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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“] First, I will provide $800 in Community Development Council (CDC) Vouchers to every Singaporean household. The first $500 will be disbursed in May this year. And the remaining $300 will be disbursed in January next year. As with previous CDC Vouchers, half can be used at participating supermarkets. And the other half can be used at participating heartland merchants and hawkers. Second, I will provide additional U-Save rebates to help households cope with their utilities expenses. Eligible Housing and Development Board (HDB) households will receive up to $760 this financial year. This is double the amount of regular U-Save rebates. It will cover about six months of utilities expenses for those living in 1- and 2-room flats, and three months of utilities expenses for those living in 3- and 4-room flats. Third, I will provide more support to families with children. They will receive $500 in LifeSG credits for each Singaporean child aged 12 and below this year. These credits are the same as the LifeSG credits we gave to National Servicemen last year. And parents can use them to defray their household expenses. Every Singaporean aged 13 to 20 this year will also receive a $500 top-up to their Edusave account, or their Post-Secondary Education Account. They can use this top-up to pay for their approved education-related expenses. More support will be extended to individuals and families who face greater financial stress. We will increase the rates for the ComCare Assistance schemes, to better support lower-income households with basic living expenses. For example, a one-person household on Long-Term Assistance will receive an additional $120 each month, bringing the monthly cash assistance to $760.”
“This Budget builds on previous Budgets, not only to address today’s challenges, but to plan ahead and secure Singapore’s future. Budget 2025 is a Budget for all Singaporeans. It is also a Budget shaped together with all Singaporeans. It further advances our Forward Singapore agenda, which incorporates your aspirations and views, and seeks to keep our society strong and united. In this Budget, we will work with you to: tackle cost pressures; advance our growth frontier; equip workers throughout life; build a sustainable city; nurture a caring and inclusive society; and rally as one united people. I will go through each of these in turn. Let me start by addressing concerns over rising costs, for both individuals and businesses. Global inflation rose sharply in 2022, following the outbreak of the war in Ukraine and remained high after that due to energy, food and supply chain disruptions. Like many other countries, Singapore was impacted. That is why we have been providing additional support measures over the last two years to cushion the impact on Singaporeans. Last year, I enhanced the Assurance Package by $1.9 billion. The Package has helped to fully offset the effects of inflation for lower-income households and to provide a significant cushion for middle-income households. We will continue to provide support for as long as needed, within our means. While inflation is expected to ease further this year, prices remain high. Singaporeans are still adjusting to these new price realities. Some have had to tighten their belts, rethink spending habits, or make difficult trade-offs to manage their expenses. Therefore, in this Budget, I will provide additional support for Singaporeans. [Please refer to Annex B-1.”
“Singaporeans saw wage increases that outpaced inflation – the median income of resident workers rose by 3.4% above inflation. Income inequality, after government taxes and transfers, is at its lowest since 2000. All this has given us good momentum for our next phase. But we expect greater global uncertainty and downside risks. The US and China are locked in a fierce contest for global supremacy. Neither side wants to come to blows. But both know that economic heft and technological prowess are key to winning this global race. And both are prepared to take more assertive actions to advance their own interests, even at the expense of established international norms. So, we can expect escalating attempts at containment and counter-containment, with ripple effects that will inevitably draw in other countries, including Singapore. All these pressures will reshape the global economy and dampen prospects for global growth. As a small and open economy, we will feel the impact. For 2025, we expect a more moderate outlook. Growth is projected at 1% to 3%, while inflation is expected to average 1.5% to 2.5%. But despite the uncertainties, we can look ahead with a degree of confidence. Singapore today is far stronger than we were 60 years ago. We have developed a strong and well-diversified economy, supported by a highly skilled workforce. We have built up a robust Singapore Armed Forces (SAF) and a strong diplomatic network, to uphold our sovereignty and security. We have forged a common Singaporean identity, grounded in our shared values and experiences, and our commitment to one another and our nation. This is the legacy of generations of Singaporeans, with each one running a good race. The baton has now been passed and it is our turn to take Singapore forward.”
“Thank you, Sir. Mr Speaker, I move, "That Parliament approves the financial policy of the Government for the Financial Year 1 April 2025 to 31 March 2026." Sir, 2025 marks our 60th year of Independence. It has been a remarkable journey, reflecting the grit and resilience of generations of Singaporeans in building our nation. Sixty years ago, the world was very different. It was the height of the Cold War, with the Berlin Wall standing as a stark symbol of division between the United States (US) and the Soviet Union. In Asia, the Cold War spilled over into proxy fights, with devastating wars in Vietnam, Laos and Cambodia. As a fledgling nation, Singapore faced monumental challenges. Racial tensions were high. Unemployment was rampant. The withdrawal of British forces shortly after Independence dealt a heavy blow to our defence and our economy. In a world divided by blocs, we had no hinterland and no natural allies. Survival seemed improbable. Yet in that crucible of fire, our pioneers forged a nation. We refused to be pawns in someone else’s game. We turned our vulnerabilities into strength. We plugged into the world as an open and neutral hub for commerce and diplomacy. Together, we defined our relevance to the world and built this nation. Today, we face a new global contest. The stark divides of the Cold War have given way to a fragmented and troubled world. New walls are being erected – not of concrete, but in the form of economic and trade barriers. And once again, we will have to find ways to navigate a turbulent external environment. We have done well so far. We bounced back strongly from the COVID-19 pandemic and ended last year on a strong footing. Our economy grew by 4.4%. Inflation continued to ease.”
