Neil Parekh Nimil Rajnikant
Singapore
“Mdm Chair, keeping fit and staying healthy are important aspects of our lifestyle which cuts across all ages. One way in which the Government has been encouraging a healthy lifestyle, is by the provision of the ActiveSG credits.”
“I thank the Senior Minister of State for his response. Could I ask the Senior Minister of State to share the various safety protocols that are upheld when training is done overseas? And to date, how has the safety record for the SAF been in its overseas training exercises in the last few years?”
“I just want to thank the whole MTI team for a very comprehensive analysis and presentation and a very detailed Budget – a very good Budget in my view. I have a couple of clarifications. The Deputy Prime Minister spoke about the NSTIC (R&D Fab) to drive advanced semi-conductor research and innovation.”
“I thank the Minister for the comprehensive response as well as the comprehensive discussions during the Committee of Supply with all the other political officeholders. My question is related to Ukraine.”
“Chairman, Sir, strengthening Singapore's position as a global hub for startups and innovation will be key to driving competitiveness and increasing productivity. With increasing global competition, we must continually enhance our startup ecosystem to remain at the forefront of innovation. I have three questions for the Minister.”
“Chairman, Sir, the Tourism 2040 roadmap is aimed at setting out Singapore’s long-term strategy to drive quality tourism growth and strengthen our position as a leading global destination. Recent data indicates a positive momentum.”
The complete record
Every one of 128 lines we hold for Neil Parekh Nimil Rajnikant, in date order, each linked to its source. Free to read, in full, without an account. Page 3 of 3.
“I thank the Leader of the Opposition. From what I understand, of how the returns are calculated and projected, and being in the financial markets for the last 30 years, there is no stability of financial returns, under any circumstances. There will always be volatility in the returns on any asset class, at any given point in time. One can try and smoothen out the volatility as much as one can, but that means investing everything in cash, which is obviously not a prudent thing to do, given today. In my view, the volatility in returns will remain and the expected returns will always be in a certain range, depending on the risk taken for that respective asset class.”
“Our Reserves are strategic assets that carry the commitment of past generations to the next to make sure that Singapore is ever ready to address any crisis when faced with it. In my view, too much time is spent on discussing our Reserves. Instead, we should be focusing on how we can grow our economy in the future and create well-paying jobs for our citizens on what we are likely to see as a very volatile, risky, global economy in the next two decades. In addition to that, what we need are prudent fiscal and monetary policies that allow the Government to effectively function, enable funding of all important development programmes, that ensure that no one falls through the cracks. Mr Speaker, Sir, based on the views that I have expressed, I am not in support of the original Motion, but I am in support of the amendment proposed by Mr Liang.”
“Responding to the suggestion that the Singapore Government should not limit the use of up to 50% of the NIRC, I respectfully disagree. There are several reasons why I think it would be not advisable to increase the percentage above 50%. Firstly, I believe placing the limit of the NIRC to 50% ensures the long-term sustainability of Singapore's Reserves. By spending only a portion of the investment returns, the Government aims to and will be able to preserve the principal value of the Reserves. Additionally, limiting the use of the NIRC to only 50% ensures prudent fiscal management both in terms of taxation as well as government expenditure. Finally, the 50% rule is based on expected future returns, which can vary. Realised returns can be lower or higher, so the 50% rule also protects the principal in those scenarios. This effectively allows us to save for the future, whether during times of economic crises or for the future generations. Given that Singapore is a small city-state with limited natural resources, a comparison to larger countries with greater natural resources is in my view, impractical. Our Reserves act as a critical buffer against economic volatility and provide financial security, as seen recently during the pandemic. Further, saving for the future ensures that subsequent generations have access to similar, if not better, resources and opportunities, through the Government's investment in better education and better healthcare. If we were to remove this policy, this could cause undue financial burden on our children and grandchildren, potentially limiting their ability to respond to the economic challenges and emergencies at that time.”
