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.”
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“[Please refer to Annex C-1.] To maximise the investments in our people, we must also ensure a good match between the skills demanded by the industry and those offered by the workforce. This means bringing together the various parties involved – training providers, employment facilitation providers, employers and jobseekers themselves – to anticipate the areas where new skills are required and ensure that effective training is provided in a timely manner. At the same time, employers need to redesign jobs to harness technology more effectively and make better use of the upgraded skills of their workers. Our tripartite partners, especially the unions, help to achieve this. One approach that NTUC has championed and that has proved effective is the Company Training Committees, or CTCs. The CTC model brings together the unions and employers to develop concrete firm-level transformation plans, including the relevant training needed for their workers, so that they can enjoy better wages, welfare and prospects. These plans are then implemented with the support of relevant Government agencies. To date, NTUC has formed more than 800 CTCs with companies of various sizes. One SME that has benefited from this partnership is Speco Singapore. Speco started out in cleaning services and later shifted its operations to provide disinfection services through technology solutions. The Building Construction and Timber Industries Employees' Union, or BATU, worked with Speco management to form a CTC and to map out the training needed to reskill its workforce. [Please refer to Annex B-1.] One beneficiary is Shamsul Nurhakim, who joined Speco on a Work-Study Programme. Shamsul will be completing a Diploma in Applied Science from Republic Polytechnic this year, under the sponsorship of Speco.”
“I will also make further refinements to our tax schemes, to support businesses and strengthen our competitiveness and resilience. More details are in the Annex. [Please refer to Annex C-2.] Finally, and most importantly, we will continue to invest in our people. We continue to invest significantly in education, to help every child achieve their full potential. Through SkillsFuture, we are also empowering and equipping Singaporeans for their lifelong journey of acquiring new skills and sharpening existing ones. To support this, we are transforming our Institutes of Higher Learning, or IHLs, which include the Autonomous Universities, into institutes for continual learning. We will review the programming in our IHLs and enhance their provision of quality continuing education and training. The Minister for Education will say more about this at the COS. Our enterprises also play a critical role in fostering a culture of lifelong learning at the workplace. Employers are well placed to identify skills that are in demand and provide industry-relevant training. We support employers to do so through the SkillsFuture Enterprise Credit. Today, only employers that have had at least three local employees and contributed at least $750 of Skills Development Levy over a qualifying period, are eligible for this Credit – and these have tended to be larger enterprises. To better support our smaller and micro enterprises, I will grant a waiver of the Skills Development Levy requirement for the qualifying period of 1 January 2021 to 31 December 2021. This is estimated to double the number of eligible employers, from 40,000 today to 80,000. The deadline to claim the credit will also be extended by a year, to 30 June 2024, to give employers more time to use the credit.”
“We estimate that this will support more than 100,000 productivity projects over the next four years. This is more than double the number of projects supported since the scheme began. Larger local enterprises need more customised assistance to scale up and invest in overseas markets. I will support them with a new initiative called Singapore Global Enterprises. Under this initiative, we will provide bespoke assistance tailored to the needs of promising local enterprises, in areas like innovation, internationalisation and the fostering of partnerships with other firms. Many of these enterprises also need more support in talent development. We will launch a new Singapore Global Executive Programme, to help them to attract and nurture their next generation of leaders through industry and overseas attachments, mentorships and peer support networks. Besides grants and bespoke assistance, some companies also need help with their financing needs. We provide such help through the Enterprise Financing Scheme. I will enhance two components of the Scheme. [Please refer to Annex C-1.] I will expand the M&A loan programme to include domestic M&A activities from 1 April this year to 31 March 2026. This will support companies to grow and expand through mergers and acquisitions. I had earlier announced the extension of the enhanced Trade Loan till September this year. Beyond this six-month extension, I will maintain the enhanced 70% risk-share under the Trade Loan for enterprises venturing into more nascent markets like Bangladesh or Brazil. We hope this will encourage our enterprises to seek untapped opportunities in these markets. The Minister for Trade and Industry will share more about our enterprise development strategy at the COS.”
“Thank you, Sir. One of the solutions is a robotic tool that emulates an operator’s handling of hot moulded products. Previously, you would need a human operator to do the work manually. Now, they get the job done using the robotics system. So, Sanwa-Intec has significantly raised production volume, while reducing its energy consumption. [Please refer to Annex B-1.] Students from Nanyang Polytechnic also had the chance to work on these projects. One of them is Alysia Ong, who is now working at Sanwa-Intec after completing her internship there. [Please refer to Annex B-1.] Such collaborations are a win-win – SMEs get to tap on the R&D capabilities in our Polytechnics and ITE, while students can contribute meaningfully to these projects and gain valuable hands-on industry experience. To further support such collaborations, I will increase the capacity of the centres so that they can provide research and innovation support to more SMEs. Over the next five years, these centres will be able to undertake close to 2,000 innovation projects across five pilot sectors: Agri-Tech, Construction, Food Manufacturing, Precision Engineering and Retail. This amounts to an eight-fold increase in the number of innovation projects undertaken in these sectors. We look forward to many more success stories in the coming years. Third, we will strengthen our local enterprise ecosystem. For the broad base of SMEs, our priority is to raise their productivity. SMEs can make use of the Productivity Solutions Grant, or PSG, to implement digital and automation solutions. I will set aside around $600 million to expand the range of available solutions under the PSG and push for greater take up of productivity solutions by SMEs.”
“Presently, most of this R&D is driven by MNCs, which have greater scale and better resources. Local enterprises, which comprise about 80% of all firms, account for only about a quarter of total business R&D expenditure in Singapore. I will therefore provide more support for our local firms to undertake R&D activities. We currently have a network of more than 80 centres across our Polytechnics and ITE engaging in technology, innovation and enterprise activities. These centres work closely with SMEs to undertake industry projects, many of which have led to new innovations. For example, Nanyang Polytechnic’s Automation and Robotics Innovation Centre collaborated with Sanwa-Intec Asia, an SME that supplies the automotive industry, to design and implement robotics and automation solutions. [Please refer to Annex B-1.] Mr Deputy Speaker, with your permission, I would like to show some slides on the screen.”