“Before I begin, Mr Speaker, I should mention that I am a little under the weather. My voice may not sound like its normal voice, a little raspier. But I will do my best to get through the speech in one go, without a break.”
“When the Singapore Land Authority alienates the state land for its new, intended use, the state land is disposed of at FMV, determined based on the approved land use and intensification, no different from the alienation of any other form of state land.”
“State land is a physical asset that forms part of our reserves. Whether it is rented out for a short tenure or sold for longer-term development, the principle is to transact at fair market value (FMV). FMV is determined via tender or through valuation by the Chief Valuer or other professional valuers. No change in land ownership takes place when state land is allocated to a Government Ministry for public infrastructure purposes, such as for Government schools and bus interchanges. The land remains in the state's possession. Likewise, there is no disposal and no payment arises when there is a change in land allocation from one Ministry to another. State land may also be alienated to Statutory Boards to enable them to discharge their statutory functions. When state land is alienated to a Statutory Board, it is disposed of at FMV, determined based on the approved land use and intensification. The proceeds of the disposal are collected and accounted for as land sales proceeds. The transaction is reflected in the Statutory Board's accounts as an expenditure. After the land has been alienated to a Statutory Board, any changes in land use leading to a change in land ownership will typically involve a transfer of the land to the state before it is alienated or allocated for its new, intended use. When land is transferred, the cost incurred for buying the land is accounted for as Development Expenditure. The Statutory Board giving up the land, correspondingly, records the transaction as cash proceeds from disposal of fixed assets and a reduction in land assets.”
“The additional two weeks of Government-Paid Paternity Leave (GPPL) have been provided on a voluntary basis since 1 January 2024. Fathers whose employers are ready to grant the additional two weeks of leave can already take four weeks of GPPL and their employers will be reimbursed by the Government. The implementation date of 1 April 2025 for mandating the additional two weeks of GPPL and introducing the new Shared Parental Leave (SPL) scheme was set after extensive consultation with the tripartite partners. It takes into account the need for system and process changes by both the Government and employers and also strikes a balance between giving employers sufficient time to make the necessary adjustments and allowing parents to benefit from both leave enhancements as soon as possible. Unlike other parental leave provisions, the sharing of leave entitlements is a key feature of the new SPL scheme whereby couples can decide how to allocate the leave entitlement between them based on their caregiving and work arrangements. As such, its implementation is less straightforward, and employers will need to update their administrative processes and human resources systems to prepare for this. A common start date is therefore preferable for parity across all employers, to ensure that all employers, including smaller firms, will be ready to implement the changes on 1 April 2025. The Government is also developing a centralised system to facilitate the coordination of leave sharing arrangements between parents and employers. Such a system is necessary to ensure the proper tracking of leave records to minimise discrepancies and facilitate reimbursement claims from the Government.”
“Parent Relief, including Parent Relief (Disability), is provided to promote filial piety and provide recognition to taxpayers for their efforts in supporting their parents, grandparents, parents-in-law and grandparents-in-law in Singapore. It was announced in Budget 2024 that the income threshold for dependant-related reliefs, including Parent Relief, will be increased from $4,000 to $8,000, with effect from the Year of Assessment 2025. There are other Government schemes which support seniors to stay active in the workforce and encourage employers to hire seniors. These include, the Senior Employment Credit, Part-Time Re-Employment Grant, SkillsFuture Level-Up Programme and Career Conversion Programmes.”
“Like many jurisdictions, Singapore uses a range of grants and tax incentives to compete for investments. Such incentives are not automatically granted to all companies looking to invest in Singapore. They are offered judiciously, only if the economic agencies assess that the incentive is necessary to land the investment here and the investment will generate a net benefit for Singapore's economy. The value of incentives awarded is a fraction of the projected total value of the investment. Tax revenue forgone from these tax incentives are notional. It is not correct to assume that our tax base will remain unchanged if we did not provide such incentives.”
“Apart from Construction and Information Communications Technology (ICT), the top categories of goods and services awarded by the Government through Government Electronic Business (GeBIZ) are: (a) Facilities Management; (b) Professional Services; (c) Transportation; (d) Dental, Medical & Laboratory; and (e) Administration & Training.”
“The Overall Fiscal Position (OFP) for each Financial Year (FY) is reported in the Revenue and Expenditure Estimates, otherwise known as the Budget Book. The OFP was $1.88 billion in FY2021, $1.72 billion in FY2022 and -$2.55 billion in FY2023. FY2024 is still ongoing and its OFP is estimated to be $0.78 billion. As set out in Table 1.1 of the FY2024/2025 Budget Book, the line item "special transfers, including top-ups to endowment and trust funds" contributes to overall expenditure and, consequently, the OFP.”
