GOVERNMENT CHARGES AND LEVIES

Mr Tay Beng Chuan asked the Minister for Trade and Industry whether his Ministry will continue to monitor Government charges and levies closely and wherever possible to maintain them at the current level to ensure that Singapore remains competitive against regional economies.

BG George Yong-Boon Yeo: Last November when Government announced the partial (2%-point) restoration of employers' CPF contribution rate, it also stated that Government rebates in key areas of business costs - namely industrial land rentals, port and airport dues - would be extended for an additional year. The reduced Foreign Worker Levy rates would also remain unchanged for another year. This was to help keep business costs low so that we do not choke off the current economic recovery. My Ministry will continue to closely monitor these and other charges and levies to ensure that we remain cost competitive.

However, Government cannot freeze all charges and fees indefinitely. That will be ultimately harmful to the economy as it would lead to distortions and inefficiencies. Periodically, charges and fees have to be revised to reflect changing market conditions. But, as always, the Government will exercise moderation, so as to avoid unnecessary burden on the economy and our businessmen.