“Our first priority is to strengthen our digital capabilities. Today, we are one of the most connected cities in the world and amongst the first to roll-out a 5G standalone network. In parallel, we have built digital utilities, like SingPass, Myinfo and PayNow, that allow our people and businesses to access digital services and transact seamlessly and safely. We will invest further to meet our future needs. We will upgrade our broadband infrastructure to increase broadband access speeds by around 10 times over the next few years. We will also invest in future technologies like 6G, to ride the next communications and connectivity wave. The use cases for such high speeds are still nascent, but there are many new possibilities for augmented and virtual reality tools, limited only by our imagination. Alongside infrastructure improvements, I will set aside an additional $200 million over the next few years to enhance schemes that build digital capabilities in our businesses and workers. More details can be found in the Annex. [Please refer to Annex C-1.] The Minister for Communications and Information will also elaborate further at the COS. Second, we will push for pervasive innovation across the economy. Innovation is built on strong R&D foundations. That is why, over the years, we have steadily increased the Government’s investment in R&D, maintaining it at about 1% of GDP, comparable to other small advanced economies. I will continue to sustain our investments in R&D, with $25 billion set aside under the Research, Innovation and Enterprise, or RIE2025 strategy. Public investments in R&D also serve as a catalyst for similar investments in the private sector. Unfortunately, our total business expenditure on R&D still lags other economies.”
“That means everyone chips in and contributes to a vibrant economy and strengthened social compact, but those with greater means contribute a larger share. At the same time, we are mindful of the impact of the tax increases on households and businesses and will have a very comprehensive set of measures to cushion the impact and help Singaporeans adjust. This Budget therefore is about charting our new way forward together. It is a first step in renewing and strengthening our social compact for a post-pandemic world and in realising our vision of a fairer, more sustainable and more inclusive society. It is about giving Singaporeans the confidence to embrace the change that lies before us, so that we can grow into an ever stronger economy and nation, and an ever more secure society and home. This Budget will set out the key changes we must make to: (a) invest in new capabilities; (b) advance our green transition; (c) renew and strengthen our social compact; and (d) develop a fairer and more resilient revenue structure. Sir, to stay ahead in the race, we must redouble our efforts to invest in new capabilities. Even before COVID-19, we had started to restructure our economy. Through the Industry Transformation Maps, or ITMs, we have been steadily building up the capabilities we need for the future. We have also opened up new avenues of growth, by strengthening our network of Free Trade Agreements and enhancing cooperation with like-minded partners in the digital and green economy. But much more work lies ahead. Crucially, we have a window of opportunity over the next few years to establish leading positions in key market segments. So, we will accelerate our investments in new capabilities to power our next stage of growth.”
“We want to uphold that sense of obligation to each other and strengthen the assurance that, whatever the challenges we face, we will always have each other’s back. These plans require additional spending. They reflect the need to respond to lasting, structural shifts in our society, as well as our new social and environmental aspirations. The spending requirements will therefore be recurring in nature, not temporary. Given this, it would not be right to dip into our reserves to meet these new needs. We must husband our reserves for use in major crises and emergencies, as was necessary during the Global Financial Crisis, and especially in the last two years. We must ensure that we continue to get a steady stream of income from the reserves to benefit both today’s generation of Singaporeans and our children and grandchildren. Let me summarise our fiscal outlook over the coming decade. On the expenditure side, our needs are significant and growing. By 2030, we expect Government expenditures to increase to more than 20% of GDP. Most of this increase in spending will go to healthcare. On the revenue side, we will not have enough to cover the additional spending needs. The stream of income from NIRC should keep pace with economic growth over time, in spite of a more challenging global investment environment. But our sharply slowing labour force growth and hence, slower GDP growth compared to the last decade, will constrain our tax revenues. This is why we will make significant enhancements to our tax system in this Budget. These tax adjustments will help to raise additional revenue and also contribute to a fairer revenue structure.”
“To fund such a spending, they impose high income taxes, usually much higher than 30%, even for the middle-income group, as well as consumption taxes that range from 20% to 25%. We do not intend to adopt the European model of comprehensive universal welfare and high taxes. But as we tackle the challenges of a changing world, and as our own society ages and faces new stresses, we will have to do more to preserve and strengthen the unity of our people and our social compact. In fact, we have already been adjusting our approach over the years, with the Government progressively doing more to support the community and individuals. Our social spending in particular, has almost doubled from $17 billion to $31 billion over the last decade and now takes up close to half of our annual Budget. The increase has gone to programmes that have made a difference in Singaporeans’ lives, like higher subsidies in our healthcare system and in tertiary education, as well as schemes like SkillsFuture, Workfare and Silver Support. In the coming decade, we will invest even more in our people and social infrastructure. We will spare no effort to ensure that all Singaporeans continue to have access to world-class education and healthcare, affordable housing, good jobs and have peace of mind over their retirement needs as they grow old. We will strengthen our system of collective risk sharing, so as to give Singaporeans more assurance in managing life’s uncertainties. We want every Singaporean to know and feel that he or she has a stake in our society – that everyone’s contributions matter and that they will not be left to fend for themselves when times are down.”
“Even with the demands of building a nation and reinvesting continually in our future, we have been able to keep public expenditures in Singapore extremely lean. Government spending today, excluding COVID-19-related expenditure, stands at $88 billion, or about 18% of GDP. This is probably the lowest among the more developed economies, yet it has produced social and economic outcomes that have been better than most. We generate sufficient revenues to fund this expenditure and to maintain a balanced Budget. We are supported by our Net Investment Returns Contribution, or NIRC, which is a continuing stream of income from the reserves we have accumulated over the years. Over the past five years, NIRC provided on average a revenue stream of around $17 billion or about 3.5% of GDP. This means that for every dollar we spend on public services, about 80 cents is funded by tax. The remaining 20 cents is funded through the NIRC. This fiscal approach has enabled us to keep our overall tax burden low. Currently, half of our workers do not have to pay personal income taxes. In particular, for the middle-income, we have deliberately ensured a low tax burden so that they can enjoy the rewards of their hard work. Put another way, for the quality of public services we have in healthcare, education, housing, transport and many other areas, the amount of tax our citizens pay is much lower compared to many developed countries. The continental European and Nordic countries have a different social compact, arising from their different histories. They have much higher levels of state-financed welfare provisions, designed to meet the needs of their citizens from cradle to grave. Their governments typically spend well above 30% of their GDP.”
“The changes brought about by the pandemic, rising geopolitical contestation, climate change, as well as domestic issues like our rapidly ageing society – these are the defining challenges of our time. They call for robust policy responses to reinforce our resilience and retool our capabilities for the future. More importantly, to overcome these major tests and trials, we must continue to stand united as one. This is why it is more important than ever to renew and strengthen our social compact and to reaffirm our values and what we stand for as a nation. Our existing social compact has been shaped by our history, beginning as a young and vulnerable nation thrust into independence. We start and maintain the basic premise that no one owes us a living and that we are responsible for our own defence and survival. The pillars underpinning our social compact – the individual, community groups, businesses and the state – all play a role, complementing one another and contributing to a system of mutual support. The individual works hard to be self-reliant and to provide for his or her family. Community groups, be it unions, charities or voluntary associations, come together to help different groups of people. Employers do their part to invest in workers, advance their well-being and improve the quality of jobs. The Government creates the conditions for a vibrant economy, invests heavily in our citizens and delivers essential public services. The Government, working actively with the community and tripartite partners, also provides an extra hand to those who start with less, to keep social mobility a defining feature of our society, to mitigate life’s inevitable inequalities and to provide support for the elderly.”