“The assessable income is used to assess each individual's means to ensure more support under the Goods and Services Tax Voucher (GSTV) – Cash and the Assurance Package (AP) Cash schemes, are targeted at those who are in greater need. The choice of Year of Assessment (YA) considers the availability of completed tax assessment data, to ensure consistency and fairness in allotment across the population. We used assessable income for YA 2023, that is, income in 2022, to determine eligibility for GSTV – Cash paid in August 2024, as income tax assessments for YA 2024 are processed progressively from April 2024 to March 2025. Hence, the full number of Singaporeans who would turn eligible, if we had used assessable income for YA 2024, is not yet available. While some Singaporeans would become eligible for the schemes if assessable income for YA 2024 is used, a proportion of Singaporeans would also become ineligible, due to increases in their assessable incomes. Singaporeans who experience changes to their income may come forward and appeals will be considered on a case-by-case basis. As of end-August 2024, about 3,000 appeals relating to income changes have been approved for the 2024 GSTV – Cash scheme. The number of successful appeals for the AP Cash is currently not available as it will only be disbursed in December 2024.”
“Managing the risk of overexposure to particular contractors or suppliers is a multi-agency effort. The Ministry of Finance, together with the Building and Construction Authority, collaborates with Government agencies to diversify the contractor and supplier pool and put in place contingency plans. Each agency structures its procurement to avoid over-reliance on a small pool of suppliers and regularly monitors the concentration risks.”
“Consumers must be aware of the risks of doing so and understand that cryptocurrencies are highly volatile and have no intrinsic value.”
“Terraform Labs Pte Ltd, the Terraform Labs entity incorporated in Singapore, was not performing activities requiring a licence from the Monetary Authority of Singapore (MAS) and was, consequently, neither licensed nor exempted from licensing by MAS. As previously shared in Parliament, spillovers to the mainstream financial system and the economy from the collapse of the TerraUSD stablecoin were limited. MAS' surveillance shows that key financial institutions in Singapore have insignificant exposures to cryptocurrency and crypto players. Nevertheless, the turmoil that resulted from the collapse of the TerraUSD stablecoin demonstrated the highly risky and speculative nature of cryptocurrencies. Since 2017, MAS has consistently warned the public about the risks of speculating in cryptocurrencies and in January 2022, restricted advertising of cryptocurrency services in public spaces. Last year, in line with international standards on regulating cryptoassets, MAS introduced consumer access measures focused on retail consumers. These measures include requiring cryptocurrency platforms to determine a customer's awareness of risks before accessing trading services, prohibiting any offer of incentives that would entice consumers to trade and prohibiting the provision of credit or leverage to consumers that could magnify losses suffered. MAS also introduced business conduct requirements on cryptocurrency platforms to have proper segregation and custody of customers' assets, assess and mitigate conflicts of interests and implement adequate risk management processes. The enhanced measures will be effected in phases, starting from this year. We also remind those who trade cryptocurrencies that MAS' rules and regulations cannot prevent monetary losses arising from such activities.”
“Those that choose to go public tend to gravitate to the United States due to its deep and liquid capital market and investor base. These are global trends and we have to be realistic about what we can do to change them. While the Government will continue to encourage Singapore-incubated companies to list in Singapore, our investment entities – GIC and Temasek – operate on a commercial basis and have a mandate to deliver good long-term returns for the benefit of Singapore and Singaporeans. They regularly engage their portfolio companies on options to create shareholder value, which may include a listing in Singapore. However, the final listing decisions will have to be made by the companies themselves, based on their commercial objectives and growth plans. This will preserve Singapore's attractiveness to the founders of these companies and the global investors who invest in them.”
“We have shared, in past Sittings, the initiatives that the Government and the Singapore Exchange (SGX) have implemented. These include a range of funds to support high-growth enterprises and to prepare them for an Initial Public Offering (IPO) when the opportunity arises. These funding schemes complement a broader suite of initiatives, which includes the Monetary Authority of Singapore's (MAS') grant schemes to defray listing costs and increase research coverage of Singapore-listed stocks. SGX has also made further progress in Depository Receipt (DR) listings, fostering cross-border partnerships to broaden market access and improve market liquidity. SGX and the Stock Exchange of Thailand (SET) have launched the first exchange-level DR collaboration in ASEAN. The first three Singapore DRs on Thai stocks (SDRs) commenced trading on SGX in May 2023, and there are now eight SDRs1. In Thailand, a Singtel DR was the latest to be traded on the SET in April, bringing the total number of DRs on Singapore stocks traded on the Thai exchange to four2. MAS and SGX are working to broaden the DR linkages with other like-minded regional partners. Notwithstanding these efforts, the conditions remain challenging for the Singapore equities market, as they are for stock exchanges in many other countries, including developed markets like the United Kingdom and Hong Kong3. In 2023, global Initial Public Offering (IPO) proceeds continued to decline, falling by 33%; while Asia Pacific IPO proceeds were down by 44%. Strong growth companies backed by private equity and venture capital have the option to remain private for longer in the high-for-longer interest rate environment.”
