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[+6 sentences]Mr Speaker, it is not mere coincidence that the slogan of Forward Singapore is "Building Our Shared Future", while that of Budget 2024 is the substantially similar "Building Our Shared Future Together". The Government intends for Budget 2024 to be a step towards Forward Singapore. The Forward Singapore exercise has three major goals for the decade and the next. Singapore must: first, have a strong and growing economy; second, develop a fairer society; and third, deepen our sense of unity. In doing so, the shared future that was distilled from various engagement sessions with the public was a Singapore that will be vibrant, fair, resilient, inclusive, thriving and united. Sir, it would be fair to say that these are broad strokes that capture the Singapore that all of us seek. In the way it fleshes out the direction of the Government, Budget 2024 is not objectionable, and so the Workers' Party (WP) supports the Budget.[+3 sentences] The real challenge to the People's Action Party (PAP), however, is for it to be open, and the extent to which it is prepared to accommodate the diverse views of Singaporeans on how to journey towards the destination envisaged by Forward Singapore. No doubt, PAP has asked for diverse views by demanding that the Opposition come up with alternative proposals, although one suspects they do so rhetorically. WP has responded sincerely and we have not been short of proposals that have ultimately been accepted by the Government in some shape or form, albeit after initial and sometimes significant resistance. Indeed, this year's Budget includes WP proposals; the announcement by the Finance Minister of a temporary financial support scheme for our workers is a case in point.[+18 sentences] While the details may differ, the philosophy of supporting our involuntarily unemployed is one which WP championed. The same can be said for the WP proposals for anti-discrimination legislation to better protect our workers. Unlike PAP, WP clearly stated these proposals in our election manifesto, and our Members of Parliament (MPs) have systematically and repeatedly raised these points along with others in Parliament. Mr Speaker, let me now put forward five points which form the basis of my response to the Budget. First, the Government needs to be more forthcoming with information so that Singaporeans can participate more actively in policy discussion. Second, there is a growing mismatch in Singapore between aspirations and reality, which must be addressed. Third, the Government must improve retirement adequacy. Fourth, employers need to show more support for employees. And fifth, we must work towards further strengthening unity among Singaporeans in this uncertain world. My first point is that the Government needs to be more transparent and forthcoming with information so that there can be meaningful participation by Singaporeans in the most critical matters affecting us. This is a recurring theme in my speeches, but I am by no means the only Singaporean to hold this view. The Straits Times carried an article dated 19 February 2024 titled, "Economists applaud 2024 Budget but some worry about sustainability." The economists quoted were concerned about the combination of large cash handouts with the lack of information about the sources of Singapore's fiscal strength. In the report, one former Nominated Member of Parliament (NMP) called on the Government to provide more information on how it funds its expenditures. Another economist noted that Singapore is unique and does not follow standards set by global bodies, such as the International Monetary Fund (IMF), with regard to the difference between revenues and expenditures in the management of the fiscal balance. Yet another economist was quoted as saying, "As a society, we now have some very important choices to make and, unless we are well-informed, we will not be able to make those choices well." Sir, the latter point was about the Reserves, a subject which we debated earlier this month and where WP set out its five points of principle. On 20 February, an opinion piece in The Straits Times was titled, "It's getting harder to project future Government revenue". The author noted that it would become more difficult to achieve Budget marksmanship as there could be variations of 17% to 27% in specific tax collections.[+3 sentences] His view was that gone are the days when Budget marksmanship of 2% was normal. Two Budgets ago, I asked what the total estimated amount collected by the carbon tax would be. The Government did not tell us, even though the preliminary numbers would not have been difficult to estimate and probably had already been tabulated by the Ministry of Finance. Similarly, in 2016, the Government announced a $4.5 billion industry transformation roadmap.[+17 sentences] No proactive update on how monies were spent on these programmes was provided until Parliamentary questions were put to the Government. Surely the Government can do better here. I have spoken about the Organisation of Economic Cooperation and Development (OECD) Base Erosion and Profit Sharing regime, or BEPS, for some years now. The Finance Minister has laid out two possibilities that could affect us: one, of more corporate income tax being collected; and another of some multinational enterprises (MNEs) leaving Singapore. Both could happen at the same time, if recent media reports are anything to go by: one, predicting the move of more MNE headquarters to Singapore from Hong Kong; and another reporting on the move of Electrolux's regional headquarters from Singapore to Bangkok. In view of the implementation of Pillar 2, what are the estimated collections in either an optimistic scenario or a conservative scenario? At the first Budget debate of this term, WP called for the setting up of a Parliamentary Budget office, which was rejected by PAP as an idea that would only benefit the Opposition. In the spirit of Forward Singapore and in view of a greater need to track the effectiveness of Government policies and their expenditure outcomes, such institutions should be a feature of our democracy and the Singapore that the Forward Singapore report demands. One economist quoted in the 19 February The Straits Times article said that Singaporeans outside this House desire to analyse and understand to a deeper degree what the Government is doing. These examples I shared put into relief the types of differences we can expect between the political Opposition in this House and non-politician Singaporeans outside of it on the one hand, and the PAP Government on the other. Such calls for information cannot be set aside as red herrings. If the Government was doing well on this score, we would not have private sector economists making the arguments and the points they do. These calls represent a desire to shape a political environment that is fit for Singapore's purposes. Singaporeans need to know how much there is to spend and where the money comes from. These are basic requirements for having rational discussions on fiscal matters and for realistic alternative visions to emerge. In any democratic society, the Government must facilitate such discussions and it should do so proactively by declassifying more information if necessary. Sengkang Group Representation Constituency (GRC) Member Ms He Ting Ru will speak on the themes of deliberative democracy, transparency and accountability in her speech. Coming back to the financing of Forward Singapore's goals, the Deputy Prime Minister announced that $5 billion of this Budget has been set aside for Forward Singapore policy moves, with around $40 billion to be used by the end of the decade.[+14 sentences] Will the Government spell out these initiatives in view of the commitment made in the Budget Statement, since some thought appears to have been applied to how much it will take to fund Forward Singapore plans? Sir, PAP must tell us how the Government will deploy the $40 billion for Forward Singapore policies so that Singaporeans can understand what PAP believes the social compact of tomorrow requires. Just as PAP calls on WP to lay out its alternatives, surely PAP must lay out its proposals, too. Mr Speaker, my second point is that there is a growing mismatch between the aspirations of Singaporeans and the reality facing them. Steps must be taken to address this. A reference in the Forward Singapore report to the 5Cs of decades past was scrutinised by some in the media. The 5Cs captured the aspiration to have cash, car, credit card, condominium and country club membership. The Forward Singapore report calls on Singaporeans to move beyond the 5Cs towards wider definitions of success. Surely, that is an admission, perhaps unintended, that a fair number of the 5Cs are unattainable for most Singaporeans today. But I would go further. The reality is that things are very difficult for not a small number of Singaporeans, regardless of what definition of success one deploys. A Business Times article from late 2023 reported the findings of an OCBC financial wellness survey. Fewer Singaporeans can comfortably spend on things beyond the basics. And more do not have sufficient emergency funds or savings to meet their families' needs. Just 40% of Singaporeans can afford to spend beyond the basics most of the time, down 8% from 2022; and 23% can only afford the basics; while 79% of Singaporeans either do not have a retirement plan or are not on track with their retirement plans.[+4 sentences] This was a rise from 71% in 2022. If the sentiments captured in this survey are anything to go by, there is a likelihood that the social compact may be precarious and uneven, particularly if the middle of society feels insecure about their financial future. To address this possibility, the structural moves to invest more in the future, particularly through SkillsFuture, are important and critical, even as the temporary cost of living support with the Budget are acknowledged and welcomed. The WP foresees a need for even greater investments in our human capital in future, especially in view of how rapidly the workplace landscape is changing and with more well-paying jobs requiring high-order skillsets, a point that will be further expanded by Sengkang GRC Member Assoc Prof Jamus Lim. The $4,000 SkillsFuture credit, which is ringfenced for selected programmes with better employability outcomes, can be used for part-time diploma, post-diploma and undergraduate courses as well as PWM-specific courses.[+10 sentences] The WP sees the deployment of SkillsFuture credits towards economically productive courses with employment outcomes as an important policy initiative of this Budget. But we believe that many of the courses are likely to cost more than $4,000. To further facilitate skills training and help Singaporean workers, the Government should introduce an interest-free SkillsFuture education loan. The WP put this proposal front and centre in our General Election 2020 manifesto. To start with, these loans can be calibrated towards courses, in either high-growth industries that lack Singaporean manpower or in other economically important areas. Sir, my third point, is that the Government must improve retirement adequacy. The changes to the Central Provident Fund (CPF) Special Account (SA), announced by Deputy Prime Minister, will be addressed by Sengkang Group Representation Constituency (GRC) Member of Parliament Mr Louis Chua. However, I speak of retirement adequacy more broadly and as an ongoing concern for the decades to come. It did not escape many Singaporeans, that all three core components of the Majulah Package: the annual earn and save bonus, the one-time retirement savings bonus and the one-time MediSave bonus, for Singaporeans born between 1960 and 1973, involved CPF top-ups. The Merdeka and Pioneer Generations will also get them. In total, 1.4 million Singaporeans will see CPF top-ups.[+6 sentences] From the vantage point of the WP, Sir, these moves make it clear that sufficiency of CPF balances for retirement is a serious and ongoing concern. The moves to raise employer's CPF contributions through to the year 2030, must also be seen by employers in this light – of ensuring that all the workers are not left behind when retirement beckons. Employers will have to redesign jobs, so that seniors can continue to work for far longer if they wish to. The real risk of more redundancies in the years to come, arising from job displacement, adds impetus to the need for job redesign. Recently, in a social media post, the Minister for National Development celebrated the 60th anniversary of the Housing and Development Board's (HDB's) Home Ownership Scheme. History shows that the reception to the HDB Home Ownership Scheme, per se, was initially lukewarm. The popularity of HDB flats exploded only when the CPF Act was amended in 1968, allowing Singaporeans to use their CPF funds for down payments and mortgage instalments of HDB flats.[+6 sentences] It would not be hyperbole to say: that the CPF changed from a statutory board in charge of Singaporeans' retirement to a subsidiary of the HDB, with the aim of helping Singaporeans purchase property. Of course, many aspects of CPF policy have evolved since then. But what is clear, is that Singapore is in a far different place compared to where it was in the early years of Independence. Specifically, younger Singaporeans cannot expect the same home equity appreciation that Singapore experienced from the 1990s. Today, HDB affordability continues to remain an ongoing concern in the minds of many Singaporeans, in spite of the new Build-To-Order (BTO) classification system – which adds new restriction and increases subsidies for new flats. In substance, the Government appears to acknowledge the point that affordability is an ongoing concern. A point made by the WP in our speeches during the Housing Motion that was debated in Parliament last year, when we sought to bring focus to the People's Action Party's (PAP's) amended Motion. It was not coincidental that the Prime Minister in his 2023 National Day Rally, referred to the now infamous $877,000 five-room BTO flat in Ang Mo Kio as an example of a BTO flat that should become slightly less expensive under the new Standard, Prime and Plus BTO classification system – thanks to added taxpayer subsidies.[+11 sentences] More money set aside for HDB flat purchase means less funds available for retirement, notwithstanding options to downgrade. If property prices and general inflationary trends rise faster than wages, plans for retirement will have to start later for many – since they would have less to set aside for their nest egg, with mortgages to serve today. It is time to closely examine how much CPF money should be set aside for housing. But if HDB prices continue to escalate, any move to reduce the CPF funds that can be set aside for housing, in favour of retirement adequacy, may backfire. The Government may then have to commit itself to making HDB flats even more affordable by increasing subsidies further. Make no mistake, direct subsidies for HDB flat purchases do not make HDB flats cheaper. They merely transfer the cost to current taxpayers. The WP will continue to closely monitor PAP's moves on this point. We will be sure to hold it to account, if it allows HDB flats to continue to rise in price beyond wage growth and if it allows the retirement adequacy of Singaporeans to be compromised. My colleague, Aljunied GRC Member of Parliament Mr Faisal Manap, will make some related points covering housing and low-income households in his speech. Mr Speaker, my fourth point, is that employers need to show more support for employees. Business groups have expressed concerns about the new Local Qualifying Salary cap of $1,600, which is widely considered as the de facto minimum wage.[+8 sentences] However, if Singapore really wishes to embrace the philosophy of Forward Singapore, then we need to show stronger support for our financially vulnerable workers. This is such an important ingredient of the future social compact. Increases of the de facto minimum wage, should be seen as a step towards an inclusive and fair Singapore. If we have a shared future, where there is a lack of support for paying our lowest-paid workers in step with economic fundamentals, that would reflect very poorly on Singapore. When the economy grows or when support measures are extended to companies, workers must also benefit. But consumers too, must be prepared to pay more for goods and services and it cannot solely be left to businesses to absorb the additional cost of wages. The strongest social compact promised by Forward Singapore, also offers an opportunity to think about protections for our workers beyond wages. Much has been said about the lack of recognition in Singapore for all blue-collar workers who use their hands to perform skilled work. As the next step, Singapore should legislate retrenchment benefits or introduce redundancy insurance for these workers.[+7 sentences] I will speak more about this in the Committee of Supply (COS) debate for the Ministry of Manpower. But there are areas where some employers have done well and displayed solidarity with the Singaporean worker. For example, by implementing Flexible Work Arrangements (FWAs) in concert with the demands of a more modern Singaporean workforce. But FWAs are just one area. We must also improve workplace culture and change attitudes towards skills upgrading and training, if Forward Singapore is to become a reality. In a recent Ipsos survey titled "What Singapore thinks, feels and does", it was revealed that three in five Singapore employees – or 60% of Singapore employees – said that they were proud to work for their employer. But this was some 14 to 19 points below the global average; 29% said that they plan to leave their current employer in under two years – nine points more than the global norm. While pay is one reason, feeling unrecognised and a lack of career progression, are the two additional factors that drive employees to leave.[+2 sentences] With the advent of artificial intelligence (AI) and the need to improve productivity, this is as good a time as any to significantly review HR policies: to align them with national imperatives and the lived experience of Singapore workers. Member for Aljunied GRC Mr Gerald Giam, will speak more about productivity improvements in his speech. A citizens panel on employment resilience concluded, as part of Forward Singapore, noted that many workers did not proactively manage their careers until a need arose – due to a lack of awareness of resources for upgrading; or to there being too much information that is too daunting to navigate.[+3 sentences] The SkillsFuture Enterprise Credit aims to encourage employers to invest and enterprise, and workplace transformation. It covers an array of programmes, including support for job redesign under the Productivity Solutions Grant. These initiatives can be superimposed on the key HR workplace pain points identified by employees – particularly older workers. Aljunied GRC Member of Parliament Ms Sylvia Lim will speak more on this subject. This year's Budget sees the SkillsFuture Enterprise Credit extended for another year.[+7 sentences] As in previous years, the WP calls on the Government to report on the success, or otherwise, of these enterprise schemes that cause huge amounts of money. Reporting on outcomes is a fundamental requirement for accountability. Please give us information on what outcomes, if any, have been achieved on an industry-wide level. Please let us know so that this House and industry experts outside this House can give inputs on how these schemes can be improved, if necessary. Sir, I move to my final point. In this uncertain world, Singaporeans need to be committed to being united even as we must remain multiracial and multicultural. The Budget speech By Deputy Prime Minister Lawrence Wong, sought to put into focus an important message that many of us overlook as we remain peaceful and far removed from the prospect of conflict. The segment of the Finance Minister's speech that stood out for me was the assessment of the uncertain outlook for Singapore.[+1 sentence] Some language was particularly strong. These include, and I quote: the international outlook has darkened dramatically; the post-Cold War era that fostered three decades of peace and stability is over; we are now in a new era of conflict and confrontation and there is no turning back; what can we expect in this new world?[+25 sentences] It will be more violent, it will be more fragmented, it will be messier and more unpredictable. At the same time as the world is seeing rising political polarisation and disenfranchisement, due to economic displacement, the world continues to struggle with common global problems, such as climate change, a subject Hougang Single Member Constituency Member of Parliament Mr Dennis Tan will touch on. If Forward Singapore seeks to refresh the social compact to keep our society strong and united and to prepare for a difficult road ahead, all of us in Singaporeans – regardless of our political persuasion – will have to be our siblings' keeper. More so than ever before. But this will not be easy. Immigration and integration are good examples of where potential challenges lie. Earlier generations of immigrants had little choice, or less choice, but to integrate. They could not live hermetically sealed off from their host population. Only 30 years ago, it was prohibitively costly to make an international phone call. Current immigrants can easily stay connected to their networks and countries of birth. One can be a new Singaporean or PR physically present in Singapore, but removed from Singapore society. Better integration between the races and communities must be an important feature of the new social compact. We ignore this social objective at our peril, given how immigration is a permanent feature of Singapore's society. The prospect of constant information operations undertaken by state and non-state actors, is an acute threat facing all multicultural societies. As a multiracial and multi-religious society that relies on immigration to top-up the population, our bonds as one united people may be severely tested in the years to come. The reality of online misinformation of foreign interference, particularly if framed in nationalistic terms, or in the form of identity politics, can be insidious and highly damaging to Singapore. Even as we seek more space to passionately advocate our views, including those on race and religion, we should be mindful lest we denigrate another group. More communication is certainly needed, but we should never forget our common humanity. None of us chose to be born into our race or religion, so kindness and empathy must be a dominant feature of the multiracial Singapore spirit. As an opposition party with elected Members of Parliament (MPs) in Parliament, the Workers' Party will not self-censure but commit ourselves to bring up matters responsibly. Once mistrust between communities take root, we will not know what hit us. The WP agrees with the posture taken by the Government, that polarisation must not happen in Singapore. And as a society facing an unpredictable world, we should not dismiss this potential reality. We must gird ourselves against this prospect by deepening our commitment to fellow Singaporeans and representing them and their views faithfully. A potentially more volatile outlook also reinforces the importance of the Singapore Armed Forces (SAF) and Home Team and the importance of National Service. Our security agencies may be tested or challenged in ways that may not just be kinetic, but asymmetric, and we cannot afford to fall short. All Singaporeans must give our men and women in uniform our full support.[+1 sentence] In conclusion, Mr Speaker, there is broad agreement on the outcomes sought by Forward Singapore. But the call for a fair, inclusive and united Singapore must also accommodate and respond to citizen demands for greater transparency and civic participation.[+1 sentence] Otherwise, Forward Singapore could easily fall victim to political cynicism. The WP has, on numerous occasions, proposed how these calls for greater transparency can be better addressed.[+4 sentences] Such calls will not grow softer and they are not inconsistent with the findings and the desired outcomes of the Forward Singapore exercise. Some of the differences between the PAP and the WP are of methods and approaches, and we must agree to disagree. But there may be a few issues where there is consensus on the final outcomes, and yet, others where there is none. This is how a parliamentary democracy works. A Singapore with a contested and balanced Parliamentary system, with a robust opposition presence playing its role in making for a fair and inclusive society, and ultimately, what it does is that it makes us a better, more confident and an authentic Singapore.[+1 sentence] Sir, the WP supports the Budget.
Mr Speaker4 words
[+1 sentence]Mr Liang Eng Hwa.
Mr Liang Eng Hwa (Bukit Panjang)2891 words
[+7 sentences]Mr Speaker, Sir, this year's Budget sets out the first instalment of policy moves to remake Singapore's social compact, as envisioned by the Forward Singapore exercise. We can see the imprints of Forward Singapore in many aspects of this year's Budget, including the various fresh approaches and moves to provide assurance to Singaporeans. There are major initiatives to develop our people, to invest in medium- and longer-term capabilities and security, to support families and seniors, and to build a fairer and more equitable society. We are moving forward amidst a more uncertain, more contested and more volatile world. To adapt and thrive under this environment, we need to keep on reassessing our propositions and norms, but also, critically, to stay cohesive and united. Sir, let me start with the Budget measures to tackle the immediate challenges. And in keeping with one of Forward Singapore key thrust that we are in this together and that we have got each other's back, this Budget continues to enhance the packages to help Singaporeans cope with the cost of living. The $1.9 billion enhanced Assurance Package (AP) may come across as "more of the same", but this is a much welcomed "more of the same", where it is actually more than "more of the same".[+2 sentences] Even though there are other measures and tools to help mitigate rising costs; nothing beats having more direct payouts and assistance from the Government. And fortunately, we continued to have the fiscal capacity to dish out such upsized packages. For the businesses, while the 50% corporate tax rebate and the Enterprise Financing Scheme, among others, may also come across as more of the same, the minimum cash payouts of $2,000 to all companies that employed at least one local employee is clearly a new feature and, if I remember correctly, first of its kind in our Budgets.[+23 sentences] It will go some way to provide relief to the small enterprises and helping to mitigate some of the incremental costs. In addition to the AP, there are also other helpful features in this year's Budget that help Singaporean households and businesses cope with rising costs, such as the Workfare Income Supplement, the Silver Support, the preschool fee caps, the Progressive Wage Credits Scheme and so on. So, I thank the Deputy Prime Minister and Finance Minister for his continuing assurances to help Singaporeans to manage the cost pressures. Besides the annual Budget measures, in September last year, the Deputy Prime Minister also came up with an additional off-budget $1.1 billion Cost-of-Living Support Package. In that package, there was also an additional one-off public transport subsidies of $300 million to moderate the fare increase in 2023. And this is over and above the $2 billion annual subsidy that the Government provides to keep public transport affordable. I hope that that the Government would continue to monitor the costs situation, including keeping an eye on the public transport fare; and to consider another one-off assistance to moderate the fare increase if the Budget position permits. Sir, let me now speak on the part of the Budget that I am most delighted with – that is developing our people. Our people must be at the centre of any policy formulation and intent; whether it is to grow the economy, to build capabilities, to strengthen our securities and even why we manage our finances prudently. We want our people to live a full and happy life. A major part of our life's pursuit is livelihoods. We work to earn income to provide for our families and ourselves; to live good lives and to have the financial means for contingencies and retirement. As a Government, nothing can be more of a priority and worthy than to help provide good and fulfilling livelihoods to our people. That must be the foremost key performance indicator (KPI) for the Government. However, with the rapid technological advancements and a more competitive and disruptive economic environment, long-term job security will be an increasing and ongoing challenge. The skills set that we acquire in schools and in the workplace now has a shortened shelf life. Some old jobs will become obsolete, while new jobs that require new skills will be created. And coupled with that, on the labour supply side, with an increasing healthy life span, we can now have a longer career runway. We are living longer and we have more healthier years in our life; thanks to the quality of life that we enjoy today. Singaporeans understand this imperative and know that there may a time in their career where they need to do a pivot, in response to the changing landscape. The introduction of SkillsFuture 10 years ago opened up our mindset about continuous learning throughout life. Budget 2024 provides a major boost and a significant funding upsize to the SkillsFuture movement; with the aim to nudge Singaporeans in their forties, fifties and even sixties to embrace career resilience and to stay up to speed on their employability. The SkillsFuture Level-Up Programme, with various subsidies, can greatly help to reduce the economic costs for training, a perennial pain point for the working mid-careers. The monthly training allowance, equivalent to 50% of one's average income, capped at $3,000 and over 24 months, helps to significantly buffer the economic costs for workers when they embark on career transition programmes. The $4,000 top-up of the SkillsFuture Credit for Singaporeans aged 40 and above is a sizeable uplift and a clear signaling in the way forward.[+17 sentences] It is now more targeted in scope; and would only apply to programmes that can achieve the desired employability outcomes. Sir, another notable shift in Budget 2024 is the change in our education subsidy policy; where Singaporeans aged 40 and above can pursue another diploma at our polytechnics and Institutes of Technical Education (ITEs) at subsidised fees. The Deputy Prime Minister called it "another bite" of the education subsidies. I hope this new subsidised back-to-school full-time diploma programmes can also help produce more professionals, managers, executives and technicians (PMETs); and hence, reduce the future need for more S Passes and Employment Passes (EPs). Sir, these are substantial moves. Committing the funding is just first step and, of course, a critical enabler. The real heavy lifting is in operationalising the entire value chain, where workers seek training that the employers sought; the educators being deeply plugged into the needs of industries and businesses and curate the skills proramme that matters; and the work unions and Government closely monitoring, facilitating and anticipating the next few bounds ahead. Sir, I welcome another shift that was mentioned in the Budget, with details to be provided later this year; and that is the temporary financial support scheme for the involuntarily unemployed. This is in keeping with the current reality, where we will see more disruptions that will impact businesses and jobs. I am glad that we are now ready to move on this. It is very much part of what we meant a functioning, social compact and that we have got each other's back. Sir, in Mandarin, please. (In Mandarin): There is a saying that people have no fixed position and water has no constant form. The rapid development of technology today has led us into an era of constant change in the workplace. The transformation of economic operations has directly impacted the workplace, changing the employment model and shortening the value and lifespan of skills and knowledge. In response to this situation, this year's Budget has also strengthened a response strategy, enhancing and introducing new policy measures. In addition to the enhanced SkillsFuture subsidies of up to $4,000, the Government has also adjusted education subsidies, allowing middle-aged Singaporeans to re-enter educational institutions to pursue professional diplomas and enhance their employment potential. Workers who wish to attend qualified full-time work courses, can also receive training allowances of up to $3,000 per month.[+16 sentences] From these measures, we can understand the Government's intention to enable Singaporeans to maintain employability, expand employment opportunities and have a better future. Learning and upskilling is a challenging endeavour, with economic cost and personal time commitment. This is why the Government is investing significant financial resources and strengthening policy measures to alleviate this burden on the individual. Ultimately, whether we can achieve results depends on whether workers have that willingness and passion to seek skills and knowledge, and whether employers have a flexible, rewarding and long-term mindset to support this. In this process, we also need to curate more courses that can be applied to enhance employment opportunities. This will be a very difficult road, but we have no choice. I can see the Government's determination, and in the future, it will require everyone and the entire system to work together to implement these enhanced upskilling policies. (In English): Sir, on the economy, I fully agree with the Deputy Prime Minister that we need to continue growing the economy, so that we can improve the collective well-being of Singaporeans. And given the inherent constraints stacked against us, such land, labour and carbon, our next phase of growth has to be productivity and innovation driven. It is not going to be easy, as bigger countries that are better resourced and with the scale of domestic economy are also doing the same. The strategy that we have adopted to overcome our limitations and which has placed us among the top economic value-add country per capita in the world, is by continuously attracting high quality and high value investments to Singapore. Attracting such investments help us leapfrog the riskier and the capital-intensive build-up phase; and enable our economy to always stay at the frontiers of cutting-edge technology. Hence, anchoring high value and innovative MNEs to base and hub here continues to be a compelling strategy for an economy like ours with minimal scale. And thanks to our best-in-class investment attracting agencies like the Economic Development Board (EDB), the Monetary Authority of Singapore (MAS) and Enterprise Singapore (ESG), we have been able to attract these high-quality investments, despite the intense competition. I often read the annual reports of EDB, to get a sense of how much investments we are attracting each year. Besides reporting the fixed asset investment (FAI) commitments and the total business expenditure per annum (TBE), EDB would also report the jobs expected to be created and the value added to the economy. For example, in 2023, the EDB attracted FAI of $12.7 billion, TBE of $8.9 billion and these are expected to create more than 20,000 jobs with a projected value-add of $26.7 billion.[+7 sentences] I am heartened that our economic investment agencies never lose sight on the ultimate motivation on why we bring in investments, which is to create good jobs and to contribute to our gross domestic product (GDP). Sir, we have to keep strengthening our propositions; among others, to always be a business-friendly destination of choice, having a diverse talent pool, excellent infrastructure and connectivity, trusted jurisdictions, strong financial standing and, of course, an able Government and political stability. How could our local enterprises benefit from the presence of MNEs? The key is in finding ways for our local firms to be the suppliers and servicers of the MNEs; and playing a part in their value chain. The enhanced Partnership for Capability Transformation aims to increase the range of modalities for MNEs and small and medium enterprises (SMEs), to collaborate and to help the SMEs up the game. This could be the pathway for our local enterprises to break out of the size trap, level up to be the emerging regionals or niche champions. Sir, besides attracting high quality investments and developing our local enterprises, we have also got to invest in our capabilities and build longer-term competitiveness. The Deputy Prime Minister announced a series of significant investment into our capabilities in this year's Budget; for example, the $3 billion in Research, Innovation and Enterprise 2025 (RIE2025), $2 billion in the Financial Sector Development Fund, $100 million to upgrade our Nationwide Broadband Network. To enhance our longer-term energy security, the Government will also inject an initial $5 billion to set up the Future Energy Fund.[+12 sentences] These are massive funding commitments. Sir, I look forward to the details in the upcoming COS debate. On AI, I am glad that Singapore has a head-ups in developing AI capabilities with our National AI strategy. It has not gone unnoticed internationally. Last December, I happened to be in Taiwan for the holidays, with my family. At that time, the Taiwanese Presidential and the Legislative election campaign were in full swing. And out of curiosity, I popped into a couple of election rallies in Taipei and watched the local news there, to hear what are the issues that the candidates were talking about. It is not uncommon in Taiwanese elections, to hear opposition politicians there using Singapore as an example to criticise their government for not doing as well as Singapore. So, in this election there, it was again not surprising that Singapore got a few mentions. One of them was where the opposition politicians ridiculed their government on why tiny Singapore can be listed as the top 10 countries in the world, leading in AI research and technology; and Taiwan is not there. They lamented that Taiwan is losing out in this AI race and will severely impact its overall competitiveness. Sir, I am pleased that we are now into version 2 of our National AI Strategy; and in this Budget, the Government has committed to invest $1 billion per year for the next five years. The investments will be used to work with leading companies to set up AI Centres of Excellences in Singapore as well as secure the much needed advanced chips for AI development.[+2 sentences] Sir, we need to keep up with the momentum in our AI development; and I support the additional funding announced by the Deputy Prime Minister. Mr Speaker, Sir, my final point is with regards to the adjustments to the corporate income tax; to incorporate the BEPS 2.0 Pillar 2 changes. Under Pillar 2 of BEPS, a global minimum effective tax of 15% is required to be applied to large MNEs.[+5 sentences] Many jurisdictions including Switzerland and Hong Kong has announced their plans to implement it in 2024 and 2025. BEPS 2.0 will reset the level playing field for global competition for investment and that is why it is critical that we keep improving our overall offerings such as introducing the Refundable Investment Credit to strengthen our competitive position. One issue of considerable interest is the revenue impact from introduction of Domestic Top-Up Tax. In the near term, it is expected to provide additional revenues to the Government. In an OECD report released in January 2024, OECD provided estimates that imply a revenue gain of around 15% to 40% in corporate income tax for investment hubs. Using our revised FY2023 corporate tax revenue base of $28.4 billion, this would mean an additional $4 billion to $11 billion of revenue.[+7 sentences] In February 2024, Hong Kong which will introduce Pillar 2 in 2025 has estimated its own revenue impact to be around HKD 10 billion, or S$1.7 billion. There was another estimate by Switzerland in August 2023 which estimate the impact for Switerland as CHF 1.6 billion, or S$2.4 billion. Both the Hong Kong and Swiss estimates seem to be point to a lower revenue impact than what the OECD estimates would imply, which is up to about S$10 billion for Hong Kong, up to about S$15 billion for Switzerland. Of course, OECD has cautioned that there is a wide range of uncertainty in their estimates. Sir, Pillar 2 is an unprecedented change in tax policy and there are significant limitations in the extent to which previous experience and studies can inform on the "behavioural reactions" by governments and MNEs and therefore the revenue impact. Furthermore, the OECD report does not factor in the impact of Pillar 1, which will have a negative revenue impact for Singapore. When both Pillar 1 and Pillar 2 are taken together, it would be difficult to pin down on the net revenue impact. The more important point is BEPS 2.0 is a key challenge for Singapore which we must navigate carefully. And which is I why, I support the Budget 2024 measures to enhance our investment promotion toolkit through the Refundable Investment Credit; as well as the various investments in our workforce, in innovation and in infrastructure.[+7 sentences] Sir, to conclude, a good Budget is not defined by just about how we spend, how big we spend, how many more areas we spend but also how we fund our expenditures on a sustainable basis. This discipline about a balanced Budget is of critical importance especially where the trajectory of our spending is heading higher. Often, commentators would like to use characterisations such whether the Budget is left-leaning or right-leaning or centre-left or centre-right to describe a Budget. But it may not be that straightforward for this year’s Budget. Rather than to characterise the budget as being more left or right-leaning, I would say this is a budget that is forward moving and upward progressing. We have every determination to move Singapore forward; and in this forward journey ahead to ensure that there will be upward social mobility and cohesion and importantly upward progress for everyone. Sir, I support the Budget.