“Besides these growing economic and employment-related risks, there are other forces on the horizon that raise the stakes in our efforts to preserve social solidarity and will also have significant implications for our future generations. We are now one of the fastest ageing countries. In 2010, 9% of our population were aged 65 and above. Last year, this became 16%. By 2030, we expect Singapore to become like Japan and some European countries today – where one in four or 25% of Singaporeans will be 65 and above. Ageing will mean an inexorable rise in demand for healthcare and social care. At the same time, our means to provide for this will come under strain, as the ratio of our working population to aged dependents decreases. We must therefore plan ahead to ensure we will have the resources needed to look after more seniors. We must also take decisive steps to join the global effort in tackling climate change. If the world is unable to cut emissions sufficiently in time and temperatures rise beyond a certain level, we risk extreme flooding and weather events. This could result in food and water stress for hundreds of millions of people around the world. Island nations like Singapore will be especially threatened. Moving to net zero emissions will be a very costly affair for Singapore, a built-up city-state with very limited scope to tap on renewable energies. But it is a cost we cannot afford to skimp on, for it is existential. It affects our very survival and the Singapore that our children will live in. So, we must take actions now to progressively decarbonise our economy and change our way of life.”
“The fast pace of change can also give rise to a greater sense of anxiety and insecurity about the future. It is not the first time we have faced such concerns. When we emerged from the Global Financial Crisis of 2009 and began restructuring our economy in earnest, we were keenly aware of those who could be left behind. So, we stepped up efforts to reskill and upskill our workers, and to strengthen our social security system. We enhanced Workfare and launched the Progressive Wage Model to uplift the incomes of lower-wage workers. We introduced Silver Support to supplement the retirement income of seniors who had low incomes in their working years. We implemented MediShield Life to provide universal and lifelong protections against large hospital bills. Today, these policies have become vital pillars of our social security system. And these efforts have made our growth more inclusive. Real incomes of our local workers at the 20th percentile have risen by almost 40% between 2009 and 2019, faster than that of the median worker. Lower-income workers have also benefited from our highly progressive system of taxes and transfers. Inequality after taxes and transfers as measured by the Gini coefficient has steadily improved over the last decade. But we cannot stop here in our efforts to strengthen our social compact. We must continue to do more in a post-pandemic future, where our workers and firms will be exposed to more competition and where there will be greater churn for our businesses and livelihoods. In the coming years, we expect an increasing shift in market rewards towards those with the highest skills and those who are best able to take advantage of new technologies. This will make it harder to keep our growth inclusive and to hold our society tightly together.”
“These and other technology firms create many highly-skilled jobs and opportunities for Singaporeans. Our economic prospects are good, but we will have to contend with new external challenges and adapt quickly to a new environment. We have entered a new era of greater contestation for influence between countries and blocs, which may erode the rules-based multilateral system that has been so crucial to Singapore’s success. In particular, rivalry between the two great powers – US and China – has intensified and will impact the world for the rest of the decade and more. The pandemic has also turbocharged the move to a digital future. Every time a task moves to the digital realm, it becomes easier to use software to automate and optimise it. Such new digital technologies will disrupt and reshape businesses and impact a wide range of jobs across all sectors of the economy. Our local businesses, especially those that are digitally savvy, will be able to take advantage of the rich opportunities on offer and transcend our geographical limitations. But this cuts both ways, as it will also be possible for MNCs to “reshore” more functions to their home countries, as they seek to simplify and localise their supply chains. In short, we are entering a future where conditions are more volatile, the global environment more unpredictable and change more fast-paced than ever. We can and must adjust and still excel in this new environment. Our enterprises and workers will need to accelerate their transformation and develop new capabilities to stay ahead of the competition and look for opportunities beyond our shores and in new areas. But there will be segments of our society who are displaced.”
“We have kept our air and sea ports open, and ensured an uninterrupted flow of critical supplies. We have enhanced our reputation as a trusted and reliable node. This is why we are not only attracting more investments, but also securing more high quality, cutting-edge and innovative projects. Singapore continues to be a strategic launch pad for businesses around the world looking to expand into new markets in the region. For example, BioNTech, the company that, together with Pfizer, developed the mRNA COVID-19 vaccine, is establishing its regional headquarters for Southeast Asia in Singapore. BioNTech also plans to build a fully integrated mRNA manufacturing facility here, which will be operational as early as next year. The new facility will boost BioNTech’s regional and global supply capacity for its growing pipeline of novel mRNA-based product candidates. [Please refer to Annex B-1.] Together with other new investments and plans to build businesses and headquarter operations in Singapore, this will create many good jobs for Singaporeans. Our ability to create jobs will depend on how quickly we restructure and transform the economy to take advantage of new opportunities. It will also depend on us getting our foreign worker policies right. So, even as we adjust these policies, we must remain open and welcoming to talent from around the world. On the whole, we are making good progress. Our productivity is increasing, enabling continued income growth for our workers. We are advancing as a Smart City, with our world class infrastructure and digitally-enabled workforce as our key competitive strengths. We also have a more vibrant startup and innovation ecosystem. Last year alone, 11 Singapore-based startups achieved unicorn status – no mean feat for a small city-state.”
“[Please refer to Annex C-1.] I will also extend access to Project Loans for the domestic construction sector for another year, from 1 April this year to 31 March next year. This is on top of the Foreign Worker Levy rebates that construction firms are receiving currently. [Please refer to Annex C-1.] For households, I will introduce a Household Support Package. As part of the Package, I will double the GST Voucher – U-Save rebates for the rest of this year. Eligible HDB households will receive additional rebates of up to $285. I will provide children below the age of 21 with a top-up of $200 each in their Child Development Account, Edusave Account or Post-Secondary Education Account. This will be on top of the annual Edusave top-ups they already receive. I will also distribute another set of $100 CDC Vouchers this year to support all Singaporean households in their daily expenses. The vouchers can be used at participating heartland shops and hawkers. All these amount to a significant package of $560 million to help Singaporeans with their utility bills, children’s education and daily essentials. [Please refer to Annex A-2.] Details of the Jobs and Business Support Package, and the Household Support Package are in the Annex. [Please refer to Annex A-1 and Annex A-2.] Beyond the immediate outlook, we must set our eyes on the future. We have come this far as a nation, because we are always thinking about tomorrow: planning and taking actions not just for the present, but also with the longer-term interests of Singapore and Singaporeans at heart. So, we must position ourselves now for the challenges and also the opportunities of the decade ahead. We are moving forward from a position of strength. Our responses to the pandemic have distinguished us from other countries.”