“While Singapore did well in the financial crisis, Thailand, Indonesia and South Korea took many years to recover from the attacks on their currency. During challenging times, the Government's actions reaffirm the dedication to maintaining economic stability and ensuring the well-being of Singaporeans, thereby showcasing the strategic and compassionate use of the Reserves. This clearly illustrates that the discretion shown in not revealing the specifics of our Reserves has not impacted the Government’s ability to respond effectively and quickly to the needs of our population. Additionally, keeping our Reserves confidential prevents the likelihood of unnecessary public pressure and, by extension, misallocation of the Reserves. In my view, public pressure on the Government to roll out very populist schemes and initiatives might not be in Singapore's best interest in the medium- and long-term. For example, if Singapore's Reserves were larger than what the public anticipated, pressure to increase Government spending, if not managed carefully, could lead to greater inflationary pressures. In the current economic environment where inflation levels are high, this would erode purchasing power and affect the savings of Singaporeans. As has been seen in many, more advanced countries, opening the Pandora's Box of populist policies has led to a quick erosion of large reserves replaced now by massive, expensive debt loads that will take many generations of citizens of those countries to repay. In my view, a balanced, stable economic policy that supersedes any need for ultra populist initiatives ensures that spending decisions are made judiciously and in line with long-term goals.”
“In my view, our Reserves besides playing the role of a "rainy day fund", also play the role of a "balancing fund" that allows the use of the NIRC to meet the critical funding needs in the Budget each year. The presence of substantial Reserves and our ability to draw on the NIRC also allows us to maintain lower taxes within a very stable overall tax regime. For many nations, their annual budgets are funded by additional borrowing or by raising taxes frequently. Let me emphasise that, while I welcome and respect the intentions of my friends who have filed the original Motion to help Singaporeans reduce their financial burden, their call in my view, for the Motion for the Government to review and change its current Budget and Reserve accumulation policies is perhaps risking the long-term economic stability for our children and grandchildren. We should realise that increasing the percentage of NIR to fund the NIRC would mean a greater risk that the "rainy day" part of the fund would be compromised. There are no free lunches in life, and we should be very, very clear of what the trade-offs that are involved here. Also, in my view, the exact size and details of Singapore's Reserves should be confidential to reduce the chance of speculative attacks by any foreign institution. During the Asian Financial Crisis in 1997, several Asian countries experienced massive currency sell-offs partly due to the speculative attacks that exploited weaknesses in their respective financial systems. Given Singapore's use of a managed float system, the revelation of the Reserves will increase the likelihood of a speculative attack in times of economic downturn. Further, such speculative attacks on any currency are not easy to counter.”
“During the COVID-19 pandemic, the Government drew down Reserves for public health expenditure, including securing of vaccines and the roll-out of stabilisation and support packages, to help workers stay employed and provide support for businesses. Such policies helped us emerge stronger when the economy recovered. Also, setting aside $150 million of Reserves to guarantee deposits was one of the measures that were instrumental in safeguarding the continuity of business operations. Without these packages, the recovery process would have been significantly impeded, adversely impacting both our entrepreneurs and Singapore's broader economic landscape. It is important to note, here, that while other countries had to borrow to initiate similar packages in their respective countries, we were able to use our Reserves to manage the crisis. In the recent past, with the high inflation hitting us, the Government has rolled out additional assurance packages, such as the Cost-of-Living Support, to ensure that Singaporeans are better able to cope. Besides serving as a very important source of funds during times of emergency, our Reserves also maintain stability within our economy. Having such stability and consistency is very important and acts like a shock absorber when the economy goes through a rough patch and unemployment needs to be minimised. Let us also not forget how the draw down on the Reserves helped maintain jobs in Singapore during the Global Financial Crisis in 2008 and 2009. One very successful scheme was the Jobs Credit scheme which helped business leaders maintain a higher employment level than what would have been possible otherwise.”
“Mr Speaker, Sir, thank you for allowing me to speak on this Motion. Public finance and budgets are crucial for the Government to raise funds and simultaneously allocate those funds for national spending and fostering the development of our economy. Management of our Reserves is of great importance for Singapore, as we are a relatively small and very open economy. Many of our trading partners envy the discipline we have shown in managing and growing our Reserves over the last many years. While these countries recognise the fact that as a small and open economy, Singapore will face more volatility than larger economies with greater natural resources, they take comfort from both the professional management as well as the size of the Reserves. Additionally, the management of resources is of great importance for the entire business community in Singapore. As many of us in business know only too well, new business investment is driven by the level of confidence experienced by key decision-makers and investors at any given point of time. The way the Government responds to each crisis and the step-by-step established process taken by the executive, legislature and, finally, the President of the Republic of Singapore, has instilled great confidence in multinational corporations (MNCs), international investors and domestic companies to continue to invest in Singapore in times of trouble. As an independent Nominated Member of Parliament representing the business community, I would like to share with Members some thoughts with that lens in mind.”
