum1. Real income for lower-wage workers grew at a higher 2.9% per annum2. We are not just supporting the broad middle, but also uplifting the lower-income groups and reducing our wage gaps.”
“The Monetary Authority of Singapore (MAS) requires a digital full bank (DFB) to progressively build up its business model and risk management capabilities as it grows. This recognises that DFBs are new startups with non-bank parents and have no track record in banking. The two DFBs, GXS Bank and MariBank, were subject to an initial aggregate deposit cap of $50 million imposed by MAS when they first commenced operations, to safeguard consumers’ interests. As the DFBs made progress in building their risk management capabilities, MAS has increased their aggregate deposit caps. MAS does not disclose the specific aggregate deposit cap for each DFB, as is our approach for other supervisory conditions imposed on individual banks. Aside from the aggregate deposit cap, each DFB must comply with a cap on the deposits of an individual depositor of S$75,000. This is the prevailing limit of the deposit insurance scheme, which the DFBs are members of. The DFBs’ business operations in their initial years are also subject to other restrictions, such as not conducting proprietary trading activities, so that the DFBs focus on scaling their core businesses in a risk appropriate manner. In addition, a DFB is subject to the same prudential requirements, such as those on capital and liquidity, as other full banks in Singapore.”
“The Ministry responded to a similar Parliamentary Question from Member of Parliament Dr Lim Wee Kiak on 20 March 2023. Our position has not changed from this previous reply. [Please refer to "Benefits Packages for Seniors Born after Those in Merdeka Generation", Official Report, 20 March 2023, Vol 95, Issue 93, Written Answers to Questions for Oral Answer not Answered by End of Question Time section.]”
“The Annual Value (AV) of residential properties in 2022 was used to determine the GST voucher cash payouts this year. All HDB flats had an AV of below $13,000 in 2022, which meet the AV criteria for the higher tier of cash payouts. As the Ministry announced previously, we are reviewing the AV thresholds of our social support schemes to ensure that Singaporeans in need are able to receive the appropriate support. We will provide an update on the revised AV thresholds for social support schemes when ready.”
“The issue in the case of Herbalife International Singapore Pte Ltd vs Comptroller of Goods and Services Tax is whether the Goods and Services Tax (GST) should be charged on the discounted or full price of products sold by Herbalife International Singapore Pte Ltd (Herbalife) to its members. The GST Board of Review had earlier ruled in favour of the Comptroller; however, the High Court subsequently ruled in favour of Herbalife upon its appeal for GST to be charged on the discounted price of its products. The decision by the High Court is specific to the facts of the Herbalife case. Other cases involving direct selling companies have facts and circumstances that differ from the case of Herbalife and are thus not directly comparable. The Inland Revenue Authority of Singapore (IRAS) will continue to study the various business models and industry arrangements in reviewing whether there are any gaps in the existing GST legislation.”
“The Auditor-General’s thematic audit on key COVID-19 grant schemes noted that the Government had to develop and implement new grant schemes rapidly during the COVID-19 pandemic and adjust these schemes as the situation evolved. While the Auditor-General's Office (AGO) affirmed that these schemes were well-designed with the necessary controls in place to ensure proper management, it also identified areas for improvement. Agencies have since taken steps to address the root causes of the audit findings. The learning points from these audits have been incorporated into the agencies’ operational plans and procedures. However, as the next crisis will not be identical to COVID-19, Government agencies will have to stay agile and nimble in adapting and responding quickly to new challenges and demands.”
“The Monetary Authority of Singapore (MAS) requires regulated financial institutions (FIs) to have controls in place to avoid or mitigate conflicts between their interests and those of their customers. This approach is technology-neutral and is applied across all regulated FIs. As early as 2018, MAS introduced the Fairness, Ethics, Accountability and Transparency (FEAT) Principles to guide FIs’ responsible use of artificial intelligence and data analytics (AIDA) in their products and services. Amongst other things, these principles require FIs to ensure that AIDA adoption does not result in customers being treated less fairly than the business. FIs are also required to provide customers transparent disclosures on the FIs' products and services, to facilitate informed decision-making. The risk of herding in trading platforms arising from the use of artificial intelligence (AI) models is currently assessed to be low as FIs in Singapore are still at a nascent stage of using AI models for decision-making. Nevertheless, MAS continues to carefully monitor and assess the risks brought about by AI in financial markets. In recent years, MAS has worked with the industry to develop a framework which enables FIs to evaluate their AI systems against the FEAT Principles. MAS will continue to engage the industry on the responsible use of AI in finance.”