“Aside from this Package, I will continue to extend targeted assistance for the aviation sector. This includes measures to ensure public health and safety at the airport, as well as to preserve core capabilities. We must preserve and enhance our status as an international aviation hub. The Minister for Transport will share more details at the Committee of Supply (COS). As our economy reopens, the harder-hit sectors should progressively see improved prospects. Meanwhile, these support measures will provide temporary relief for our businesses and workers. We are also closely monitoring the risk of rising inflation and cost of living. The rise in prices comes after an extended period of low inflation over the past decade. It has been driven mainly by the recovery in global demand amidst continuing supply chain dislocations and especially, by the rise in energy prices. We are also seeing the effects of the expansionary macro-economic policies pursued by the US and other developed countries to revive their economies following the onset of the pandemic. This is why the MAS had taken the pre-emptive step of raising the rate of appreciation of its exchange rate policy band in October last year and again, last month, to help dampen inflationary pressures. I recognise the immediate concerns of businesses and households and will provide significant additional support in this Budget to help them tide over the current period of higher prices. For businesses, the spike in the cost of materials and electricity has led to cashflow concerns. To support companies with their cashflow needs, I will extend the Temporary Bridging Loan Programme and the enhanced Trade Loan Scheme, with revised parameters, for another six months, from 1 April to 30 September this year.”
“We stand ready to respond should the situation turn for the worse. Barring fresh disruptions, I expect the Singapore economy to continue to do well. Our economy should grow by 3% to 5% this year. Our investment pipeline is also strong. This will support our efforts to create more good jobs and secure the livelihoods of all Singaporeans at all levels of the workforce. While the overall outlook is positive, I recognise that there are still segments of the economy that are still struggling. I will therefore provide targeted help for our workers and businesses in these sectors, through a $500 million Jobs and Business Support Package. [Please refer to Annex A-1.] As part of this Package, I will provide a Small Business Recovery Grant for SMEs that have been most affected by COVID-19 restrictions over the past year, like those in F&B, Retail, Tourism and the Hospitality sectors. SMEs in the eligible sectors will receive a payout of $1,000 per local employee, up to a cap of $10,000 per firm. Local sole proprietors and partnerships in eligible sectors, as well as Singapore Food Agency (SFA) licensed hawkers, market and coffeeshop stallholders who do not hire local employees, will also receive a $1,000 payout. In addition, workers who continue to face income loss due to COVID-19 can apply for the COVID-19 Recovery Grant, which we have extended to the end of this year. And I will also extend the Jobs Growth Incentive by six months to September this year, with stepped-down support rates reflecting the improved labour market conditions. This extension will cover those who face greater difficulty finding jobs, like mature workers who have not been employed for six months or more, persons with disabilities and ex-offenders.”
“So, as we navigate this Omicron wave and any future wave of infection, I am confident that we can overcome whatever lies ahead and make further progress in our journey to live with COVID-19. We are starting the year on a positive note. Our economy has rebounded strongly from our worst recession since Independence. We worked together to cushion the effects of COVID-19. We planned, we consulted, we took action. We committed close to $100 billion over the past two years to support Singaporeans and businesses through the uncertainties of COVID-19. The close tripartite partnership between the unions, employers and the Government enabled us to take decisive and timely actions to preserve jobs and create new ones even through the crisis. Our measures have borne fruit. The resident unemployment rate has come down to 3.2%, close to pre-COVID-19 levels. The median income of full-time employed residents grew by around 1% in real terms last year, after a decline of 0.4% in 2020. We expect to see steady recovery this year. Singapore will continue to benefit from the pick-up in the global economy. This will be supported by more widespread vaccination and booster efforts in the major economies like the US and Eurozone. The recovery of our key trading partners in the region will also support our growth. But that said, 2022 is not free of risks. The global economy is still vulnerable to pandemic-related risks and further supply chain disruptions. Geopolitical and security risks loom, including the rising tensions in Eastern Europe. We may also see a slowdown in external demand as the major economies scale back their pandemic support and central banks tighten their accommodative monetary policies to deal with the threat of inflation. We will continue to watch these potential threats.”
“Mr Deputy Speaker, Sir, I beg to move, "That Parliament approves the financial policy of the Government for the financial year 1 April 2022 to 31 March 2023." Sir, it has been more than two years since COVID-19 upended our lives. During this period, we mounted multiple public health responses that pushed us to new limits. We faced a major economic challenge and fought to save lives and jobs. All of us adapted to different restrictions as the virus threat evolved. Some had to put plans on hold. Others were kept apart from loved ones. Throughout these challenges, Singaporeans have rallied together and supported one another. I want to express my deep appreciation to our stout-hearted healthcare workers who have been unwavering on the frontlines; as well as many others who have kept Singapore going – our public officers, our transport workers and those in social services, our safe distancing ambassadors, our hawkers and F&B operators, as well as our migrant workers. Most of all, I thank all Singaporeans for your strong cooperation and support – complying with our measures, coming forward to get vaccinated, trusting the Government and keeping faith with one another. The last two years have shown us that there is nothing predictable about this virus. But as the global pandemic enters its third year, we will have to adjust to the new normal. We cannot let it change our hopes, our aspirations, our values. We are much stronger now compared to when the virus first emerged. We have improved our public health defences and strengthened our collective resilience. We have one of the highest vaccination rates in the world. And we continue to invest in and secure access to a wider range of booster and treatment options.”
“Third, to help accounting firms to transform and improve productivity, SAC rolled out the Digital Transformation for Accountancy (DTACT) programme to help Small and Medium Practices (SMPs) defray the costs of adopting technology solutions. The programme supported about 140 SMPs from October 2018 to December 2020. SAC has organised annual accounting-related hackathons to ideate new solutions to transform the sector. SAC’s efforts have yielded good outcomes and contributed to the steady growth of the sector and the creation of good jobs. From 2015 to 2019, prior to COVID-19, the revenue of accounting entities grew by an average of 5.8% per annum and more than 3,000 jobs were created2 in the sector.”