“I thank the Senior Minister of State for her answer. May I ask the Senior Minister of State, what alternative steps does ASEAN have if Myanmar refuses to implement the Five-Point Consensus?”
“Finally, I would appreciate if the Senior Parliamentary Secretary could share the key concerns raised by the various industry players, namely, the pawnbrokers, the dealers in precious metals in the Ministry’s consultation process in finalising this Bill. Sir, I do believe that Singapore must uphold and strengthen the trust premium that we have built up over the years. In offering a stable and transparent business environment, we have attracted multinationals and investors from around the world. They have set up corporate headquarters and regional offices in Singapore, building up our talent and business ecosystem. We must continue to stay abreast of international developments to counter threats such as money laundering, terrorism financing, as well as other financial crimes. To do so, we need robust policies and coordination within sectors to build capabilities in businesses, especially local SMEs. Mr Speaker, Sir, notwithstanding my request for some clarifications, I believe this Bill is necessary in strengthening our fight against money laundering, financial terrorism and other financial crimes. I stand in support of the Bill.”
“There will be a significant increase in compliance costs including the establishment of a compliance officer role as well as an increase in operational costs related to the development of specific training programmes and investment in new monitoring systems. This Bill also extends the regulatory burden to a broader range of professional services, not just financial institutions. For the legal profession, I expect legal practitioners and law firms will now be required to take active measures in monitoring transactions to prevent financial crimes. The pawnbroking industry will also need to establish more robust programmes to prevent financial crimes. The amended Bill requires the development of policies to identify, assess, and understand risks associated with such pawnbroking transactions. For the moneylending business, if a significant number of moneylenders face difficulties in renewing licenses due to these new regulations, there could be a reduction in available lending options in the market, limiting choices for borrowers. I would like to take this opportunity to seek some clarifications on this Bill. Since many business owners, especially SMEs, may face challenges when adopting the proposed changes and regulations, how long will such businesses be given for implementation of these new rules? Also, what additional resources or assistance programmes will the Government provide to help affected businesses understand as well as comply with the new regulations? Could I please request the Senior Parliamentary Secretary to share with this House any instances thus far that Singapore’s security and policing authorities have faced in detecting efforts to use precious stones and metals in financing terrorism?”
“Mr Speaker, Sir, thank you for allowing me to join the debate. In recent years, Singapore has ramped up its efforts to counter financial crimes in various sectors including precious metals and precious stones. This Bill demonstrates Singapore's dynamic regulatory approach which fortifies the legal framework while emphasising regulatory compliance, international collaboration and the importance of transparent and ethical practices. Though the Bill focuses on diverse professions from legal, moneylending and pawnbroking to sectors such as precious stones and precious metals, the benefits will be similar in nature for all. Through this amended Bill, businesses operating within these sectors will be able to differentiate themselves in the market by demonstrating a strong commitment to preventing money laundering and the financing of terrorism and, in turn, can enhance a company's reputation through building trust with its customers, partners and regulators. By adhering to the updated regulations and increasing internal controls, businesses within these sectors can mitigate the risk of being involved in illicit activities unknowingly. I also believe that the facilitation of information sharing with foreign authorities presents an opportunity for our businesses to engage in more robust international collaboration. This can lead to better global practices and potentially open new markets and partnerships that value such stringent compliance standards. However, we have to recognise that the impacted sectors will also face some major challenges.”
“The establishment of the Office of Significant Investments Review also provides a very useful dedicated one-stop touchpoint for all stakeholders. Mr Speaker, Sir, notwithstanding my request for some clarifications, I believe this Bill is a very good balanced first step for us to manage the unique risks emerging from allowing meaningful investments in our critical entities in Singapore. I stand in support of the Bill.”