“As the Corrupt Practices Investigation Bureau (CPIB) investigations are ongoing, it would not be appropriate to comment on any matter related to the arrest of the Managing Director of Hotel Properties Limited. Separately, the Government does not typically comment on Temasek’s individual investments or those of its portfolio companies. There is a public statement by the consortium, Cuscaden Peak Pte Ltd, which states that the situation is not expected to impact the business and operations of the Cuscaden Peak Group. Based on public information, this includes the Singapore Press Holdings (SPH) assets. Members could refer to that statement for additional details.”
“The higher corporate income tax collection in FY2022 was due to higher business profits driven by the strong economic recovery in 2021. The increase was mainly from the financial and insurance, services, wholesale and retail, as well as manufacturing sectors. Data on corporate income tax collection in the past years is publicly available on the data.gov.sg website. Generally, growth in our corporate income tax revenue has been broadly in line with gross domestic product (GDP) growth. We adopt a responsible approach to managing our fiscal resources. We consider not just the year-to-year changes but, more importantly, the medium-term trend in our expenditures and revenues. With an ageing population and rising healthcare costs, Government expenditure is expected to increase from the current 18% of GDP to potentially over 20% of GDP by FY2030. This has yet to account for additional spending that may arise from new policy initiatives, including the need to invest further in resilience and to strengthen our social compact and economic competitiveness. On the revenue side, while we may get some upsides from time to time, our revenue generally does not grow faster than GDP in the medium term without tax rate changes. This is why the revenue measures announced at the recent Budgets, including the GST increase this year and next year, remain necessary to meet our medium-term spending needs. Deferring the Goods and Services Tax (GST) increase will only store up more problems for the future, leaving us with less resources to take care of our growing fiscal needs. We will continue to monitor our revenue and expenditure trends closely and adjust our fiscal strategies to meet our collective aspirations in a way that is fair to both current and future generations of Singaporeans.”
“The GST Voucher (GSTV) – U-Save rebates are designed to offset households’ utilities expenses. Unutilised rebates have no expiry date and can be rolled over to offset future utilities expenses. The Government has also introduced support measures to help Singaporeans defray other living expenses. These include the CDC Vouchers in January, the Cost-of-Living Special Payment in June, the GSTV – Cash in August and the Assurance Package Cash in December.”
“My response will also address a Parliamentary Question filed by Mr Edward Chia Bing Hui, which is due for reading at a subsequent Sitting as it is related to the same subject matter. The Overall Fiscal Position for FY2022 turned out to be slightly better than what we had projected in this year’s Budget. The additional resources are welcomed and will be put to good use, be it to deal with immediate concerns like cost of living, to strengthen our social compact under the Forward Singapore exercise, or as Mr Derrick Goh suggested, to support our small and medium enterprises (SMEs) and workers. The Ministry of Finance (MOF) is working on these plans with other agencies, and the spending estimates will be tabled for Parliament’s approval as part of our annual Budget process.”
“Ms He asked if the Singapore Government has received any requests from UK law enforcement agencies in relation to the case involving former Formula One boss Bernie Ecclestone. It is our policy, in line with international practice, not to comment on whether a foreign government has made a request for legal assistance on specific cases. That said, we can confirm that the Monetary Authority of Singapore (MAS), Singapore Police Force and Attorney General’s Chambers have worked closely with the UK authorities on their investigation and prosecution of Mr Ecclestone. In fact, Singapore proactively shared relevant information with our UK counterparts, which helped them develop their case. In 2017, MAS conducted an inspection of the bank cited in recent media reports, to assess its controls for mitigating money laundering and terrorist financing risks. During the inspection, MAS specifically reviewed the bank’s handling of its relationship with Mr Ecclestone. While MAS found that there was room for improvement in the bank’s anti-money laundering processes, it did not find gaps or weaknesses that were systemic in nature. MAS also noted that when adverse news about Mr Ecclestone first surfaced in 2013, the bank promptly subjected the account to enhanced monitoring controls by requiring all transactions to be flagged for scrutiny and approval. MAS will continue to work with financial institutions to ensure that our financial sector’s defences against financial crime remain robust.”
“From CY2018 to CY2022, Ministries and Statutory Boards procured consultancy services worth about $125 million and $145 million respectively per year on average. These make up about 1% of total annual Government procurement value. These figures include consultancies for design services and feasibility studies for construction projects, consultancies for the development and implementation of IT systems, consultancies for environmental studies, consultancies for organisational improvements and other types of consultancy services. We do not have a breakdown for how many of these consultancy contracts were for management consultancies.”
“From 2020 to 2022, the quantity of duty-unpaid cigarettes seized averaged around two million packets per year. About 350 persons per year were charged for duty-unpaid cigarette offences; 70% of them were non-residents. Our enforcement agencies will continue to work together to deter and reduce cigarette offences. This includes sharing of intelligence with one another and making good use of technology to increase the chances of catching the culprits in action.”