“The Singapore Accountancy Commission (SAC) has implemented several initiatives over the years to raise the standards and drive the development of the accountancy sector in Singapore. These initiatives, which are also part of SAC’s Accountancy Roadmap, aim to grow Singapore into a leading global accountancy hub for high value-adding accounting services. First, to ensure that accountants have the right skillsets and knowledge, SAC developed the Singapore Chartered Accountant Qualification (SCAQ) in 2013. The SCAQ is Singapore’s national professional accountancy qualification and is internationally recognised. Over the years, the number of SCAQ candidates has been steadily increasing, from 1,554 candidates in FY2017/2018 to 2,252 candidates in FY2020/20211. As demand for business valuation services rises, SAC also developed a first-in-Asia Chartered Valuer and Appraiser (CVA) programme to raise the standards of ethics and professionalism in business valuation. To position Singapore as a thought leader in the field of professional development, SAC also organised the Institute of Valuers and Appraisers Singapore – International Valuation Standards Council Business Valuation Conference annually. Second, to develop the accountancy talent pool, SAC partnered Workforce Singapore (WSG) to upskill and reskill workers to prepare them for new or expanded roles, especially in growth areas. For example, SAC and WSG collaborated with the Institute of Internal Auditors Singapore to launch the Career Conversion Programme to train and support mid-career individuals to take on Internal Audit roles. In addition, SAC recently launched the Jobs Transformation Maps for the accountancy sector which laid out pathways to transform jobs and the skills required by workers as job roles evolve.”
“To minimise procurement lapses: (a) GPFO is working on the consolidation of procurement teams across agencies to achieve the scale necessary to develop and sustain strong procurement teams. The pooling of expertise will enable these procurement teams to better manage large-scale and complex procurement, including stockpiling or other means of managing supply chain disruptions. We have started the consolidation process with IT procurement and construction procurement and will be expanding to other areas of buys. (b) GPFO also sets standards on the competencies expected of procurement officers. The Finance and Procurement Academy has partnered the Civil Service College to develop the learning and development roadmaps. We have also stepped up training of non-procurement officers who are involved in various parts of the procurement process. Our efforts to strengthen procurement is a continual process. We will continue to strike a balance between strengthening controls and ensuring that our procurement is agile and responsive to broader trends.”
“Managing the challenges of global inflation and supply chain disruption for Government procurement is a multi-agency effort, which includes using fiscal and monetary policies to mitigate the impact of inflation and taking a multi-level approach to address supply chain resiliency. At the national level, Government agencies collaborate to ensure that there is forward planning, diversification of supply and development of contingency plans. At the sectoral level, agencies overseeing the respective sectors are tasked to drive resilience outcomes for their sectors. For instance, GovTech engages the industry widely to promote participation in Government infocomm technology (IT) tenders and ensures that sufficient diversity of suppliers are appointed in IT demand aggregated contracts. At the project level, agencies monitor their supplier concentration risk and strive to structure their procurement to avoid over-reliance on a small pool of suppliers. The Government Procurement Function Office (GPFO) in MOF works with agencies to establish the appropriate policies, systems and structures and develop capabilities to enable the Government to procure effectively, efficiently and in a publicly-accountable manner. For example, during the COVID-19 pandemic, GPFO activated Emergency Procurement procedures which allowed agencies to more easily and quickly secure the necessary goods and services amidst global disruptions, while balancing the need to ensure financial governance. GPFO also worked with agencies to establish the framework for the Government to co-share reasonable cost increases experienced by our construction contractors during the pandemic to ensure essential projects are not too seriously disrupted.”
“We are also taking active steps in infrastructure development to address this risk, such as to raise the minimum platform levels at new critical infrastructures, such as Changi Airport Terminal 5, to higher levels. Amid tightening fiscal space, MOF carefully assesses resilience-related measures to ensure sustainable outcomes and spending. MOF works with agencies to put in place cost-efficient ways to maintain resilience, such as through dual-purpose facilities, with uses in both crises and peacetime. For example, MOH’s pandemic operational plan would include the ability to convert non-medical sites, such as car parks, quickly into medical facilities, such as COVID-19 isolation wards. The Government will continue to look for new and better ways to secure resilience while taking into account fiscal sustainability.”
“In planning and building for the future, the Government assesses how much of our plans cater for some insurance or "just in case" provisions against shocks. In such assessments, we consider the nature of potential risks and appropriate models of insurance or resilience. As it is not feasible to fully insure or protect against all possible risks, the Government continues to strike a judicious balance between resilience and efficiency. A "just in case" model will be more expensive because, by definition, it caters for redundancy as insurance against a particular risk. This higher cost will, ultimately, be borne by our society, either in the form of higher prices or higher taxes. While it would not be practical or fiscally prudent to seek guarantees against all risks, we have actively ensured resilience in key areas, through both fiscal and non-fiscal measures. For example, to ensure water security, we have built a robust and diversified supply of water from four sources – our Four National Taps. Water is priced to incorporate the higher cost of producing water through desalination and reverse osmosis (NEWater). Our Rice Stockpile Scheme helped to ensure an adequate supply of rice in the market when COVID-19 first struck and there was significant uncertainty. We are taking further steps to diversify our import sources and grow local to strengthen food supply resilience. Another risk we have been actively preparing for is the impact of climate change. In 2020, we set up the Coastal and Flood Protection Fund, so that we invest sufficient resources whenever our fiscal situation allows, to protect Singapore against rising sea levels and more intense rainfalls.”
“The GST Voucher (GSTV) scheme provides support to lower- and middle-income households for their expenses, in particular, what they pay in GST. We use Assessable Income (AI) and Annual Value (AV) to determine eligibility, as these are the best available proxies to measure an individual’s means and access to family support. Properties with AVs exceeding $21,000 are private properties. A person living in a higher-value property is, in general, more likely to have access to more means or support through family resources. That said, MOF carefully considers appeals by Singaporeans who are unable to qualify for the GST Voucher but are in financial difficulty. Apart from the GST Voucher scheme, seniors also receive support from other schemes, such as the Pioneer Generation Package, Merdeka Generation Package and healthcare subsidies. We continue to review the GST Voucher scheme from time to time, to ensure that it continues to benefit those who need it most.”
“Mr Speaker, again, the short answer is yes. But I should clarify the standards are not set by MOF; they are set by the Monetary Authority of Singapore (MAS) and I am speaking also in my capacity as the Deputy Chairman of MAS. This is under MAS' purview. As I explained in my speech just now, we have assessed that OCBC itself, in this incident, could have done better. There were areas, in terms of its responses to customers, which, certainly, could be improved. That is why we are reviewing the conduct of OCBC, and we will take the appropriate actions. That is for the OCBC incident. But with regard to standards, expectations and responsibilities, these are in place today for all the retail banks and we will continue to review and ensure that these standards are set in such a way that provide assurances to customers and hold the banks accountable to meeting these high standards.”
“Mr Speaker, the short answers to both questions are yes. As I have mentioned in my speech, MAS is, indeed, looking to introduce additional customer confirmations for higher-risk transactions, and that would include fund transfers that are large, relative to the overall balances, as well as overseas transfers, recognising that once the funds leave our local banking system, they are very hard to recover, indeed. So, as I have mentioned, these are additional strengthening and enhancements we are looking at, which will require customer confirmation. It will add friction to the transaction for genuine customers but we hope that everyone understands that these inconveniences are necessary to have a safer digital banking system in Singapore. The second point about having a cooling-off period, if the banks are aware of the scam and whether or not they can put in place some cooling-off periods, indeed, that is something that has been done. And we will continue to look at how these sorts of measures and safeguards can be strengthened.”