“Having a similar act would help maintain all critical entities that play a key role in the daily life of all Singaporeans to remain in control of Singaporeans rather than fall prey in the hands of foreign investors who, perhaps, may be more focused on short-term profits rather than optimising quality products and services for Singaporeans over the long-term. To maintain the transparency, consistency and clarity that investors desire, perhaps a high-dollar limit for a minimum transaction value of S$400 million be established for such foreign investments to be included in this process. Establishing such a higher minimum transaction value could perhaps help maintain efficiency without compromising regulatory oversight and continue to make Singapore an attractive destination for foreign investment. In my view, in the current geopolitical environment, such a broader proposal for a more comprehensive Bill would be understood and readily accepted by foreign investors. Also, many large institutional investors cannot invest in designated entities unless there is a clear mechanism for those designated entities to potentially regain their undesignated status. Can the Minister perhaps share information on the process that is being established for such designated entities to be undesignated in the future? In summary, aiming to enhance the resilience of the economy and strengthen Singapore's position as a trusted hub for businesses to invest with confidence, in my view, the introduction of SIRB at this time is opportune and excellent for Singapore. This Bill provides the necessary flexibility to the Minister to act swiftly and decisively when needed.”
“Also, has a timeline been established for the regular review of the list of designated entities? Another point where I would like to seek a clarification on, is what may constitute national security interests? While I fully appreciate it may be impossible to list every possible interest, I ask for this clarification as, in many other jurisdictions, the ambiguity surrounding this definition has led to significant losses for investors. In the current geopolitical environment, the biggest national threat for Singapore is the economic threat. As has been mentioned, this new legislation will be in addition to the existing sectoral legislation in regulated sectors, such as telecommunications, banking and utilities. I would like to seek clarification on how inconsistencies in regulation of entities with a similar economic risk profile across sectors will be avoided. Would we not have been better served by having one clear, consistent and comprehensive Bill that covers all relevant sectors and entities? From a business investor's point of view, having one single comprehensive process would provide the enhanced clarity and consistency that is desired. In this regard, I would like to seek a clarification on whether a more comprehensive approach to regulating foreign investments in entities significant to Singaporeans' daily lives is being considered. For example, in Australia, the Foreign Acquisitions and Takeovers Act 1975 applies to all foreign investments in that country.”
“Mr Speaker, Sir, thank you for allowing me to join this debate. Before us today is the Significant Investments Review Bill. Keeping in context the current geopolitical environment, many similar open economies in the world have introduced measures to subject investments in strategically important companies to greater scrutiny. For example, as of April 2023, 24 out of the 27 member states of the European Union have already introduced or are in the process of introducing similar measures. There is a concern that investments in strategic companies may be motivated not just by commercial interests, but also by geopolitical objectives. These concerns are most pronounced where the acquiring firms are state-owned or controlled by a state. Moreover, considering Singapore's status as a significant global financial hub that embraces international investors, conducting such a review at this time is highly opportune. Clarity and consistency of policy is what sophisticated investors around the world look for. Striking a balance between ensuring national security and maintaining a business-friendly environment is crucial for enhancing Singapore's competitiveness in the global arena. I would like to take this opportunity to seek some clarifications from the hon Minister. The Bill empowers the Minister to take various actions, including designating entities, issuing remedial actions and conducting reviews of transactions. The potential for such an intervention may result in delays in the approval of forthcoming legitimate investments. Could the Minister please elaborate on the scenarios that may warrant some of these remedial actions? Has a maximum timeline been provided for issuing remedial decisions and conducting reviews of transactions?”
“While these options could enhance convenience, there might be challenges for borrowers if there is an eventual full transition to digital methods and could deter less tech-savvy borrowers. The designated credit bureaus will see expanded functions, including the collection, use and disclosure of borrower information. Will this expanded authority of the designated credit bureaus and data sharing with public sector agencies raise privacy concerns among borrowers and potentially deter borrowing? Balancing the greater need for information sharing with protecting borrower privacy becomes a delicate challenge. Along these lines, Mdm Deputy Speaker, I have the following clarifications for the Senior Parliamentary Secretary. Empowering the Registrar to share borrower or loan information with public sector agencies raises questions about the safeguards in place to protect individuals' privacy. Could the Senior Parliamentary Secretary please clarify on the criteria for information sharing, data security measures and oversight mechanisms, especially in light of recent information leaks? The amendments also empower moneylenders to request credit reports on sureties without explicit consent. I would also request clarification on the conditions and limitations surrounding this provision. In the amendment, there is also the introduction of a new criminal offence for wrongful demands of payment. Could the Senior Parliamentary Secretary please explain what constitutes a "wrongful demand" and the factors considered when determining this? In summary, I believe the Moneylenders Bill and the amendments protect consumers and maintain financial stability. Notwithstanding my request for some clarifications, I stand in support of the Bill.”
