Co-funding of 2022 Formula One Singapore Grand Prix
2 August 2023
Ms Hazel Poa asked the Minister for Trade and Industry (a) what was the total cost of organising the 2022 Formula One Singapore Grand Prix; and (b) of the total cost, what was the total cost that was ultimately co-funded by the Government and what were the types of costs that were co-funded.
Mr Gan Kim Yong: The cost of organising the 2022 race was between $135 million and $140 million. This was similar to previous years of hosting the race. As per past years, the Government’s share was 60% of the total cost. The types of costs that the Government co-funded comprised items such as maintenance of the racetrack, setting up infrastructure for the event, such as grandstands, hospitality suites and providing security and medical services during the event.
Retail Properties Owned By Government-Linked Entities
12 September 2022
Ms Hazel Poa asked the Minister for Trade and Industry (a) whether the Ministry has data on the percentage of retail properties that are owned by (i) the Government and (ii) Government- and Temasek-linked entities and companies; and (b) if so, what are they.
Mr Gan Kim Yong: The Ministry of Trade and Industry (MTI) does not have data on the percentage of retail properties owned by the Government, Government- and Temasek-linked entities and companies.
Increase in Consumer Price Index vs Cost of Living
1 August 2022
Ms Hazel Poa asked the Minister for Trade and Industry (a) whether there is any difference in the rate of increase of the Consumer Price Index (CPI) as compared to the rate of increase in cost of living; and (b) if so, why.
Mr Gan Kim Yong: The Consumer Price Index for All Items (CPI-All Items) captures the average price changes of a basket of goods and services commonly purchased by resident households over time. It is a widely used and internationally accepted measure of consumer price inflation. The Government also tracks the MAS Core Inflation measure, which excludes accommodation and private transport costs that do not affect the day-to-day expenses of most resident households.
The cost of living on the other hand, is multi-faceted and shaped by both price and non-price factors, such as changes in lifestyle and household preferences. For instance, while younger families may be concerned about the costs of education, families with elderly members will be more concerned about the cost of healthcare. Given their different needs and changing aspirations, the cost of living faced by Singaporeans cannot be fully captured by a single measure.
Rents as a Percentage of Total Business Cost
5 July 2022
Ms Hazel Poa asked the Minister for Trade and Industry (a) whether the Ministry tracks rental cost as a percentage of total business cost for businesses in Singapore; and (b) if so, what is this percentage for each year from 2000 to 2021.
Mr Gan Kim Yong: The Department of Statistics and the Economic Development Board compile data on business costs, including rental costs, of firms in the services and manufacturing sectors, respectively.
Data on the share of rental costs in total business costs in the services and manufacturing sectors as a whole for the period of 2000 to 2020 (latest available data) are provided in Table 1. Over this period, the share of rental costs in total business costs was relatively stable, at around 3.1%, on average.
1 August 2022
Ms Hazel Poa asked the Minister for Trade and Industry (a) whether the Ministry tracks rental cost as a percentage of total business cost for businesses in the retail sector; and (b) if so, what is the percentage for each year from 2000 to 2021.
Mr Gan Kim Yong: The Department of Statistics publishes data on the share of rental costs in total business costs in the retail trade sector. Between 2000 and 2020 (latest available data), the rental cost share of the retail sector was relatively stable, at around 31% on average. Details are provided in Table 1.
1 August 2022
Ms Hazel Poa asked the Minister for Trade and Industry (a) whether the Ministry tracks rental costs as a percentage of total business costs for food establishments in (i) hawker centres (ii) coffee shops that are owned by HDB (iii) HDB coffeeshops owned privately (iv) food courts and (v) restaurants; and (b) if so, what is this percentage for the year 2000, 2010, 2019 and 2020.
Mr Gan Kim Yong: The Department of Statistics publishes data on the share of rental costs in total business costs in the food and beverage services sector. A further breakdown of the sector is not available. The National Environment Agency (NEA) compiles data on the business costs of cooked food stalls in hawker centres managed by NEA and NEA-appointed operators.
Data on the rental cost share of firms in the food and beverage services sector for the years 2000, 2010, 2019 and 2020, as well as non-subsidised cooked food stalls in hawker centres for the years 2019 and 2020¹ are provided in Table 1.
Note(s) to Question No(s) 26:
¹ Data for 2000 and 2010 are not available.