“The "99-to-1" arrangement is a tax avoidance arrangement used by some property buyers to reduce the rightful Additional Buyer's Stamp Duty (ABSD) payable on the purchase of a residential property. When such property purchase arrangements are made to reduce the tax payable, the Commissioner of Stamp Duties is empowered under section 33A of the Stamp Duties Act to disregard the individual transactions and assess them as a single joint purchase and to recover the rightful amount of ABSD due, along with a 50% surcharge. As of April 2024, the Inland Revenue Authority of Singapore has completed the review of 187 such "99-to-1" cases, of which 166 cases were found to have involved tax avoidance and about $60 million in ABSD and surcharges will accordingly be clawed back. Out of the 166 cases found to have involved tax avoidance, about 10 cases with evidence of potential involvement by property agents are currently under review by the Council for Estate Agencies.”
“Based on the Inland Revenue Authority of Singapore's personal income tax (PIT) data on all taxpayers, in the Years of Assessment 2021, 2022 and 2023, the top 5% earners contributed close to 70% of PIT collections.”
“These capabilities will be underpinned by the quality of our human capital, infrastructure, connectivity and institutions. Our strengths in these areas place Singapore in a good position to benefit from shifts in global production and trade and will ensure Singapore's long-run competitiveness.”
“In its April monetary policy statement, the Monetary Authority of Singapore (MAS) kept the trade-weighted Singapore dollar exchange rate on its gradually appreciating path. The continued strengthening of the Singapore dollar was assessed to be necessary to lean against imported and domestic cost pressures in order to dampen inflation and ensure medium-term price stability. Low and stable inflation provides a conducive environment for businesses to operate and plan for the long-term, underpinning sustainable growth of the Singapore economy. Higher inflation, in comparison, will raise business costs, including for our export industries. MAS calibrates its exchange rate policy so as to ensure medium-term price stability and sustainable economic growth. Singapore's weak export performance over most of 2023 was mainly due to subdued external demand, rather than a strong Singapore dollar. This is borne out in the Economic Development Board's Business Expectations of the Manufacturing Sector survey, which showed that the Singapore dollar exchange rate has been a minor factor affecting manufacturing firms' export orders. Notwithstanding some monthly volatility, the global electronics cycle has experienced an upturn and Singapore's export growth has, likewise, picked up from the trough in mid-2023. Over the cycle, Singapore's total exports and production have broadly tracked that of other trade-dependent economies in the region. Over the medium-term, Singapore's export competitiveness will have to be anchored by our ability to be more productive and innovative compared to other economies. This means moving up the value chain, becoming more efficient and securing higher prices for our exports in world markets.”
“Nonetheless, individuals who have concerns over their insurer's underwriting decision can make an appeal through the insurer's feedback channel. MAS expects insurers to have a robust process to handle customer complaints independently and effectively. If any customer feels unfairly treated in spite of the appeal, he or she can also write to MAS. MAS will investigate and take appropriate supervisory actions if the insurer is found to have acted unfairly. To date, for the cases that have been brought to MAS' attention, MAS has not found unfair underwriting practices. Nonetheless, in some instances, the insurers could have better explained underwriting outcomes to applicants. LIA has emphasised the need to do so to their member insurers. MAS will continue to hold insurers accountable for fair and responsible underwriting practices.”
“The Monetary Authority of Singapore (MAS) expects insurers to fairly assess every application for insurance coverage based on reliable information and data relevant to the risks being insured. This principle of applying fair and responsible underwriting practices for all customers will be formalised in the proposed revised MAS Guidelines on "Fair Dealing – Board and Senior Management Responsibilities for Delivering Fair Dealing Outcomes to Customers", which will be issued in the coming weeks. In assessing applications, insurers must apply their respective underwriting expertise and risk appetite, based on an objective assessment of available data. If insurers wish to appoint a third-party panel of experts to advise them, they may do so. We will not compel insurers to appoint a panel that can override their decisions. Insurers should be accountable for their own decisions and should not be compelled to take on risks exceeding their expertise and appetite. In March 2024, the Life Insurance Association Singapore (LIA) issued the LIA Guide to Medical Underwriting for Life Insurance to help consumers better understand how an insurer evaluates an insurance application based on the disclosures made and medical evidence provided. In particular, insurers will consider the severity of any existing medical conditions, typically using a combination of in-house and external expertise. LIA members are committed to ensuring fair underwriting and clear communication. LIA has engaged charities like the Autism Resource Centre (Singapore) to better understand concerns of the autism community and explore initiatives to enhance the overall insurance application experience for them.”
“PayNow was launched in 2017 to provide a safe, simple and speedy way for individuals and businesses to make payment transactions. Today, more than 300,000 businesses accept PayNow payments. Transaction fees for payments received by merchants from end-consumers are currently waived by the major retail banks, while a minimal fee is charged if the merchant uses additional services like notifications for funds received. Merchants are not allowed to impose a surcharge on customers who wish to make payments via PayNow. The Association of Banks in Singapore (ABS), which owns the PayNow scheme, has in place clear rules to prohibit such practice. Should consumers encounter any PayNow surcharge, they ought to provide feedback to their own PayNow Financial Institution (FI) or ABS. If a merchant is found to have imposed a surcharge in violation of the service agreement, the PayNow FI will take action against the merchant. This may include terminating its payment services to the errant merchant.”