Mr Speaker4 words
[+1 sentence]Ms Foo Mee Har.
Ms Foo Mee Har (West Coast)1702 words
[+1 sentence]Mr Speaker, Budget 2024 is a budget notable for its wide-ranging support measures. These include generous assistance to meet cost-of-living pressures to taking forward-looking steps to ensure Singapore and Singaporeans continue to thrive in a fast-changing economic and social environment.[+1 sentence] Sir, I wholeheartedly support this year’s Budget and I thank the Government for listening and being responsive to needs on the ground. There are significant progressive moves announced in this Budget, such as the SkillsFuture Credit top up of $4,000 for those 40 years and above to level up; as well as moves to better calibrate policy such as easing of property tax burden for many home owners who saw their tax bills spike.[+4 sentences] We even see policy innovation where the Government provides Parenthood Provisional Housing Scheme Vouchers for families to rent an HDB flat in the open market for one year, to supplement the strong demand for temporary housing whilst families wait for their BTO completion. Sir, I would like to focus my speech on three key areas where Budget 2024 helps with cost pressures, sharpens Singapore’s competitiveness as well as addresses retirement adequacy. First, on cost pressures. Sir, riding on the better-than-expected Government revenue in Financial Year (FY) 2023, individuals and families stand to benefit from a mix of cash, vouchers and rebates under the $1.9 billion boost to the Assurance Package. Companies, especially SMEs, also stand to benefit from the $1.3 billion Enterprise Support Package with a slew of support measures, including the generous corporate income tax rebate of 50%, capped at $40,000 in the year of assessment FY2024.[+21 sentences] Those with less will receive more, but there is something for everyone. Sir, I applaud the Government for their concerted attempt to shore up individual and company cash flows. However, we must be very careful to calibrate handouts to ensure that these are sustainable, as people may grow to rely on them over time. It may become a challenge to wean them off expectations of such broad-based support in the future. Also, the generous direct transfers to cushion residents from elevated inflation may, ironically, add to further demand and reverse early signs of moderation on inflation. Last year, I had raised similar concerns about Government handouts increasing demand and creating a vicious escalation in prices. Helping people cope with rising costs is a worthy policy but it must be balanced against the risk of prolonging inflationary pressures. After all, it would be unsustainable to dole out assistance to fight inflation if such help ends up keeping inflation higher for longer. So, I call on the Government to keep a close eye on this. Next, sharpening Singapore’s competitiveness. Mr Speaker, Deputy Prime Minister Lawrence Wong announced an ambitious target of two to 3% GDP over the next decade. The economy grew by only 1.1% last year, down from 3.8% growth the previous year. Real income declined 2.2% for the first time in over 10 years. Singapore’s continued growth in the new era of global development is not guaranteed. We face challenges in an international tax environment where global minimum tax regulations are upon us, and where countries around the world are fighting for high-quality investments. Sir, Singapore has evolved from a trading port to a global finance hub, logistics, and also for manufacturing. In order to succeed in our next phase of growth, we need to pivot towards high-value, innovative economic development. This shift necessitates a profound change in our skills and capabilities, far beyond what has brought us success in the past. In an era dominated by rapid technological advancements, our focus must pivot towards nurturing skills in innovation, research and development (R&D), digitalisation and AI. These fields have transformative potential to boost our economy, but require a new breed of industries and professionals who are adept in these cutting-edge domains. The magnitude of this transition cannot be understated. We are not simply adopting new technologies; we are required to reshape our economic fabric. So, Budget 2024 rightly earmarked a substantial sum of $13 billion towards capability development – these include boosting productivity, research and innovation, green transition and AI transformation.[+4 sentences] Deputy Prime Minister Lawrence Wong announced the launch of a refreshed incentive toolbox with new fiscal schemes, such the new Refundable Investment Credit scheme and top-up of existing funds to further advance capabilities. This is 10 times the amount set aside to help companies cope with near-term challenges. However, Sir, many of the initiatives will only be effective to the extent they are taken up. Significant effort must be directed to boost usage in order to achieve the intended outcomes of the respective schemes. For example, even though SkillsFuture has been launched for close to 10 years, only three in 10 Singaporeans have used their SkillsFuture credits.[+23 sentences] The number of companies tapping into R&D grants is insufficient, and SMEs still struggle to decipher the multitude of schemes and the complexity and onerous application process. Sir, even as I persist in urging the Government to intensify its efforts to stimulate adoption – a topic I will delve into during my COS speeches – it is ultimately incumbent upon companies and workers to seize these opportunities and to forge a brighter future for themselves. The support schemes available to us is a springboard, but the impetus to leap forward lies within us. Embarking on a journey of transformation is akin to preparing to scale new and uncharted mountains. This journey compels us to traverse unfamiliar terrain and to overcome obstacles that are inherent in scaling any worthy peak. We are comforted by the knowledge that, in this journey, we are not alone. The support schemes available are akin to tools, maps and safety gear, provided to ensure that our climb, our ascent is not only successful but also safe and secure. These resources are designed to assist us in navigating the complexities of change, offering guidance, training and support at every step. But, ultimately, it is only we who scale the mountain; the gear alone cannot do it for us. Next, retirement adequacy. Mr Speaker, Budget 2024 contains excellent initiatives to further boost retirement adequacy, such as the Majulah Package, enhanced support for Matched Retirement Savings Scheme, Silver Support Scheme Enhancement and others. But, unfortunately, the announcement to close the CPF SA for those aged 55 and older attracted the most attention. Whilst I support the rationale behind the Government's move, the sudden closure of SA accounts affects many middle-income seniors. Based on established CPF rules, they have systematically saved and trusted this scheme to build up their retirement nest-eggs. Many rely on CPF savings as a key source to fund their retirement. This sudden unexpected change disrupts their retirement planning. As a policy move, it may be fairer if the Government could grandfather the SA scheme for existing 55 and older CPF members. Sir, the most exciting development within the CPF framework for me is the increase of the Enhanced Retirement Sum (ERS) to four times of the Basic Retirement Sum, reaching $426,000 in 2025. Over the years, I have advocated for a higher ERS, enabling CPF LIFE to better cater to the retirement needs of middle-income Singaporeans, especially for those considering CPF as their primary source for retirement planning. This is really important that the CPF serves middle-income Singaporeans. The rule of thumb for the income level required to maintain a similar lifestyle in retirement typically involves replacing a certain percentage of your pre-retirement income. It is commonly suggested that retirees will need approximately 70% to 80% of their pre-retirement income to sustain their lifestyle. This estimate of 70% to 80% as what they need in retirement, assumes the decrease in certain expenses, such as commuting, work-related expenses or mortgage payments, while anticipating an increase in others like healthcare or leisure activities. If we consider the current median monthly income of about $5,200 for full-time working residents in the middle-income group, the estimated monthly payout under the new ERS would be approximately $3,300. This represents a 63% replacement income versus the 70% to 80% recommended for middle-income earners. This is a significant increase from the current monthly payout of $2,530, which only replaces about 49% of our median wage earner's income.[+6 sentences] Sir, the introduction of the new ERS is a significant step toward closing the retirement adequacy gap for the middle-income earners, an issue I have persistently lobbied for over many years. While CPF LIFE should not be tailored to meet the needs of the affluent, it must and it must serve as a primary source of retirement income for our low- and middle-income seniors, ensuring they have financial security and peace of mind in their golden age. Finally, Sir, fiscal space and top up funds. Sir, in examining the budgetary position for FY2022 and FY2023, I would like to seek clarification on several fronts. Firstly, with regard to the Government's accountability on fiscal marksmanship. The final financial outcome for FY2022 diverged notably from the initial projections, going from an anticipated deficit of $2 billion into a surplus of $1.7 billion. For FY2023, despite a revenue increase exceeding expectations by 7.9% and surpassing $104 billion, the fiscal deficit for this year is, in fact, revised to $3.6 billion deficit.[+8 sentences] This represents a significant widening from the earlier projection of $0.4 billion deficit. In the light of these developments, I would like to ask how the Government projects revenue and expenditure to ensure a level of predictability that informs crucial decisions, such as the need to raise taxes to balance the budget. Secondly, a significant amount of funds totalling $24.3 billion for FY2023 and $20.4 billion for FY2024 are allocated towards topping up endowment and trust funds. While I appreciate the fiscal discipline demonstrated by setting aside funds that are committed for future programmes that we promise the people without burdening future budgets and generations, I want to seek clarification on several aspects. Firstly, the rate of drawdown of the various funds. Secondly, how the Government determines whether expenditures should be funded from funds and endowments, as opposed to operating budget. Additionally, I am interested in understanding how undrawn amounts are treated and how drawdowns are optimised across funds to smoothen out expenditures. Sir, with that, I support the Budget.
Mr Speaker3 words
[+1 sentence]Ms Hazel Poa.
Ms Hazel Poa (Non-Constituency Member)1874 words
[+7 sentences]Mr Speaker, Sir, perhaps the most noteworthy thing about this year's Budget Statement was the amount of support measures provided to Singaporeans without any additional major tax increases announced. This will come as a great relief to many Singaporeans who are still struggling to cope with the high costs of living and an uncertain job environment. I will first address the support measures and how we can take bolder steps to support Singaporeans in coping with the rising cost of living. I will then discuss Progress Singapore Party's (PSP's) views on the proposals in the Budget to support lifelong learning and develop the full potential of Singaporeans. Sir, those of us who walk the ground will know that the rising cost of living is the number one concern for Singaporeans and we have debated this issue at length in this House last November. Many Singaporeans are feeling that their wages are unable to keep up with rising prices, leading to feelings of anxiety and insecurity. This feeling is borne out in the wage statistics. After taking into account inflation, real wages rose by only 0.4% in 2022, but fell by 4.5% in the first half of 2023.[+9 sentences] Furthermore, the Consumer Price Index, or CPI, which measures inflation, does not take into account loan repayments. This means that the higher interest rates which resulted in higher mortgage payments and other loan payments are not taken into account in the calculation of inflation and real wage growth. The Government's response has been to provide subsidies and rebates that help households in the short term, for instance, the Assurance Package. While these short-term support measures are welcome, PSP has always maintained that these are not long-term solutions that address the root causes of the rising cost of living. While it is true that rising prices are subject to global forces like oil prices, food prices, disruption to supply chains due to pandemics, wars or climate change, there are also domestic factors driving prices. These domestic factors include our property prices, Certificate of Entitlement (COE) prices, population policy and Government taxes. Today, I will only talk about property prices and Government taxes and leave the discussion on COE and population policy to another day. Suffice to say that COE increases our transportation costs and population policy affects the overall demand for all goods and services, thus putting pressure on all prices. One root cause of the rising cost of living is rising rents. In the retail sector, rent constitutes about 30% of the business costs.[+10 sentences] This means that when you walk into a shop to buy a product, 30% of the cost of that product is due to the shop's rental and this has not yet taken into account the suppliers' rental costs which had been built into the cost of goods sold. Similarly, in the food and beverage (F&B) sector, rent forms about 27% of business cost. Rent therefore has a big impact on the cost of living of most Singaporeans. PSP once again calls on the Government to take action to moderate excessive commercial rent increases in Singapore. For a start, guidelines on reasonable annual rent increases can be issued, similar to how the National Wage Council (NWC) issues guidelines on wage increases. If the rate of rent increases can be moderated, it will not only be beneficial for Singaporeans but it will benefit businesses as well. In addition, Government is the largest landowner in Singapore and yields significant influence over the property market. If it has the political will, it can push outcome in the direction it wants. Another root cause of rising cost of living is home prices. For most of us, buying a house is the single largest expenditure of our lifetime. PSP has proposed the Affordable Home Scheme in which HDB flat prices do not include the land cost component for home buyers upon first purchase, but deferred if and when they sell their flats.[+5 sentences] This will greatly ease the burden of housing costs on young people and allow them to more easily build up their retirement savings. It might even provide some with the leeway to take risks with their careers and pursue any entrepreneurial dreams without being shackled by large mortgage payments. Government taxes form part of the cost of living, with the most obvious being the Goods and Services Tax (GST). In Budget 2022, Deputy Prime Minister Lawrence Wong said that healthcare expenditure is increasing due to the ageing population and is expected to hit $27 billion in 2030. GST therefore needed to be raised to fund the expected increase in healthcare expenditure. If healthcare expenditure hits $27 billion as expected and the increase is fully funded by GST, then GST would have to be raised by another 3.5% approximately by 2030, to reach about 12.5%.[+22 sentences] Will the Government share whether there are any further plans to raise taxes to fund the increase in healthcare expenditure? Currently, the Government helps Singaporeans cope with GST increases and cost of living increases by giving cash grants, rebates and vouchers, resulting in a situation whereby the bulk of the population are now in regular receipt of Government handouts. In any society, there will always be people with different income levels and it is normal for Government to give grants to the lower-income families. But if the bulk of the population need Government handouts to cope with cost of living, then that cannot be a healthy situation. We should also be circumspect about the fact that the bulk of the population is getting used to the idea that it is a norm to receive Government handouts. It may be the easier route to provide handouts to cope with the cost of living, but we must focus on taking steps to keep costs in check. For a start, we ask the Government to reconsider exempting a list of basic necessities from GST. We can list specific products rather than broad categories to minimise classification issues and limit price levels to those generally consumed by lower- and middle-income families. The need for this measure will become more pressing as GST rate increases. The way that the Government currently treats land sales proceeds and prices HDB flats is also adding to taxpayers' burden. HDB must pay Singapore Land Authority (SLA) for the land used to build HDB flats. These land sales proceeds are then locked away in past reserves and are paid for by large Government grants. These Government grants must be paid by taxpayers. So, in effect, taxes are being collected to be locked away in the reserves. Further grants are given to HDB flat buyers in order to make flats more affordable. These grants must also be paid by taxpayers. I have previously proposed that land sales proceeds be treated as revenue divided over the duration of the lease. It is heartening to hear the Prime Minister acknowledge that this is not an unthinkable proposition during the Public Finances debate earlier this month. As this measure can relieve the tax burden on Singaporeans, I hope the Government will consider it seriously. Apart from containing costs, another way to cope with rising cost of living is through raising wages and ensuring that they keep pace with the rising cost. One major way of doing so is through education and training. Before I talk about education, I wish to declare that I own a private education company. PSP supports the introduction of the SkillsFuture Level-Up Programme for Singaporeans aged 40 and above, which consists of a $4,000 credit, subsidies for another full-time diploma and training allowance for full-time trainees.[+1 sentence] We believe that full-time training will be more effective in enhancing the employability of our workers. These policies will also enable our middle-aged workers to switch careers more easily and move into areas with better or more job opportunities. We are, however, disappointed that details of the temporary financial support scheme for the involuntarily unemployed are still not ready.[+6 sentences] Retrenchments are becoming increasingly common. Temporary financial support would be greatly beneficial to retrenched workers seeking a new job. Any delay in the implementation of this scheme has real consequences on the retrenched employees. We hope the Government can finalise the scheme as soon as possible. In addition, if a retrenched worker decides to enter full-time training a few months after they were retrenched, we hope that the size of their training allowance will not be impacted by their period of unemployment. We seek the Government's confirmation that their training allowance would be based on their last drawn pay when they were employed. In his Budget speech, Deputy Prime Minister Wong announced his intention to ensure that the wages and career prospects of our ITE graduates should not be too far below their polytechnic- and university-going peers. He then announced a new ITE Progression Award, which provides a $5,000 top-up to the Post-Secondary Education Accounts of ITE graduates who enrol in a diploma programme; and a $10,000 CPF top-up for ITE graduates when they attain polytechnic diplomas.[+1 sentence] We whole-heartedly support the intention of helping our ITE graduates, but feel that the ITE Progression Award does not quite fully meet that objective. Today, about 4,000 ITE graduates – or about 28% of the annual ITE graduating cohort – qualify for polytechnics each year and about 4,000 ITE graduates enrol in the polytechnics each year.[+13 sentences] Since most of those who qualified already chose to progress into diploma courses, the Award has limited scope to encourage more to do so. The $5,000 top-up to the education accounts does help to ease the financial burden of ITE graduates enrolling for diploma courses; but the $10,000 CPF top-up less so and, furthermore, is actually going to a group who are no longer just ITE graduates, but a specific group of diploma holders. An issue of parity amongst diploma holders arises here. Giving $10,000 to some diploma holders, but not others, based solely on the route they took to enter polytechnics can get controversial. We are of the view that a better way to help ITE graduates would be: one, help more ITE graduates qualify for polytechnics. Entry requirements can be reviewed to recognise the value of relevant work experience rather than just grade point average (GPA). Those who decide to take the "O" levels in order to qualify for polytechnics should also be supported. This can be done through promoting or expanding the ITE General Education course; or providing education grants to those doing so as private candidates. Two, help those who enrolled in diploma courses successfully complete their programme by conducting bridging courses to cover the gaps between ITE programmes and "O" level programmes. A TODAY article in July last year, cited students who expressed the need for such courses in areas, like mathematics and essay writing. The above support measures should also be extended to those who had dropped out of school even before completing ITE, but now wishes to return to the education system to upskill or upgrade themselves. PSP hopes that the Government will consider our suggestions so that together, we can find a more permanent solution to the challenges faced by Singaporeans in coping with the rising cost of living. Sir, the Progress Singapore Party supports Budget 2024.
Mr Speaker3 words
[+1 sentence]Ms Joan Pereira.
Ms Joan Pereira (Tanjong Pagar)780 words
[+4 sentences]Mr Speaker, Sir, I appreciate the measures in the Budget to assist our households so that they can tackle immediate challenges and face the future with more assurance. With global tensions and conflicts exacerbating shortages of supplies and disrupting logistic chains, prices of goods and services have risen substantially and are expected to increase further. Unfortunately, it is challenging for our workers' wages to keep up with the pace of price increases and inflation. In the face of an uncertain global operating environment, competing priorities and the need to balance our budget, I welcome the Ministry's decision to provide greater assistance for the lower-income group and bigger households with elderly and children. Lower- and middle-income households would be heartened that the $6 billion top-up to the GST Voucher Fund will secure the permanent defrayment of GST expenses for them. Many will receive further support from the Cost-of-Living Special Payment, the U-Save rebates and Service and Conservancy Charges (S&CC) rebates; the additional $600 in Community Development Council (CDC) Vouchers coming on the heels of the $500 recently disbursed, are appreciated.[+7 sentences] On this note, I would like the Government to consider pegging this or future batches of vouchers to the number of persons per household. If three or four generations or an extended family live at one address, it could be due to financial limitations. Hence, all the more reason for a headcount-based CDC Voucher system. On the other hand, if the reason to stay together is to facilitate mutual care and support, the household should similarly not be penalised for this. Today, I would like to take the opportunity to appeal for more middle- and long-term support for the sandwich generation – whom I would refer to as the group that has to provide for the care and expenses of children and elderly parents, while having to prepare for their own retirement needs. We have to factor in longer lifespans, which mean that they have to support their parents over a longer period even as they themselves become senior citizens. As family is the most important unit of society, we need to continue providing the relevant support needed by this group in order to safeguard our families and our society. The raised per capita household income thresholds for healthcare and associated social support subsidy schemes, will be greatly welcomed by our families as more will be able to benefit from subsidies. I also appreciate the increase in the Silver Support Scheme, which provides quarterly payments to seniors who had low incomes during their working years and have less family support.[+14 sentences] I hope a similar scheme can be introduced for elderly with similarly low incomes during their working years but who are living with their family members, albeit in the lower- and middle-income brackets. Such a support programme will also help to alleviate the burden on the sandwich generation. I would also like to speak about our families with genuine needs to ferry young children and elderly parents at this stage in their lives – who need cars but find car ownership difficult to afford. Would the Government also consider recalibrating our vehicle COE system to take into account the changing car usage patterns, including the rise in car-sharing services and yet continue to keep car ownership affordable for families who need it? Finally, I would like to surface feedback regarding retirees living in landed properties. In recent years, their property taxes have been increasing, which affects this group of senior citizens living off their savings. While the annual value bands will be raised and they will be allowed to pay via a 24-month instalment plan without interest, some of them may still face financial issues. Hence, I would like to propose for an arrangement where IRAS will review, discuss with and advise affected landowners the various payment options and alternative solutions appropriate to their specific cases. Sir, in Mandarin. (In Mandarin): I would like to surface feedback regarding retirees living in landed properties. In recent years, their property taxes have been increasing, which affects this group of senior citizens living off their savings. While the annual value bands will be raised and they will be allowed to pay via a 24-month instalment plan without interest, some of them may still face financial issues. Hence, I would like to propose for an arrangement where IRAS may review, discuss with and advise affected landowners the various payment options and alternative solutions appropriate to their specific cases. : This is a forward-looking Budget that is focused on steering the whole nation ahead while not leaving anyone behind. Sir, I would like to conclude with my support for the Budget.
Mr Speaker4 words
[+1 sentence]Mr Raj Joshua Thomas.