Rate of Rent Increase for Food Establishments
1 August 2022
Ms Hazel Poa asked the Minister for Trade and Industry (a) whether the Ministry has data on the average annual rate of increase in rent for food establishments in (i) hawker centres (ii) coffeeshops that are owned by HDB (iii) HDB coffeeshops owned privately (iv) food courts and (v) restaurants; and (b) if so, what is the data for the period from (i) 2000 to 2004 (ii) 2005 to 2009 (iii) 2010 to 2014 and (iv) 2015 to 2019.
Mr Gan Kim Yong: Data on the average increase in rent per annum for firms in the food and beverage services sector for the requested periods are provided in Table 1. A further breakdown of the food and beverage services sector is not available.
Based on available data for hawker centres, the median monthly rental for non-subsidised cooked food stalls has remained relatively stable at around $1,250, with a per annum increase of 0.3% on average from 2015 to 2020.
Subsidy for Formula One Grand Prix
14 February 2022
Ms Hazel Poa asked the Minister for Trade and Industry what is the projected annual Government expenditure on subsidy for hosting the Formula 1 Singapore Grand Prix from this year to 2028.
Mr Gan Kim Yong: The Government decided to support the Formula One (F1) Singapore Grand Prix for another seven years, after thoroughly evaluating the costs and benefits that a term extension could bring to Singapore.
The projected economic benefits to Singapore of the new term outweigh the costs to the Government. Similar to previous terms, the annual cost of organising the race for the next seven years is estimated to be between $135 million and $140 million. The Government will co-fund 60% of approved costs.
The race is expected to bring significant economic benefits to Singapore. Since 2008, the Singapore Grand Prix generated around $130 million in annual incremental spending from tourists attending the race. In addition, the race acts as a strong focal point for global Meetings, Incentives, Conferences and Exhibitions (MICE) events and business meetings. With more than 30 MICE events clustered around the race each year, the Singapore Grand Prix has attracted more than 550,000 international visitors thus far.
In addition, the race brings global branding benefits to Singapore. The 2019 Singapore Grand Prix generated a media value of around $70 million to $75 million.¹ The race also benefits the local business community by generating business revenue and jobs for Singaporeans.
Note(s) to Question No(s) 16:
¹ The media value of the 2019 Singapore Grand Prix was estimated by McKinsey & Company.
Second Review of CECA
2 August 2021
Ms Hazel Poa asked the Minister for Trade and Industry (a) what are the reasons behind the second review of the India-Singapore Comprehensive Economic Cooperation Agreement (CECA) taking eight years to complete; (b) what are the main contentious issues in the second review of CECA; and (c) what are the issues under review in the current third review of CECA.
Mr Gan Kim Yong: MTI periodically reviews our trade agreements to keep them updated and relevant, given that economic interests, business models, regulations and trade flows between Singapore and its trade partners will change over time. All our Free Trade Agreements (FTAs), including CECA, have provisions to review and amend the agreements.
There is no prescribed timeline for negotiating or reviewing FTAs. During the Second Review of CECA, both parties carefully studied the proposed changes, conducted consultations, exchanged views and discussed counter-proposals before reaching an agreement on a mutually beneficial package of amendments. The Second Review expanded tariff concessions for an additional 30 products and updated the rules of origin. These provide more flexibility for Singapore exports into India to qualify for preferential tariffs under the agreement. Singapore exporters benefit as their products become more price-competitive in India, while Indian consumers gain from lower-priced goods.
Details of past and ongoing FTA negotiations between both parties are confidential. Revealing details, such as issues that are covered, would constitute a breach of confidentiality and erode trust in Singapore as a partner, making future negotiations more difficult. However, the outcome of the review is publicly available and the concluded text is published online.
Wrongful Jobs Support Scheme Payouts
10 May 2021
Ms Hazel Poa asked the Minister for Trade and Industry what caused the errors that resulted in the wrongful Jobs Support Scheme payouts of $370 million.
Mr Chan Chun Sing: The incorrect Jobs Support Scheme (JSS) payouts resulted from errors in the tagging of business re-opening dates for some businesses, which was used for the computation of the JSS payouts. As the processes for the resumption of business activities had to be implemented at short notice, MTI used existing systems and manual processes to grant approvals for businesses to re-open. Unfortunately, in so doing, mistakes were made with the re-opening dates and concomitantly the JSS payouts.