“There are effective steps that small and medium enterprises (SMEs) can take to enhance their digital security. In the same way that we all need to protect ourselves against scams, a culture of vigilance should likewise prevail among SMEs and their employees to recognise phishing attempts and fraudulent emails. They must not disclose the banking credentials of their company. SMEs should also avail themselves to the SG Cyber Safe Programme and its cybersecurity certification scheme, invest in anti-virus programmes and install the ScamShield app on company mobile devices, which automatically blocks scam calls and detects scam messages. Insurance solutions are currently not an effective means of protection against Internet crimes and scams. The rapidly evolving nature of Internet crimes and scams and limited risk assessment data, make it challenging for insurers to effectively quantify, price and underwrite these risks. In addition, insurance policies typically exclude loss events where there has been contributory negligence on the part of the victim. This is a fundamental principle in insurance that insured parties cannot relinquish personal responsibility and rely on insurance to cover consequent losses. In most scams, victims may not have exercised sufficient care when clicking on fraudulent weblinks or disclosing banking credentials. Combating scams requires constant vigilance and awareness. SMEs and the public at large should subscribe to the Singapore Police Force's scams bulletin so that they can be alerted to the latest scam typologies. We will continue to strengthen our public education efforts and collaborate closely with all stakeholders to enhance public protection against Internet crimes and scams.”
“Financial advisory firms are regulated under the Financial Advisers Act (FAA) for the provision of financial advisory services on investment products. Estate planning services like will writing, which have no element of financial advice, are not regulated under the FAA. Firms and their representatives providing financial advice that forms part of estate planning are required to comply with the FAA. There are standards that govern how financial advisory firms and their representatives conduct prospecting and advertising activities. To ensure that customers know that they are dealing with licensed individuals, the Monetary Authority of Singapore (MAS) expects financial advisory representatives to disclose their identities when prospecting for customers in public places. Additionally, when making recommendations to seniors who are not proficient in English or who do not have at least GCE "O" level qualifications, MAS requires financial advisory firms to implement additional safeguards. For example, firms must either perform call-backs or in-person checks to confirm that clients have understood the features and risks of the product before the transaction can be executed. MAS also requires financial advisory firms to ensure that advertisements on financial advisory services, including those used by their representatives, are not false or misleading. MAS concluded a public consultation in June 2023 to require such advertisements to be approved by the firm's senior management or their appointed persons. MAS is carefully reviewing the feedback received and aims to publish our response to the consultation feedback by the first half of 2025.”
“The Monetary Authority of Singapore's (MAS') Collaborative Sharing of Money Laundering/ Terrorism Financing Information and Cases (COSMIC) is a platform for participating banks to share customer information with each other to detect and prevent significant financial crime cases. It targets the risk of criminals exploiting information silos in banks to open or control accounts across multiple banks and to make illicit transactions through them. COSMIC will better enable these activities to be detected and disrupted across the banking sector. As such information sharing has an impact on customer confidentiality, COSMIC has been carefully designed and implemented, with due consideration for its governance, effectiveness and safeguards to ensure the proper use and safekeeping of the information shared. Participating banks also need to build confidence in each other, that information shared will be carefully safeguarded. MAS is taking a phased approach, starting with six major commercial banks, before considering the expansion of COSMIC to a wider segment of the financial sector in subsequent phases. There is potential to study the usefulness of such a model for other sectors at a later stage. But we will focus on implementing this for banks first, learn from the experience and ensure that it works well, before considering if it can be applied to other sectors.”
“The Monetary Authority of Singapore (MAS) investigates and takes firm enforcement actions against errant financial institutions and their representatives. This is independent of whether the case is lodged with the Financial Industry Disputes Resolution Centre. Under the Financial Advisers Act, when providing advisory services to their customers, financial advisory representatives must, amongst other things, disclose material product information, have a reasonable basis for making recommendations and not make false or misleading statements. Where mis-selling has taken place, MAS may take a range of enforcement actions, depending on the severity of the case. These include public reprimands, composition penalties and prohibition orders. In egregious cases, MAS will refer the matter to the Attorney-General's Chambers for criminal prosecution. Where more serious criminal offences, such as cheating under the Penal Code, are disclosed, MAS will also refer the matter to the Singapore Police Force for investigation. MAS has, in the past, imposed prohibition orders of up to seven years for mis‑selling. Such prohibition orders bar the person from conducting regulated financial services for the duration of the order. MAS publishes its enforcement actions to send a deterrent signal to the industry of its stance towards misconduct by financial services professionals. MAS will continue to review and update existing penalties where necessary and take robust actions against misconduct in the financial services industry.”