Mr Raj Joshua Thomas (Nominated Member)3215 words
[+19 sentences]Sir, I thank the Deputy Prime Minister for his Budget that, in my view, puts money in the right places, including investing in Singaporeans in the long term. My speech today is in two parts. First, I will speak about the culture of work in Singapore. Second, I will speak about uplifting the wages of workers in the professions of the hands. Let me begin by saying that I am heartened by the investments the Government is making in our workers – through the enhancements to the SkillsFuture Credit scheme and the SkillsFuture Mid-Career Allowance as well as the subsidy for mature workers to take another full-time diploma. This will help to ensure that our workers are able to keep themselves relevant and future-ready. But these schemes will not bear fruit if our workers do not have the correct mindset and our culture of work is not conducive. The culture of work in many countries, including in Singapore, is changing. I welcome some of these trends, like flexible working hours and working from home, as they can help to create work environments that are conducive to an ageing population and supportive of couples having more children. I am more cautious of other trends and suggestions – like a very short workweek and a right to disconnect from work. Many of these trends originate and emanate from developed economies. Singapore is, of course, also a developed economy, but we are very different from many of these other countries – some of which have natural resources or hinterlands that they can tap on. Singapore's sole resource is our human resource, upon which all our success has been built. As the late Mr Lee Kuan Yew said, and I quote, "You know the Singaporean. He is a hardworking, industrious, rugged individual; or we would not have made the grade." The quote, of course, continues to say that he is also a champion grumbler. But that it is fine if he has worked hard, then he has earned the right to grumble. Therefore it falls to reason that if our workforce weakens, our competitiveness and attractiveness as an economy weakens and this threatens our continued ability to sustain our way of life. As such, we should be very careful when we look adopting some of these trends and we should determine their sustainability for Singapore and the consequences of implementing them in legislation and in policy. Take for example, the right to disconnect legislation recently enacted in Australia. Amendments made to the Fair Work Act will allow workers to refuse to monitor, read or respond to contact or attempted contact from their employer or a third-party outside of their working hours, without penalty.[+9 sentences] Let us look at the practical effect of this legislation. First, there will always be some workers who decide to forego their rights and to remain connected. These are people who simply do not want to disconnect for various reasons. And among these people, we may be likely to find the future leaders of organisations, future entrepreneurs, inventors, young lawyers who aspire to become senior counsel, workers who want to go the extra mile to delight their customers, administrative service officers who want to get their promotions. There is simply no alternative to hard work, putting in the hours, putting in the steps. And being in a global city in a super-connected world, a contactable and responsive worker is invariably a more valuable worker. Second, while the worker that refuses to be contacted would not be penalised, the worker that remains contactable may get a boost in his performance evaluation. He may be more likely to get the increment and the promotion because an organisation must reward those that are more valuable to it and that are more willing to do more than they have to. Third, there may be tensions that arise because the worker who exercises his rights strictly may have expected that he would have had spots as the worker who forewent his rights, who would in turn expects that he does better precisely because he had put in more work than is expected. The legislation in Australia gives the worker an actionable right to disconnect. So, this means more litigation, more labour discord on something that may ultimately not be easy to prove.[+61 sentences] Such legislation creates more questions, more tension that could be disproportionate to any good that could conceivably come out of it. I hope that such legislation does not come before this House. We should be careful as to what trends and fads we decide to champion in this House. They may have severe consequences on the productivity and competitiveness of our workforce. Let us not forget how the Great Resignation came and went as fair as doomed. There is a trend promoting an aversion towards material success, as if it was some form of scarlet letter, in favour of a more relaxed attitude to work. Being overly materialistic is, of course, not a good thing. But I hope that this does not trickle down to become an aversion to hard work, ambition or the pursuit of success because we have to face it that many successful people are motivated by material success, and that that pursuit of it may lead to the creation of successful companies and jobs and opportunities for Singapore. So, let us encourage those who want to work hard and who want to work more, in pursuit of whatever their dreams are and let us avoid a culture against work from forming in Singapore. On a related note, at the last Sitting, we had a lengthy and very important debate on mental health. I am glad that Deputy Prime Minister Wong has stated that mental health is a national priority and that there will be an expansion of mental health services. I am, however, troubled with some narratives that suggest that mental health and hard work are on polar opposites and that they are mutually exclusive. I have heard people say things like: "I'm not going to put too much effort into this job because I am prioritising my mental health". Yes, excessive work stress can lead to mental health issues. But I am sure that there are also many people who work very hard, who take on a lot on themselves professionally, who have difficult working hours – and who also have good mental health. I imagine that there are many Members in this House who would fall into this category. We should therefore avoid giving paid to such narratives even as we tackle very real mental health concerns amongst our workers. I am concerned that the Singapore worker may be becoming complacent in believing that our way of life is a given. Singapore is not invincible. In fact, as Deputy Prime Minister pointed out in his Budget speech, we cannot afford to become complacent. We are vulnerable – if we have slow growth similar to what we saw in the previous year, Deputy Prime Minister said, we would be in trouble, and we would not be able to improve our collective well-being, and our standard of living would be affected. So, we must constantly work at it and we must guard against trends and ideas that can negatively affect our competitiveness. But at the same time, there is no point working hard to maintain the lead and then not enjoying it ourselves. So, we need to achieve that balance. We cannot just live well in vacuo. We should not just work hard. And it is not about working well either. It is about working hard and living well. This is the work culture we should seek to promote amongst Singaporeans. So, perhaps we can aim for our workers to have it all – and to put that forward as the ideal for our Singapore workers. My vision of a Singapore worker is someone who works hard and tries to do his best at his job. He is proud of his professional achievements and confident that he has the skills to take on future roles and to compete with foreign talent. He is compensated adequately to have a good Singapore standard of living, including spending quality time with his family and pursuing his personal interests. He is physically and mentally healthy. This is a vision of a holistic Singapore worker – one who does his best to work hard and is able to live well. In fact, I would like to encourage our workers to use this as a mantra and a hashtag online: #workhardlivewell. You do not have to fell "pai seh" posting about your leisurely pursuits or holidays with your family, or just having gotten or bought something nice for yourself. Why? Because you worked hard, you achieved it, and you deserve it. #workhardlivewell. Sir, all this having been said, and moving on to my next point, there are yet workers amongst us who work hard but who do not live as well as they should, primarily because they do not earn enough, and also for some, because of longer working hours and working conditions. They are in what may be called the professions of the hands, that is, jobs that are manual in nature and that do not have a high academic criterion for entry. Many of these are in Progressive Wage Model (PWM) sectors like cleaning, retail, F&B, security and waste management. I declare at this juncture, Sir, my interest as the President of Security Association Singapore, a trade association in a PWM sector. In the first instance, Sir, I think that we need to recognise that these jobs require that workers have certain skills. We must recognise and accept that these are skilled jobs. Last week, there was some online chatter about a SkillsFuture course on washing toilets, which is part of the mandatory training for workers in the cleaning industry. A post that was widely circulated commented that these skills could be learnt during National Service or at home. I think this misses the point. Just because one can grow a cactus on their office table does not make them an arborist or horticulturalist. This course teaches workers on how to clean toilets on a commercial basis. And there are many things that go into it, from safety elements like putting up a sign outside the toilet while it is being washed and when to remove it, to the use of various types of cleaning equipment, and chemicals, some of which may be dangerous if not used properly. It goes into basic custodial checking and time management because these workers have to manage the cleanliness of several washrooms in a day. So, let us not ridicule the work that people do or the training that they undergo. The second thing that we should recognise is that these are jobs that are physically demanding. I would challenge naysayers to wait tables at a restaurant. It is not easy. I have done it myself. You are on your feet throughout your shift, walking from tables to kitchen or to the bar, carrying food and drink that can be heavy. There is a public relations element to the job because you should be pleasant with patrons and there may be some amount of entertaining that you may have to do as well. It is not as simple as some may make it out to be. Third, there are significant shortages in the manpower supply for these jobs. In the security industry there is an estimated shortage of between eight and 18,000 officers at any one time.[+8 sentences] The shortages become worse when there is a surge of demand for security officers during major events, like the Formula One (F1) Race. We therefore need to be able to attract more Singaporeans to enter these professions and to pay them well. Fourth, these jobs are important jobs that have integral contribution to what Singapore is and what Singapore aspires to be. If we look at the trademark physical attributes that Singapore is famous for – clean, green and safe. All of these are managed by PWM sectors. We are a food paradise. We want to be a shopping destination. All PWM sectors. The workers in these sectors may not hold very high academic qualifications but they are doing their part in the Singapore miracle and it is not a small part, and they need to be recognised and rewarded accordingly. I was very encouraged when I read Deputy Prime Minister Wong's speech at the IPS Singapore Perspectives Conference in January last year. Amongst other things, the Deputy Prime Minister said that we should embrace a broader definition of a good job and recognise skills and competencies instead of overly focusing on paper qualifications.[+5 sentences] The Deputy Prime Minister said that we should embrace a broader definition of a good job and recognise skills and competencies, instead of overly focusing on paper qualifications. The Deputy Prime Minister said it is not just about re-shaping the labour market, but also about shifting perceptions about work. I was further encouraged to see the Forward Singapore report include "respecting and rewarding every job" as one the objectives we would seek to achieve. It is important that we not only reward workers in these jobs, but that we also build respect for their professions, so that we can equalise how all jobs are viewed. The report also called for a further reduction of wage gaps across professions including through the PWMs. In this Budget, there are also measures to bolster the PWMs through the Progressive Wage Credit Scheme as well as to support Institute of Education (ITE) graduates through the Progression Award.[+7 sentences] It is quite clearly a Government priority, which I applaud, to achieve a mindset change so that all jobs in Singapore are viewed as good jobs, and that the gap in the compensation for workers of different professions is made smaller. The current PWMs look at closing the gap between lower-wage workers and the median income. I would like to call on the Government and the tripartite partners to go further so that we can achieve both the twin aims of reward and respectability. I ask that they consider setting as a long-term objective that the average wage of workers in each PWM sector rise to be on par with the average wage of fresh university graduates. I make this suggestion because although the Forward Singapore report addresses the matter of increasing rewards, it does not touch much on how to improve respectability, aside from encouraging it through some form of moral-suasion. Pegging average wages of professions of the hands with that of academically-inclined fresh graduates could provide a more tangible indication that both these categories of jobs are equally worthy of respect and hopefully, trigger a cultural shift in how our society views these jobs. I would also like to ask the Government and the tripartite partners to also accelerate the PWM wage increases so that our lower-wage workers can also live well and enjoy the fullness of the standard of living that Singapore should provide for its citizens. While the PWMs have achieved very significant wage increases that would have not occurred but for the PWMs, my view is that they need to go further. We can look at, for example, the prescribed entry-level security officer wage in 2024, which is $2,650.[+7 sentences] For, say, a 40-year old officer, after deductions for CPF, he would take home about $2,120 – a sum that would go into supporting his family and himself. I am not going to go into the various calculations, that have been aired in this House before, of what is a minimum living wage in Singapore. But let us just be honest with ourselves and ask ourselves if $2,120 a month is this sufficient. Will such a wage entitle that security officer to live the life of a Singapore worker that I envisioned earlier? Will he enjoy the good Singapore standard of living? If we are honest with ourselves, I think we know that it would not be sufficient. But the silver lining is that security officers will in fact see fairly rapid wage increases over the next four years. By 2028, an entry-level security officer will earn a minimum basic wage of $3,530 or more; security supervisors will earn $4,130 and senior security supervisors at least $4,430.[+2 sentences] I hope that the tripartite partners negotiating the security PWM beyond 2028 will consider my suggestion to peg the average wage of security officers across all the ranks with the average wage of fresh university graduates. While my proposal may be seen as bold in the Singapore context, it is in fact a norm in many advanced economies. My research reveals that the average wages of cleaners, security officers and waste management personnel are not far from the average wage of a fresh university graduate in Sweden, Switzerland, Japan and Australia.[+15 sentences] In fact, the average wages of waste management personnel and security officers, in particular, tended to be higher than that of fresh university graduates. So, it does appear that Singapore is somewhat of an anomaly amongst comparable advanced economies in the wages we pay our workers in these sectors. Finally, Sir, I would also like to ask the Government to make further effort to persuade consumers to support wage increases by being prepared to pay more for the services that the PWM sectors provide. As Deputy Prime Minister Wong said at the IPS Conference, consumers must be willing to pay more for certain goods and services to uplift the wages of those who provide them. I am on all fours with Deputy Prime Minister's observation that, and I quote, "We cannot demand for services delivered by our fellow citizens to be priced cheaply and in the same breath lament that their wages are too low. It is completely inconsistent." But another observation is that the initial few PWM sectors were all in the facilities management sector and were servicing mainly private condominiums and commercial buildings. The buyers of these services actually can afford the increases in prices, but unfortunately, many of these buyers still retain the mentality that these services are manual services and therefore ought to be cheap. They have therefore been reluctant to increase prices in recognition of value and have largely continued to adopt a cheap-sourcing approach. In this regard, I hope the Government will do more, in partnership with the respective trade associations and trade unions, to change buyers' mindsets. Hence, Sir, to summarise. I hope that our workers will continue to have a mindset that is cognizant of our innate vulnerability. We have to put in effort in order to maintain our way of life. The corollary is that those who are working hard, including in professions of the hands, are able to get their just rewards. I hope that we will collectively be able to enjoy the Singapore standard of living, regardless of our professions and educational background. The reality of maintaining Singapore’s competitiveness and our prosperity is that, if we want to continue to live well, we must be prepared to work hard. And those who work hard should expect that they will get the rewards and respect that enable them to live well.[+1 sentence] Sir, I support the Budget .
Mr Speaker3 words
[+1 sentence]Mr Louis Chua.
Mr Chua Kheng Wee Louis (Sengkang)3369 words
[+1 sentence]Mr Speaker, as I have shared in my Inland Revenue Authority of Singapore (Amendment) Bill speech on Budget Day itself, FY2023 did turn out to be another year of record tax collections, after significant increases in IRAS’ tax collections over the last two years, a jump of around 38% to $68 billion in FY2022. Overall operating revenues increased by $13.3 billion in FY2023 compared to a year ago to $104.3 billion, and this is also $7.6 billion higher than projected operating revenues first revealed in Budget 2023 last year.[+1 sentence] What is noteworthy is that this is not solely on the back of volatile revenues such as stamp duties or vehicle quota premiums, but on the back of record levels of corporate income tax, personal income tax and of course, GST revenues, all of which continued to break new record highs. What was most impressive was the 23% jump in corporate income taxes in FY2023, even after a sharp jump of 27% the year before, with corporate income taxes set to be sustained at record high levels of around $28 billion.[+2 sentences] This was not surprising, given news of record profits from some of the larger Singapore corporates, from DBS Bank to Sembcorp Industries. Positive revisions to FY2022 data also meant that instead of a revised deficit of $4.2 billion, FY2022 saw a surplus of $1.7 billion instead. While the overall fiscal position for FY2023 is still projected to be in deficit, this was largely due to an increase in special transfers, chief of which is the recent inclusion of the $7.5 billion Majulah Package Fund, without which FY2023 would have seen a $3.9 billion surplus instead.[+9 sentences] It is important to put into context the record operating revenues and improved fiscal position of the Government against the challenging economic environment that we faced in 2023. GDP growth slowed to a mere 1.1%, while inflation was a source of consternation for many Singaporeans, which was what led the WP to raise the cost-of-living Motion in Parliament late last year, to share ideas and possibilities of reducing cost of living pressures by way of policy change, many of which are structural. In line with the theme of providing constructive feedback and ideas, I have two revenue measures for the Government to look into, after studying the revenue and expenditure trends over the past years. This would be in addition to revenue raising moves that my colleagues and I have shared in past Budget debates, such as the issue of wealth taxes which I have raised previously, where even though we may have raised the highest personal income tax bracket and property taxes, the likes of wealthy individuals earning dividends and capital gains income from their vast wealth while renting luxury apartments in Singapore will still not be taxed directly. Firstly, looking at revenue collections as a percentage of GDP from FY2018 to FY2024 in Table 3.2b, over the years, customs and excise taxes is one of few categories which has seen a decrease in contribution as percentage of GDP over the years, despite higher tobacco excise duties from last year and the inclusion of carbon taxes in this category. In line with the spirit of wealth taxes, there is room to study the potential to have liquors being taxed on an ad valorem basis, in light of our suggestion of raising so-called “sin taxes”. This need not result in any increase in duties on everyday alcoholic beverages, but it would be much more equitable if the so-called “atas” wines of the world, which easily cost thousands of dollars a bottle, incur a higher excise duty compared to the $20 a bottle wine found in the supermarket. Second, I note that casino taxes were raised in 2022. In spite of this, betting taxes as a percentage of GDP have been flat in past years at around 0.5%. Given that gambling duties have been unchanged since 2014, there is room to look into raising the relevant gambling duties, which could also serve a deterrent function.[+9 sentences] Moving on to the main body of my speech today, I will touch on the importance of structural changes compared to one-off handouts, where I will highlight the need for structural improvements to personal income taxes and corporate income taxes to better support individuals and businesses while keeping our tax system progressive and up to date, and also touch on the urgent and important topic of retirement adequacy. Conceptually, I believe that: one, it is important to put in place structural levers in our system as opposed to relying on one-off schemes, which may either be new or have to be refreshed year after year, incurring a lot of administrative costs and resources to operate on the part of the Civil Service, and creating much uncertainty on the part of Singaporeans; two, it is also important to direct our resources to those who need them the most, rather than broad-based handouts to everyone, which could lead to allegations of Budget measures being part of an "Election Budget." Take the CDC Voucher scheme, for example. While I am sure all Singaporeans appreciate cash handouts amid the cost-of-living crisis, the CDC Voucher scheme evolved from one aimed at helping Singaporean lower-income households defray their cost of living in 2020 to one where all Singaporean households are eligible. The amounts given have also varied quite significantly over the years, and it remains a question whether the scheme will be a permanent one, or if so, whether all households will continue to qualify and just how much are the vouchers going to be worth. Moreover, as opposed to the existing GST Voucher scheme, there appears to be many operational challenges faced by Singaporeans when trying to claim the CDC Vouchers, such as those who are renting their flats and sharing the same address with other households, those living in shelters and also those who no doubt may belong to the same household but are facing difficult familial relationships. On personal income taxes, I note a tax rebate worth 50% of tax payable, or up to $200 was introduced in YA2024, similar to YA2019. However, instead of a one-off rebate, we are better off raising the bottom-end of marginal resident personal income tax rates and increasing the tax-free threshold for the first $20,000 of chargeable income to reflect inflation over time. This was what I raised in a Parliamentary Question back in 2022. Similarly, on corporate income tax (CIT), a CIT rebate of 50% of the corporate tax payable will be granted to all taxpaying companies, whether tax resident or not, for YA 2024.[+3 sentences] In my speech on the Income Tax (Amendment) Bill in 2021, I suggested raising the level of progressivity in our corporate income tax regime to better support our local SMEs. Even as other support for companies to build capabilities is being strengthened, I hope the Government would consider providing greater tax relief to our SMEs, such as by raising the tax exemption limits or by introducing schemes similar to the two-tiered profits tax rate regime in Hong Kong, which they introduced in 2018 to relieve the tax burden for SMEs in particular. This is important given that in Budget 2018, the Government announced tighter restrictions around our tax exemption schemes. For an SME making $300,000 in chargeable income for example, total corporate income tax paid before any rebates would be close to $34,000 or an effective tax rate of 11.2%, compared to around $25,000 or an effective tax rate of 8.4% based on prior rules.[+7 sentences] Having such corporate income tax reforms built into the tax regime would also provide for greater certainty, as opposed to the current CIT rebates which significantly vary year after year from 20% to 50% in terms of the rebate, to a cap of $10,000 to $40,000 in the last decade from YA2013 to YA2024. It is critical to ensure that we continually re-invest in our local SMEs, the backbone of our economy representing 99% of all enterprises here and responsible for the jobs of 71% of employees, to enable Singapore to stay competitive in a post-BEPS world. Otherwise, we could well see a reduction in our tax base and employment levels, should our local SMEs shift more of their activities to other jurisdictions in response to the new business environment. Touching on the topic of BEPS2.0, which I have also spoken about in past Budget debates, the time for introducing adjustments to our tax system is finally before us. Deputy Prime Minister Wong has also announced the introduction of two components of Pillar 2, the Income Inclusion Rule and the Domestic Top-up Tax. As I have asked last year, while precise numbers may not be feasible, does MOF not have a range of blue sky and grey sky projections as to the impact of the implementation of a domestic top-up tax? Especially when we are looking at the Income Inclusion Rule and the Domestic Top-up Tax taking effect in less than a year’s time, for businesses’ financial years starting on or after 1 January 2025? To put into context my question, the OECD has published a working paper earlier this year, which finds that the global minimum tax “can raise between US$155 to US$192 billion of additional CIT revenues per year, with revenue gains accruing to all jurisdiction groups”. Moreover, estimated participating countries categorised as “investment hubs,” which includes Singapore, would have the largest expected gains from the reforms, with corporate income tax revenues rising from 14% minimum to up to 34%.[+18 sentences] If this is factually incorrect, given that the MOF will have a better basis to make its own estimates, then I hope the Deputy Prime Minister can correct this in his round-up speech. Instead, the Deputy Prime Minister shared in his Budget speech that he does not expect the new moves to generate “net revenue gains,” due to the “significant spending required to stay competitive.” To say so is just akin to saying any forms of tax rate increases, from personal income tax, stamp duties to the GST, is not going to generate net revenue gains due to higher spending needs. I understand that this could be due to the introduction of Refundable Investment Credits and the net effect of BEPS 2.0 and the Refundable Investment Credit is to an extent also dependent on just how generous the EDB and ESG are in awarding these Refundable Investment Credits to companies. I agree that only time can tell when it comes to the actual revenue gains, as we await the roll-out of Pillar 2 globally, but it would be a sad day if countries go against the spirit of the reforms in the first place. The BEPS 2.0 reforms were introduced to stop the race to the bottom when it comes to sovereign tax policies, and to facilitate international collaboration to end tax avoidance. Let me repeat that the OECD has shared that with the two-pillar solution, all economies will benefit from extra tax revenues – all economies. I hope the additional tax revenues from BEPS 2.0 will not simply be in substance returned to MNEs through other forms. Finally, let me touch on a topic which is close to my heart – and that is retirement adequacy. It is also a pressing issue which requires urgent and decisive action, given our rapidly ageing society. While there are several good moves to improve retirement adequacy, like raising the ERS and enhancing the Silver Support Scheme and MRSS, I am concerned about the closing of the CPF SA after the age of 55, and the lack of longer-term measures to help Singaporeans grow our retirement nest egg sustainably. In itself, I do not have qualms about the closing of the SA. However, this is a step backwards when it comes to ensuring the retirement adequacy of Singaporeans, and much needs to be done to truly strengthen retirement adequacy for the seniors today and tomorrow. When the compulsory annuity scheme CPF LIFE was introduced, the SA continued to provide flexibility to CPF holders to access or “touch” their retirement savings, while providing a decent interest rate floor of 4%. Deputy Prime Minister Wong said in his Budget speech, “The remaining SA savings will be transferred to the Ordinary Account (OA). Of course, members can voluntarily transfer their OA savings to the Retirement Account (RA) at any time, up to the revised ERS, to earn higher interest and to receive higher retirement payouts.” Is this the full picture, though? Singaporeans will know that funds in the RA will be used to pay the premiums for their CPF LIFE plan, meaning to say we can no longer withdraw the funds as we wish. It is also true that from the age of 55 to, say, the payout age of 65, these RA funds continue to earn the same interest rate floor of 4% as with the SA.[+1 sentence] So far, so good. But unbeknownst to many, from the moment payouts commence, any interest earned will not accrue to the CPF holder, but it is pooled together under CPF LIFE for all members. An FAQ by the CPF Board says it best, that interest earned on CPF LIFE premium is not included as part of the amount paid to beneficiaries when one passes away.[+10 sentences] I understand that this is the concept behind annuity schemes to enable members to get lifetime payouts. But it also means that even though the stated interest rate of the SA and the RA is identical, the actual yield that is earned by the two accounts could not be more different. And that based on the latest average life expectancy of Singaporeans, it is unlikely that the effective yield for RA savings will exceed that of funds that would have been in the CPF SA. Moreover, whenever I raise the issue of CPF interest rates in Parliament, the response by various political officeholders has been to stress the attractiveness of prevailing risk-free interest rate floors of 2.5% for the OA and 4% for the Special, Medisave and Retirement Accounts (SMRA) over the past two decades of protracted low interest rate environment. The closure of the SA from age 55 takes the shine out of such counter-arguments, in my view. As Deputy Prime Minister Wong reminded us, we are facing a change in environment from very low interest rates to a more normalised period where interest rates will be higher for longer and the era of easy money is over. It is in the context of this sea change that we should look at CPF interest rates going forward. How then should we allow the laws of mathematics and compounding to work for our seniors’ retirement funds? I continue to stick by what I spoke about in the Reserves Motion earlier this month, and that is to enable all Singaporeans, not just our reserves, to directly participate in the long-term returns from the Government's fund manager, GIC, with adequate safeguards in place. This is especially pertinent when we consider the source of funds for the GIC in the first place, a part of which is indirectly derived from CPF savings via the Singapore Savings Bonds (SSGS bonds). As I have shared, based on the 20-year nominal returns of the GIC portfolio of 6.9% and the CPF-OA rate of 2.5%, based on a simple rule of 72, the number of years it takes for our CPF monies to double goes from about 10 years based on GIC’s returns, to 29 years based on the prevailing OA rate.[+12 sentences] The effects on our ability to save for our own retirement is tremendous. I listened to Minister Indranee Rajah's explanation that in 2014, then Deputy Prime Minister Tharman explained in Parliament at great length how we set our CPF interest rates and manage CPF proceeds. I went to do a bit of research on this into the Hansard and realised I was far from being the first to bring this up. Then Deputy Prime Minister Tharman's explanation was in response to PAP Member of Parliament Mr Inderjit Singh, who also questioned whether our 2.5% interest rate paid out to the CPF OA is fair compensation for Singaporeans who have left their savings locked up for so long. In fact, if I go back further in time, many MPs from the PAP, WP, NMPs, have all suggested allowing regular Singaporeans access to better investment returns from the Government's investment entities like the GIC. PAP MP, Dr Lily Neo, called on the CPF Board to work with GIC, and perhaps peg the interest rates at two percentage points below GIC's returns. NMP Mr Siew Kum Hong quoted an academic paper which stated that: "To the extent that the GIC's return on investments has been higher than the return actually credited to CPF members, a recurrent, highly regressive, largely implicit tax on the CPF wealth has been borne by CPF members." PAP MPs Mr Ong Kian Min and Mr Sim Boon Ann called on the Government to share with CPF members surpluses it makes on CPF monies. And Mr Ong even said, "I cannot understand how the Government can say it will not be responsible for providing for my retirement, but I must lend the Government my retirement savings for investments and any gains earned on my money is not my money." Finally, Ms Sylvia Lim from the WP also called on the Government to do more to boost CPF returns while managing the risks, especially after the 2002 Economic Review Committee's recommendations to do so via private pension plans. These are all words of wisdom by those who came before me, and two decades on, continue to resonate so deeply with me. How many more Singaporeans today could have met their retirement sums, compared to the four in 10, five in 10 today, had we implemented these suggestions back then? If for some reason the Government is still adamant that we are unwilling or unable to allow Singaporeans to share in the fund management expertise and returns of the GIC, then the least we can do is to urgently implement the Lifetime Retirement Investment Scheme (LIRS), something which I have been repeating in each of the last three years so that we can better support Singaporeans' retirement needs.[+1 sentence] Let us remember that eight years ago, in 2016, then Minister for Manpower Mr Lim Swee Say, had then on behalf of the Government, accepted the recommendations within part two of the CPF Advisory Panel's report, which included the introduction of the LIRS as an additional investment scheme. To quote then Minister Lim: "These additional options will help address the concerns some Singaporeans may have with regard to the rising cost of living in retirement and the desire for higher expected investment returns for those who had to take on some investment risk." One of our fellow MPs today, Mr Saktiandi Supaat, was a part of the CPF Advisory Panel too, where Chairman Prof Tan Chor Chuan articulated the limitations of the CPF Investment Scheme (CPFIS) and put it so aptly, that "the Panel believes that there is a need to provide an additional investment avenue that can better help such CPF members earn higher expected returns than the CPF interest rates in a simpler way than CPFIS." The big question I have is, when will the Government finally be ready to roll this out?[+1 sentence] Is it still prepared to do so? I hope the Government is cognisant that the longer the delay, the higher the opportunity cost and real cost to Singaporeans' retirement savings. To conclude, Mr Speaker, I appreciate the Government providing for one off goodies and handouts to Singaporeans and Singapore companies, on the back of yet another record high operating revenues, which were $13 billion higher compared to a year ago. However, it is important that we put in place structural levers in our system as opposed to relying on one-off schemes and I have suggested changes to our personal and corporate income tax systems to illustrate this point.[+1 sentence] And finally, we are all aligned with the urgent need to strengthen Singaporeans' retirement adequacy, so let us not shut Singaporeans out of attractive, sustainable and practical solutions to boost our retirement funds.
Mr Speaker3 words
[+1 sentence]Mr Darryl David.
Mr Darryl David (Ang Mo Kio)1546 words
[+7 sentences]Mr Speaker, Sir, Budget 2024 is a budget that is set against major global uncertainties. Singapore continues to remain vulnerable to macro forces that are beyond our control and influence. While we continue to keep an eye on global developments with trepidation, I am glad that this year’s Budget has reflected the Government’s commitment to the Forward Singapore movement by introducing specific and targeted support to areas of concerns highlighted by Singaporeans. Sir, I will be focusing my speech on three main areas: (a) how the Government could refine the Additional Buyer's Stamp Duty (ABSD) scheme for Singaporeans below 55; (b) SkillsFuture and Continuing Education and Training (CET); and (c) how the Ministry of Education (MOE) could enhance the personal learning device (PLD) scheme to cover more students, specifically those in primary school. First, supporting “young seniors” and enhancing ABSD. I am particularly glad that the Government is providing additional support to seniors on ageing, healthcare and retirement during such times of uncertainty and rising cost. This is an assurance to seniors, including young seniors like myself, that the Government will provide older Singaporeans a social safety net during their silver years, particularly when senior Singaporeans are facing the twin challenges of ailing health and reduced incomes. Many Singaporeans aspire to own a private property because in some ways, it is an investment with high potential returns that could be unlocked during their silver years. I am glad that the Government now allows senior single Singaporeans above the age of 55 years old to claim for a refund of the ABSD on a second private property when they are downsizing.[+4 sentences] I had asked a Parliamentary Question on this topic in July 2023 and I am grateful to the Government for responding with this policy change. This would give senior single Singaporeans more flexibility to unlock the value of their initial larger properties, or more valuable properties during the later years of their lives, without having to bear the financial burden of ABSD, which under the previous policy would have reduced their retirement nest egg by a significant amount. I believe that this this is an important policy change, assuming that single Singaporeans are unlikely to have the same level of economic support that married senior Singaporeans with children would have. Allowing a refund on their ABSD would help them to better meet their retirement needs. In the same vein, I would like to ask if the Government would consider extending the same ABSD refund scheme to younger single Singaporeans who are buying a smaller second private property to stay in, if they sell their first property within six months of acquiring their second private property.[+5 sentences] I believe this policy will give younger single Singaporeans more flexibility in their housing options if they wish to unlock the value of their private properties, especially to meet unexpected financial needs. The refund policy for younger single Singaporean could be scoped more tightly than that for senior single Singaporeans to prevent abuse and profiteering. For example, the younger single Singaporeans must hold their first property for a specific number of years before they are entitled to the ABSD refund on their second smaller property and, perhaps, such refunds can only be claimed once or a maximum of twice in their lifetime. My next topic will focus on SkillsFuture and continuous education training (CET). Apart from supporting senior Singaporeans with their ageing, healthcare and retirement needs, I am heartened to learn that the Government is also putting increased emphasis on our middle-aged Singaporeans with the SkillsFuture Level-up Programme. In particular, I welcome the $4,000 SkillsFuture Credit (Mid-Career) top-up and the Mid-Career Enhanced Subsidy for another publicly funded full-time diploma programme.[+11 sentences] Sir, with the shelf life of skills declining rapidly, it is paramount that the skills that Singaporeans have can keep up with rapidly evolving industry needs. Having once spent many years working in Temasek Polytechnic, I am confident that our polytechnics and IHLs are equipped to design and develop CET courses that can help upskill our mid-career Singaporeans. That said, with industry needs evolving at such a rapid pace, our educators at the polytechnics and IHLs might not be fully equipped with the latest industry knowhows and insights to design and conduct courses that meet industry demand entirely. At present, there are very few courses offered at polytechnics and IHLs that are co-developed, co-taught and co-certified with industry partners. I would like to urge MOE to consider how we can incentivise our polytechnics and IHLs to work more closely with the industries to conduct co-certified Pre-employment Training (PET) and CET courses. Co-taught and co-certified CETs are especially important for mid-career Singaporeans in equipping them with the latest knowledge that can positively impact their career. After all, having attended a co-certified programme with a leading industry player sends a strong signal to employers that their employees have learned from the best in the industry, not just from the staff at the polytechnics. On the same note, I strongly urge our polytechnics to co-create new diploma courses with industry partners to take advantage of the Mid-Career Enhanced Subsidy. Rather than have mid-career Singaporeans join an existing diploma programme with PET students, specific industry-oriented programmes with different teaching methods, pedagogies and learning outcomes should be created for them. It is important for us to recognise that adult learners have very different learning needs and learning styles from teenagers or younger adults. Putting adult learners on the same diploma programmes is unlikely to help them to acquire the skills needed for a career switch or career step-up, since both groups of learners have very different levels of industry experience and cognition. Similar to how the teaching methods and teaching styles must differ between in a Masters programme and an undergraduate programme, for example, the diploma programme for mid-career Singaporeans must be designed and taught differently as well. I would also urge the Government to extend the Mid-Career Enhanced Subsidy to part-time diploma courses as well, not just full-time ones.[+3 sentences] I believe this would encourage more mid-career Singaporeans to take up such courses since they can still be employed full-time while undergoing upskilling and retraining. Sir, my final area will focus on Personal Learning Devices (PLDs) for primary school students. Almost four years ago, in June 2020, I made a speech that urged MOE to consider extending the provision of PLDs to all students in Singapore, particularly those in primary school. While MOE committed to providing PLDs to all secondary students by end-2021 to be used in tandem with the national e-learning platform Student-Learning-Space (SLS), would MOE now not also consider providing PLDs to children in primary schools as well?[+1 sentence] I think it is timely for MOE to consider providing PLDs to our students in the primary schools given how the education technology landscape has changed significantly in the past four years. With the procurement framework of PLDs for secondary schools in place, it is now a matter of extending the same procurement framework and financial support schemes to students in our primary schools as well.[+6 sentences] To reiterate some of the arguments that I have previously made: the ownership of PLDs for all levels of learners in Singapore is a bold and ambitious step in realising Singapore’s ambition to embrace smart learning. Such a device will enable students from across all levels of education to learn everywhere and anywhere and is the textbook of the future where all forms of education and submissions can be made on a single unified platform. Introducing the ownership of PLDs at an early age would help induct our students, our younger students, to the notion of self-directed e-learning, encouraging them to take ownership of their own learning pace and performance at a younger age. This undoubtedly, will have a knock-on effect when they are older, especially when e-learning and continuous learning on-the-go become second nature to them. Mr Speaker, this year’s Budget has continued the trajectory of the previous Budgets, with the Government providing targeted support to assist specific groups of Singaporeans, especially to navigate this uncertain space, this uncertain world that we are facing. While a significant portion of the Budget is focused on providing near term support to cope with the cost of living in the form of CDC Vouchers, Service and Conservancy Charges (S&CC), U-Save and income tax rebates, the Budget is also forward looking in providing support for seniors and mid-career Singaporeans. With Singapore due to become a super-aged society by 2030, ageing in dignity is one of the foremost concerns for many Singaporeans.[+2 sentences] I am heartened to know that the Government is taking active steps to address this concern early through the Forward Singapore movement and the following policies that it is rolling out. I hope the Government can accelerate the pace in which support programmes for seniors are being rolled out and to consider how to better cater to the needs of this group of Singaporeans who have contributed tremendously in early years to Singapore. Beyond providing top-ups to Medisave and direct financial support through the Silver Support Scheme, I also hope that the Government can also work towards building robust localised ecosystems that allow our seniors to age with dignity.[+1 sentence] With that, Sir, I end my speech in firm support of the Budget.