“Mr Speaker, in developing any new measures, MAS will want to ensure that these measures are effective – effective in reducing the risk in our banking system, effective in implementation. And if new legislation is necessary or amendments to the laws are necessary, we will certainly not rule out those options.”
“Mr Speaker, this must be my third question on the loss-sharing framework. I can appreciate that there is a lot of interest in this and, as I have said, it is a work-in-progress. But to quickly answer Ms Poa's two questions. Number one: MAS will certainly look at models around the world in developing the details of this framework for the sharing of losses in an equitable fair share. Number two: as the Member has highlighted, the responsibility will be different for individuals and financial institutions. We are very mindful that individuals have a different set of resources and capabilities, compared to financial institutions. So, in developing the specific responsibilities for individuals and financial institutions, we will certainly take that into consideration.”
“Mr Speaker, on the use of SMS to deliver OTPs, I mentioned just now that we are reviewing this practice and, if we were to continue, whether potential measures should be taken to reduce the risk. I should highlight that, really, as I mentioned in my speech, there is no single measure that can guarantee the security of digital banking. Issuance of SMS, even if it were to be done through a very safe and encrypted channel, for example, that would not stop deception from happening and, if the scam succeeds in identity theft, as has happened here, impersonating a bank, getting the person to think that this is, in fact, a genuine bank, then the person with the OTP will still provide the OTP to this scam website or scam account or whatever it is. So, it is a broader issue that we have to look at holistically and, as I mentioned, we are determined and committed to this process to review the entire ecosystem and strengthen it.”
“It has been, and will continue to do everything it can, working together with other partners and stakeholders to strengthen the security across our digital banking channels and also across the entire digital ecosystem. On the second question on the framework for the sharing of losses, I do not want to get into details because, as I have highlighted, this is still work in progress. But, as I mentioned just now, our intention is to clearly set out basic responsibilities expected of financial institutions. Indeed, if financial institutions were to fall short of these responsibilities, then they should bear their share of the losses. So, this is work in progress and we will put out the details in due course when we are ready.”
“Mr Speaker, I thank Ms Foo Mee Har for the very important question. MAS' approach and what MAS has done so far has, in fact, gone beyond the usual practices among financial regulators. In major jurisdictions, regulators do not themselves prescribe the specific anti-scam controls for the banks. Instead, they take a supervisory approach, which means they set up the broad supervisory expectations of the banks, then they place the responsibility on the banks to develop the specific anti-scam measures. Then, the regulators will assess the adequacy of these measures and they will impose penalties if the banks fall short of expectations. So, that is the approach that other regulators take, most regulators will take, and that is also the basic approach that MAS has undertaken. But, as I mentioned, MAS has, in fact, gone beyond most regulators in being quite clear about its expectations, as well as the specific anti-scam measures that are required. Amongst the three local banks, this started last year, following MAS' focus supervisory review. Then, earlier this year, in January, as I mentioned just now, MAS and ABS put in place a comprehensive suite of measures and controls that will apply across all retail banks. That is, in fact, more than what major jurisdictions have in place. And we are going beyond that, because, as I have highlighted in my speech, MAS is also considering and studying further enhancements to the measures that we can put in place across banks to reduce the risk across our digital banking channels. So, let me assure Members that MAS takes this work very seriously.”
“And I should add, the stakeholders, as I have mentioned earlier, also include players operating the communications infrastructure because we want to ensure that there is proper accountability across the entire ecosystem.”
“Mr Speaker, I thank Dr Tan Wu Meng for his suggestion on the last point. Indeed, we cannot be fighting the last war, we have to look ahead, anticipate vulnerabilities and continually look at different ways to improve our system, and MAS is certainly committed to this process. On the framework for the sharing of losses incurred by customers, this is a complex issue. I mentioned just now that it is being deliberated upon by the Payments Council, which is chaired by MAS, and it aims to put up something for public consultation within the next three months. I do not want to get ahead of the process, but I would just want to set out some key principles which the Council is using to guide its deliberations. First, the framework for the sharing of losses should be consistent and common. So, it should not matter which bank you go to; it has to be applied consistently across the entire industry. Second, the framework should be equitable in determining how losses are to be shared, because both banks and customers have their respective responsibilities. So, Dr Tan Wu Meng talked of some scenarios about speed and whether or not it is a forced or unforced error. But what we intend to do is to be quite clear and specific about what these responsibilities are for financial institutions and customers and what each party is expected to do to prevent scams. Then, the share of losses each party bears will depend on whether and how the party has fallen short of these very clearly stated responsibilities. I think that is a fair and equitable principle, But, obviously, there are many details to be worked out. So, the Payments Council chaired by MAS will go about these deliberations with the different stakeholders.”
“The threat we are facing is one of deception of customers, where scammers mimic bona fide communications and transactions to gain the trust of victims, induce in them a heightened state of anxiety or excitement, and exploit their lapse of attention to steal their credentials and passwords. In the same way that we are all vulnerable to misinformation, we are also vulnerable to scams and must not be complacent. The digital world we live in today demands a posture of constant vigilance. The additional measures put in place by banks will mean more controls that a scammer will have to overcome, but they cannot guarantee that a customer will not be deceived. SPF and MoneySense, the national financial education programme, will continue to step up their public education efforts to provide useful tools and tips that can help members of the public avoid falling prey to scams. There is no dominant customer profile of scam victims across different scam types, whether by education, wealth, age or gender. Everyone needs to be on their guard. The problem of scams requires robust responses at the individual, industry and infrastructure levels – in short, an ecosystem approach where the various measures work in synergistic fashion. We are addressing the risks at every part of the digital ecosystem, so that, taken together, the measures will significantly mitigate risks for the entire system and enable us to operate safely in a digital world. As I had explained earlier, this must involve the financial sector but it must go beyond it. MAS has been working in close coordination with MHA and MCI on a Government-wide approach towards scams. So, Minister Josephine Teo and Minister of State Desmond Tan will elaborate on this in their Statements.”