“The "99-to-1" arrangement is a tax avoidance arrangement used by some property buyers to reduce the rightful Additional Buyer’s Stamp Duty (ABSD) payable on the purchase of a residential property. When such property purchase arrangements are made to reduce the tax payable, the Commissioner of Stamp Duties is empowered under Section 33A of the Stamp Duties Act to disregard the individual transactions and assess them as a single joint purchase, and to recover the rightful amount of ABSD due, along with a 50% surcharge. As of April 2024, IRAS has completed the review of 187 such "99-to-1" cases. Of which, 166 cases were found to have involved tax avoidance and about $60 million in ABSD and surcharges will accordingly be clawed back. Out of the 166 cases found to have involved tax avoidance, about 10 cases with evidence of potential involvement by property agents are currently under review by the Council for Estate Agencies.”
“Given this, MAS has not assessed and designated any such indices to be systemically-important. In summary, taken together, the overall framework safeguards the credibility of financial benchmarks in Singapore as well as investors' interest in index-linked funds.”
“The financial benchmarks regime under the Securities and Futures Act 2001 governs the activities relating to the setting of financial benchmarks, which include equity and bond indices. It is an offence for any person to manipulate an index administered in Singapore, or for a person in Singapore to manipulate an index that is administered elsewhere. Index-linked funds that are offered to retail investors in Singapore are required to comply with strict regulatory and disclosure requirements. The underlying index must be representative of the market or sector which it aims to replicate. Key information on the index composition, methodology as well as significant changes to the index, must be accessible to investors to enable them to continuously evaluate the representativeness and objectivity of the underlying index. In addition, fund managers using indices for index-linked funds are required by regulation to conduct due diligence on index providers, evaluate suitability and risks associated with the use of indices and ensure that risks, including potential conflicts of interest, are properly addressed. Where benchmarks are assessed to be systemically-important, the Monetary Authority of Singapore (MAS) will designate and regulate them to ensure that they have proper governance processes and accountability mechanisms. MAS had designated the Singapore Interbank Offered Rate as a benchmark that is systemically important for Singapore, as it was widely referenced by banks to set interest rates for residential property and commercial loans in Singapore. In the case of index-linked funds, the two largest funds account for only 3% and 1% of Singapore-constituted retail funds, respectively.”
“The Ministry of Finance responded to a similar question from Member of Parliament Mr Yip Hon Weng on 7 February 2024. As mentioned in that reply, we have other schemes that provide help on an individual basis and would therefore ensure more support for larger households. [Please refer to "Reviewing CDC Vouchers Scheme to Support Larger Households Based on Household Size", Official Report, 7 February 2024, Vol 95, Issue 122, Written Answers to Questions section.] In addition, Singaporean households residing in co-tenanted arrangements are not disadvantaged. Such households who have not claimed their CDC Vouchers can approach their closest Community Centre for assistance and provide documents, such as a tenancy agreement, to show that they are from separate households. The Government will continue to regularly review how our measures can better support Singaporeans.”
“More generally, the Association of Banks in Singapore's Code of Consumer Banking Practice specifies when and how banks should communicate to customers relevant information on a broader range of principal terms and conditions, including annual fees, repayment grace periods and interest rates. Our national financial education programme, MoneySense, has been reminding consumers through its website and social media posts on the responsible use of credit. The main messages are for consumers to spend within their means and to pay down any high interest-bearing debt. MoneySense also regularly educates the public on assessing the affordability of a property as well as how mortgage loans work. With transparent fees and charges, coupled with financial literacy, consumers will be better equipped to make decisions that align with their financial goals and select products that best suit their needs. These measures complement other MAS requirements on FIs to mitigate the risk of consumer over-indebtedness, which we have highlighted in previous Parliamentary Queries.”
“Interest rates and fees charged by financial institutions (FIs) on consumer loans are commercial decisions by FIs, which are influenced by market competition, prevailing market interest rates, and the risks and costs of lending. Borrowers should carefully assess loan terms and conditions, including the pricing of the loans to ensure that they can afford the loans. The Monetary Authority of Singapore (MAS) expects FIs to deal fairly with and disclose key information to their customers about the costs and fees associated with their loans. For credit cards and other unsecured credit facilities, late payment fees and interest charges are the most significant potential charges. MAS requires FIs to disclose these charges clearly and conspicuously in customers' statements, including how they are computed. Where a customer has not paid the prior month's bill in full, the bank is required to provide in the current month's statement a projection of the total amount he would incur, including principal, interest, fees and charges; and the length of time that the customer will take to fully pay off the entire outstanding balance if he only makes the minimum payment and where no new transactions are made. For property loans, FIs must provide borrowers with a fact sheet highlighting the key features of the loan, including possible fees and penalties. FIs must also provide details on the interest rates charged and explain, where applicable, how a borrower’s monthly mortgage instalments would change where reference rates vary.”