Mr Speaker3 words
[+1 sentence]Mr Henry Kwek.
Mr Kwek Hian Chuan Henry (Kebun Baru)1838 words
[+37 sentences]Mr Speaker, Sir, I rise in support of the Budget. Today, I would like to speak about two things: how to help our people thrive in their jobs; and how to support our seniors to age with purpose and dignity. I will also speak briefly about the cost of living. We spoke about unemployment support in this House for years. Based on my conversations with my residents in Kebun Baru, it is not yet a top-of-mind concern for them. To give some context, four in 10 of my residents live in private estate homes. Why? Because the residents trust that the Government will support them if things get tough, as during COVID-19. I also want to point out that major insurance companies do sell unemployment insurance, but the take-up is not high. But conceptually, I believe Singaporeans, including myself, are open it to if it is properly designed, as the world and the job market are changing at breathtaking speed. Two weeks ago, OpenAI stunned the world with their text-to-video capability, Sora. Sora was able to generate life-like one-minute videos from text prompting, where everything in the video obeyed the law of physics! Imagine that! Being able to ensure that every interaction in the animation abides by physics. This has some veteran Hollywood producers suggesting that in three to five years, generative AI can do the bulk of small screen television series production. Great possibilities. But what happens to creative professionals globally, including in Singapore? The same story can be replicated across many industries, many countries. We need to be prepared. We want our people to lead in this new wave of change. Most people do agree with the central idea, but yet, there are also many questions. Who will pay for it? Do we buy an insurance. Can we opt out? If the Government pays for it, how much tax do we all have to pay? Will they get abused? What will happen to personal responsibility? To address this concern, we should be clear on what we want and what we do not want. Of course, we want our people to be confident in the face of change. We must focus on the central issue, which is an unanticipated cash flow challenge that most people face when they lose their jobs. We want this kind of support to be different from those who fall below the poverty thresholds. Right now, we support Singaporeans only when they have exhausted their wealth and their familial support. But moving forward, when Singaporeans lose their jobs, we want them to focus on reskilling and upskilling by providing them with some financial peace of mind. Unemployment support should not only come when their savings have been wiped out. Now, what we do not want? We do not want abuses or the shirking of personal responsibility. We do not want our people to make uninformed career reskilling decisions. Factoring in the views of my residents, I propose a multi-tier approach towards unemployment support that balances three critical pillars of social support: one, a strong sense of personal responsibility; two, efficient risk-pooling through insurance; three, sufficient Government support, which is largely, let us not forget, largely funded by our taxes.[+1 sentence] Let me first speak on efficient risk-pooling through insurance. I hope we can see a basic and not gold-plated unemployment payout for several months with an upper limit on one's lifetime, funded by unemployment insurance and, hopefully, we can pay for this insurance through the CPF.[+5 sentences] Some of my residents also want the freedom to opt out. Of course, we have to think through this carefully. It will be easier to persuade people to join in in this insurance if the premium is affordable. Two, we must preserve a strong sense of personal responsibility. As the cost of living differs widely, we should give our people a choice in how to manage their lifestyle in the event of a major cash flow disruption. To do so, we can offer them these options: fully or partially freezing housing loans and majority of healthcare, insurance premiums, taxes and fees, for a limited time to help with their cash flow, providing Government transfers, such as GST rebates ahead of schedule, that means, they can take their subsidies and transfers ahead of other Singaporeans and allowing them to borrow against their own CPF monies for those Singaporeans with healthy CPF balances already.[+3 sentences] The Government can also work with financial advisory associations to provide affected people with free financial advisory. The third point is to provide sufficient Government support which is largely funded by tax. I hope the Government can offset some of the cost of the insurance and get things started. If there are specific industries or large companies that are going through a major downsizing, I hope the Government can step up to top up the monthly assistance, perhaps through a larger or longer payout, because when there is a large number of people exiting one industry, not everybody can quickly move into another industry.[+10 sentences] In short, in implementing unemployment support, Singapore, we, must find our own way forward. We must do so by ensuring personal responsibility, risk pooling among our people, and Government support complement and not undermine one another. To ensure support, I also hope we can actively consult the silent majority before rolling this out and move carefully, start with a modest programme and review that over time, because if we are to fund this programme through a further tax increase, there might be some fatigue amongst our taxpayers. Let me switch now to Skillsfuture. There is broad support amongst people for the enhancement of Skillsfuture. Singaporeans are deeply appreciative of the monthly support for adult Singaporeans to go back to school full-time. This is something that Members of this House, including myself, have advocated over the years. It fills a critical gap in our efforts to upskill and reskill our people. Of course, our Government must also do our level best to ensure that the skills training in most industries is relevant and useful. Now, let me move to my second topic, caring for our seniors. On behalf of PAP Seniors Group, I would like to thank the Government for delivering an A-plus Budget for seniors and for taking onboard many of the suggestions from PAP SG MPs. I am also heartened that the Government is moving decisively on issues that I have spoken about over the years: seniors' CPF contribution rates, making our estates more senior-friendly and encouraging home-care services.[+2 sentences] Now, we must quickly implement these services as we are facing a silver tsunami. In addition, I hope the Government can consider the following. First, quickly scaling up Age Well SG's caregiving home-care sandbox.[+7 sentences] The idea is straightforward. I hope the Government can support not just foreign manpower quota but also set aside spaces in HDB estates, so that the professional caregivers can be sited there comfortably, respond to our seniors quickly, without incurring too much transportation cost. Second, even as we level up our Active Ageing Centres (AACs), I hope the Government can consider funding senior-related services in trusted nodes where our seniors gather, such as places of worship: mosques, churches and temples. Third, to ensure that our nation's ecosystem of senior-related services always has a focus on serving our private estate residents as well. Our private estate seniors have caregiving and emotional support needs, even though they are better off financially. But through them, we can also get a preview of the needs of future Singaporean seniors. Before I end my speech, I would like to speak briefly about cost of living. First of all, I hope to see the Government provide more cost-of-living offsets in the next Budget, not just in this, especially to help our seniors and families, including those who are asset-rich and cash-poor, especially retirees living in the private estates.[+2 sentences] I also hope that the Government can actively identify supply-side solutions and fixes, which can bring down the cost of doing business and, therefore, the cost of living. Let me give Members a few examples. One, to reduce the manpower shortage, can we allow our companies to hire more foreigners, at a reasonable levy, in exchange for them creating even more flexible work arrangement opportunities, which will benefit our seniors, stay-at-home mums and caregivers?[+20 sentences] Can we increase the number of purpose-built dormitories and, in the meantime, allow for more onsite dormitories to ensure that our foreign manpower housing cost is manageable? Also, once we implement the special economic zone with Johor, can we improve the connectivity of our more manpower-intensive operations and industries with our immigration facilities, so we can tap on more manpower from Johor to come over to work and go back to Johor daily? Can we further re-energise our pro-enterprise panel to identify areas of red tape that cost the private sector time and money, so that we can reduce the cost of transacting with the Government? Lastly, I hope the Government and my fellow Members in the Chambers can think through the cost-of-living implications when we pass new laws, regulations or ask for more enforcements. For many of us in business, we instinctively know that a higher quality or service level usually means higher cost. It is true for many governments, too. Enforcement fairness costs money, too. Let me give an example using the upcoming rental fairness framework. Yes, the law is more precise but it is also more complicated. Moving forward, most landlords will need lawyers to do contracting rather than let agents and landlords handle the drafting of lease as it is now. Moving forward, every time there is a change in the areas being surveyed, the landlords will need to hire a surveyor. These will cost landlords at least a few thousand dollars. What does it mean? Yes, it is harder for errant landlords to disadvantage the tenants, but all consumers will have to pay for the higher cost-of-living associated with higher rents. Finally, I hope we can have a real conversation within our Chamber on how the issues we debate on and the solutions we propose have contributed to the higher cost of living, higher taxation or lower Government efficiency. I hope we can all be more measured when we call for more rules, additional studies and Parliamentary Questions, if it is only because we want to be seen conveying moral outrage after a tragedy or to signal virtue to a more particularly vocal part of our electorate. I am fully aware that we speak up in Parliament to voice the views of our people. But let us remember that there is a real cost to society, through higher cost of living that the silent majority must bear when we pile on excessive regulations and enforcement. In fact, I hope that when we speak about laws in Parliament in the future, we can speak clearly of the regulatory and enforcement cost imposed on society, businesses and our people. With that, I stand in strong support of the Budget.
Mr Speaker4 words
[+1 sentence]Mr Leong Mun Wai.
Mr Leong Mun Wai (Non-Constituency Member)1959 words
[+1 sentence]Mr Speaker, Sir, Budget 2024 is a big Budget because the Government had a bumper year in 2023. Operating revenue in 2023 was larger than the original estimate by $8 billion because of the tax increases announced in 2022, high inflation and high property prices. This $8 billion excess revenue, together with the $23.5 billion Net Investment Returns Contribution (NIRC) for 2024, contributed to surplus Budget resources of more than $30 billion to be allocated in this Budget. As a result, the Government was able to make a record capital transfer of more than $30 billion to top up existing endowment and trust funds and create some new ones.[+5 sentences] Because of this, Budget 2024 will give some benefits to almost every Singaporean. However, the monies in the endowment and trust funds will fund social spending over many years into the future and only a small amount will be spent this year. PSP has explained the workings of the endowment and trust funds during the Public Finance Motion three weeks ago and why capital transfers to these funds should not be considered as current-year spending. Hence, Budget 2024 falls short on immediate spending in the current year. While we welcome the $1.9 billion Assurance Package and the effective reduction of the owner-occupier residential property tax increase announced in 2022 by the revision of the annual value bands of the properties, these supports are hardly enough for cash-strapped Singaporeans to cope with the current cost of living crisis. The Government has also decided to close the SA for CPF members above 55 years old.[+46 sentences] This will impact the retirement plans of many Singaporeans who can no longer enjoy a higher CPF interest rate and withdrawal flexibility of their CPF funds at the same time. Can the Government tell us how much interest it is paying these SAs currently and how much will it save in interest payments? On the other hand, we are pleased to note that Budget 2024 has addressed some of the issues that have been regularly raised by PSP in this House. Firstly, the Government will now provide a Parenthood Provisional Housing Scheme (PPHS) (Open Market) Voucher for one year, to support eligible families in renting HDB flats on the open market while waiting for their BTO flats. This will be a great help to young Singaporeans looking to form their own families and PSP strongly supports it. Since Budget 2021, we have pointed out that the long waiting times to get a BTO flat is among one of the major factors pulling down our total fertility rate. As it is not possible to ramp up the BTO supply fast enough, PSP has always urged the Government to increase the number of rental flats and improve the quality of rental flats to enable young Singaporean couples to get a place to stay while waiting for their BTO flats. While we support the PPHS (Open Market) Voucher, we are concerned that this scheme may negatively impact other groups of Singaporean tenants who are not eligible for PPHS. We urge the Government to go further to establish rental flats as a viable housing option going forward. During the COS debates, I will explain why the PSP’s Millennial Apartments Scheme is a superior and more all-rounded policy compared to providing vouchers under PPHS. Secondly, the Local Qualifying Salary (LQS) for full-time workers will be raised from $1,400 to $1,600 from this year. We recognise this increase in LQS as a step closer to the Minimum Living Wage concept that PSP has proposed. PSP has long advocated for a Minimum Living Wage of $2,200 per month for all Singaporean workers, which translates into a take-home pay of $1,800 per month. While we support the increase in the LQS, we are mindful of its negative impact on SMEs which need Singaporean headcount in order to employ foreign workers. We hope the Government will introduce complementary measures to minimise the impact of the LQS increase on the business viability of our SMEs, which are operating in a rising high-cost environment. Thirdly, a new SkillsFuture Level-Up Programme will be introduced to support mid-career workers with a $4,000 credit. My colleague, Ms Hazel Poa has already affirmed our support for it. It is good that the Government has now tied SkillsFuture training programmes to better employability outcomes. PSP has long argued that the SkillsFuture programme, which costs about a billion dollars of taxpayers’ money a year, has contributed little to the employability of Singaporean workers. Much more still needs to be done to ensure Singaporeans have a larger share of good well-paying jobs. To that end, we would also suggest a level-up for the Skills Development Fund so as to co-opt employers into the process, thereby ensuring that the training undertaken by workers are relevant to raising productivity in their current jobs. Mr Speaker, Sir, Budget 2024 has continued with the traditional "handout approach" by the Government. The handout approach is characterised by the existence of around 60 support schemes and services, each offering short-term handouts for a targeted segment of Singaporeans. It is not uncommon, however, that multiple schemes are applied to solve one particular socio-economic problem for one recipient, which often, and very understandably so, makes it very confusing to the recipient. For example, during Budget 2022, the Minister for Manpower presented an example of a low-income 65-year-old landscape worker who enjoyed a total income of $27,570 a year. While this figure works out to be about the same as the Minimum Living Wage that PSP has proposed, the total income was not paid from one source, but consisted of a base income of $17,400, presumably paid by the employer, and $10,170 paid by the government through seven different schemes, namely the Special Employment Credit, the Annual Progressive Wage Model Bonus, the Workfare Income Supplement, the Workfare Special Payment, Community Health Assist Scheme (CHAS) subsidies, the Care and Support Package and the U-Save and GST Vouchers. Hence, seven schemes were applied to achieve the one socio-economic objective of ensuring that the worker had more to cope with the cost of living. Furthermore, such a system may contribute to lower self-esteem among lower-income workers because their basic pay is still very low and there are little incentives in the schemes to motivate them to improve themselves. The handout approach also comes with a high administrative cost because needy Singaporeans usually need external help to navigate through the maze of eligibility rules to qualify for a particular support. For example, to deliver welfare benefits to a Singaporean, very often the Social Service Office (SSO), the People’s Association, the Silver Generation Office and many other private charity groups are involved at the same time. Slightly more than half of the 60 schemes also require applications. Many needy Singaporeans are already struggling. They may not have the time or energy to pay attention to what schemes they qualify for, even if these schemes can help them. They also lack the English language proficiency to understand these rules. Hence, despite the good intentions of the Government, the complexity of the handout approach means that many needy Singaporeans may not enjoy the benefits of the many schemes. Some of them may also not get the help they need fast enough, and this can be especially troubling when urgent help is required. PSP is a strong advocate for more support for Singaporeans, but the taxpayer’s money spent must motivate Singaporeans to strive for higher goals and not breed dependency in handouts. The PAP under the late Mr Lee Kuan Yew always sought to avoid breeding dependency. In contrast, the PAP Government of today is relying on a patchwork scheme of vouchers, rebates and top-ups that lower-income Singaporeans are increasingly dependent on, instead of pursuing systemic economic reforms such as reducing rent-seeking in the property market, strengthening labour protections, or introducing a Minimum Living Wage. Is this system dragging Singaporeans into a social trap rather than providing a social trampoline that allows Singaporeans to bounce back? This may be the reason why although the PAP Government has increased social spending very significantly since about 2011, it did not seem to have improved the financial well-being of Singaporeans proportionately. The main weakness of the handout system developed by the PAP Government, is that it does not empower the individual. The objective of empowerment is to give the individual the means to take initiative to better his or her own life. PSP believes this begins with providing the individual with a minimum level of support and then incentivising him or her with attainable goals. Once the individual has reached these goals, he or she will be motivated to strive for more. This whole process requires a "permanent scheme" approach and not a handout approach. PSP’s permanent scheme approach will streamline and consolidate the Government’s 60 over schemes into a few permanent, national schemes which are easy to understand, provides a minimum level of support and an incentive mechanism for Singaporeans to work towards bettering themselves.[+2 sentences] I have been advocating this permanent scheme approach since my first Budget debate in 2021, but my proposals were completely ignored by this Government. I shall repeat three of those that I have recommended repeatedly. First and foremost, I have recommended the deferment of land cost from HDB flat pricing under the Affordable Homes Scheme (AHS).[+10 sentences] In our opinion, the AHS will be the beginning to many potentially positive socio-economic outcomes. For a start, it will immediately reduce the cost-of-living pressures on Singaporeans and allow them to have enough CPF savings without downgrading their HDB flats when they reach retirement. Most importantly, this peace of mind for housing and retirement will also apply to all future generations of Singaporeans. With the AHS, we will not need to enhance the retirement adequacy of Singaporeans through schemes like the Matched Retirement Saving Scheme and the occasional top-up of CPF accounts. The resources in all these schemes can be consolidated into one permanent scheme namely the AHS. Secondly, we have recommended the Minimum Living Wage which provides a minimum level of support to every working Singaporean permanently. As PSP have said in our manifesto 2020, anyone who puts in an honest day’s work should have enough to live with dignity. The Minimum Living Wage is a social standard that we should establish that is not completely linked to the productivity of the worker. Thus, we have proposed the Minimum Living Wage to be co-funded by the Government. The co-funding can come from many handout schemes as mentioned before. After ensuring a minimum gross monthly wage of about $2,200, we would like to recommend the Government to put in a permanent Progressive Wage Scheme to incentivise all Singaporean workers to continuously upskill towards higher gross monthly wages. Thirdly, we have urged the Government to set up a National Health Insurance Scheme funded by it rather than having Singaporeans pay for their MediShield and CareShield premiums.[+4 sentences] To minimise moral hazards, Singaporeans will have to co-pay healthcare expenses from their Medisave accounts. The Government can supplement the Medisave accounts with a Healthier SG bonus every year. For Singaporeans who practise healthy living, this bonus will become excess MediSave balances which can be transferred to their Retirement Account to boost their retirement income. PSP envisages that with the majority of Singaporeans covered under a few permanent schemes, the Minister for Finance will not need to distribute handouts to millions of Singaporeans during every annual Budget. Our social welfare and security structure can also be streamlined and consolidated to focus on a much smaller group of needy Singaporeans. This is especially important as it ensures that this smaller group, who still need further help beyond that provided under the permanent schemes, receive the assistance they need expeditiously.
Mr Speaker7 words
[+1 sentence]Mr Leong, you have a minute left.
Mr Leong Mun Wai187 words
[+1 sentence]Mr Speaker, Sir, I have presented the "handout" approach of the PAP Government versus PSP's "permanent scheme" approach. The latter empowers Singaporeans with the certainty of help when they need it and encourages them to strive for higher goals with incentives. PSP estimated that the shift to the permanent scheme approach will not consume significantly more fiscal resources – because the Government already has more than 60 schemes in place and has locked away tens of billions of dollars in endowment and trust funds. PSP believes that we can do a lot more to improve the well-being of our citizens, work to combat future challenges, such as climate change and, provide support to worthy humanitarian causes abroad. As owners of one of the largest sovereign wealth in the world, Singaporeans deserve better policies that can lead to better lives and a more secure future.[+3 sentences] We must be aware that we have the ability and responsibility to do more for ourselves, for Singapore and also for the world. Sir, we support the Budget in hope that it is a step in the right direction. For country, for people.
Mr Speaker11 words
[+1 sentence]Just for your information, I gave you an extra 30 seconds.
Mr Leong Mun Wai3 words
[+1 sentence]Thank you, Sir.
Mr Speaker13 words
[+2 sentences]Kindly keep to the time that is allocated to everyone. Mr Saktiandi Supaat.