“There are 413 companies with over $500 million in shareholders' equity that have filed chief executive officer (CEO) or managing director (MD) information with Accounting and Corporate Regulatory Authority. About 40% of these CEOs or MDs are Singapore Citizens.”
“The Constitution of the Republic of Singapore (Amendment) Act 2016 made wide-ranging amendments that were carefully explained in Parliament. In particular, the Government had highlighted then the need to strike a balance between rigidity and adaptability, as the Elected President is a unique institution, which will evolve over time. The Government will continue to observe how the adjustments and other aspects of the Elected Presidency operate in practice, before we consider bringing into force the entrenchment framework.”
“This Question was addressed in the reply to Question Nos 26 to 28 for Oral Answer on the Order Paper for 3 July 2023. [Please refer to "Redevelopment of Singapore Turf Club Site and Completion Timelines", Official Report, 3 July 2023, Vol 95, Issue 105, Oral Answers to Questions section.]”
“Foreign nationals based overseas must engage the services of an Accounting and Corporate Regulatory Authority (ACRA)-Registered Filing Agent (RFA) to set up Singapore companies. RFA is a professional services firm, such as a law firm, accounting firm or corporate secretarial firm. RFA is responsible to conduct customer due diligence, including verifying identity and background information, confirming the veracity and adequacy of documents and obtaining beneficial ownership information. They are also required to perform ongoing transaction monitoring on their customers and their companies' business activities after incorporation, to ensure that the activities are consistent with the RFA's knowledge of the customer, business and risk profile. They must report any suspicious transactions to the Police. In addition, ACRA will investigate if it receives information that a company is not conducting activities in line with what was declared at incorporation. The company will be referred to the Police if it is suspected to be engaging in illegal activities. To facilitate this, ACRA also makes publicly available much of the information lodged by companies. This helps to ensure that members of the public accessing this information can report any discrepancies to ACRA. Should there be any indication of false filings, ACRA will take enforcement action against the RFA. Persons who have knowingly provided false or misleading information to ACRA may be subject to fines or imprisonment.”
“Property Tax (PT) is a tax on property ownership and our principal means of taxing wealth. PT payable is based on the Annual Value (AV), which is the estimated annual rent of the property based on market transactions for similar properties. It rises and falls with market trends. In 2023, PT payable increased due to both market movements and increases in property tax rates for high-AV residential properties. To mitigate the impact of the higher PT in 2023, the Government provided a 60% PT rebate to all owner-occupied residential properties, up to a cap of $60. With the rebate, HDB flat owner-occupiers saw a PT increase of not more than $2.60 a month for those living in a 3-room flat and not more than $4.40 a month for a 5-room flat. For private residential property owner-occupiers, nine in 10 saw a PT increase of less than $50 a month. The Government remains committed to supporting Singaporeans with higher costs of living, with more support going to lower- and middle-income households. We do so, not by lowering PT rates, but rather through direct support measures, such as the Assurance Package and the enhancements to the permanent GST-Voucher scheme.”
“These questions were addressed in the reply to Question Nos 26 to 28 for Oral Answer on the Order Paper for 3 July 2023. [Please refer to "Redevelopment of Singapore Turf Club Site and Completion Timelines", Official Report, 3 July 2023, Vol 95, Issue 105, Oral Answers to Questions section.]”
“The Additional Buyer's Stamp Duty (ABSD) is payable on the acquisition of residential properties based on the purchase price or market value of the property, whichever is higher. ABSD rates are tiered based on the number of properties held, to promote a stable and sustainable property market and prioritise housing for owner-occupation. As the per square foot price of a property is typically higher for smaller residential properties compared to larger properties in the same area, imposing ABSD rates based on the per square foot price of a property would penalise buyers of smaller residential properties, while larger and higher value properties with lower per square foot price would pay less ABSD. This would not be equitable. The Government will continue to monitor the residential property market closely and consider the appropriate adjustments needed to promote a stable and sustainable property market.”
“The policy intent of the Additional Buyer's Stamp Duty (ABSD) is to moderate demand for residential properties and ensure a stable and sustainable residential property market. For Singaporeans, ABSD is applicable on the purchase of a second and subsequent residential property. This applies, regardless of whether they dispose of their first property subsequently. This is because even if the first property is eventually disposed of, the purchase of the second property adds to the demand for residential properties at the time of purchase. An exception was made for Singaporean married couples buying a replacement private property, if they meet certain conditions. Under this concession, ABSD paid can be refunded provided that the first property is sold within six months after the purchase of a completed property, or the Temporary Occupation Permit or Certificate of Statutory Completion date of an uncompleted property. This ABSD refund is not available to other groups of property buyers. The Government will continue to review our policies to ensure their relevance to market conditions.”
“These resale transactions provide the CV with up-to-date market data to make his independent determination of the FMV of any public housing land. It would, therefore, not be appropriate for the CV to use a different basis for valuation, unless there is a fundamental change in housing policy.”