“These amendments also enhance transparency and foster an environment where borrowers can expect fair and accountable lending practices. This may lead to quicker assessments of borrowers' creditworthiness. It also contributes to a more regulated and accountable financial ecosystem. Also, with the Expanded Borrower Information Disclosure in clause 16, licensees will have the ability to request and disclose borrower information for specific purposes, which might provide moneylenders with more comprehensive insights, potentially allowing for more informed lending decisions. However, on the flipside, borrowing could be made harder as the enhanced security measures will require increased resources for compliance with the new regulations. As credit reporting takes centre stage, it expands the functions of designated credit bureaus through clause 12, which aims to provide more information for assessing creditworthiness through the collection, use and disclosure of borrower information and data. While this could be beneficial, it may also introduce additional steps in the lending process. Borrowers, especially those seeking loans with sureties, will be directly affected. These amendments also introduce new requirements for information submission to designated credit businesses and empower moneylenders to request credit reports on sureties without explicit consent. These new requirements could impact the loan application and approval process. For example, specifically for small and medium enterprises already grappling with higher operational and labour costs, these new requirements introduced by the Bill may perhaps be a significant hurdle. This Bill also introduces clauses on digital statements and record-keeping.”
“Mdm Deputy Speaker, thank you for allowing me to join this debate. Before us today is the Moneylenders (Amendment) Bill. First of all, I would like to point out the unique role moneylenders play in our economy. Outside of not meeting the strict criteria of traditional banks, people often seek moneylenders for faster loan approval rates and for the ease of getting short-term urgent loans. Also, the presence of licensed moneylenders helps us regulate and reduce the influence of unlicensed moneylenders, who are often predatory in their behavior. I believe tightening our laws for the betterment of society is an ongoing commitment and these amendments serve to strengthen the role and work of licensed moneylenders. For a small but a very competitive economy like ours, these amendments help to further enhance Singapore's standing as a financial centre. Mdm Deputy Speaker, the amendments to the Moneylenders Act will impact both businesses and borrowers. There are also some potential challenges which the concerned professionals will have to face. Allow me to elaborate on these issues. I would, first, like to address the impact of this Bill on businesses. Those business owners engaged in moneylending activities will face both challenges and opportunities. Borrowing could potentially be made easier as the Bill will bring changes to the credit reporting process, which will allow moneylenders to request credit reports on sureties without explicit consent, potentially streamlining the loan approval process. Borrowers with favourable credit histories may benefit from potentially expedited loan approval processes as moneylenders can assess creditworthiness more efficiently.”
“These amendments will reinforce the high standards of compliance that will not only maintain Singapore’s strong standing as a trade hub but also attract foreign investments that have confidence in our due diligence. Sir, it is evident to me that these amendments will facilitate further development of our FTZs and, hence, I support this Bill.”
“SMEs simply lack the capabilities and resources to take a more active role in enforcement and administration, which would make it difficult for them to take advantage of the new powers for FTZ licensed operators and cargo handlers. SMEs will also need to understand the legal powers vested in FTZ authorities and their needs-based information-gathering procedures. As a vibrant trading hub, much of the work being done at the FTZs is round the clock, and SMEs may not have the scale to manage their lean workforce while balancing additional training needs. Perhaps the Senior Minister of State can elaborate on the plans in place to assist our SMEs to help implement these changes. The revised legislation also stands to benefit many businesses. The new amendment allows more delegation of authority by FTZ operators and cargo holders. This may benefit the SMEs as well as large businesses, as they can outsource certain tasks. There is also a very clear list of what constitutes an offence under the Free Trade Zones (Amendment) Bill – what is permitted and prohibited, the gravity of each offence and also sentencing considerations. The legislative changes also create a safer environment for new market players, as goods passing through Singapore’s FTZs will require stringent checks done by FTZ authorities. Also, for SMEs aiming for a global presence, the free trade principles of this amendment will safeguard their operations and increase their brand presence internationally. This may also push them to adopt more digital technologies faster. In conclusion, Sir, strong, well-managed FTZs are important to allow our country to remain competitive regionally and internationally.”