Mr Saktiandi Supaat (Bishan-Toa Payoh)2900 words
[+14 sentences]Mr Speaker, Sir, Budget 2024 is a fair and progressive, Forward SG budget and continues the same overarching theme in the Budgets of recent years – to further improve socioeconomic equality but without stunting economic growth. This ambition is easy to state but it is tricky to strike the right balance. There are mutual trade-offs in pursuing equality and growth together. It is also important to ensure that no one slips through the cracks. While I have heard and read some opposing viewpoints, the general feedback from my residents is that the Budget payouts are generous and they can see that the Government is trying to transfer more from the well-to-do in our society to give to the lower- and middle-income segments in Singapore. But the message is clear. To paraphrase Deputy Prime Minister Lawrence Wong from two Budgets ago, "those who have less, get more". However, I am also aware of our budget constraints and, most importantly, we need to be aware of our sustainability issues going forward – especially in terms of our revenues and how we intend to spend going forward. I will speak on three selected areas on our move to enhance equality in our economy and social space, which reinforces each other. First, enhancing transport welfare and supporting the middle and upper-middle group. Second, protection of vulnerable segments. Third, on our two-pronged approach to sustain our economic growth – attracting investments and talent to Singapore; and boosting our local enterprises. Mr Speaker, in Malay please. : This year, the Government continues its efforts to make Singapore a more equitable society. Just like the previous years, those who are successful will contribute a little more for the less well-off and less able. Deputy Prime Minister Wong's announcement for young ITE graduates to pursue diploma qualifications through the ITE Progression Award and the SkillsFuture Level-Up Programme for Singaporeans aged 40 and above, is something that is welcomed.[+4 sentences] Support for preschool expenses and a one-year Parenthood Provisional Housing Scheme Voucher for eligible families who rent a HDB flat in the open market are also significant and welcomed. However, one important aspect of daily expenses that has not received the targeted attention is transportation and health costs. I will focus on the cost of transportation in my speech. The cost of owning and maintaining private vehicles in Singapore is recognised as one of the highest in the world. Even for public transport, fares have risen by 10 cents to 11 cents per trip in September 2023 and similar increases can be expected in the coming years.[+2 sentences] However, our transportation cost is still quite low compared to other major cities, with the Government providing support to reduce the impact of fare increases on commuters and ensuring that our infrastructure and transport network remain up to date. May I ask whether the Public Transport Voucher (PTV) that was announced in December 2023 would be able to help their recipients offset 100% of the fare increase in 2023? More importantly, may I suggest that the Government consider extending targeted support for public transport, beyond those whose per capita household income (PCHI) is $1,600 or less?[+18 sentences] Can we further extend PTV as part of our budget transfers, such as CDC vouchers, in the future to help more Singaporeans? Public transport assistance is more likely to benefit the lower and middle income groups, compared to the higher-income groups who generally use less of our buses and trains. However, if such assistance will encourage higher-income individuals to use public transport rather than private transport, that will still help us in our sustainable transport objectives. I have a resident at Toa Payoh who needs help in terms of public transport vouchers to go for job interviews and also to work in a location that is far away. There are some middle-income earners who were retrenched and are now looking for work but need temporary assistance in terms of transportation cost. So, I hope that the Government will introduce transport cost assistance in the form of a temporary financial support scheme for those who are retrenched and are now looking for jobs, for example. : We must also support the upper-middle income group, not just the low income. They are also experiencing the same rising costs but may not be getting as much in benefits compared to the lower- and middle-income groups. One of the things in Budget 2024 that is also made available to the upper-middle income group, is the SkillsFuture enhancements. That must be correct, if we want continuous skills upgrading to be a key pillar in our social compact. However, how likely will the upper-middle income group utilise the specific enhancements, in which are targeted at pursuing a diploma, degree or certification after age 40? Do we have data on the utilisation of SkillsFuture credits by income deciles? What do those trends tell us and will we be refining our approach to ensure that upskilling becomes a whole-of-society movement? We must also ensure that schemes like SkillsFuture is not abused. Among other reasons, we do not want to allow those who are not in need to exploit and profit off these programmes, diverting away the help that should have gone to those who need it. It is scary to think that a criminal syndicate fraudulently made away with almost $40 million in grants between April and October 2017. While the more involved participants have each been sentenced to 13 to 17 years' imprisonment, are we still doing anything today to recover the $21 million that is still lost? I also welcome the revision of the Annual Value (AV) bands of the owner-occupied residential property tax rates. When this property tax was raised in early 2022, it was not foreseeable that market rents would soar to the extent it did. The Urban Redevelopment Authority (URA) Rental Index for private residential properties, saw a 35.3% surge from Q1 2022 to Q4 2023.[+10 sentences] As a result, more of our upper-middle income homeowners saw the AV of their properties and their property tax bill increase. For owner-occupied residential properties, these homeowners would not have directly benefited from the bullish market rents since they are not renting their properties out. They were thus left poorer as a result as they had to pay property tax up to a higher bracket. Would there be more frequent and periodic reviews of our property tax structure, considering the volatility of market rents in Singapore? More fundamentally, is it time to stop pegging property tax for owner-occupied residential properties to AVs which are, in turn, pegged to market rent levels? Second, our quest for socioeconomic equality must obviously include the protection of vulnerable segments. I will just focus on two such groups of vulnerable individuals. First, our seniors, present and future. I thank Deputy Prime Minister Lawrence Wong for the continued emphasis on the retirement adequacy of Singaporeans – especially after I dedicated almost the whole of my Budget speech last year to the topic as well as my 2022 Budget speech too. Among other things, the Government-supported increase in our seniors' CPF contribution rates, the raising of the ERS and the enhancement of support schemes, like Silver Support and Matched Retirement Savings Scheme (MRSS), which will boost the nest eggs of our seniors to retire and age with dignity. In relation to the removal of the Special Account for those above age 55, I understand that such a move will get rid of a "shielding" hack – where wealthier CPF members are able to keep an amount that is more than their ERS in their Special and Retirement Accounts and earn the higher 4% interest on the whole of that amount.[+1 sentence] May I ask, prior to this year, how many percent of CPF members had balances in their Special plus Retirement Accounts that were more than their ERS? But now that the Special Account will be closed, any excess funds above the ERS will be deposited back into the OA that only earns an interest rate of 2.5%.[+8 sentences] We note that. Would the Government be willing to reconsider relooking at the OA interest rate mechanism? One suggestion would be to include some of the qualifying full banks, in addition to the three major local banks that are now being referenced. That may potentially shift the needle and is more reflective of funding conditions in Singapore. Another suggestion is to take into consideration the promotional interest rates that are offered by the banks instead of just the board rates. While it is true that a consumer might have to meet certain conditions to qualify for the promotional interest rates, that may not be a good reason to deny CPF members higher return on their OAs – especially given the cumulative size and certainty of the funds that the CPF Board is given to invest. The Government can, of course, subsequently apply some negative credit spread or a slight discount to the interest rate – to reflect the lower risk of putting money in the CPF, as compared to bank risk. But my general point is that given the significant change or potential rapid changes in the global interest rate conditions recently and going forward, the longstanding calculation mechanism may be quite stale and no longer fit for current conditions. For those who are unemployed – not by choice – I am supportive in principle of the temporary financial support scheme that Deputy Prime Minister Lawrence Wong had announced for the involuntarily unemployed.[+15 sentences] However, we will need more details to scrutinise if the scheme can be implemented without eroding our work ethic and design ways to mitigate the moral hazard of financing unproductivity. When does the Government expect these details to be announced and when do we expect the scheme to be implemented? Can Deputy Prime Minister and MOF share a bit more on how this scheme will be funded over time? I await more information on this eagerly, as it is truly a big shift in principle by our PAP Government to help our Singaporean workers. I am heartened that this Government will not shy away from slaughtering "sacred cows", if it considers it to be in the interest of Singapore and Singaporeans. There is no shame in walking back if the circumstances so require. While on the note of income volatility from unexpected unemployment, I would like to resuscitate my proposal again and again to give Singaporeans the option of assessing personal income tax on a current-year, pay-as-you-earn basis. As opposed to a preceding-year basis, this system can help taxpayers better manage their cash flow by matching tax payments with contemporaneous income. Mr Speaker, in my next segment of attracting investments and talent. Our push for greater equality cannot come at the expense of our growth. To help Singaporeans cope with rising costs in a sustainable manner, we must focus on growing their opportunities and wages instead of relying on one-off distributions. So, part two of my speech – therefore – turns to our two-pronged approach to sustain our economic growth: attracting investments and talent to Singapore; and boosting our local enterprises. As a resource-scarce nation, our economic miracle has been built on attracting businesses to build up a base or some part of its operations here, even if it may service foreign markets or conduct substantial operations abroad. These inbound businesses and investments create employment opportunities and also downstream or partnership opportunities for Singaporeans and Singapore companies. So, I am glad to hear the moves to enhance our competitive advantage in the semiconductor and finance industries, but why is there no mention of our entrepot trade and transshipment hub and specific initiatives to defend or stretch our lead? Possibly, it could be discussed in the COS. But I note that Changi Airport's cargo flows dipped 6% compared with 2022, while other airports, like Incheon, are closing the gap to Changi, in terms of passenger flows.[+4 sentences] On the other hand, our seaport reached an all-time high in arriving ship traffic, recording over three billion annual gross tons in vessel arrivals in 2023. I will be filing related cuts during the COS debates and I look forward to hearing the Transport Minister's plans to preserve and enhance our status as an international aviation and shipping hub. The implementation of Pillar 2 of BEPS 2.0 will also cause some loss of attractiveness as an effective corporate income tax floor is put in place across different jurisdictions. So, which of the financial incentives offered by the EDB and other agencies to draw foreign companies can we continue to offer under the global base erosion rules? The new Refundable Investment Credit, based on the presently available information and announced by the Deputy Prime Minister, will be consistent with the Global Anti-Base Erosion Rules for Qualified Refundable Tax Credits. Companies will be able to receive up to 50% of support of each qualifying expenditure category, including capital expenditure, manpower and training costs, freight and logistics costs.[+11 sentences] This would help with the relatively higher land, manpower and transport costs in Singapore. As the specific support rates for a project will be commensurate with the economic or decarbonisation outcomes that the project is expected to bring, what will happen if it eventually transpires that the project outcomes were never close to what was expected? Will there be a lookback period where support can be clawed back from those who can pitch and market a project much better than they can implement them? More fundamentally, have we landed on a system of measuring and verifying decarbonisation outcomes? More than two years after we debated the "Low Carbon Society" Motion in this House, I do not think that any carbon measurement standard has achieved ubiquitous or common usage in this part of the world yet. Is there any preliminary indication of support from other countries for the playbook that is currently being developed by the National Climate Change Secretariat (NCCS), Gold Standard and Verra? To attract businesses and investments, we must also maintain our attractiveness as a liveable city for foreign talent. It would be too parochial to assume that we know everything and have nothing to learn from others. That is why other countries have been taking some big steps to woo foreign talent to their shores. Take the United Kingdom (UK), for example. In May 2022, it launched a High Potential Individual (HPI) visa which allows a young person who graduated from a global top 50 university to go to the UK with their family for two years to just "explore, work, study and invent". Thereafter, the UK government announced a £118 million skills package that includes a new visa scheme for AI researchers to be brought to the UK at the early stages of their career, as well as grants to help AI workers meet the costs of relocating to the UK.[+7 sentences] How has our Overseas Networks and Expertise (ONE) Pass fared in attracting top global talent to live and work in Singapore since it was launched in August 2022? How does it compare, given the heated global competition, to woo talent through a mix of easier visa routes, relocation grants and other benefits? It is well-known that we are also one of the most expensive cities in the world for expatriates. Besides the issue of soaring rents, foreign expatriates also do not enjoy the substantial healthcare subsidies and utilities support from the Singapore Government. Hence, there is a limit to how much we can tax these higher-income expatriates before they flee to a different country and we lose their tax base, their assets and their expertise. How does our taxation of expatriates compare to other talent hubs, such as London, Frankfurt, New York or Dubai? Finally, Mr Speaker, in boosting our local enterprises, I suspect a number of my colleagues in this Chamber will have more to say about this, but I just have a narrower focus. As part of our $1 billion effort to develop AI computation, talent and industry in the next five years, will there be grants for Singapore companies adopting AI-based solutions or engaging in AI-related research in the near future?[+11 sentences] What are the concrete next steps following the publication of our National AI Strategy 2.0 in December 2023? We cannot forget that AI goes hand in hand with data. Would we extend our AI-catalysing initiatives to activities that are data-centric, even though they might not be AI-centric? For example, research into large volume data processing or sustainable data collection and processing would be key enablers of our AI objectives. So, what are we doing and what are we planning to do for our data sector? Mr Speaker, Sir, as I have alluded to in many of my previous speeches, we are in a new normal. The circumstances that we see today combine high inflation, high interest rates and possibly for longer, in an increasingly uncertain world featuring frequent shocks. This is not even considering COVID-19, which, today, seems more like a bad dream than a lived two-to-three-year experience. But through the Forward Singapore exercise, we know where Singaporeans want to head. Help involuntarily unemployed jobseekers bounce back stronger, supporting families and seniors, empowering and uplifting those in need, this Budget hews closely to Singaporeans' aspirations to build a more equal society while not compromising on the economic growth that underpins our security. Sir, I support Budget 2024.
Mr Speaker3 words
[+1 sentence]Mr Shawn Huang.
Mr Shawn Huang Wei Zhong (Jurong)1737 words
[+7 sentences]Mr Speaker, how do we value life? In Singapore, in the 1960s, those born then had a life expectancy of 64 years. In the 1980s and 1990s, it improved to 70 to 75 years. Today, we have a life expectancy of 84 years. Over the last 60 years, our life expectancy in Singapore has increased by 20 years, a 31% increase. How do we value a year of good health? How do we value 20 additional years? Singapore has continued to invest more into healthcare, to take care of Singaporeans, from $789 per capita in 2011, to $2,674 per capita today, a 338% increase over the last 10 years.[+11 sentences] How is this made possible? These consistent investments in building up capabilities of our healthcare workers, of our infrastructure, it is a complex and long-term commitment. These capabilities require a confluence of investments in infrastructure, equipment, training and education. There must be sound and sustainable healthcare policies, coupled with a culture of excellence and a spirit of innovation, pushing the edge and frontier of medical research and technology. What does it mean for all of us? Five of Singapore's hospitals are in the top 150 in the world, with Singapore General Hospital being the top 10. A remarkable achievement. So, imagine, whenever our grandparents or parents are in need of medical care, a surgery or emergency medical treatment, have comfort that there is a team of highly competent and motivated healthcare workers who are one of the best in the world doing their best to deliver world-class care. For ophthalmology, Singapore National Eye Centre is ranked third in the world, and Singapore Eye Research Institute is ranked fifth in the world. Today, Singaporeans continue to age well and are healthier than before. More can be done and the results are clear. In 2010, there were 700 centenarians and, in 2020, there are more than 1,500, more than double.[+9 sentences] Today, most of our five-year-olds can expect to live up to the age of 100. And by 2050, living up to 100 will become a norm for our newborns. The question then again is: how do we value life? What would you do to have an additional year of good health, an additional 20 years of good health to do the important things in life? If you have an extra dollar, where will you place it? How about the next dollar? And the next? Every marginal and incremental dollar, how would you spend, manage and invest it? How do we get the incremental dollar to live longer, better, healthier and more meaningful lives? In 2022, ASEAN's foreign direct investments (FDI) have reached a high of $224 billion.[+6 sentences] Singapore comprised two-thirds of that, at $141 billion. I repeat: two-thirds of all the FDIs in ASEAN. Singapore ranks eighth globally for inward FDIs and first in the Asia-Pacific. So, what are FDIs? It refers to investments made by a company or individual from one country, investing and having business interests in another. And how much advantage and wealth does that generate for Singapore? In 2022, Singapore's FDI equals to 31.7% of Singapore's nominal GDP.[+39 sentences] That is particularly important for Singapore, as it displays the forward-looking economic trajectory. FDI creates quality employment, facilitates and encourages technology transfer. It spurs infrastructure development and increases our export capacities. Singapore's economic achievement today is built over decades, with leadership, bonus and collective teamwork. This requires a confluence of economic and social factors, balance for sustainable future for all. It is not by sheer luck that we could earn that one incremental dollar. It matters deeply. It matters because we must understand the difficulty and the amount of collective effort, as a nation, to be in a position of strength. The investment climate, how connected and coherent is our infrastructure? How skilled and nimble is our workforce? Our legal frameworks, technology and innovation, our international agreements? How accessible are our market and trade? How ambitious and energetic are our citizens? There are also social factors that are equally important: our social and political stability, our healthcare systems, education and quality of life. All these factors are what attract companies and individuals to invest time and resources here in Singapore. It remains attractive because of what we have been doing for decades. It must be so for the next 50 years and it must be so for the next hundred years. How do we value our future and our future generations? The lifespan of a country is 158 years, whilst an empire is about 250 years. This is historic data, and we are at our 59th year mark and approaching our 60th. On this land that we stand and live upon for the last 700 years, it has been tumultuous. From the 13th century, starting with history from Palembang, the Srivijaya empire to Majapahit, to Melaya then to the British, then to the Japanese, back to the British, Malaysia and then Singapore – all these in the last 700 years. And we must remember our vulnerabilities as a nation-state. History is replete with lessons to be learnt and relearnt. The ancient Republic of Venice, the Republic of Genoa, Carthage, Sparta, the Byzantines – where political fragmentation and external pressures eroded state powers and the Hanseatic league. How determined are we, that after a hundred or 200 years, that we are still a sovereign and independent state, against all odds and statistics, to surpass beyond the average lifespan of empires and countries? Some estimate that our Reserves are just below $2 trillion. To put things in perspective, assuming that our estimation is accurate, our Reserves are worth less than Apple. It is worth less than Microsoft. It is worth less than Google and, more recently, Nvidia decided to be more valuable than us. So, when you make your next purchase of an Apple product, Microsoft or Google, or the next graphics card with Nvidia, remember that their market capitalisation is higher than our entire national Reserves. Our Reserves are worth less than the companies that I have mentioned. It is worth reflecting on how we plan to save, invest and allocate our resources for the future. We are fortunate to have the Reserves that can power a Budget that we have today. It is made possible because of the prudence and the value of our founding and past generations. It is this consistent act over numerous decades that enabled us to take care of all Singaporeans, for all to lead a longer and better life. How do we value the lives of our children? Save the Children ranked Singapore the best place to grow up. We give our very best to our children and our future generations. In 2013, Singapore spent and invested $8,550 for every primary school student.[+9 sentences] In 2020, the Government invested $13,350. Everyone has access to quality education. We have the basis to debate about education every now and then because we have gotten the basics right. Remember that we are of that generation 20 to 30 years ago where we had much less resources and knowledge. It is not perfect, but we progress and make relevant. We embark on lifelong learning, instil adaptability and self-learning to ride the tides of changing technological advancements and build resilience to our relevance of skills and competencies. In the past, work was more linear and the pace of change was gradual. We saw how we restructured again and again, securing one generation after the other and building on one another's success. Today Singapore's workforce stands amongst the most proficient in terms of management, vocation and technical skills. According to INSEAD's annual Global Talent Competitiveness Index, Singapore ranked number one in global knowledge and skills, which included management and communication abilities; and third in vocational and technical skills.[+10 sentences] And this is out of 134 countries. This year ITE celebrates its 32nd anniversary and it continues to build strength to strength. We do not say that we are doing well, that we have accumulated enough capabilities and that we can invest less in our education system. We do not say that we are too high in our rankings and that we can afford to drop a little, because this is insidious. Is there space for a city state to be a bit lower in our commitment to the future – to our future generations? We cannot. We cannot because as Singaporeans deep within our core, we know what it takes to be relevant and we know what it takes to take care of our future generations. How do we value life? More importantly, how do we cherish it, respect it and be good stewards of the life given to us? Gaza has one of the youngest populations in the world. Forty percent of Gaza's population is 14 years and below.[+2 sentences] The median age is just 18 in 2020. Those age 65 years and above are less than 3% of the population. In Ukraine, the male life expectancy has decreased from 67 years before the war to 57 years after, or right now.[+18 sentences] For women, it has declined from 76 to 70 years. And it is not just about war and conflict alone. Countries with high levels of violence experience lower levels of life expectancy more than peaceful ones, estimating a gap of around 14 years – between the least and the most violent countries. It is not just conflict related, but also many other factors – homicide, violence, quality of life, education and all. We are building version 1 and version 2, just like how internet browsers and applications evolved, with progressive and improving versions. We must do so and build better versions ourselves and for Singapore. We cannot expect to be perfect in all we do. But we try. And we try harder, in delivering better capabilities for better life every day. It is called building – building for the future. Today's capabilities were built by past generations. And as we build for today and for future generations – a life that is longer, healthier, more meaningful, more fulfilling and inclusive for all. Just like our shining examples – Singapore Airlines and Singapore Changi Airport. It is not an achievement of probability. It was not a rare occasion marked by a cosmic alignment of constellations. It requires effort – collective effort from all Singaporeans. So, let us all build together for a better tomorrow. Mr Speaker, I support the Budget.
Dr Tan Wu Meng (Jurong)2510 words
[+13 sentences]Mr Speaker, I stand in support of the Budget and may I also stand in support of the speech by my immediately preceding Jurong Group Representation Constituency (GRC) colleague, Mr Shawn Huang. Just the other day, I met a young Clementi family – daddy and mummy with their little girl, just a few months' old. We talked about how the world has become more dangerous; more uncertain; full of challenges – a dangerous world. A world where big countries bully small countries and sometimes invade them – invasion and occupation. A world where small nations and small communities can come under siege, have their water supply cut off; electricity supply cut off; food and access to medicine blocked. A world where climate change is accelerating, where sea levels are rising and that means a world where some islands in 50 to 100 years' time, will be underwater; a world where some island-nations may not exist by the end of this century. And as we were talking – this Clementi family and I – we realised that their little girl and her children and her grandchildren will know whether our generation today made the right choices. And the choices before us will require much imagination and resolve. Eleven years ago, in the TODAY newspaper, I wrote about how we need to imagine the unthinkable before it happens – not just bigger versions of yesterday's challenges, but new challenges which did not exist before. Today I will speak about three of these challenges. Challenges which in our time, will require fresh thinking – a fresh approach: artificial intelligence (AI); Singapore's energy security; and keeping Singapore's society together as a people. On artificial intelligence. Less than two weeks ago, just before the Budget Statement 2024 by Deputy Prime Minister Lawrence Wong – our Finance Minister, there was another announcement, halfway across the world from Singapore. A tech company which is already changing the world – a tech company called OpenAI, which brought you ChatGPT not too long ago. That company announced a new AI platform, called Sora. Sora allows you to key in text – type in some text, a prompt – and it can produce videos, which are indistinguishable from what Hollywood can produce today and what smaller studios can produce.[+7 sentences] Just one year ago, during the Debate on the President's Address in April 2023, I had spoken in Parliament about the age of AI and how fast things were changing – how software, like ChatGPT, GPT-4 and Midjourney V5, had appeared in the market within less than a year or so. AI which can hold a conversation with you and can write an essay for you – that is ChatGPT. AI which can take high-school exams, advanced placement exams in the United States curriculum and outperform many humans – that is GPT-4. AI which can create photo-realistic pictures of events that never happened – that is Midjourney V5. Just one year ago, I had spoken about how with increases in computing power, once you go from generating one make-believe image to 30 images a second, you go from AI-generated photos to AI-generated video. At the time April 2023, I had expected the technology to take another two to three years. As it happened, it took place faster than I had imagined. Within 10 months, OpenAI had announced the Sora platform-produced AI-generated video.[+6 sentences] So, that is the world today – technology disruption happening very quickly. New challenges everywhere. The unexpected, increasingly the norm. And so, we cannot hide from these changes. No country, no economy can hide from these changes in the world with AI. Even if an entire country tries to prevent AI from entering its borders, other economies will do so – your competitors will do so. So, we have to accept the world as it is, the way the world is going to be and look after, support, empower and uplift our people. This is why the new subsidy for Singaporeans age 40 and above to pursue another full-time diploma in higher education – this new subsidy in the Budget, that is why it is so important.[+20 sentences] Because it recognises that in a world that is changing so quickly, what you learn in school – in education – at age 20, may have changed, transformed and have been replaced by a new world by the time you are age 40. It recognises that change and supports middle-aged and older workers. And having mid-career workers learning new skills alongside younger workers – a middle-aged mid-career worker alongside someone who is 18, 19, 20-plus years' old, learning together, that will also transform the education experience in our IHLs because older workers bring life experience, life skills and living wisdom into the classroom. Even as they bring that into the classroom, they also learn new skills, together with the younger students. These students, by working with each other, they lift up one another. They will transform the classroom even as it allows the older and younger worker to form new friendships, new networks and new opportunities together. On energy security. Another major challenge for Singapore is energy. Our electricity supply today does not just keep the lights on at home. It does not just keep our workplaces and hospitals going. It also keeps our water supply going. Our energy supply is needed, so that our NEWater plants can expend energy to purify water and make it fresh and consumable again. Our energy supply is needed, for desalination plants to work against the salt gradient and produce fresh water without the salt that comes with the seawater. Our energy supply, our energy security underpins our water security. And all of us know what it means for Singapore if our water supply is ever called into question. And that means, we have to consider our energy security the same way too. Two years ago, in the 2022 Budget debate, I had spoken about this: why we need to diversify our energy sources; why 95% energy generation from natural gas is not good enough for the future era; why 95% can be a concentration risk? I also spoke about how we need to go beyond looking at importing low-carbon electricity through a cable from overseas – because in a challenging world with all kinds of dangers, a cable may break down; a cable may have a technical incident; many things can happen to a cable anywhere in the world. And looking beyond to the future means that we have to consider new low-carbon technologies, such as hydrogen or even the newer next-generation of nuclear technology as well. I called upon the Government to look at moving ahead of the market – especially for hydrogen – and for Singapore's potential as a hydrogen hub. Looking ahead, because in a market where you may not have room for too many hydrogen hubs, it matters whether you are first mover, second mover or too late to move.[+2 sentences] It matters in that market. It matters for us in Singapore. So, the Future Energy Fund in this year's Budget – the Future Energy Fund, with its initial injection of $5 billion is a significant decisive move.[+1 sentence] It puts money where the mouth is. It will allow Singapore to move quickly and seize opportunities in the energy sector, especially new low-carbon technologies – that in the future will help us secure our energy supply and, in turn, secure our water security for another generation. Having a stronger supply of low-carbon energy will also help Singapore with our AI ambitions.[+2 sentences] Today, data centres are energy-intensive yet so essential for AI. You can keep a data centre offshore for cloud computing in the commercial sector. But in a world where major economies sometimes do not get along; in a world where, sometimes, you have derisking or decoupling, it makes sense to have more of those data centres, more of that computing power onshore in Singapore. And having low-carbon energy – a greener energy future – more secure energy supply will be key for that AI ambition as well.[+29 sentences] On social togetherness, Mr Speaker, no amount of fiscal firepower, no amount of policy prescriptions, is going to be sustainable or implementable, if we, as a people in Singapore somehow become divided, fragmented or splintered. I have said this before. If we are splintered, we are going to be less than a dot in the world. And there are deep forces around the world, driving people apart, forces that change societies because with digitalisation, more digital world, it means people are less likely to meet, face-to-face naturally. The social media algorithms that almost everyone has on their handphones, the social media apps; many of these algorithms feed you more of what you have seen before. They bring you to listen more of what you have heard before, leading to echo chambers and, as a result, sometimes, leading to polarisation in society as well. Also, there will be troublemakers outside Singapore, trying to undermine our unity, cohesion and togetherness. In the world today – and we have seen many case studies far away from Singapore, some a little bit nearer – the first shock in a conflict may not be kinetic. It may be an op to undermine the social unity and trust in a society. see how in other countries, certain players are trying to polarise and divide societies. It will be even more challenging in the age of AI. What happens when deepfakes are able to create videos of events which never happened? What happens when you have deepfake videos of public figures on any side of the House, saying things they never said, doing things they never did? What happens if there is a deepfake video of people from different communities arguing or even fighting, a deepfake video of something that never happened but which has the potential to be spread widely and undermine our social harmony and social togetherness? What happens when deepfakes become so similar to reality that people no longer trust what they see or hear even when it comes from a reliable source? What happens when people can no longer tell the difference between what is true and untrue, what is fact, what is falsehood, its big implications for societies, big implications for democracies around the world? There are no easy solutions in a world where anyone has access to the computing power to create a deepfake. But Singapore is small enough that we have a fighting chance. Singapore is small enough that we can bring our people more closely together, build more face-to-face interactions, deepen human relationships. We can do this in a way that larger geographically spread countries are not quite able to do. Singapore is coordinated enough. We have the state capacity, governmental capacity for agencies to work together in teamwork, in cohesion, something that many other countries cannot quite do. We saw that during the pandemic and it will be essential for this next challenging future that we face. So, we must keep building that sense of togetherness so that amidst different views, different backgrounds, different dispositions, everyone in our community sees ourselves as fellow citizens, fellow brothers and sisters, in that Singapore dream, in the idea that is Singapore. That means, across Government, urban design and social policy must actively lean in, to encourage people to meet face-to-face in day-to-day life. All this can help maintain social trust, cohesion, togetherness, even amidst a wave of AI and the deepfakes that will come. So, we must ask ourselves, when a new HDB development is built without the traditional void decks and in a shape that makes it harder for neighbours and their children to naturally meet one another, naturally play with one another, on the way to work, to school and coming back, we need to ask, are we inevitably weakening our social reserves, compared to the older HDB void deck designs? Are there revenue-neutral ways of designing an HDB block differently, so that people are more likely to meet, connect, get along, in a very organic and natural way? When a neighbourhood centre is being built in a new estate, do our planners lean in favour of having more hawker centres, more coffee shops and getting these amenities to start up and activate sooner rather than later? When we design our education policies and education system, do we encourage our younger generation, in addition to their Mother Tongue, to learn the language of another Singaporean community, not as an examination subject, not just because of the economic opportunities near us in Southeast Asia, but also because it builds understanding and helps deepen our identity as Singaporeans? These are questions that have to be asked not just for these policies but in every policy in Government, moving ahead. And so, I suggest for this Government to set up an SG Togetherness Office (SGTO). I know it sounds like more alphabet soup, amidst many acronyms, but SG Togetherness Office, the SGTO – I suggest for this Government to set up the SG Togetherness Office which can be part of the Prime Minister's Office Strategy Group (PMOSG), which has approached major issues, like climate change, in the same coordinated, whole-of-Government way. The SG Togetherness Office could have an inter-ministry steering committee, chaired by a senior member of Cabinet, a Co-ordinating Minister or a Deputy Prime Minister, with that experience of Ministries and connectivity and links to help drive the agenda. It should have a secretariat, a team of public officers actively looking at the net impact on social togetherness for every policy and every programme across Government. This ethos of strengthening social togetherness and social cohesion, strengthening our social reserves, safeguarding our social reserves, has to be looked at with the same discipline, deliberation and attention that we give to the fiscal bottom line and to Singapore's financial reserves.[+9 sentences] Because just like fiscal reserves, our social reserves can take generations to build up, much effort to maintain and yet, are so important when a crisis hits. And the world ahead will have more than its fair share of troubles. Mr Speaker, in my maiden speech in this House in 2016, more than eight years ago, I said and I quote: "… imagine this perfect storm: a global downturn lasting many years, divisions of race, language, religion, social class, inequality and culture. A fractured national consensus with divisive politics. And at the same time having to face a major crisis – a terrorist attack at home, a pandemic, or a regional conflict where two old friends ask us to choose between them." Sir, we do not get to choose when the next crisis will hit or for that matter, what the next crisis will be. But we can choose how we deepen our togetherness, how to prepare today. We can choose how we strengthen and deepen our social togetherness, strengthen Singapore's social reserves so that in a world of troubles, no matter what comes, nothing and no one will ever knock Singapore down. I support this Budget.
Mr Speaker3 words
[+1 sentence]Mr Mark Lee.