“My response will also address the Parliamentary Question filed by Mr Gerald Giam1, due for reading at a subsequent Sitting as it relates to the same subject matter. Places of Worship (PW) play an important role in serving the spiritual needs of Singaporeans and maintaining religious harmony. Over the years, religious organisations have raised concerns about the rise in prices of PW land. The Government has studied the issue and decided to change the framework for allocation of PW land from a competitive tender process to a fixed price ballot. This reflects a fundamental change in the land allocation approach for PW land, which impacts how the market for PW land is defined and valued. Without competitive tender prices, the Government will have to work out the appropriate fair market value (FMV) for PW land. The Government has discussed this with the Chief Valuer (CV), and the CV intends to use as reference the price of directly alienated PW land that had not been influenced by tender prices before. Of course, the actual FMV of any PW land will ultimately depend on its individual characteristics and will be determined independently by the CV, based on established and accepted valuation principles. There will not be any draw on Past Reserves, so long as the land is disposed of at FMV. In the case of public housing, the land is directly alienated to the Housing and Development Board (HDB) and the value of the land is also determined by CV based on his professional judgement and established valuation principles. But there is a key difference between PW sites and HDB flats. PW sites allocated to a religious organisation cannot be freely sold to other parties. HDB resale flats, on the other hand, are purchased and sold all the time in the open market.”
“Under the "national treatment" obligation of the European Free Trade Association (EFTA) – Singapore Free Trade Agreement (ESFTA), nationals and permanent residents of Iceland, Liechtenstein, Norway and Switzerland are accorded similar tax treatment as Singaporeans in the purchase of residential properties in Singapore. The other Free Trade Association (FTA) which requires Singapore to grant "national treatment" to foreign nationals in respect of stamp duty is the United States (US)-Singapore FTA. The two FTAs were signed almost 20 years ago, before we introduced the Additional Buyer's Stamp Duty (ABSD). The "national treatment" obligations are part of the balanced package we sought to achieve in the FTAs, to ensure they provide meaningful benefits for Singapore when our companies and people trade with and invest in these countries. For example, the "national treatment" benefits apply to Singaporeans when they invest in the US and the ESFTA countries. The number of property transactions and value of ABSD remitted due to the two FTAs vary from year to year due to market conditions and prevailing ABSD rates. Over the five-year period from 2018 to 2022, an average of around 250 transactions per year were granted ABSD remission due to the two FTAs. These transactions accounted for about 2.5% of all property transactions that attracted ABSD during this period. The amount of ABSD remitted was about $150 million per year.”
“We do not centrally track the number of people from vulnerable groups that are employed through Government tenders. Nevertheless, Government agencies may, from time to time, procure from organisations that support or hire vulnerable groups, including people with disabilities. For instance, in a tender for contact centre services by the Public Service Division, the awarded contractor was required to hire and reserve at least 10% of the jobs created by the contract for persons with disabilities and senior citizens. Each agency has the autonomy to decide on including “set aside” clauses for vulnerable groups and having a preferred supplier programme for firms with the Enabling Mark. The Government adopts other non-procurement measures to facilitate the hiring of people from vulnerable groups. These include job placement and job support services, as well as grants to support the employability and employment of persons with disabilities. The Ministry of Social and Family Development is also developing Enabling Business Hubs to better enhance employment support and opportunities at the regional level, closer to where persons with disabilities and caregivers live.”
“We are unable to provide such a long time series of data. The breakdown of the private residential property leases by the profile of tenants from 2018 to the third quarter of 2022 is at Table 1. In 2018 and 2019, the proportion of Singapore Citizen tenants was 15%. This increased to 19% in 2021 primarily due to a surge in demand from Singaporeans seeking temporary accommodation while awaiting the completion of their residential units affected by COVID-19 construction delays. On the other hand, foreigners’ demand dropped due to outflow of foreigners. In 2022, with the easing of border restrictions, the tenant profile for private residential properties is now more similar to pre-COVID-19 trends.”
“The Government recognises that families and individuals may enter into various property purchase and ownership arrangements for different reasons and needs, and taking into account the tax and non-tax consequences. Depending on the arrangement, Additional Buyer’s Stamp Duty (ABSD) may be payable. Today, ABSD is tiered by property count for Singaporean Citizen and Permanent Resident buyers. No ABSD applies for Singaporean Citizen buyers purchasing their first residential property. Foreigners are liable for the highest individual ABSD rate of 60%, regardless of the number of properties they own. So, even if foreign families buy multiple properties under the names of different family members, they will still have to pay the ABSD of 60% for each property. The Government will continue to monitor the residential property market closely and consider the appropriate adjustments needed to promote a stable and sustainable property market.”