“MAS has set out expectations for banks to treat their customers fairly when looking into reports of fraudulent transactions. These include comprehensively investigating all cases and suspending late fees for disputed card transactions. Disputed transactions will not adversely affect consumers’ credit records with licensed credit bureaus during the investigation period. Beyond this, it is important to establish a common and equitable framework for sharing the losses incurred by the customer. No matter which bank you go to, you should still receive the same fair treatment. OCBC’s recent goodwill payouts to fully cover customer losses were made as a one-off gesture and do not set a general precedent for future cases. The Payments Council chaired by MAS has been working on a framework for equitable sharing of losses arising from scams. Under this framework, both banks and their customers have their respective responsibilities and the share of losses each party bears will depend on whether and how the party has fallen short of its responsibilities. Financial institutions should bear an appropriate share of losses arising from scams, but care must also be taken to ensure that any compensation paid to customers does not weaken their incentive to be vigilant. MAS aims to publish the framework for public consultation within the next three months. Other than financial institutions, the players operating the communications infrastructure play a key role in digital security against scams. So, MCI and MAS will consider the shared responsibilities of all the key parties in the ecosystem to ensure that there is proper accountability. To conclude, Sir, let me assure Members that digital banking itself is safe and secure.”
“But we will all need to adapt and get used to these inconveniences, in order to strengthen the security of digital banking. Fourth, banks are exploring expanding the use of biometric technology, in addition to passwords and OTPs, as a means of authentication. This will add one more layer of security that cannot be easily phished by scammers to access a customer’s account. Fifth, banks will accelerate the shift towards the use of mobile banking apps for customer authentication, transaction authorisation and delivery of bank notifications. If implemented well, it will be harder for scammers to abuse mobile banking apps. At the same time, MAS and the banks are reviewing the use of SMS to deliver OTPs and the potential measures that should be taken to reduce risk if such a practice should continue. Sir, there is no single measure that can guarantee the security of digital banking. The techniques employed by scammers are constantly evolving and gaining in sophistication. This is why in the fight against scams, banks need to employ a combination of measures in prevention, detection, response and recovery, and constantly review and recalibrate these measures. Most of our banks already have many of these measures in place in one form or another. MAS will work with the banks to strengthen these measures and set minimum parameters. But it would be counter-productive to publish the specific calibration of these controls. This is no different from why the red flags that banks look out for to detect money laundering transactions are not published in full. The enhanced measures that banks are taking will mitigate the risks posed by phishing scams. But realistically, it will not be possible to eliminate such scams completely.”
“Most banks do have some rule-based parameters to trigger suspicion, for example, large transfers to a new recipient. But these parameters need to be expanded to take account of a broader range of scam scenarios. Beyond pre-defined parameters, MAS will expect banks to develop more versatile algorithms employing artificial intelligence and machine learning to detect suspicious transactions. Such algorithms should be based on multiple sources of information, including customer profile and vulnerabilities, past transaction patterns, account activity and mobile device identification. I must caveat that while these advances will help, fraud monitoring systems are not a silver bullet. It is not possible to detect every scam. Second, banks should step up their ability to immediately block suspicious transactions and reach out to their customers to verify their authenticity. The transactions will be unblocked and processed only upon confirmation by the customer. Banks today do have some of these capabilities, but they are not consistent across various types of transactions. We are also looking into enabling customers to trigger a freeze on their own accounts without having to contact the banks if they suspect their accounts have been compromised. Third, MAS and the banks are looking to introduce additional customer confirmations – not just notifications – for significant changes to their accounts or high-risk transactions, such as changes in account holder details, activating a token on another device, fund transfers that are large relative to their overall balances and overseas transfers. This will introduce some friction to customers carrying out genuine transactions.”
“As an urgent first step in this process, MAS and the Association of Banks in Singapore (ABS) announced a set of additional measures on 19 January 2022 for immediate implementation by retail banks in Singapore. These measures will substantially bolster the security of digital banking against scammers employing similar tactics as the OCBC scam cases. The measures include removing clickable links in all bank emails and SMSes sent to retail customers; delaying by at least 12 hours before a new soft token can be activated on a mobile device; lowering to $100 or below the default threshold for sending transaction notifications to customers; sending a notification alert to the customer’s existing mobile number or email registered with the bank whenever there is a request for change; sending scam alerts directly to customers through email or SMS; and setting up dedicated call centre teams on a 24/7 basis to assist customers facing a potential scam and to freeze compromised accounts immediately to prevent further illicit withdrawals. These measures have reduced the risk of successful phishing scams. But they do not eliminate them altogether. Beyond these immediate measures, banks can and should do more to safeguard their customers. MAS and ABS have stepped up work on further measures to comprehensively strengthen banks’ ability to deter, detect and combat phishing scams. Members have also raised some useful suggestions on additional measures that can be put in place. Let me outline the key measures that are being considered with regard to banks. First, banks are working to further strengthen their fraud surveillance capabilities to identify suspicious and anomalous transactions. This includes credit card transactions.”
“In view of the increase in the number of scam cases, particularly in the last two years, MAS had, in the third quarter of last year, carried out a focused supervisory review of the adequacy of fraud controls in the digital banking channels of the three local banks. The review surfaced a number of gaps. In October 2021, MAS conveyed to each of the banks its specific findings and recommendations for the remediation of the gaps observed. The banks had committed to timelines to take these remedial actions, with most measures to be fully implemented by June 2022, while those requiring extensive changes in IT systems to be completed by December 2022, at the latest. In agreeing to the timelines for implementation, MAS was mindful that the banks had multiple priorities, including mitigating the overarching cybersecurity threat that has been rising and ensuring business continuity and robust risk management, amidst COVID-19. When faced with the escalation in phishing scams in December 2021, OCBC fast-tracked the implementation of some of the measures identified in MAS’ supervisory review. For example, it extended the cooling period after a digital token is set up on a new mobile device, during which, higher risk transactions cannot be carried out. The recent OCBC scam signifies a step-up in the persistence and deceptiveness of phishing scams involving banks. The scammers used a combination of well-orchestrated tactics, to achieve a level of realism not seen in previous phishing scams. The Government is, therefore, further strengthening the safeguards in digital banking channels and the broader ecosystem to help thwart this enhanced threat. MAS has accelerated the process of strengthening anti-scam control standards across all retail banks.”
“As a one-off goodwill gesture, the bank has undertaken to reimburse in full all customers affected by this phishing scam. It has made arrangements to do so with all the affected customers. To date, more than 90% of them have received reimbursements and the remaining reimbursements should be disbursed soon. OCBC has also engaged an independent external party to conduct a thorough review of its anti-scam processes, including fraud surveillance, incident management and customer service, and to recommend necessary remedial actions, on top of what it has already done. MAS will review these findings, take appropriate supervisory actions against the bank and closely monitor the bank’s implementation of remedial measures. MAS has long had in place expectations for banks to have measures to secure the risk of digital banking. For example, banks have to implement multi-factor authentication, such as dynamic passwords or OTPs that can only be used once, to verify the customer’s identity and to authorise online transactions; they must maintain fraud monitoring systems to facilitate timely detection and blocking of suspicious transactions; and they must send notification alerts to customers for outgoing transactions, including credit card transactions, that exceed a threshold that customers can determine, so that they can report unauthorised transactions as soon as possible. SPF, MAS and banks have also been issuing regular advisories to alert the public to online scams. Minister of State Desmond Tan will touch on that later.”