Mr Mark Lee (Nominated Member)1824 words
[+16 sentences]Mr Speaker, Sir, as a student of history and currently chairing the Asian Civilisation Museum, I am inspired by our museum's artifacts that reveal the legacies of past civilisations. Insights from works like Ronald Wright's "A Short History of Progress" and Arnold Toynbee's "A Study of History" underscore the vital lessons history teaches us about the risks of unchecked progress that had collapsed civilisations. Understanding why civilisations collapse is a complex matter, with no singular cause universally recognised. However, several critical factors have been identified that contribute to such declines. The first factor is climate change and environmental degradation. These elements played crucial roles in the decline of various ancient societies, including the Anasazi, Maya and the Roman Empire. The second factor is inequality. This factor contributes to social unrest, erode social cohesion and weakens a society's ability to effectively tackle societal, ecological and economic issues. The third is complexity. As societies become more complex in their attempts to solve emerging problems, they may reach a point where the costs of complexity outweigh its benefits, ultimately precipitating collapse. In the context of Budget 2024, these lessons from history underscore the importance of a balanced approach to progress. It is not enough to pursue growth for its sake. We must ensure that our growth is sustainable, inclusive and even resilient to the tests of time. This is why the Budget's focus on advancing business and worker capabilities, building for the future and caring for society is so crucial. Commitment to green innovation, renewable energy investments and the development of resilient infrastructure that can withstand the challenges of climate change ensures that our progress today does not come at the expense of future generations. Let me start with the advancing of businesses' and workers' capabilities. The Enterprise Support Package, with the 50% Corporate Income Tax (CIT) and minimum $2,000 cash payout signals that the Government is serious about supporting SMEs through its cost challenges. Targeted support for SMEs is provided for through the permanent increase of the SME Working Capital Loan, capped to $500,000.[+2 sentences] The SkillsFuture top-up for mid-career workers, the SkillsFuture Level-Up Programme, and extension of the SkillsFuture Enterprise Credit are positive moves towards building up the long-term skills stock of our Singaporean workforce. Second, building for the future. The $2 billion top-up to the Financial Sector Development Fund and the new Refundable Investment Credit will enable Singapore to build capabilities in new areas like FinTech and green finance and attract investment in high-value and substantive economic activities.[+13 sentences] I particularly like the enhanced Partnerships for Capability Transformation (PACT). PACT will provide support for companies to partner each other on capability training, internationalisation and corporate venturing. Such partnerships with large companies will help our SMEs grow and become industry leaders in their own right, providing more good jobs for the future. Third, caring for society. The enhanced Assurance Package will provide much needed relief for lower- and middle-income households. Improving the affordability of preschools and special education schools, enhancements to retirement support schemes, introduction of a new unemployment support scheme and the new ITE Progression Award will enable us to advance social mobility and create a Singapore that everyone can contribute and belong to. Mr Speaker, Sir, many of the great ruins that grace the deserts and jungles of the earth are monuments to progress traps, the headstones of civilisations which fell victim to their own success. Collapse, however, is not absolute and history has shown that societal resilience may be able to delay or prevent collapse. Evidence from around the world indicates that "economic diversity", the range and complexity of a country's exports, is linked to the skill level of its population, suggesting that a more skilled populace is better equipped to tackle crises as they emerge. The Singapore business sector acknowledges the importance of collective efforts to advance the Forward Singapore vision and strengthening societal resilience. Let me just say a few ideas of what the Singapore Business Federation (SBF) has done. As a Council Member at the SBF, I have seen first-hand how in 2019 SBF launched a business-led initiative, proposing six recommendations to support the employment of the elderly, the less well-off and those at risk of job disruptions in Singapore. This Sustainable Employment initiative engaged over 50 business leaders, representatives from trade associations, Government, IHLs, non-government organisations (NGOs) and foundations, showcasing a nationwide effort to uplift disadvantaged and vulnerable workers. Today, SBF manages the Progressive Wage Mark accreditation scheme and has partnered trade associations and chambers (TACs), like the Association for Catering Professionals, the Singapore Fashion Council, the Restaurant Association of Singapore and the Environmental Management Association of Singapore, to encourage companies to be part of this movement. I am proud to share that close to 4,500 companies have since been accredited.[+15 sentences] In 2022, SBF established the Alliance for Action (AfA) on Business Leadership Development, aiming to prepare Singaporean talents for global leadership roles. Engaging with over 200 business leaders, human resource (HR) experts and young professionals, the AfA produced a report with recommendations for individuals, businesses and Government to foster the next generation of leaders. Just this month, the Human Capital Action Committee within SBF has been tasked to implement these recommendations, ensuring that the report's insights are effectively put into practice. Lastly, TACs have now offer over 100 Career Conversion Programmes, supported by Workforce Singapore, targeting various sectors, such as construction, marine and offshore engineering, electronics and manufacturing, alongside specialisations in internationalisation and sustainability. To achieve our annual growth rate of 2% to 3% over the next decade, our economy and businesses will have to keep focusing on productivity, innovation and labour growth while keeping business costs competitive. I have four broad recommendations for this. Mr Speaker, Sir, in Mandarin. (In Mandarin): The Government is boosting productivity by significantly investing in SkillsFuture, aiming to cultivate a skilled workforce. At the same time, in addressing our Manufacturing 2030 vision, there is a pressing need for more local talent in manufacturing. Our first recommendation is that training should extend beyond introductory topics to include advanced technical domains, and sector-specific modules, ensuring it meets the real needs of workers, businesses, and the economy. To further enhance employability and cultivate a skilled workforce, more emphasis on workplace training is needed. Workplaces should be qualified as extensions of our Institutes of Higher Learning (IHLs), so that learning can be more practice-based and application-oriented. For SkillsFuture to be successful, not only employers should be responsible, workers must also have the right attitude and upskill voluntarily. This approach will enable workers to gain deepened industry skills beyond basic and general skills, boosting employability for the long term. Our next recommendation is centred on driving innovation in new areas of AI and sustainability within our SMEs. The allocation of $1 billion for National AI Strategy 2.0 and $5 billion for the Future Energy Fund in Budget 2024 highlights the Government efforts of fostering growth in these new sectors. The recent introduction of the ESG/IMDA AI Sandbox, which aims to involve 300 SMEs to participate, is a testament to ensure SMEs remain at the forefront of innovation.[+6 sentences] To further support SMEs in adopting these technologies, the Government should consider implementing a tiered grant model. This model will enable businesses eager to innovate beyond basic level ‘plug and play’ solutions to do so, without being constrained by cash flow issues. Additionally, it is essential that we provide SMEs with support beyond technology access, particularly in developing governance frameworks and ethical guidelines for the responsible use of AI. To support SMEs in sustainability efforts, more assistance and education are essential. We urge the Government to collaborate with sectoral TACs to create and improve sustainability programs. Grants for consultancy, implementation, and training can help SMEs effectively manage and report emissions in compliance with sector standards. Our third recommendation is a continual call for responsible labour growth to sustain Singapore's growth ambitions According to the Singapore 2030 vision and updated Industry Transformation Maps, we aim to create 8,400 jobs in manufacturing, 2,000 in logistics and 1,600 in environmental services, among others. This is against the backdrop of a declining resident labour force, which saw a reduction of 1,800 last year.[+18 sentences] Given our aging population and persistently low birth rates, while businesses continue to reskill and upskill our local workforce, we can work closely with government to identify and unlock untapped manpower pockets. By harnessing smaller labour pockets, like gig workers looking to transit back to traditional economic jobs, women and older workers who are keen to re-enter the workforce, and students who might be incentivised to take on relevant part-time jobs or acquire real work experience that can count as academic credits offsets, we can collectively expand our labour force to support our economic growth targets. However, pursuing our growth objectives necessitates a harmonised alignment of both local and foreign labour forces. The business community continues to advocate for strategic augmentation of our workforce with controlled foreign labour growth, tailored to specific sectors and job roles, where either local talent or local workforce participation is scarce. Such targeted augmentation is crucial for driving industry transformation and ensuring the long-term economic prosperity of Singapore. : Mr Speaker, Sir, at the beginning of my speech, I have highlighted that societies can falter under the weight of their own complexity. My final and fourth recommendation is for the Government to engage with the business community closely, working together with various Government agencies and unions with the aim to reduce bureaucratic complexity and expediting efficiency towards co-curating a conducive environment that fosters business competitiveness. I wish to conclude by drawing to two additional factors contributing to the collapse of civilisations, which I have not previously mentioned. First, external shocks. Often symbolised by the metaphorical "four horsemen" – war, natural disasters, famine and plagues. Second, randomness or just simply bad luck. Singapore's advantageous position today, bolstered by our substantial reserves, grants us a unique capacity to mitigate the impacts of these external shocks and the uncertainties of randomness. Observing Budget 2024, I am reassured by its prudent and balanced nature, which thoughtfully avoids excessive depletion of our reserves, but rather strengthens our ability to secure a resilient and prosperous future for Singaporeans. Mr Speaker, Sir, we have the unique advantage of being able to learn from the wreckages of societies past. Societal resilience can prevent collapse and Budget 2024 is a step in that direction in building this. Let us continue to take inspiration from the past, a country born from mud flats and swamp and now a shining metropolis. Let us muster the will together to ensure Singapore will not simply fade out of existence and not be a nation that began with a bang and end with a whimper. Together, let us be confident to create a Singapore that stands as a beacon of sustainable progress and inclusive prosperity for generations to come. Mr Speaker, Sir, I support the Budget.
Mr Speaker35 words
[+5 sentences]Order. I propose to take a break now. I will suspend the Sitting and will take the Chair at 3.45 pm. Sitting accordingly suspended at 3.25 pm until 3.45 pm. Sitting resumed at 3.45 pm.
Mr Deputy Speaker3 words
[+1 sentence]Dr Wan Rizal.
Dr Wan Rizal (Jalan Besar)2093 words
[+9 sentences]Mr Deputy Speaker, I rise in support of the Motion. Today, I will shift away from talking about mental health and focus on discussing how the Budget lays the foundation of a resilient and inclusive society, focusing on education and lifelong learning as a vehicle for social mobility. These are not just policy areas, these are the lifelines that will propel our nation forward, ensuring that every Singaporean – regardless of their starting point in life – can thrive in the face of adversities. In my vision, education transcends traditional learning. It is about equipping our youth with the ability, the agility to navigate the complexities of a future that we can only imagine. Lifelong learning is our commitment to every worker, ensuring that their skills remain relevant, that they are capable and robust in an economy that is perpetually evolving. In our pursuit of social mobility, we reaffirm our promise to every citizen that their dreams, aspirations and hard work – not their circumstances at birth – will define their future. Lifelong learning through SkillsFuture enhancements. In this era of relentless change and disruptions, safeguarding employability through strategic investments in skill development and productivity, enhancement is a paramount concern. Recognising this, Budget 2024 introduces the SkillsFuture Level-Up Programme, to me, it is a visionary initiative aimed at future-proofing our workforce.[+5 sentences] The substantial increase in SkillsFuture credits highlights the imperative of ongoing training and upskilling in navigating the complexities of a contemporary job market. A person who stands to gain from this opportunity is Mr Thomas Tan. He is currently working in a beverage company and has recently completed a certificate in business analytics. On hearing about the top-up, he is now eager to get back to study and complete a few more modules so that he can obtain a diploma. But what excites him most is not just getting that diploma, but the chance to learn new skills that he can apply in his work. Budget 2024 supports Singaporeans aiming to pursue another subsidised full-time diploma and a mid-career training allowance to further this commitment.[+2 sentences] I recall my own endeavours, when I decided to take a two years leave to pursue my studies full-time. I was already married and I was about to have my first child – to be born that year – and I had to use my savings and spend money prudently. To add to the pressure, there was a stigma that goes along with it: how could he go and study and burden his family like that? So, I am glad – I am glad that this Budget has set an allowance for up to 24 months, which represents a tangible investment in mid-career professionals.[+14 sentences] I also believe the allowance and two years of full-time studies could positively impact one's mental health. This is especially so for those who may feel burnt out and want to move to a new sector or industry. Those who come back are often refreshed and ready to share new ideas that they would like to apply in their new job. Despite these enhancements, concerns persist among individuals and businesses. Individuals need guidance on what is the right programme for them: what could help them in the future, what could propel them further? On the other hand, businesses seek assurances that whatever training the individuals go to, they would benefit the company and, in turn, fostering productivity and innovation. To address these concerns, a multi-faceted approach is necessary. We should and must continue to engage industry leaders and businesses from various sectors through advisory panels and feedback mechanisms to further enhance the SkillsFuture courses with emerging demands. We could also enhance career advisory services to help individuals select courses best suited for their careers. We also probably need to shift towards what I call an outcome-based training model, where the success of training programmes is measured by tangible outcomes, such as employment rates, career progression and salary increments. This ensures the courses deliver real value to participants. Finally, I would like to suggest: continue to explore innovative ways to increase flexibility and accessibility to the courses and programmes further to accommodate the diverse needs of learners, including those who are doing it part-time, doing it online or through modular options that allow for balancing training with work and family commitments. Addressing these concerns can significantly shift lifelong learning participation and employer recognition. Next, I would like to talk about the ITE Progression Awards, Sir. The introduction of the ITE Progression Award marks a significant milestone in Singapore's education and workforce development landscape.[+11 sentences] Now, this move is not merely about financial incentives. It is a profound statement against the stigma traditionally associated with skills-based education, reaffirming its value and indispensability in our economy. Mr Deputy Speaker, I have often mentioned the issue of the widening wage gap in Parliament. The wage gap, as in many parts of the world, reflects not just economic disparities, but also the value placed on different types of education and skills. The median gross starting pay for ITE graduates has increased – signalling a positive momentum – yet the gap remains significantly different compared to their university peers or from other Institutes of Higher Learning (IHLs). Far too long, pursuing degree qualifications has been seen as the only path to success – sidelining the immense contributions of those with technical talent. The ITE Progression Award challenges this outdated notion by creating more robust career pathways for ITE graduates, ensuring they are not unfairly capped in their career progression. As Singapore's economy diversifies and specialises, the need for technically skilled professionals in advanced manufacturing, IT and healthcare, for example, is growing. With the hands-on training and industry relevant skills, ITE graduates are well-poised, well-positioned to meet these needs. Recognising these values is essential for us to narrow the wage gap and ensure our economy has the skilled workforce it needs to thrive. Therefore, I welcome the ITE Progression Award as it is the step in the right direction. But its success will depend on the collective efforts of all stakeholders to embrace and implement these changes. So far, many of my students who are in the polytechnic came from ITE and have queried whether the award can be given to them.[+14 sentences] I told them I will ask in Parliament. But it just shows how much interest and positivity this move has generated. One such person that would benefit from this award is Mr Adil. He is a part-time ITE student, who is also currently working as a manager at a pizza outlet. Upon hearing of this, he quickly checked what courses are available for him. He believes that this is an opportune time for him to pick up a new skill in automation and he is raring to go. By ensuring the ITE graduates have equitable opportunities for career advancement and adequately compensated, we signal a broader shift in societal values towards a more inclusive appreciation of skills diversity. This paradigm shift requires not just policy adjustments but a collective change in mindset from employers, educators and society at large. To that end, ITE should no longer be stigmatised as "It's The End". In fact, we should now rename it, "It's The Evolution". It reflects the evolutionary process of personal and professional development the students undergo and a change in mindset in the community. I believe that we all have our strengths and there are pathways to success for each and every one of us and this, in turn, helps us in our mental health. Sir, I had often brought up the importance of preschool education and providing every child with a strong foundation. In my maiden speech, I highlighted the pivotal role of early childhood education as the cornerstone of lifelong learning and a vehicle for social mobility that cannot be overstated. Recognising its foundational importance, this year's Budget significantly bolsters support for preschool education – ensuring that children from every socioeconomic background have access to high quality early-learning experiences. By lowering fees at Government-supported preschools and increasing subsidies for lower income families, the Budget aims to make quality early childhood education more accessible and affordable.[+18 sentences] But despite these positive steps, some concerns still remain. For example, questions are asked about the quality assurance. How are we able to maintain high standards of education? At the same time, questions also arise about teacher retention and the training to ensure that we have quality teachers and we have enough teachers out there. But for me, I have always questioned about the enrolment rate of preschool education and the attendance that comes with it. Therefore, to address these concerns and fully realise the benefits of increased support for preschool education, I would like to suggest the following. Firstly, of course, we need to strengthen the quality assurance mechanisms. That means we need to establish a more robust quality assurance mechanism in our preschools, against standardised benchmarks. We also need to enhance support for teachers – through comprehensive programmes and professional development opportunities. But finally, and this is something I have always mentioned – the need for compulsory preschool education. The reason is simple. We want to force a mindset change. And this can only come if you make it serious enough for them to take it seriously. Sir, in Malay, please. : In today's dynamic economic landscape, lifelong learning has emerged as a stepping stone for social mobility, as well as personal and skills upgrading. By embracing lifelong learning and mastering new skills continuously, especially in the growing sectors such as technology, green energy, and bio-medicine, individuals can respond to the challenges of a rapidly changing job market and seize new opportunities. I admit that it is quite difficult for us to encourage individuals to continue their education because they are concerned about their advanced age or are busy taking care of their families. Therefore, the support provided by this year's Budget towards lifelong learning initiatives is a proactive step to encourage all levels of society, and this includes our community, to continue to grow and adapt to the needs of the present and future workforce. Through the enhancement and expansion of the SkillsFuture programme, this year’s Budget offers various pathways for individuals to acquire and renew their skills and expertise that are relevant to current industry trends. Among the initiatives in Budget 2024 are the SkillsFuture Credit Top-up specifically for those aged 40 and above.[+11 sentences] This provides specific impetus for individuals in this age group, to learn new skills or further develop existing skills. For example, a worker in the service sector can choose to learn about information technology to further enhance his digital capabilities. Secondly, the Mid-career Retraining Programme, which targets individuals who want to make a career transition or enhance their skills in certain areas. For example, an employee in the manufacturing sector can attend courses in the management of green economy projects, and thus enable him to take advantage of job opportunities in this rapidly growing industry. Thirdly, subsidies for full-time diploma courses. This initiative provides opportunities for those who wish to pursue further education but have financial constraints. For example, an assistant preschool teacher may take advantage of this subsidy to obtain a Diploma in Early Childhood Education, strengthen her professional qualifications and see more career opportunities open up for her. To harness lifelong learning, as a society, we need to promote a culture that values and promotes lifelong learning. This requires us to support those who are be bold enough to make the leap to study again, and they need to be steadfast and patient when embarking in a new field. My hope is that our community will take advantage of these budget initiatives to actively engage themselves in lifelong learning. This is not just about improving oneself but also about contributing back to society, family and country. By leveraging on the opportunities provided by this year's Budget, we can together build a brighter and more inclusive future for all. : In conclusion, the initiatives outlined in this year's Budget represent a cohesive and comprehensive approach towards forging a future where every Singaporean, irrespective of their starting point, can thrive and contribute meaningfully to our nation's prosperity. From the foundational significance of early childhood education to the transformative potential of lifelong learning through SkillsFuture enhancements, an equitable advancement of opportunities provided by the ITE Progression Award, these measures are intricately linked in their common goal to build a resilient, inclusive and forward-looking Singapore.[+1 sentence] Mr Deputy Speaker, I support the Motion.
Mr Deputy Speaker3 words
[+1 sentence]Mr Dennis Tan.
Mr Dennis Tan Lip Fong (Hougang)2789 words
[+2 sentences]Mr Deputy Speaker, for my Budget Debate speech today, I would, first, like to speak on certain issues relating to the support for our seniors followed by the issue of support for adults with disabilities and, finally, like in my previous year's Budget Debate speech, I will continue with the issue of green transition. Mr Deputy Speaker, Deputy Prime Minister and Finance Minister Lawrence Wong said in his Budget speech that preventive care is especially important for seniors, that loneliness can do great harm to a senior. They need to stay active and socially connected. Hence, the Government will set aside $3.5 billion to start the Age Well SG for the next decade.[+20 sentences] There are several components to this, and one component is that there will be an expanded network of Active Ageing Centres (AACs) providing a wider range of programmes. Mr Deputy Speaker, as always, the devil is in the details and I look forward to hearing more details from the Ministers in charge on the changes and plans for AACs but, in the meantime, I have several comments and questions. First, I would like to ask the Ministry of Health (MOH) what is the current situation with the staffing as well as the recruitment efforts for our AACs? How will MOH assist our AACs to recruit and maintain additional staff to tackle the manpower needs for a bigger scale AAC landscape? Does the Government have a guideline in mind for the manpower staffing per centre under AAC 2.0, of course, taking into consideration that requirements for clusters may vary according to the size of the cluster? AACs have a mix of staff and volunteers while staff strength of AACs may vary from centre to centre and volunteers are also an integral part of AACs. Volunteers may not always be able to take over the roles, expertise and, indeed, professionalism of the professionals in our AACs. Next, for the group of seniors who do not wish to be involved in their AAC activities or do not desire to keep in contact with their AACs, I would like to know what are the plans that Age Well SG may have for them as far as outreach and keeping in contact are concerned? This will be in line with tackling loneliness and addressing the need for seniors to be socially connected, as mentioned by Deputy Prime Minister Wong. I am especially concerned with those who live alone, keep to themselves and who are not close to their families or neighbours. Beyond having more or more varied activities, we need to study what approach can be taken to better enable AACs to keep in regular contact with this group, at least to provide support when it is needed. Studies should also be done to see how AACs can attract better male participation. Deputy Prime Minister Wong also mentioned in his speech of silver upgrades to our residential estates to enable seniors to live more independently and safely in the community by way of amenities, such as therapeutic gardens and barrier-free ramps and senior-friendly home fittings, such as wider toilet entrances and shower seats. I look forward to more details from the Government, including how these amenities will be made available to residents in their homes and in our common spaces. Deputy Prime Minister Wong also mentioned that there will be improvements to infrastructure for seniors' mobility and safety, such as more sheltered linkways, bus stops with senior-friendly features as well as safer and more pedestrian-friendly roads. I welcome these. As recently as August 2022, in an answer to a Parliamentary Question, the then-Minister for Transport said that there were no plans to expand the criteria of Land Transport Authority's (LTA's) existing covered linkway programme covering a 400-metre radius of major transport nodes, such as MRT, LRT stations and bus interchanges. I hope that there is now a rethink about this approach for covered linkways, especially on lands administered by LTA or other state lands. LTA should consider linking at least the heavily utilised bus stops to nearby housing estates. For example, working with Town Councils to link up such heavily utilised bus stops with the nearest covered walkways within the HDB estates. Still relating to seniors, the Budget will give all Singaporeans born in 1973 or earlier a MediSave Bonus of $750 and double this at $1,500 if they are part of the Majulah Generation and their residence has an annual value of not more than $25,000. For seniors with especially multiple chronic illnesses and frequent medical appointments, this MediSave top-up will not help much as long as the annual MediSave withdrawal limit remains at $700 a year for patients with chronic illnesses.[+3 sentences] Can the Government look at increasing the cap for the MediSave withdrawal limit for seniors with multiple chronic conditions so that such seniors, especially seniors who are retired and not working or are unable to work, will be less out of pocket when paying their bills? I know that the MediSave withdrawal limit was revised in January 2021. Would it now be timely for the limit to be raised, at the very least, to keep up with elevated inflation? Given that the quarterly quantum of Silver Support Scheme will now be raised by 20%, can the Government consider raising MediSave withdrawal limits from, say, $500 to $600 and from $700 to $840 for chronic cases as well and that those suffering from multiple illnesses be granted further extension of the caps on a case-by-case basis?[+10 sentences] Mr Speaker, in Mandarin, please. (In Mandarin): Deputy Prime Minister and Minister for Finance Lawrence Wong emphasised in the Budget that the Government would strengthen its support for the elderly. I hope the relevant Ministers can share more details on this. Deputy Prime Minister Wong mentioned that the refurbishment and enhancement of senior-friendly facilities in neighbourhood to enable the elderly to live more independently and safely in the community. This includes expanding sheltered walkways and bus stops with elderly-friendly features. In August 2022, the then Transport Minister stated that the Land Transport Authority (LTA) did not have plans to expand existing sheltered walkways. Currently, LTA’s sheltered walkway coverage is limited to within 400 metres of MRT stations and bus interchanges. I hope the Government can reconsider this strategy, especially in LTA managed or state-owned areas. For example, LTA could consider collaborating with the Town Councils to connect HDB neighbourhoods with sheltered walkways to busy bus stops. Furthermore, the Budget also includes a one-time MediSave Bonus for eligible Singaporeans. The amount is determined based on age and the annual value of the individual's residence, ranging from $700 to $1,500.[+3 sentences] For elderly individuals with multiple chronic illness would need frequent outpatient care, especially those who are retired or unable to work, if the annual withdrawal limit remains at $700, this top-up may not provide much help to them. The withdrawal limit was last revised in 2021. In times of rising prices, will the Government consider raising the withdrawal limit for MediSave to reduce the cash outlay for retirees? The Silver Support Scheme is set to be increased by 20%.[+5 sentences] Will the Government also consider increasing the withdrawal limit for MediSave by the same 20%? : I will next touch on the issue of support for adults with disabilities. I welcome Deputy Prime Minister Wong's announcement that he will provide more support for adults with disabilities. He said he will expand spaces in sheltered workshops and day activity centres where they can undergo skills training and launch more enabling services hubs to provide community support to persons with disabilities and their caregivers. I believe that, as a society, there is a lot more we can and should do for adults with disabilities among us, in particular, adults with serious special needs as well as their caregivers. Earlier this month, I filed a Parliamentary Question asking whether the Ministry of Social and Family Development (MSF) will consider increasing the number of day activity centres and residential homes for adult persons with autism. Minister Masagos replied that there are currently eight day activity centres serving adults with autism spectrum disorder with over 300 clients enrolled in these day activity centres and about 80 referrals pending enrolment. He also said that there are four adult disability homes funded by MSF serving adults with autism spectrum disorder. There are about 50 residents with autism spectrum disorder in these adult disability homes which have the capacity to house about 100 residents, and about 20 referrals are pending enrolment.[+28 sentences] Mr Deputy Speaker, I believe there is such a need to increase our day activity centres and residential homes. I believe that we really should increase our resources to provide continuous training for adults with disabilities, including but not limited to special needs adults, such as those with moderate to severe autism beyond their time in the SPED schools. In my view, there are multiple possible benefits. We should continue to think of ways to improve long-term post-SPED school education or training, providing further education and skills training, if possible. More studies should be done to increase the possible range of work training these adults can undergo and the range of work they can undertake in society. This will enhance their lives and promote better integration with society. At the same time, spending time at day activity centres rather than at home, with structured programmes, activities and interaction with others will enhance the mental well-being of such adults. My heart also goes out to senior caregivers and their special needs adult children, wondering what is going to happen to the care of their children when their health gives way one day. Even when these parents may have other children who are non-special needs, is it appropriate to expect them to take over care of their siblings when their parents pass on? Should we not provide adequate residential homes for these adults with more structured care and development? And can we also consider for these homes to allow some of the special needs adults to be able to go home to their families on weekends, providing some balance between residential care and home care, allowing family members suitable respite in the process? Minister Masagos also said that MSF has been working with the sector to develop plans to better support adults with autism and their families, given the increase in awareness of autism and in the clarity of its diagnostic criteria and that MSF will share more details in the coming months. Indeed, I hope that MSF is able to share such details during COS, including details of any studies undertaken recently. In November last year, I filed a Parliamentary Question asking the Minister, among other things, whether the Ministry keeps a record of the current number of elderly caregivers who are caring for adult persons with intellectual disabilities and whether the Ministry will consider developing and implementing early identification and support programmes for such caregivers. Senior Minister of State Tan Kiat How mentioned in his reply that MSF does not directly track the number of elderly caregivers who are caring for adults with intellectual disabilities. In December 2023, news broke that one of my Hougang residents, an adult with special needs, stayed in his flat with the body of his elderly father after his passing for five days while continuing to attend day sessions at the day care centre. While I am extremely thankful that the authorities and stakeholders were commendably quick to assist and arrange for care for the son thereafter, this case reinforces the need for us to consider developing and implementing an early identification and support programme for elderly caregivers who are caring for adults with special needs. Such a programme could adopt a multi-agency approach that involves our AACs, day care centres for adults with disabilities, healthcare providers and even service providers like lawyers who may have interactions with family members in the course of their related work, for example, doing Lasting Power of Attorney (LPA), as well stakeholder agencies like Agency for Integrated Care (AIC) and MSF, such that each party can trigger another party to provide necessary checks or support for the family concerned. Studies should be done to see how contact and support can be appropriately maintained by one or more stakeholders for both elderly caregivers as well as the special needs adults. Last year, I said in my Budget debate speech that we should work towards AACs, which cater to the different needs of seniors, whether social or medical, or for more specialised areas like mental health or disabled persons who are seniors. The centres should still be referring centres even if other organisations or sub-units are involved. Indeed, an expanded AAC can also perform the coordinator or contact role for elderly caregivers of adults with disabilities. Mr Deputy Speaker, let me know move on to ongoing efforts for green transition. Last year, I said in my Budget debate speech that we need a detailed roadmap for retraining workers in these sectors as Singapore decarbonises. I asked whether we have sufficient sustainability-related courses that businesses and workers can afford to attend, both in terms of time and money. In my speech today, I will go on to talk about the quality of the education to be provided. Mr Deputy Speaker, capacity building is a core concept of development. In the context of climate change and sustainable development, upskilling is now necessary to ensure a just transition and that no worker is left behind. Singapore has been investing heavily in lifelong learning and upskilling since SkillsFuture was launched back in 2015. Government spending has shifted towards adult education and training to accelerate the nation's green transitions.[+1 sentence] IHLs form the backbone of this shift and there exists a multitude of courses available to build capacity and upskill the existing work force in areas such as environmental, social and governance (ESG) and carbon services and trading. However, growing our talent pipeline must also include investing in primary, secondary and tertiary education. I am pleased to hear of a new Master of Science (MSc) in climate change and sustainability programme at the National University of Singapore (NUS).[+17 sentences] The MSc programme in data science for sustainability was also launched in NUS to train data scientists who can integrate their knowledge and skills with an understanding of sustainability issues. The Nanyang Technological University (NTU) has the Asian School of the Environment and offers majors in environmental and earth systems science, public policy and even a second major in sustainability. These are examples of positive development in Singapore. But to ensure that graduates are well equipped to meet the demands of the times, all such courses must go through sufficient policy and industry validation. For instance, IHLs should, if they have not done so, internalise the SkillsFuture reports to assess SkillsFuture needs in these areas and assess what skill sets they have to teach undergraduates and graduate students. We should also encourage our course providers to ensure that all courses provide adequate time, emphasis and coverage on Singapore, so that students can really understand how to green Singapore and the challenges that Singapore face. Do knowledge providers have the right people to teach and impart such knowledge and skills? How do we ensure this? Some form of impact assessment is necessary to track lifelong learners' progress, comprehension and application. Second, knowledge and content providers across the IHLs also need to be given adequate support to do this important work of providing the knowledge and skills for the workforce. Hiring practices at university need to reflect contribution to society beyond traditional publication and impact factors. If Singapore is to succeed in our green transition, more emphasis needs to be placed on hiring experts that have real-world experience in solving complex sustainability challenges. Demand is also growing for Singapore to help build regional and international capacity. Overall, there is growing demand for Singapore's experts to be ready and available to impart valuable knowledge. To do so, we need more Singaporeans to step forward with the right knowledge, skills and attitude to help grow our local, regional and international sustainability talent. Indeed, we need to actively grow our pool of educators. Climate change demands urgent action from everyone, across all sectors of society. As we focus on upskilling and capacity building of workers, we must also not overlook the support and training we need to give our educators. We need to grow our pool of sustainability educators and we need to do so fast in this quick journey of manpower transition, so that we do not lag behind our 2030 and 2050 goals.[+1 sentence] Mr Deputy Speaker, in closing, I look forward to the replies to the concerns I have raised.
Mr Deputy Speaker3 words
[+1 sentence]Ms Denise Phua.