“Today, housing developers purchasing residential sites can qualify for an upfront remission of Additional Buyer's Stamp Duty (ABSD), if they meet the specified timelines for commencement and completion of the housing development and the sale of units within the residential development. These conditions for ABSD remission for housing developers ensure the timely commencement and completion of development and sale of residential units and encourage housing developers to bid for land prudently. Requests for extensions to the specified timelines are considered by the Government on a case-by-case basis. I would not comment on individual cases, as the details include confidential taxpayer-specific information. The vast majority of housing developers have met the sale timeline for ABSD remission, after taking into account the extension provided under the COVID-19 Temporary Relief Measures. A small group of developers have applied for an extension. Excluding generally available extensions provided under the COVID-19 Temporary Relief Measures, 44 projects or 12% of projects with a sale deadline within 2021 to 2023, received an extension to their specified sale timeline. These appeals were approved as they involved extenuating circumstances, such as the developer facing site-specific delays that were unforeseen and beyond its control.”
“The Monetary Authority of Singapore will publicly consult, by the middle of this year, on legislative amendments to enhance pre- and post-transaction safeguards for clients of financial advisers meeting specified criteria1. We aim to issue the revised standards by Q4 2024, for implementation by the industry no later than 2H 2025, after a nine month transition period. There are existing safeguards for such clients that have already been implemented by the financial advisory industry. These include performing pre-transaction client call-backs to ensure that these clients have understood the features and risks of the products they have been sold. The proposed amendments will further strengthen these safeguards by, among others, requiring a trusted individual to be present during the financial advisory process and audio recording the client call-back.”
“The number of insurance agents declined over the past three years. The number of life and composite insurance agents was 15,205 in 2021; 14,546 in 2022; and 13,934 in 2023. The number of general insurance agents during this period was 4,105, 3,915 and 3,777, respectively. Age, gender and nationality breakdown are only available for life and composite insurance agents. The majority are 40 years and below, please see the Table below. There is an even distribution of male and female agents. About 90% of the agents are Singapore citizens and the rest are mostly permanent residents. The Monetary Authority of Singapore and the General Insurance Association of Singapore do not make a distinction between full-time or part-time employment insurance agents and do not collect information on academic qualification, but all agents have to meet the minimum education qualification requirements.”
“Regarding digital assets, MAS has consistently warned the public against trading in cryptocurrencies given their lack of intrinsic value, volatile prices and highly speculative nature. MoneySense regularly amplifies these warnings to youths on social media, including through collaborations with content creators.”
“Financial literacy education is incorporated into the curriculum from the primary to the tertiary level. Students from the Polytechnics and the Institute of Technical Education take financial education modules that encourage sound financial habits and cover the fundamentals of investment literacy. At the Autonomous Universities, students can access course modules to build up their investment literacy, or participate in various campus activities, workshops and talks to learn about good money management and financial planning. The Ministry of Education regularly reviews its financial literacy programmes to keep up to date with the evolving financial landscape. Beyond schools and tertiary institutions, MoneySense supports youths with access to financial literacy messages that supplement what they have learnt in school. These include talks on how to invest, and the virtual My Money@Campus carnivals that feature interactive learning and game booths. MoneySense, the Ministry of Culture, Community and Youth, and the National Youth Council (NYC) has also collaborated with social media content partners to engage youths on topical issues such as overspending on luxuries. Together with the NYC, MoneySense also organises regular engagement sessions with youths to discuss issues, such as good financial habits, investments and scams. The MoneySense National Financial Capability Survey (NFCS) 2021, which seeks to better understand behaviour in dealing with financial matters, attitudes towards financial planning issues and general financial knowledge, found that compared with the general population of Singapore, youths generally had higher levels of financial literacy.”
“Over the past three years, the Monetary Authority of Singapore (MAS) received fewer than 10 consumer appeals or complaints relating to issues with getting insurance coverage by persons with disabilities, on the autism spectrum or with mental health conditions. Prior to this period, MAS received an average of less than one case per year of such nature.”
“These appeals were approved as they involved extenuating circumstances, such as the developer facing site-specific delays that were unforeseen and beyond its control.”
“My response will cover Oral Question 33 by Mr Louis Chua and Written Question 8 by Mr Sitoh Yih Pin on today's Order Paper. [Please refer to "Extension of Additional Buyer’s Stamp Duty Deadline to Developers", Official Report, 2 April 2024, Vol 95, Issue 133, Written Answers to Questions for Oral Answer not Answered by End of Question Time section; and "Criteria to Grant Deadline Extension for Additional Buyer's Stamp Duty for Cuscaden Reserve and Other Projects", Official Report, 2 April 2024, Vol 95, Issue 133, Written Answers to Questions section.] Today, housing developers purchasing residential sites can qualify for an upfront remission of Additional Buyer's Stamp Duty (ABSD), if they meet the specified timelines for commencement and completion of the housing development and the sale of units within the residential development. These conditions for ABSD remission for housing developers ensure the timely commencement and completion of development and sale of residential units and encourage housing developers to bid for land prudently. Requests for extensions to the specified timelines are considered by the Government on a case-by-case basis. I would not comment on individual cases, as the details include confidential taxpayer-specific information. The vast majority of housing developers have met the sale timeline for ABSD remission, after taking into account the extension provided under the COVID-19 Temporary Relief Measures. A small group of developers have applied for an extension. Excluding generally available extensions provided under the COVID-19 Temporary Relief Measures, 44 projects or 12% of projects with a sale deadline within 2021 to 2023, received an extension to their specified sale timeline.”