“I should add that this was not a cyber attack on OCBC but a phishing scam on OCBC’s customers who were deceived into providing their banking credentials and OTPs at scam websites set up by the scammers. At no time was the bank’s own systems breached. In its efforts to stem the phishing scam, OCBC took various actions. It warned customers to be alert to spoofed SMSes, initially through general advisories on its website, and then, subsequently, through SMSes and emails to customers; it worked with the Singapore Police Force and the Cyber Security Agency to block and take down the scam websites; it ceased sending customers SMSes with clickable links; it enhanced its anti-scam controls; and it verified through a phone call every customer who submitted a request for digital token activation. These actions were taken at various stages during the month as the phishing scams built up. OCBC should, however, have responded faster and more robustly at the first sign of the scams, which the bank had picked up in early December. OCBC informed MAS on 24 December that it had activated its incident response team. By then, the OCBC call centre was overwhelmed. It faced a surge in calls from affected customers as well as other worried customers who had not themselves received phishing messages. Despite the bank deploying additional resources, some affected customers experienced delays in reaching the bank to report the scams. To address Dr Tan Wu Meng’s query, prior to the OCBC incident, MAS had received only a few complaints concerning delays in customer service related to similar scams, in other words, the spoofed SMSes that impersonated banks. OCBC has apologised for falling short of its own expectations in customer service and response.”
“Taken together, Minister Josephine Teo, Minister of State Desmond Tan and I will address Oral Question Nos 7 to 32 and Written Question Nos 1, 2 and 8 on yesterday’s Order Paper, Oral Question Nos 1 to 5 and Written Question Nos 1, 2, 9 and 27 on today’s Order Paper. Mr Mohd Fahmi Bin Aliman has filed an Oral Question scheduled for a future Sitting on these issues. As today’s Ministerial Statements will address these questions, Mr Speaker, I would like to invite these Members to seek clarifications should they have any on these issues after the Statements. Let me first round up the key facts regarding the recent OCBC SMS phishing scam. Seven hundred ninety OCBC customers lost a total of $13.7 million to the scammers, mostly over the year-end festive period from 23 December to 30 December. This is by far the most serious phishing scam we have seen involving spoofed SMSes impersonating banks. Spoofed SMSes were sent with a fake sender ID, which, in many cases, made them appear in the same message thread as genuine SMSes. The victims, having received the spoofed SMSes in the same thread of messages from OCBC, were deceived into clicking the links in these SMSes that led them to scam websites. These scam websites were almost indistinguishable from the real OCBC website, such that people could not tell the difference unless they compared the URL of the scam website with that of the genuine one. Hence, many keyed their login credentials and one-time passwords (OTPs) into the scam websites. The scammers used these credentials and OTPs to take control of the victims’ bank accounts and made fraudulent transfers.”
“Mr Speaker, Sir, I am speaking in my capacity as Finance Minister and also as the Deputy Chairman of the Monetary Authority of Singapore (MAS). Today, Minister Josephine Teo, Minister of State Desmond Tan and I will address a total of 39 Parliamentary Questions (PQs) that have been posed to MAS, MCI and MHA arising from the recent OCBC phishing scams. They cover a wide range of issues – from whether the banks can do more to mitigate the risks of such scams, to how the telco infrastructure, enforcement actions and consumer education can be enhanced to deal with this growing problem. The breadth of the issues raised underscores that we need to take an ecosystem approach to strengthen our collective defence against phishing scams and scams in general. Everyone in this ecosystem must play their part. The Ministerial Statements will explain the Government’s comprehensive approach, working with each party in the ecosystem, to counter the threat of phishing scams. I will provide more details on the OCBC phishing scam and on the steps that MAS and the banks are taking to strengthen safeguards against such scams. Minister Josephine Teo will then set out the measures being taken to enhance the broader communications infrastructure. And Minister of State Desmond Tan will elaborate on measures to strengthen enforcement and consumer education. None of these measures can be foolproof in and of themselves, but, collectively, they should work to significantly reduce the scope for scams to succeed and their cost. With everyone on guard, including individuals, the industry and infrastructure providers, we hope not to see a recurrence of a large-scale scam as was seen in the OCBC case.”
“From 2017 to 2021, the average annual amount of Additional Buyer's Stamp Duty (ABSD) collected from Singapore Citizens (SCs) buying a second residential property was around $244 million. The average annual amount of ABSD collected from SCs buying a third and subsequent residential property was around $106 million. The annual breakdowns are provided in Table 1 below. In working out the above information, IRAS had identified errors in an earlier set of data, which was provided in response to Mr Louis Chua's written Parliamentary Question on the breakdown of Buyer's Stamp Duty (BSD) and ABSD collected from SCs, Permanent Residents (PRs), foreigners and entities (including housing developers), and published on 11 January 2022. [Please refer to "Data on Residential Property Stamp Duties and Additional Buyer's Stamp Duties Collected in Last 10 Years", 11 January 2022, Official Report, Vol 95, Issue No 45, Written Answers to Questions section.] The figures should instead be as in Table 2 below. IRAS apologises for the mistake. For purchases where the parties are of mixed citizenship status (for example, SC and PR joint purchasers), the transfer is categorised under the profile with the highest ABSD rate (that is, SC-PR joint purchasers are categorised under PR).”
“Mr Leong Mun Wai had asked a similar question on 6 July 2021. MOF had furnished the information and it remains valid. The information on the highest marginal personal income tax rate for tax-resident individuals and corporate income tax rate from 1991 to 2013 is reproduced in Table 1 and Table 2, respectively.”
“The objective of JSS was to provide urgently needed cashflow to firms across the board at the most challenging period of the COVID-19 crisis, in particular, during the circuit breaker period. The JSS enabled firms to retain their local employees and to subsequently bounce back from the crisis as local and global demand recovered. Our timely fiscal support, through JSS and other relief schemes, conclusively helped to avert a deeper crisis for Singapore, and, in particular, helped firms survive the crisis. This is why we had designed the JSS such that the eligibility for the scheme is not determined by profitability but by whether the firm employs local workers (evidenced by payment of CPF contributions). In that context, we should not focus on the profitability of the JSS recipients, but on the outcomes achieved through this scheme, which is aimed at preserving local employment.”
“Mr Speaker, Sir, may I have your permission to answer Oral Question Nos 7 to 32 as part of the three Ministerial Statements to be delivered by the Minister for Communications and Information and Minister-in-charge of Smart Nation and Cybersecurity Mrs Josephine Teo, the Minister of State for Home Affairs Mr Desmond Tan and myself, at tomorrow's Sitting.”