Ms Denise Phua Lay Peng (Jalan Besar)1982 words
[+6 sentences]Mr Deputy Speaker, Budget 2024 is a well-stitched effort to tackle both immediate challenges and longer-term issues affecting our citizens and businesses. Whilst it is not flawless, it does stand as evidence of our Government’s commitment to listening and understanding ground realities. I am very grateful to my residents, grassroots activists, fellow volunteers and my Central District CDC councillors and partners for sharing their insights on Budget 2024 with me. Many of them have expressed admiration for its comprehensive suite of benefits to individuals, households, seniors, businesses and families with children in preschools and special education schools. The Budget’s positive features are widely recognised and appreciated. In my speech, I wish to focus on three areas of concern: firstly, the need to scrutinise if the intended outcomes of Budget 2024’s initiatives will be met; secondly, the sustainability of escalating social development costs; and thirdly, the need to foster a more robust ecosystem of partnership to make the Budget theme of “Building our shared future together” a tangible reality. First, on the need to ensure intended outcomes are achieved.[+1 sentence] Let me provide one example that is close to my heart. I applaud the Government’s bold and potentially game-changing investment in two target groups within the Singaporean labour force: one, our young ITE graduates below the age of 30; and two, our mid-career Singaporeans.[+14 sentences] However, the devil, as they say, is in the details. For instance, while attractive financial incentives are provided for ITE graduates below age 30, to pursue further diploma studies, several questions remain unanswered. It is unclear to me how many are eligible for these targeted diploma courses and whether the potential opportunity costs of not working will deter them, and if they will receive adequate career guidance to ensure alignment with their strengths and job market needs? The same questions also apply to the mid-career reskilling plan for Singaporeans aged 40 and above. This is also a profile who similarly needs to be urged to undertake the reskilling initiative for better future employability. I therefore would urge a careful study of the response of the target pool of ITE graduates and mid-career Singaporeans to further improve the chances of success of this potentially game-changing investment by the Government. Government can consider an even more aggressive move of specifically approaching the lower-skilled gig economy workers, for instance, and others whose industries or jobs are at risk of being obsoleted by technology, including AI. The investment in our younger ITE graduates and mid-career Singaporeans is not the only ones that need careful eyeballing and tweaking if need be. Some initiatives such as the corporate income tax and personal income tax for everybody, the reduction of fees in preschools and SPED schools are blunt measures that signal Government's care and empathy. Yet, they may or may not be needed or appreciated by some Singaporeans. An option for those not in need to redirect their benefits for a common pool for those more in need should be considered. Much like how unused CDC Vouchers are channeled to charities with an Institution of Public Character (IPC) status. I therefore urge Government to undertake a proactive mitigation strategy to guarantee the effective execution and success of Budget 2024's well-intentioned initiatives. Next, I would like to touch on the worrying trend of rising national expenditures, especially in what is categorised as "social development costs". More than 50% of the total Budget allocation is dedicated to social development. Receiving the largest shares are health, about 17% or about $19 billion; education at 13% or about $15 billion; and national development at 8.1% or $9 billion.[+3 sentences] This investment in social development reflects Government's priorities and commitment to improving the quality of life for all Singaporeans. Yet as we increase spending in these vital areas, we must also consider innovative ways to sustain this investment. Our Singapore society is not accustomed to higher personal and corporate income taxes for various reasons. And this is unlike countries such as Australia and the Nordic countries, where high levels of citizen welfare are funded by tax regimes with high tax rates. So, one innovative way that the PAP Government has used is to tap on the National Investment Returns Contribution (NIRC) to fund expenditure, which in the last seven Budgets from FY2018 to now, has been increasingly relied upon.[+32 sentences] How sustainable this funding model is remains to be seen. There must constantly be found ways to pay for the ever-increasing expenditure. Some people I have spoken to call for an even more resources, for example, to be channeled to GIC and Temasek Holdings for them to invest, so that the NIRC base can be enlarged. The two investors have, over the years, delivered decent medium- and longer-term returns. And others call for more public-private-people partnerships for more innovative and flexible funding. Whatever it is, the concern over the sustainability of the current funding model for our ever-rising national expenditures should not be underrated and underestimated – and that is my second point. Finally, the need to foster a more robust and cohesive ecosystem of partnership to make the Budget theme of “Building our shared future together” a tangible reality. Deputy Prime Minister Wong’s clarion call through Forward Singapore and through Budget 2024 to “build a shared future together” is an important call to action for every sector of society. Already, Singapore is working with partners in areas such as community hospitals, hospices included, special education and other social services. I refer to hon MP Dennis Tan's lament about the adults with disabilities. And I just want to share that all of us have a role as well. In my Kampong Glam division, for example, we have tested and piloted in the last two years with the People’s Association (PA) grassroots and CaringSG, a special programme that is called "Purple Hearts". It is a special needs families' network, where more than 20 volunteers from the ground, led by some of our grassroot leaders and me. We regularly visited, befriended, tried to find out the needs and then referred and directed the needs of these 200 families to the different agencies, some of them in Government and some are non-government. And almost two years now. I am very happy to share with Mr Dennis Tan and also other MPs, if they are interested, to at least make this happen in their area. Already, Singapore is working with a lot of partners in this space. But let me just propose some ways by which our Government can take a better lead in ensuring the building of a shared future together, especially in the non-profit charity sector, where I actively volunteer. I need to declare. This is a sector that is full of heart but is fairly fragmented. First, the Government can play a crucial and more helpful role in facilitating this ecosystem to ensure more informed decision-making and impactful outcomes. In recent years, substantial resources have been allocated to governance of the partners, which is vital of course – audits, governance and so forth. However, there needs to be a deeper understanding among both donors and recipients about the landscape – identifying the key essential services, causes, beneficiary groups, key gaps and expectations, as well as clarifying the Government's participation in these gaps and how others can contribute effectively. For example, major donors in Singapore, such as Ngee Ann Kongsi and various foundations, could be better supported to invest in the essential areas sustainably. Second, support for back-end functions. The back-end of any effective social service ecosystem lies in its operational capabilities. Currently, many social service agencies and charities face challenges due to fragmented support structures in governance, procurement, risk management and internal controls. Not their fault; it is just that they are operating with very limited resources. They are not the Government. They cannot afford to pay for what one Member called “bureaucratic complexity”. So, operating with limited resources, these charities and partners often find it very difficult to establish systems that meet Government operating and audit standards. Improving support in these areas therefore is crucial. For instance, enabling IPCs to access Government procurement networks such as the GeBiz or Demand Aggregated vendors; this could significantly reduce operational burdens for charities.[+5 sentences] For instance, having good senior public servants from the Public Service for Good movement started by Minister Chan Chun Sing to sit down with key sector leaders and help set reasonable standards and install cost-effective back-end functions – this is one way of moving forward for a shared future. Next, on supporting manpower needs in this non-profit charity sector, the Government can play a pivotal role by being sensitive to and supportive of the workforce dedicated to its non-profit partners. The manpower challenges faced by organisations, for example, like Dover Hospice, which I just visited, where healthcare staff, despite their experience, face tenure limitations; and partner homes, nursing homes, residential homes, which see staff leaving for other sectors, for example, the public sector, due to more attractive connect plans or compensation packages. All these underscore the need for a more supportive and sensitive framework by the Government, together, working as partners. Fourth, in tiered matching and tax exemptions. The Government should implemented tiered matching for donations and offer more attractive tax exemptions for contributions to essential under-resourced social sectors.[+2 sentences] Essential and emerging needs should be carefully identified and receive more support. These include healthcare, lifelong education, care facilities for adults which Member Dennis Tan has mentioned also, and I raised many times in the House here and outside, for persons with disabilities and their families, especially the adult ones, and also support social enterprises that lead to job creations for the vulnerable, such as our neuro-diversed, disabled and lower-educated Singaporeans. While I appreciate that tax exemptions will now be offered for overseas donations, I urge for local investments to be given priority and granted more attractive tax incentives over overseas donations.[+4 sentences] Fifth, empowering social enterprises. Instead of relying only on donations and grants, charities as the Government's partners should be encouraged to fish rather than being fed in the long term. Social enterprises play a critical role in addressing societal challenges through business solutions. But social enterprises are some of the most difficult businesses to run, having to achieve both financial and social output bottom lines. Supporting these organisations by prioritising them in procurement processes, offering set-up assistance and providing more tax exemptions and grants can amplify their impact, especially for those that are run by charities.[+7 sentences] The money goes into the charity and not into any individual's pockets. So, this approach will not only foster social innovation but also contribute to the economy in a meaningful way. Public procurement policies that favour social enterprises can create a more inclusive economy and drive social value creation. Sir, I have proposed five ways by which the Government can be more sensitive and appreciated in its aspiration to build a shared future with stakeholders in the area of social development. And I look forward to the Government double-clicking on what I have shared on these five items, so that we can build a shared future together. And I also look forward, of course, to its considered responses in this Budget season. In conclusion, Sir, Budget 2024 is not merely a financial plan. It is a blueprint for a compassionate, inclusive and resilient society. There are some brilliant programmes that ought to be further scrutinised to ensure their well-intentioned goals are achieved. Social development costs are rising in terms of dollars and proportion.[+1 sentence] Only with a vibrant ecosystem can each one play their role to the best and bring to reality the spirit of ForwardSG and Budget 2024. Budget 2024 calls upon each one of us – the Government, Government officials, corporate leaders, philanthropists, social service agencies, citizens, residents, all of us – to contribute towards a shared future. Notwithstanding my inputs, I strongly support the Budget.
Mr Deputy Speaker4 words
[+1 sentence]Mr Yip Hon Weng.
Mr Yip Hon Weng (Yio Chu Kang)1662 words
[+20 sentences]Mr Deputy Speaker, Sir, close our eyes and imagine Ah Ma, a silver-haired hawker, her smile fading as she sees the rising cost of ingredients threatening her livelihood. Now picture Encik Ali, struggling to choose between essential groceries and his medication due to inflation. These are not isolated stories. They represent the daily struggles of a sizeable number of Singaporeans, both young and old, feeling the squeeze from rising costs of living across the board. I meet some of these residents at my Yio Chu Kang Meet-the-People Sessions. While Budget 2024 deserves recognition for its priorities, the affordability crisis casts a long shadow, threatening not just the financial security of our seniors but the very fabric of our diverse society. Let us act before affordability becomes a barrier to opportunity and well-being for all Singaporeans. We can do more to make Singapore an affordable place to live in, particularly in transport, housing, CPF and social support schemes. First, Mr Deputy Speaker, Sir, we need to ensure affordable and accessible transport for Singaporeans. While our public transport network continues to expand, car ownership remains a critical aspect of life for many Singaporeans. Families with young children, seniors, individuals with limited mobility and those with special needs often rely on private vehicles for their daily commutes. Despite its world-class efficiency, our public transport system experiences sizeable crowds at most hours. During peak periods, the situation intensifies, with limited seating availability for vulnerable passengers. While private hire vehicles (PHVs) offer an alternative, their costs and waiting times are rising, not to mention that there are peak-hour surcharges. Recent experiences during festive periods like Chinese New Year, with reported waiting times of 30 minutes, raise concerns about their reliability. Of course, this is understandable as PHV drivers have families, too, and will join in the celebrations during this festive season. But this also means that there is a certain market failure in the PHV network which may require some intervention. Skyrocketing Certificates of Entitlement (COEs) threaten to push car ownership out of reach for the average Singaporean. This is not a luxury car problem; it is a family car problem. The recent Parliamentary debates on this issue demonstrated the urgency of addressing the affordability issue. The ongoing review of point-to-point travel is encouraging. I urge the Government to seriously consider separate COE categories for PHVs.[+9 sentences] I have raised this issue in Parliament on several occasions. This issue centres around the fairness and impact of placing PHVs and individual buyers in the same COE pool. Firstly, the demand patterns differ significantly. PHV companies often have access to greater financial resources and can be more aggressive bidders, ultimately, passing on the cost to passengers. Secondly, for PHVs, cars are essentially business tools. Companies are likely to prioritise higher bids, compared to individual buyers purchasing for personal use, knowing that they can recoup the money in the future. Hence, creating a separate category addresses this imbalance between corporations and individual buyers, ensuring a fairer and more equitable system. Second, Mr Speaker, Sir, we need to protect our seniors from seemingly unfair property tax increases. While the recent adjustments to AV brackets and property rebates are a positive step, their delayed implementation presents a pressing concern for our retired seniors. Can the Government hence implement the changes earlier?[+5 sentences] Also, many retirees are "asset-rich and cash-poor". They have acquired their private properties decades ago and lived in them for a long time. A sharp property tax increase can devastate these retirees who lack the income to absorb the cost. We need a fairer system that protects our seniors. They lack the readily available cash flow to absorb any significant rise in property tax associated with increasing AVs. One retiree I know told me that her property tax has increased by almost three times.[+11 sentences] Perhaps the Government should provide more assistance to retirees with no income who possess a single owner-occupied home. By all means tax more for those with a second property, a third property and so on. What the Government is doing now is essentially asking retirees staying in their own home who cannot pay their property tax to sell away their home and uproot from the environment that they are familiar with. This will put stress on our seniors and affect their mental health. It might even cause dementia to set in earlier. We also need to implement a fairer property tax system considering residents' unique circumstances, especially for owner-occupied homes. Can we encourage our banks and financial institutions to have reverse mortgages? Monetise some of the lease of the houses, but with the option of paying back when the house is eventually inherited. This may create a market and allow price discovery and competition, too. We also need greater clarity on the relevant physical attributes that are being considered when calculating the AV of the home. How will IRAS assess the condition of houses, both private and HDB, that are located in districts with higher property value but have not been renovated in many years? Moreover, can the Government also consider introducing a maximum annual increase cap on property taxes, up to 50%, for example?[+5 sentences] Third, Mr Deputy Speaker, Sir, we need clearer communication and targeted support for CPF changes. While the closure of the Special Account (SA) and the transfer of funds to the RA simplify the system and offer potentially higher interest rates, I seek clarification on the 1% of members who cannot transfer their SA savings to RA. Can the Minister elaborate on who falls under this exception? Will moving funds from the OA to the RA be voluntary? How will members be informed of this option, its benefits and drawbacks, and receive assistance on this if needed? Moreover, the imminent closure of SA raises concerns and confusion among many residents, especially those in their 50s who have reached the full retirement sum.[+5 sentences] Numerous residents have expressed concerns that they have to replan their retirement due to this change. Years of financial planning based on the SA's higher interest rates are disrupted, leaving them with limited time to adjust. The limited withdrawal options from RA raise concerns about accessing emergency funds, unlike the SA, which has more flexibility. Conversely, leaving funds in OA means lower interest earning and retirement savings, impacting our seniors' long-term financial security. I urge the Minister to address these residents' concerns and explore ways to minimise the impact of the SA closure on members aged 55 and above, particularly regarding withdrawal flexibility. Furthermore, while I acknowledge the move to raise the ERS to allow members to benefit from the high interest rates in RA, I emphasise the need to focus on lower-income earners who struggle to reach even the Basic Retirement Sum (BRS).[+2 sentences] Can the Minister elaborate on specific measures to help them grow their retirement savings? Lastly, Mr Deputy Speaker, Sir, we need to refine means-testing processes for essential schemes to ensure inclusivity. While the Silver Support Scheme (SSS) aims to help seniors who have low incomes during their working years and now have less in retirement, using housing type to determine Silver Support payouts may unfairly disadvantage seniors who have shared their flats with their families.[+8 sentences] I would like to suggest the removal of this criterion. Seniors in larger flats may face other financial limitations. They may share the roof with many family members and do not have the option to downsize or monetise the house. Hence, it may not be right to equate housing type with wealth. Likewise for hospital bills and subsidies. The current means-testing based on housing and family income might not accurately reflect the true financial situation of all seniors. With the increasing trend of later marriages and singlehood, many young Singaporeans live with their parents while striving for financial independence or waiting for their BTOs. Denying subsidies based on these further disadvantages young Singaporeans and impacts their decisions regarding marriage and family planning. It also deters seniors from seeking necessary healthcare due to the fear of burdening their children. We, hence, need to consider removing housing type as a criterion, refine means-testing processes to consider a more holistic view of individual and family income.[+17 sentences] In conclusion, Mr Deputy Speaker, Sir, let us open our eyes. Let us view Singapore as a grand, age-old tree, deeply rooted in our values and traditions, providing shelter and sustenance to all who seek refuge beneath its branches. Just as we cherish and nurture our seniors, so, too, must we ensure that they are sheltered from the storms of uncertainty and hardship. They grew the tree, and now it is their time to enjoy the shelter it should provide. It is evident that action is needed to address the affordability challenges facing Singaporeans. I have made several suggestions in my speech. Firstly, in transportation, we must ensure accessibility and affordability, particularly for families and vulnerable individuals like seniors. We need to explore separate COE categories for PHVs. Secondly, regarding housing, a fairer property tax system, considering the unique circumstances of residents, is imperative. Tailored policies and capped increases can alleviate the burden on seniors and home owners. Thirdly, in CPF, greater awareness of policy changes and targeted support are critical to help seniors grow their retirement savings, especially for lower-income earners who struggle to reach the Basic Retirement Sum. Lastly, in social support, refining means-testing processes for essential schemes like Silver Support and medical subsidies is necessary to ensure a holistic view of individual and family income. I urge the Government to prioritise these measures to ensure affordability for all, especially for our seniors. Let us not wait until rising costs become insurmountable barriers for Singaporeans of all ages. By working together, we can build a more inclusive and equitable society where everyone thrives, regardless of their circumstances. Together, let us make Singapore a truly affordable place to live in, and a nation where everyone can chase their dreams without being crippled by financial hardship. I support the Budget.
Mr Deputy Speaker3 words
[+1 sentence]Miss Cheryl Chan.
Miss Cheryl Chan Wei Ling (East Coast)1861 words
[+16 sentences]Mr Deputy Speaker, the fate of a country through the ages has been that it either rises, falls or stagnates. We are lucky that in Singapore – against massive odds – we have continued to do well. Budget 2024, which is a part of the Forward Singapore movement, aims to keep the upward trajectory going. But even as we grow our economy, the immutable fact is that resources will always be finite but wants unlimited. Our needs rise with each generation and their aspirations for a brighter and progressive future imply we have to keep adapting and evolving. We need to take deliberate actions to stretch every dollar we spend to ensure we continue to meet the growing aspirations of our citizens and expand our economy in a holistic manner. Thus, strengthening key areas and preventing unnecessary resource wastage, while ensuring that our wealth and social equality keep pace across different segments in society, is necessary. In this Budget 2024 Statement, there are four areas stood out for me. First, I agree with the need for our economy to continue growing at a healthy pace, but not at all costs. I applaud the Government in planning for the future of economy and setting a direction of what industries and jobs will anchor this little red dot beyond a decade or two. However, we have to be careful not to be blindsided by the potential unseen structural and social costs that such development could bring. We have to plan for such economic activities in a holistic and calibrated manner and, most importantly, as part of a whole-of-Government effort to ensure we consider all dimensions of each plan. For example, as we pursue new high value activities, such as R&D, we should not neglect strengthening our foundational engineering capabilities or to continue encouraging our high value-add manufacturing base. The pandemic has shown that over reliance for core parts of a supply chain globally has its downside. Offshoring some of these jobs not only impact our blue-collar workforce, but it could also risk Singapore losing our ability to effectively translate innovation into market-ready products. On the long run, this limits Singapore's capabilities of being a "one-stop" shop for such innovation deployment. Deliberate planning of lifelong learning and scoping career transition pathways through the newly launched SkillsFuture Level-Up Programme will help develop our workforce to deliver products and services in the new economic growth areas.[+5 sentences] However, we must continue to support capability development in tradecrafts and some blue-collar domains, to ensure we have a holistic workforce to drive our economic plans forward. I am happy about the new ITE progression award to support students to upskill in more practical and hands-on areas. I hope similar schemes would continue to support and enhance our workforce to develop mastery in key skills which are needed to drive some fundamentals in Singapore's growth forward. To be clear, I am in full support of our future economic thrust, such as preparing for the digital and green transition, continuously moving up the value chain and finding niche areas where we can be globally competitive and differentiated. But while we push the frontiers of innovation – and it is critical – it is the ability to imagine the future of Singapore's economy that presents hope and possibilities to all segments of workers that will keep our economy going. Second, I am enthused that we will be allocating budget for key infrastructure development to support the transition towards clean energy through the Future Energy Fund.[+13 sentences] These spendings are important to ensure that Singapore remains a good participant of global climate action and potentially be a beacon to other countries in transiting towards cleaner energy. These infrastructural developments are, however, costly; and could entail higher risk of being stranded, given the uncertain energy landscape. A prudent allocation of these funds must go beyond just evaluating the capital. It requires Government leaders to make good judgement calls on the risk of such investments and to consider the potential high recurring cost and approach to maintain such infrastructures for usability over a defined lifetime; so as to prevent wastage both now and in the future. In the same vein, we should follow this philosophy when developing any infrastructure projects to ensure we can stretch every dollar spent. Take, for example, many sheltered linkways have been constructed to provide increased convenience to our citizens and give them the comfort during the hot and wet weather. However, some of the sheltered linkways are not built at areas with heavy footfall and they are under-utilised. The lightings that are required to keep them bright for usage at night is also drawing more energy from the grid when it is already lighted by parallel streetlights. To ensure the safety of these structures, especially the ones spanning across the roads, are both expensive to construct and maintain. Have we considered how to minimise high recurring expenses to maintain these assets for decades? Were there options to modify the usage of these sheltered paths to serve a wider community, or other innovative and cheaper ways to provide such shelter? Such decisions do require some level of judgement. Given our limited resources and the possibility that some day, we will have little foreign workers to serve our daily needs, will the public works regulatory evolve to allow citizens to volunteer their expertise or knowledge on potential technology and designs that can be used? Third, I welcome the move to help address the immediate cost of living and to enhance the AP. Our GDP per capita stands at about S$91,100, according to the World Economic Outlook in 2022 and ranks amongst the top three globally.[+3 sentences] For a young nation with relatively high median income, it is hard for some to apprehend that we have amongst us the low-income workers, a sandwiched middle-income group and seniors or retirees who may not have sufficient financials to support their retirement. With impending global headwinds that may adversely affect our economy and our ageing population, I am concerned for the future for this group of citizens, especially given the uncertainty it may bring. While the country prospers, a key topic we have to face squarely is whether our wealth and social equality is keeping pace across the different segments in society. The prices of essential goods and services have increased over the past year and the provision of the CDC and U-Save vouchers would go some way to help many Singaporeans cushion a part of the escalating cost burden.[+4 sentences] While such schemes have instant effect to address current inflation challenge, the long-term deployment of such schemes, likewise places a fiscal burden on the Government. There is a need to continually track the impact of such packages and to regularly benchmark it with the intent of the package or the policy. With Singapore's continued investments into new high value economic growth areas and as we continue to support upgrading our workforce to undertake higher value jobs, I am hopeful that the real wages for Singaporeans will continue to grow. I am not against the provision of financial support for targeted groups of individuals who have needs and are unable to support or manage without additional support or truly needs a helping hand in that manner. The question I have for the Government is whether the plan is to continue making some of these support schemes, like the CDC Vouchers and AP a permanent one, and how are we intending to fund these.[+4 sentences] Everybody likes "free money", but it is important that we always prioritise our fellow Singaporeans who might need a bit more help and continue to support them as a national family. And this brings me to the last aspect of helping those who need more support and in a targeted manner. I am very encouraged by the announcement of the increased support to be provided to families of persons with special needs. I believe that inclusivity is an important pillar in our social fabric, and we should continue to aspire and rally more Singaporeans to support and integrate people with special needs into our community to the largest possible extent. Lowering the cost of monthly fees at special education (SPED) schools and increasing support for employment and integration of special needs individuals are moves in the right direction.[+9 sentences] To be a caregiver for someone with special needs is not only a matter of financial cost, but it also takes a toll on the entire family as their lifestyle completely changes beyond one about affordability, to one that focuses on how best to enable the special needs person to live a life. One resident who approached me for help recently had an issue with her daughter's application for a transport concession card. The issue of not getting the approval was one around definition of disability and the assessment criteria. The fact of the matter is her daughter has been diagnosed with varying degrees of disability since young. Now at 20, her condition has not improved, and she faces other societal challenges and the lack of opportunity to participate in the workforce. What her parents are concerned about is not merely about a transport concession card, which is lesser in value than GST Voucher or even the CDC Voucher support that were generously given. The concern they have is that the availability of options their daughter has for rest of her life is determined by what others are willing to provide and the decisions to support rely on rulebooks that are seldom exercised with a sense of understanding. I do ask if there are more we can do as a community to support such individuals. I am heartened to see that there are more commercial facilities setting aside space and adjusting their operational procedures to make spaces that are more welcoming to those with special needs. Places like Gardens by the Bay plans to have a quiet hour for people with autism and an inclusive playground for children.[+9 sentences] Other similar efforts are also taken by corporates, such as Frasers Property and its tenants, who chose to be the inaugural "Inclusive Champions". Proliferation of such community, as well as commercial-led efforts are essential to ultimately mainstream the inclusivity of special needs individuals into Singaporeans' daily way of life. I hope the Government will expand its support for such ground-up efforts, both in the commercial and the community space to help those with special needs. Deputy Speaker, to conclude, I am optimistic about Singapore's growth ahead despite the global headwinds. Budget 2024 provides a view of how we can shape our economy to embrace a new demand, which also ensures our workforce can be better placed for future job propositions. While the Government plans for the nation, I also seek fellow Singaporeans to take an active role in our path forward. This country can only benefit from our collective wisdom, efforts and willingness to see it succeed. Success is not simply a definition of being the best, but one where we feel proud and comforted that our success includes those who are needy and vulnerable in society as well. And with that, Sir, I rise in support of the Budget.
Mr Deputy Speaker3 words
[+1 sentence]Ms Jessica Tan.
Ms Jessica Tan Soon Neo (East Coast)443 words
[+5 sentences]Mr Deputy Speaker, there is a lot to unpack in Budget 2024. It takes care of the immediate cost-of-living challenges, provides support for families and our seniors, supports individuals and businesses to be future ready for growth and jobs. The introduction of measures to anchor quality investments, invest in new economic sectors and major moves to decarbonise the economy, are welcomed but require large funding. Our spending needs continue to rise. The question is, will we be able to continue to afford such large funding. Deputy Prime Minister Wong outlined that our medium-term fiscal position is tight, but assured that if we remain in the range of projected spending increase, we should have sufficient revenues to maintain a balanced Budget.[+3 sentences] So, I hope that we continue to be able to share as we progress on our specific initiatives. My speech will focus on four areas: better growth; jobs and opportunities; healthcare and senior care and the property tax adjustments. With the continuing geopolitical situation, slower economic growth and decline in real income, Singaporeans and businesses have been challenged in coping with inflation, higher cost of living and of doing business. The cash support and grants announced for the AP and Enterprise Support Package will help families and businesses cope with current cost and inflationary pressures.[+9 sentences] But we do need to give focus to growth and quality growth. This is vital if we want better lives for Singaporeans and for businesses to be able to thrive. This point was aptly articulated by one of our residents in Changi Simei last year during our Budget dialogue. As we were discussing budget measures to support cost-of-living pressures, he reminded us that while support measures are needed, we must also "grow the pie". If we do not grow, we will be worse-off in the long run as we will be relying on a shrinking pie and there will be less to count on. This is the stark reality and a timely reminder. We cannot do more of the same. Global uncertainties, disruptions and structural shifts, driven by technology and climate change, require us to make fundamental shifts and innovate to achieve good and sustainable growth. Singapore needs to continue to remain an attractive hub for businesses to invest their high quality projects, as this brings cutting-edge capability, knowledge and technology, and more importantly, it creates good jobs. The introduction of the Refundable Investment Credit, investments in AI, upgrading of our Nationwide Broadband Network, and the further boost to the RIE2025 plan, are some of the important measures that Budget 2024 is investing in for Singapore to continue to remain competitive and attractive for companies to invest in.