“The Ministry of Finance had previously responded to questions on Official Foreign Reserves (OFR) and Reserves Management Government Securities (RMGS). When the Monetary Authority of Singapore (MAS) intervenes in the foreign exchange market in response to capital inflows, it accumulates foreign assets or OFR. The rise in MAS' OFR assets is matched by an increase in bank deposits with MAS, which are MAS' liabilities. Hence, there is no increase in MAS' net assets. We have also explained in this House, that RMGS facilitates the transfer of OFR in excess of what MAS requires to conduct monetary policy and support financial stability from MAS to GIC for longer-term management. There is no change in MAS' net asset position when MAS subscribes to RMGS. Essentially, the reduction in its foreign assets or OFR is matched by a corresponding increase in its holdings of RMGS. There is also no change in the Government's net asset position, as an increase in the assets managed by GIC arising from the OFR transfer is matched by an increase in Government RMGS liabilities. To illustrate with an analogy, there is no change in your net asset position when you move your savings from your bank account to a fixed deposit to earn higher returns. This is similar to the situation when MAS transfers OFR in excess of what it requires to GIC via RMGS to earn higher returns. We do not magically create new net assets out of thin air via the use of transfer mechanisms like RMGS. In addition, the relevant assets for the purpose of calculating the Net Investment Returns Contribution would have accounted for MAS' assets including OFR and RMGS, and MAS' liabilities including currency in circulation.”
“As of 31 December 2023, there were around 1,400 Single Family Offices (SFOs) that have been awarded tax incentives1. The majority of their workforce comprise of locals. The foreign workforce comes from a range of countries, with most from Asia. Slightly more than half of the employees are males and slightly less than half are females. In terms of age profile, about 10% are below the age of 30, about 35% are between 30 and 40 years old and about 55% are above 40 years of age. Most have fewer than 20 employees and a small number have 20 or more employees. Besides 66306, SFOs have classified themselves under other Singapore Standard Industry Classification (SSIC) codes, such as the other codes in the 663 SSIC family, relating to fund management activities – for example, 66301 Traditional/Long-only asset/Portfolio management; and the 702 SSIC family, relating to management consultancy activities.”
“Most credit terms for Government procurement contracts are set at 30 days. About 98% of invoices for Ministries and Organs of State have been paid within credit terms for the last three years. For small-value invoices below $5,000, we have prioritised efforts to pay earlier than the usual 30-day credit terms. For invoices below $5,000, for Ministries and Organs of State, about 13%, 49% and 99% were paid within five days, 10 days and 30 days respectively for the last three years. For invoices $5,000 and above, for Ministries and Organs of State, about 17%, 28% and 98% were paid within five days, 10 days and 30 days respectively for the last three years.”
“These questions were addressed in the reply to Parliamentary Question Nos 2 and 3 on the Order Paper for 26 February 2024. [Please refer to "Reasons for Wrong Charging of GST by Government Agencies and Review of Processes to Prevent Recurrence", Official Report, 26 February 2024, Vol 95, Issue 124, Oral Answers to Questions section.]”
“In CY2023, the proportion of bidders for Government tenders and the proportion of awarded suppliers which are locally based SMEs, are both at about 80%. Tender Lite will commence from April 2024.”
“Registered Filing Agents (RFAs) are professional services firms that transact with the Accounting and Corporate Regulatory Authority (ACRA) on behalf of their clients. RFAs are also responsible to conduct customer due diligence, to ensure the activities are consistent with the clients' business and risk profile. ACRA requires an RFA to appoint a Registered Qualified Individual (RQI), who is principally responsible for ensuring that the RFA complies with ACRA's regulations. Once disqualified, an RFA or RQI will have its registration terminated and will also be barred from registration for a minimum of two years. Any application for registration thereafter will be examined carefully, to ensure that the individual or the firm and individuals running the firm meet all requisites for registration, including the fulfilment of fit and proper requirements. In the last three years, ACRA has cancelled the registrations of 11 RFAs and 11 RQIs and none of them are currently operating as RFAs or RQIs. An individual whose RQI licence has been cancelled is not disallowed from finding employment with another firm that is an RFA. However, the firm and the RQI for the firm will be responsible for ensuring that the individual fulfils the fit and proper requirements and that any transaction with ACRA carried out by the individual is supervised by the RQI.”
“MOF's grants governance framework sets out rules and provides guidance on the grants management process – from grant design, approval and disbursement, to monitoring and anomaly detection. It emphasises the importance of proper planning and risk management, to ensure effective use of public funds and to safeguard against fraud and abuse. While this framework provides central guidance over the grants management process, individual grant-giving ministries and agencies are ultimately responsible for setting out objectives and outcomes, instituting appropriate control measures as well as monitoring the performance of the schemes under their management. The relevant ministries will track the intended outcomes from their respective schemes and will be able to provide more information, if there is interest to find out more.”