“In my view, this amendment removes legal uncertainty by creating security measures that ensure that goods passing through Singapore follow very stringent checks enforced by FTZ authorities. I believe this amendment also provides a stronger framework for preventing money laundering and financing for terrorism. Three specific points. First, licensing of FTZ operators. The amendment allows many administrative responsibilities to shift to licensed FTZ operators for more efficient movement of goods. The new tenets that allow operators and cargo holders to delegate authority are reflective of current industry practices. The amendment seeks to strike a balance, enabling both better oversight of goods flow and ensuring efficient movement of goods. Second, the proposed amendment provides more powers to the officers of the Customs and Excise Department to investigate and arrest any parties suspected of illegal activity. In providing clear definition of criminal offences, it allows the DG and staff to enforce the law with increased penalties for offences. Lastly, this amendment also allows for a smoother transmission of information and documents, while providing greater flexibility to staff. I also want to highlight that the staff working in FTZs play a key role in the detection, deterrence and prevention of money laundering and financial crime. To help the staff to better appreciate the magnitude of the risks, we will need to, on a continuous basis, develop training roadmaps and programmes which would be conducted by the private operators for the staff performing various functions in the FTZs. On to some concerns regarding the SME community. SMEs will require a longer period to adjust to the main tenets of the new amendments.”
“Mr Speaker, Sir, thank you for allowing me to join this debate on the Free Trade Zones (Amendment) Bill. Singapore's FTZs at our ports and airport are an important node of business and trade for the Singapore economy to thrive and prosper safely without any hindrance and threat. Singapore's Free Trade Agreements (FTAs), Investment Guarantee Agreements and the Double Tax Avoidance Agreements also allow for smooth trade with many countries in the world. In particular, this piece of legislation is of utmost importance for both small and medium enterprises (SMEs) as well as larger companies, as it is all about the ease of doing business in Singapore. It also gives a very clear and loud message to the investor community that Singapore means business in the proper operation of its ports of entry for goods and services. In my speech, I would like to highlight three key items: importance of this legislation to global trade, the benefits that our businesses get from the legislative changes and, lastly, some concerns from an SME standpoint in their participation after the changes in these amendments are accepted. FTZs in Singapore were first established in the 1960s to facilitate trade in dutiable goods. The FTZs Bill was last amended in Parliament in 2014. According to the Financial Action Task Force, or FATF, FTZs are vulnerable to trade-based money laundering through the misrepresentation of the price, quantity or quality of imports and exports, phantom shipments and falsification of invoices. Much has happened in the last nine years and it is timely to update this legislation, keeping in line with recent developments in global trade. Sir, let me now turn to the key thrusts of the Bill.”
“In this regard, I have the following suggestions to make which perhaps the Government can explore in the implementation of this initiative. Would the income tax department consider exploring the possibility of combining this roll-out with upcoming changes with regards SEPs serving as platform workers and who may require a structured and standardised way to achieve financial inclusion? Can the platforms enabling employment for SEPs, be classified as intermediaries and be provided with financial support to establish this new infrastructure for regulatory reporting? A word about creating awareness. We have often heard from our SMEs in a variety of sectors, that it is quite a challenge for them to keep pace and track the changes made to the tax system after each Budget. I would encourage MOF to have regular roadshows post-Budget as well as distribute focused, short information brochures through various digital channels throughout the financial year. Such consistent, focused messages are very useful for our smaller businesses to easily comprehend and then take necessary action to make sure that they do not lose out on the benefits that they could accrue and gain from the changes. Sir, I stand in support of the Bill.”
“Well, the world is changing and we in Singapore have to change with it. The spirit of this change is to align our tax practices with the EU COCG guidance, which aims to mitigate international tax avoidance risks. Other jurisdictions, such as Hong Kong, are implementing similar rules to avoid being on the COCG's blacklist. Previously, the cornerstone of Singapore's tax system was that it does not tax capital gains. This change, however, introduces capital gains tax into the Singapore system and perhaps represents a fundamental change to our tax system. A potential sort of impact of this change is that some corporates, fund management companies and family offices, may consider relocating their holding companies to other global jurisdictions, such as Dubai or the United Kingdom, resulting in a loss of opportunities and jobs within Singapore. However, one very positive outcome of this tax Bill could be that these entities may instead choose to increase their economic substance in Singapore by expanding their operations and business so that they are exempt from this new tax. Needless to say, such increased business activity can only help our economy. In the larger scheme of things, the Government needs to continue to reiterate its pro-investment and pro-business stance by clearly communicating the rationale for the shift and its continued commitment to providing a stable and trusted regime for both individuals and companies with investment and holding structures. The second area is on submitting income information for SEPs. This initiative aims to streamline income tax assessment for SEPs and facilitate the administration of schemes, such as the WIS.”
“The next area I would like to discuss is maintaining overseas offices and the deductions that are available for that. As our economy becomes increasingly interconnected globally, maintaining overseas trade offices is crucial for businesses to expand their international reach. As we adapt to the digital age and the ever-expanding global marketplace, we recognise the need to support businesses that operate internationally and engage in electronic commerce. The deduction for expenses related to overseas trade offices will encourage businesses to establish and sustain these offices, fostering trade relationships and enhancing our country's global presence. In a rapidly evolving global landscape, innovation is key to success for businesses and nations. Economic progress enhances competitiveness and improves our standard of living. Introducing this new tax deduction for qualifying expenditure incurred in pursuing innovation projects is a visionary good policy that aligns with our nation's commitment to innovation and economic growth. Lastly, there are provisions for SMEs or companies that do not generate sufficient profits to benefit from tax deductions to opt for cash conversion instead. More SMEs should tap on the EIS for innovation, IP and training expenses in order to access digital and green economy opportunities. Let me now turn to several other tax changes which are before this House. These changes have the potential to significantly impact some corporates, fund management companies and family offices operating in Singapore. I am referring to the introduction of section 10L, the taxation of gains from the sale of foreign assets received in Singapore by businesses without economic substance in our country.”
“Mr Speaker, Sir, thank you for allowing me to join this debate on the amendments to the Income Tax Act to bring into effect several announcements made in the Deputy Prime Minister's Budget speech earlier this year. I would like to discuss a few specific amendments that are related to business. Let me discuss first the EIS. To nurture and encourage innovation, Budget 2023 introduced the EIS that enhances the tax deductions for five very important activities in the innovation value chain. These five activities are: R&D conducted in Singapore; registration of IP, including patents, trademarks and designs; acquisition and licensing of IP rights; training via courses approved by SkillsFuture Singapore; and lastly, innovation carried out with polytechnics and the ITE. In my view, the EIS is poised to be a game changer for our economy as these deductions are very good for businesses, especially SMEs and important for workers who aspire to excel, improve themselves and keep themselves abreast with the need for improved skills in an ever-changing global environment. The introduction of the EIS is a holistic approach to anchor high value-creation activities in Singapore by providing companies with added incentives to undertake R&D activities in Singapore, acquire IP rights and upskill and transform the workforce. I would like to touch on the deductions available for expenses related to electronic commerce. These deductions are designed to foster the growth of businesses that operate in the digital sphere, which is increasingly becoming the mainstay of trade and commerce. Businesses can now deduct startup expenses related to business advisory, account creation, content creation, product listing and placement.”
“Very quickly. My question is: from most gatekeepers, intermediaries wish to enforce the anti-money laundering rules on a regular basis but often are not equipped or knowledgeable enough to ask the right questions during the process. So, perhaps the focus should be more on providing additional training and guidance for these intermediaries as well as potential gatekeepers to make sure that the right questions are asked. In many ways, one feels that the non-banking financial institution intermediaries are where banking institutions used to be 15 years ago.”
“The truth is that with even the best technology today, it is impossible to completely weed out money laundering. As the Minister put it so eloquently, it is not like looking for one needle in one haystack, but looking for one needle in multiple haystacks. And we also have to keep in mind that while good guys are getting smarter, perhaps the not-so-good guys are getting smarter even faster. Having spent many years as the Asia Chief Executive Officer for a large Australian bank, I have lived through this experience myself –”