[Mr Speaker in the Chair]1318 words
[+61 sentences]But to realise the full potential of the growth will require our businesses, including SMEs, to have the capability to be part of that growth. Having strong local businesses will also improve Singapore's attractiveness for investments, as businesses looking to invest will require a strong base of companies to partner. It is critical that our local enterprises transform to remain relevant and the changes, we must realise, will not be easy as it will require new ways of doing business, harnessing technology, building new skills and adopting energy-efficient solutions. The measures and enhancements in the Budget will support our local enterprises in their transformation efforts. But it will come down to whether our local enterprises will commit and make the investment to do so while continuing to run their current businesses. When I was working in MNEs, I personally witnessed the synergy and benefits of collaboration between MNEs and local businesses, especially SMEs. SMEs can level-up by tapping on the technical know-how, expertise, financial strength and access to markets of MNEs. Many MNEs have initiatives to develop local businesses as MNEs understand the value of working with and building a strong network of local businesses to provide local market insights, tapping on the potential of the local markets and address gaps. It is a win-win for both the MNE and local businesses. Hence, it is important that our local businesses make the necessary investments to transform and be ready to partner and play a key part in the value chain of MNEs. The Partnership for Capability Transformation scheme and the enhancement that Deputy Prime Minister Lawrence Wong announced in the Budget will promote partnerships between MNEs and our local businesses. But our local companies can only do so if they have the capability. Let me now touch on an equally important point. For growth to be possible, businesses need people, people who have the relevant skills and knowledge to take on the jobs. The disruptions are impacting businesses structurally and, in turn, jobs. In an Adjournment Motion that I raised in 2022 on senior employability, I shared the findings of work that the PAP Seniors Group embarked on to better understand work and senior employability. One of my recommendations was the need for structural intervention in how we support learning and organise work. As people live longer and healthier, we continue to learn, are productive and desire to be able to continue to work as we age. But we will progress through our life stages in a non-linear way. Just as we allow for different pathways of our young in formal education, I highlighted the need to rethink how we structure learning for those in the workforce to enable continuous learning and work. Individuals, as well as employers, know the value of continuous learning. The challenge is the opportunity cost and making the time to substantially invest in it. Hence, the vicious cycle of talents gaps and skills relevancy affecting both businesses and individuals. I had asked that we find ways to allow a period of maybe a few months of work-related learning every few years. Then, we can really build skills. The SkillsFuture Level-Up Programme announced in the Budget is significant. It will support all Singaporean mid-career workers aged 40 years and above with $4,000 SkillsFuture credits for selected industry-oriented courses in sectors with good hiring opportunities; subsidise full-time diplomas at the polytechnics, ITE and arts institutions and give training allowance capped at $3,000 a month up to 24 months throughout one's lifetime. These measures are meant to offset income loss during the period. It also signals a recognition of the structural shifts impacting employment and the need for the right support for mid-career workers to proactively take the step to reskill and to enable them to deal with changes in employment by being future ready to take on new and good job opportunities. SkillsFuture Level-Up Programme is indeed a structural change in supporting mid-career workers. It will cushion the cost of retraining and I believe will go some way to encourage individuals to make the commitment and take charge of their reskilling and career. This will require a mindset shift and support from employers, educational institutions and family for reskilling and work and managing the transitions. It will require adjustment to all stakeholders including the mid-career worker as going back to formal education after some years can be daunting. There will be other considerations, such as finding and deciding on suitable courses that will lead to better employability and better jobs and for those who are not taking full-time courses, the ability to manage work and study. But ultimately, for SkillsFuture to be meaningful for workers, reskilling must align to business needs so that the result is really indeed securing better jobs. If we are successful in making the shift to reskilling, as advocated in the SkillsFuture Level-Up Programme, I am hopeful that it will make learning as systemic for workers in the workplace as it is for our young in formal education. Let me now touch on healthcare and senior care. With household facing higher cost pressures and cost of healthcare, I welcome the Government's revision of the monthly per capita household income (PHCI) criterion for means-tested healthcare and associated social support subsidy scheme. As stated, with the revision, more than one million will benefit from the higher subsidies. I would like to seek clarification on the revised thresholds and subsidies for Ministry of Health and Ministry of Social and Family Development long-term residential and non-residential care. The details provided make no mention of AV. Is AV no longer a criterion? In the case of retirees who have no PHCI, will AV be used as the means-tested criteria to determine eligibility? If the AV is even slightly above the AV threshold, they would not be eligible for any subsidies. I made this appeal in last year's Budget debate for a review and refinement of the means-tested criteria for senior long-term residential and non-residential care. If AV continues to be a means-tested criterion to determine eligibility, at risk of sounding like a broken record, I ask the Government to review how we support Singaporean families to care for their seniors, just as we support all Singaporean families with the care of their young children as announced in last year's Budget, without means testing. I am not asking for no means testing but a refinement of how AV is used to determine eligibility. The cost of eldercare services is not insignificant. Without subsidies, daycare services can cost from $945 to $1,430 per month. Dementia care services range between $1,260 to $1,575 per month before subsidies. For families that have both young children and seniors to care for, these expenses do add up. For retirees, the impact is even greater. Finally, I thank the Deputy Prime Minister for recognising the challenges faced with the increase in property tax in 2024 for owner-occupied residential properties with the sharp increase in the AV and for making the adjustment to widen the AV bands for the property tax for owner occupied properties. This means homeowners will pay less property tax in 2025 and following years if AV remains unchanged. As shared by CBRE Research, the adjustment to the AV bands will benefit the lower- and mid-tier properties the most with lower property tax payable in the range of 20%-30%. The adjustment will help homeowners, especially retirees, who may not be well-off. Together with the 24-month instalment plan without any interest, this will help retirees who are unable to make the lump sum payment for their property tax. Budget 2024 is a comprehensive Budget. It lays new foundations and building blocks for us to build our shared future together. To achieve the bold ambitions set out in Budget 2024 will require everyone, Government, businesses, individuals and community to take an active role and play our part. Mr Speaker, I support the Budget.
Mr Speaker3 words
[+1 sentence]Mr Gerald Giam.
Mr Gerald Giam Yean Song (Aljunied)1913 words
[+24 sentences]Mr Speaker, Singaporean workers aspire towards making a good living and engaging in meaningful work that uplifts not only their own families, but also their communities, their nation and the world. One inescapable reality of work is competition. We have always had a very competitive culture in Singapore. This has served us well in many ways, from the excellent performance of our students in schools to our efforts the top global rankings and everything from corruption perceptions to business friendliness. However, competition also has a darker side. Singaporeans are not looking to the Government to shield them from global competition. However, we detest unfair competition where people who do not play by the rules or follow local norms, still get ahead. For example, when Singaporean workers see colleagues getting hired and promoted not on the basis of their ability or hard work nut because their manager prefers working with people who share his cultural background, this creates a profound dissonance in them. Why? Because Singaporeans have been brought up to believe that meritocracy is a guiding principle in our society. We want a Singapore which rewards workers and professionals based on their competence and hard work, not connections or tribal loyalties. Nevertheless, while we strive to shape the Singapore that we desire, we are but a small drop in a vast ocean. We have to teach our children and students to deal with the world as it is, not how we wanted to be. They must be taught at home and in schools to speak up when they have something to contribute, not stay silent in the background. They must be encouraged to ask for what is due to them and not simply accept what others decide for them without question. And they must be willing to network with a wide spectrum of people from different cultures and nationalities and understand what motivates them. Singapore is often viewed as a nation of excellence. In local parlance, we do things "swee swee". Give Singaporean a task and when they say they have done it, we can trust that it has been done well. We must never let this culture of excellence slip. It is our advantage in an increasingly competitive world. AI and robotics both have both burst into mainstream consciousness in recent years, with the launch of generative AI and self-driving cars. These technologies could provide a path to boosting Singapore's productivity by enhancing the speed, accuracy and efficiency of various tasks and processes. There are many studies of AI's measurable impact on productivity. For example, a joint study by BCG and Harvard found that consultants using GPT-4 completed 12% more business tasks 25% more quickly with 40% higher quality than a control group without AI-access.[+2 sentences] These are amazing opportunities for Singapore to take advantage of. The Government can spur a broader uptake of AI and robotics, not only for our scientists and businesses, but also for general purpose use by ordinary citizens. In November 2023, I asked about whether the Government plan to develop indigenous capabilities in creating and deploying AI foundation models, including establishing a national Foundation Model Research Institute.[+4 sentences] In February 2024, I proposed the creation of a national AI Healthcare Foundation Model which can be used to predict and intervene in a broad spectrum of diseases. I would like to repeat these calls here. These are not just national initiatives but possible precursors to greater regional scientific cooperation. Singapore needs the right institutions and opportunities in order to attract and retain the best minds, including talented Singaporean students, scientists and entrepreneurs. I am under no Illusions about the potential of these new technologies to cause job losses. This is why in January 2024, I asked the Government for its plans to proactively retrain workers who are at most risk of displacement from AI.[+10 sentences] We need interventions to steel our citizens against AI-driven job redundancy. It is better for us to be the architects of our own disruption than to allow technology to change us for the worse. It is tempting to pull out the old playbook or pouring money into training programmes and encouraging workers to attend courses. However, this approach may not succeed in upskilling an entire workforce in disrupted new technologies. We must also embrace tacit learning, through the hands-on use of AI and robotics. Tacit learning is learning by doing. Using AI tools or robots needs to be made as easy and as commonplace as goggling for answers on a web browser or operating a television remote control. Robots should be deployed more widely in our environment so that the public get used to seeing and using them every day. Giving every Singaporean hands-on practice with AI and robotics will better ensure that the gains of these technologies go to everyone, manual workers and knowledge workers, civil servants and entrepreneurs, MNCs and SMEs. SkillsFuture must also support tacit learning. In February 2024, in my Adjournment Motion on global AI leadership, I called for the subscriptions to cutting edge AI tools to be subsidised by SkillsFuture credits.[+12 sentences] AI tools make workers more productive and we should give our people more opportunities to use them. We must strive for the whole breadth of Singapore society to have contact with the best AI models and robots. Only by trying them out as a first mover and being willing to accept and learn from failure can we gain and retain the thousand points of knowledge that no instructor can teach. In his Budget Statement, Deputy Prime Minister Lawrence Wong rightly pointed out that we are now in an era of armed conflict, confrontation and terrorism, with major powers prioritising national security over international cooperation and that there is a diminished willingness to tackle global issues. These are stark realities. We must work within the realities of this new world order as the old order is probably not coming back anytime soon. Deputy Prime Minister Wong said that we will pursue better jobs and better growth. He made a commitment to improve wages across professions. In particular, he said that the wages and career prospects of ITE graduates should not be too far behind polytechnic and university graduates. I fully support this. I hope the wages of skilled tradespersons will come much closer to par with knowledge workers, because of the value they bring to our economy and our society. I will elaborate further on this during the Committee of Supply debate on MOM's budget. The introduction of the SkillsFuture Level-Up Programme, which injects another $4,000 into Singaporean SkillsFuture credit is welcome.[+1 sentence] Deputy Prime Minister Wong said it is to be used for selected training programmes with better employability outcomes, including part-time and full-time diplomas and undergraduate programmes. In addition, workers 40 years and above will have the opportunity to pursue another full-time diploma at subsidised rates.[+9 sentences] Can I ask the Minister, how did the Government arrive at the conclusion that these diploma and degree programmes have better employability outcomes? Is there empirical evidence to support this and if there is, are the better outcomes due to the greater skills that these graduates have acquired or because local employers continue to emphasise paper qualifications over skills and experience? In fact, it has been recognised that one of the most effective ways to pick up employable skills is through on-the-job training (OJT) and apprenticeships. As such, I would suggest that the Government subsidise OJT and apprenticeship programmes to the same tune as diploma and degree programmes. In his Budget Statement Deputy Prime Minister Wong mentioned briefly about how the Government will do more to support those whose jobs are made redundant, through a temporary financial support scheme for the unemployed. He said the Government will be working out the details later this year. Sir, this scheme was announced almost one year ago at the National Day Rally in August last year. How much longer will it take to flesh out? More importantly, how fiscally sustainable will the scheme be? Will it include an insurance component, like what the Workers' Party has proposed through its redundancy insurance scheme, to ensure that premium contributions from employers and employees during times of plenty can be drawn down during economic downturns when retrenchment levels are higher?[+1 sentence] Mr Speaker, social inclusion must be at the heart of all our economic policies. I am glad to note that the maximum monthly fees at special education (SPED) schools will be lowered to $90, with lower fee caps at all centres.[+8 sentences] However, Singapore should move towards equalising the fees for SPED schools and mainstream schools. While I am aware that the cost of providing education at both types of schools is different, the school fees should be the same. Sir, mainstream primary school fees are only $13 a month. Then SPED school fees should also be $13 a month not $120, which is the current average. Even lowering it to $90, while commendable, is still not equitable. This is especially so considering the higher costs that parents of special needs children incur in many other areas besides education. The additional costs of SPED schools, should be socialised in the interests of creating a more inclusive and equitable society. School bus fares remain another significant concern for the disability community. As of 1 January 2024, the Ministry of Education has increased the price cap of school bus fares for school bus operators at mainstream schools by up to 13%.[+14 sentences] But we know that SPED school students face a higher increase in their school bus fares, due to the smaller pool of bus operators who are able to meet their more complex needs. I am aware and appreciate that there are various school bus subsidy assistance schemes, like the MOE Financial Assistance Scheme (FAS) and the Enabling Transport Subsidy (ETS). While I understand the need to keep the school bus operators sustainable, the adverse impact of the cost of living crisis has made the cost of school bus transport an added burden for many parents of students with disabilities. Many rely heavily on school bus transport to commute to and from home, school and social service agencies to attend programmes, such as the Early Intervention Programme for Infants and Children (EIPIC), daycare centres, sheltered workshops and special student care centres. Very often, there are additional costs involved. EIPIC, for example, is a half-day programme. So, the students also need to be ferried from their school to the programme, creating a double whammy in transport costs. I would, therefore, like to call on the Government to increase the monthly household income limit for both the FAS and the ETS, especially for households with special needs members. In addition, more subsidies can be provided to match the inflation of school bus fares. This would ensure that more families can access and benefit from these subsidies to cover the ever-increasing cost of living. In conclusion, Mr Speaker, as we chart our cause through the rapidly changing global and technological terrain, our policies must embody a steadfast dedication to fairness, meritocracy and innovation. By nurturing an ecosystem that champions fair competition, leverages the transformative power of AI and robotics and places the welfare and progress of every Singaporean at its heart – we can secure a robust and flourishing future. Let us remain committed to building a society with access to opportunities, a culture of excellence and the value of each individual's contributions shape the Singaporean journey for generations to come. Sir, I support the Motion.
Mr Speaker3 words
[+1 sentence]Mr Keith Chua.
Mr Keith Chua (Nominated Member)1591 words
[+4 sentences]Mr Speaker, Sir, thank you for the opportunity to share perspectives on this year's Budget – Building Our Shared Future Together. Implicit, as I see it, are the key words – Building, Shared Future and Together. In listening to Deputy Prime Minister Wong deliver the Budget on 16 February and subsequently reading his speech again, more than one time and reflecting, I feel very grateful that despite the uncertainties we will encounter, we are well-placed to face these together as one people. Budget 2024 addresses immediate issues whilst continuing to structure our future social compact. Budget 2024 is the start of an estimated spending of about $40 billion towards our new social compact.[+18 sentences] Budget 2024 continues to encourage and support necessary economic growth, albeit at a slower pace. Our Budgets typically attract the interest of the financial and business community. I do hope, though, that more Singaporeans will find time to read Budget 2024 in totality. I hope that even as the financial and business communities evaluate and debate the Budget from fiscal perspectives, that they will play a part in communicating the essence to a much broader constituency. Possibly, one reason for the limited engagement in the Budget details by our broader population is a historical implicit trust in our Government. However in this age of misinformation, it becomes essential that every Singaporean increasingly appreciates facts and realities. It needs to be seen beyond simple statements, such as Government handouts, if we are to be a part of contributing toward our shared future together. Mr Speaker, Sir, I would like to offer my observations under three themes or headings. Firstly, having been faithful and responsible in little and therefore being entrusted with much. Secondly, continuing to seek the welfare of our people and finally, recognising and appreciating our success and, in turn, sharing this both within and beyond our shores. Much has been spoken in our recent debate on our reserves and the prudent fiscal stewardship exercised by our Government over the past decades. But we need to understand that we started building our reserves with what we can assume was a smaller initial sum and, over the decades, have grown this significantly. In terms of our own economy, we started our economy from a challenging base and today we have been able to attract significant international investments and also develop a strong local business sector. Budget 2024 has acknowledged current challenges and has therefore provided support in a number of areas for both individuals as well as for businesses. Growth in our local business sector will come organically and will also come from new initiatives. We need to ensure our SMEs continue to thrive. We need to encourage entrepreneurship to stay vibrant and relevant. Innovative entrepreneurship can come from intentional support of budding social entrepreneurs. Perhaps some of the new and some of the enhanced funding provided under this Budget, including areas such as research and development, can be allocated to suitable social entrepreneurial initiatives that are not just seeking commercial return but also achieving social impact and social objectives.[+8 sentences] Budget 2024 provides for the welfare of those in our community who are more needy and vulnerable. Owing to structural shifts in our domestic economy and also in the global economy, some of our workers will find themselves involuntarily unemployed. Support may be helpful in conveying – they are not facing this alone and that both Government and the community are ready to help. I also hope and request that the approach we introduce will be wholistic. I would also encourage individuals who are unfortunately affected to try to stay positive in planning their future. Some may become involuntarily unemployed owing to physical or mental incapacitation. There are some existing avenues to help this group. However, it is likely some will fall in the gaps. Would the Government, in developing this support framework, review how help can be delivered to cover as many individuals who become involuntarily unemployed besides through retrenchments or redundancies?[+6 sentences] Our social sector must continue to retain talent and attract new talent to be ready to support both current and future needs. As we define success under our new social compact, I am hopeful that we will find many who will see this sector as a fulfilling vocation. Our youths and seniors will need a variety of targeted support and interventions. This Budget has outlined support for our seniors to improve their retirement adequacy amongst other areas of support. In this area, employers need to step up and provide opportunities for seniors seeking to remain in the workforce. Many of our larger local companies are doing well. Would such companies continue to step up and lead the way to meaningful engagement and employment of seniors?[+12 sentences] It is troubling that drug use is increasing amongst our youth. While enforcement may seem to be natural response, have we been able to identify what are the systemic issues that we may need to address? In a recent opportunity to hear from MHA, I am heartened that there is increased efforts to help early drug abusers rehabilitate and hope we can keep supporting this. There is also the issue of decline in mental wellness and the recent increase in suicide rates amongst youth. Again, what are the possible systemic issues that we may need to address? Thirdly, Mr Speaker, Sir, we have been beneficiaries of economic and material success. We are also a nation that is one of the safest and, largely, most secure in this rather troubled world. Many of us will describe this as being a nation that has been truly blessed. The proposed plan to help those who desire to help others is a tangible step to building a cohesive and generous society. It enables those in our community to play a part in contributing together toward our shared future. Engaging the Community Foundation of Singapore, MSF and Community Chest is an excellent starting position. So is the objective, which is to uplift the lower income members within our community with collaborative programmes and initiatives. The proposed Overseas Humanitarian Assistance Tax Deduction Scheme is a positive step, as we seek to share our blessings beyond our shores.[+4 sentences] I would note that, as a country, we have responded generously to appeals over the years without the tax deduction. The Government is stepping forward to support acts of humanitarian assistance, which should see increase in our levels of response should such unfortunate events occur. Last week, I had the opportunity to attend the City of Good Summit organised by the National Volunteer and Philanthropy Centre (NVPC). One of the keynote speakers spoke on the issue of water and the continuing challenge of clean water in many less-developed parts of the world. Statistics quoted were about 700 million people – or about one in 10 – do not have access to clean water.[+11 sentences] Many communities could live their entire life with little or no access to clean water. Our Embassy in Myanmar has helped communities access clean water. Clean water solutions have been initiated by Lien Aid in Cambodia, which I have had the opportunity to visit and to learn. I also had the opportunity to meet the Wateroam team in the Singapore International Foundation Young Social Entrepreneurs event, when they were in the early stages of startup. Wateroam was founded in 2014 by three Singaporean undergraduates while at NUS. When Hyflux was still an operating business, I was able to promote their portable filtration system for use in rural communities. When we talk about water solution, we also need to acknowledge the early efforts of Dr Jack Sim – founder of his very own WTO. For the benefit of Members here, WTO in this case is World Toilet Organisation. Dr Jack Sim has done a great deal in promoting clean water and proper sanitation. Mr Speaker, we have an amazing array of water solutions currently developed in Singapore, by Singaporeans. Lien Aid is serving in four Asian countries. Wateroam products and solutions are in 44 countries.[+2 sentences] As access to clean water will require varied approaches across countries, much more will need to be done globally to resolve this problem and to help develop lasting solutions. May I, therefore, propose that as we plan to pilot the Overseas Humanitarian Assistance Tax Deduction Scheme, we give some thought to starting a similar scheme for being a key player in actively providing and scaling global clean water solutions? Could such a collective project also be given the same tax deduction for our Singapore charities and social entrepreneurs, who can raise grants to scale up solutions for communities currently having little or no access to clean water?[+9 sentences] Solving the global water challenges will transform communities, address health issues, generate improved economic standards and improve access to education. Singapore can play a key part – bringing together existing and new providers and delivering a coordinated plan to solve this global challenge as a partnership of public, private and people sectors. Mr Speaker, Sir, we cannot afford to become complacent despite our significant achievements. There will be future challenges – some we may foresee while others may confront us suddenly, as with the recent COVID-19 pandemic. However, as Deputy Prime Minister Wong has mentioned, we have pulled through challenges over the past decades and often emerged stronger. We are embarking on a new social compact that will shape future generations. Budget 2024 continues to support our shared journey together. It is imperative that we stay united and build collective resilience. Sir, I support Budget 2024.
Mr Speaker4 words
[+1 sentence]Mr Gan Thiam Poh.
Mr Gan Thiam Poh (Ang Mo Kio)1134 words
[+29 sentences]Mr Speaker, Sir, I appreciate the various vouchers, payouts and rebates in the Budget to help middle- and lower-income households cope with the rising cost of living. It is welcome news, in fact, based on the feedback of my residents. With such supporting resources to tackle immediate challenges, our families should be in better positions to take advantage of the longer-term programmes to upgrade and upskill – so that they can continue to fulfil good jobs and earn higher incomes. There were some calls to dip into our reserves in the past so that more handouts and subsidies can be distributed. The House had debated on this issue recently. I would like to take this opportunity to express my agreement with many of my Parliamentary colleagues that, we should be prudent with the use of reserves and continue to make savings for future generations because they are our children and grandchildren. Mr Speaker, Sir, in Mandarin. (In Mandarin): Our parents and even ourselves, will give the best food to our children. Even though it is food that we ourselves enjoy, we will tell our children that we are not hungry, or that we do not like this food, but this is not true. All parents would want to give the best and save the best for their children and grandchildren. Our young and future generations are our children and grandchildren. Therefore, we have the responsibility to give the best to them to take care of them. With regard to the full disclosure of our reserves, it is in our national interest that the Government needs to guard against the ill-intended that may try to scheme away from us. In Hokkien, there is a saying, "capable or not, you will know once you try." In fact, in the past, there were more than one attempt by those with malicious intentions to attack our currencies. These attempts have all failed in the end. That was because we have strong reserves to deter attacks by the others. : Sir, as Prime Minister had said, our reserves is a precious resource which must be protected. We have to strike a delicate balance between meeting present needs and future emergencies. For now, let us work with this balance and find ways to increase productivity and augment our economic pie, so that we can finance the needs of our own generation and have some extra to contribute to the next generation, as our predecessors had done for us. Sir, we continue to face the threat of future pandemics and uncertainties. The war in Ukraine, Gaza and the resulting security threats in the Red Sea, disrupt supply chains. The invisible cybersecurity networks have further extended the dimensions of threats from land and sea, and to the air. The lessons from the Ukraine war have given a new perspective and definition of warfare. It becomes clear that we are vulnerable to the use of the technology that we have used to our advantage. Therefore, we need to continue to invest in R&D and support innovation. The family offices in Singapore should be encouraged to allocate resources to support the R&D and innovation initiatives in Singapore, including attracting top talents and scientists to Singapore to work with our researchers and scientists. They may include projects to strengthen our food and energy security. I am supportive of looking into the latest and safer nuclear technology, such as small modular reactors for deployment offshore as the additional green energy solution for our energy needs. In fact, just before I came in, I saw that one country has even successfully launched satellite from a platform in international waters. So, we can look at that – onshore and including in the waters offshore – to meet our energy needs.[+1 sentence] Next, about the employment of older workers. I support the Ministry's decision to continue with the planned CPF contribution rate increase for senior employees, age 55 to 65, by an additional 1.5 percentage points.[+2 sentences] This will enable our working seniors to build up more CPF savings for their retirement. There is a perception that persons age above 50 face greater challenges finding employment. Based on statistics released in the 2023 Labour Force in Singapore Report by MOM, the unemployment rate for PMETs age 50 and above, is comparable those age 40 to 49 and those below 30, at 2.6%.[+4 sentences] For non-PMETs – at 2.7% – it is the lowest of all age bands. So, I would like to urge for more job search support and matching for older persons who wish to continue working, especially those who have been retrenched. Of the employees retrenched in the last two years, does the Government have the details of their age groups, the duration of their job searches and how many remain unemployed presently? What are the success rates of retrenched workers age 50 to 55, 55 to 60 and those age above 60 respectively, in finding employment within six months? While I am delighted that all Singaporeans age 40 and above will receive a top-up in SkillsFuture Credit of $4,000 to be used for selected training, I hope that the Government will go beyond ensuring that these will bring about better employability.[+4 sentences] Will the Government consider tie-ups with employers, including the Public Service, to place those who have completed the relevant training to meet the job requirements? How about providing incentives to employers to offer jobs to seniors? Can the Government provide more details about how it is helping workers who are actively looking for jobs and what are the measures to detect and minimise age discrimination in hiring practices? Finally, about HDB flats – a topic close to my heart. While it is encouraging to note that about 100,000 units of public and private housing will be completed between 2023 and 2025, can more be done to shorten the waiting time for flats for young married couples?[+3 sentences] Subsidised rental housing under the PPHS and the one-year PPHS (Open Market) Voucher to support eligible families who rent a HDB flat in the open market are both excellent schemes. However, these flats are temporary accommodations. As moving house is one of the most stressful life events, it is no wonder that some couples choose to delay having children until they have moved into their own flats. With later births, couples tend to end up with having fewer children. Hence, I appeal to the Government to review its long-term HDB policy and see if it could consider building more flats – a certain number of HDB flats – ahead of time so that the waiting time for couples, especially the young families, can be shortened to within one year or one and half years.[+1 sentence] With this, I would like to conclude with my support for the Budget.
Mr Speaker4 words
[+1 sentence]Mr Ang Wei Neng.
Mr Ang Wei Neng (West Coast)1352 words
[+1 sentence]Mr Speaker, Sir, I rise in support of the Budget. We are pleased with the Budget measures to support companies in Singapore, particularly the $1.3 billion Enterprise Support Package to build capabilities.[+13 sentences] When I speak with many business leaders, the key concern always revolves around manpower. Given our low birth rate, it is difficult to hire enough Singaporeans to support the growing economy. Additionally, many of the business leaders say that many manual jobs and roles outside air-conditioned environments are not favoured by Singaporeans. Companies tell us that they sometimes have no choice but to hire foreign workers. However, the strict foreign worker quota and the continually rising minimum salary requirement for S Pass renewals are pain points for SMEs. It is commendable that the Government is encouraging SMEs to invest in technology, particularly in the fields of AI and green initiatives. For some SMEs, survival is paramount. I would like to suggest three areas in which the Government could assist our SMEs, which employ 71% of the entire workforce in Singapore. Before I proceed, I would like to declare my interest as the CEO of Strides Premier, a company that leases out vehicles and provides services to vehicles, including the maintenance of specialised vehicles such as fire engines, ambulances and oil tankers. Firstly, regarding manpower: some Singaporeans shy away from the retail sector due to the need to work outside office hours and on weekends. We would like Singaporeans to have more time to date, get married, to have children, to spend time with the families or care for their loved ones. So, it is very essential for this retail sector to supplement its manpower with foreign workers. Similarly, in environments without air conditioning, Singaporeans are also reluctant to work. Given these factors, I would like to call on the Ministry of Manpower (MOM) not to maintain and not tighten the foreign worker quota and foreign worker levy in sectors that are not favoured by Singaporeans, especially for the next three years where the world economy is very uncertain.[+2 sentences] In fact, many SMEs would like to appeal to MOM to increase the foreign worker quota for jobs that are not favoured by most Singaporeans. In addition, many entrepreneurs among my constituents in Nanyang lament that they have to substantially increase the pay of skilled foreign workers when they renew their S Passes. For example, a motor insurance claims executive who consistently works in hot and humid workshops will see his pay increase from about $3,400 to $4,200 upon renewal of his S Pass and this translates to an almost 24%-pay increase.[+26 sentences] Most Singaporeans would unlikely experience a 15%-pay rise in a year, even with a promotion. Such a significant increment for foreign workers' pay not only increases the costs of SMEs but also creates discord among their Singaporean co-workers. Thus, I hope MOM can consider a more moderate minimum salary adjustment for S Pass holders. Secondly, on Government projects, it is commendable that many Government sectors have centralised their procurement functions across different departments. The Home Team Science and Technology Agency (HTX) is one good example, where the procurement needs of the Police, Singapore Civil Defence Force (SCDF), Prisons and Central Narcotics Bureau are centralised for better synergies and transparency. Many civil servants are diligent in protecting the Government's interests when writing the tender specifications. For example, some Government tender contracts specify that payments will only be made upon the full delivery of expensive items, tools, specialised vehicles or only big payment on completion of projects, and they do not give any down payment or make progress payments. While this practice protects Government from receiving substandard products or reduces the risk of incomplete projects, it makes things very difficult for the SMEs. It is difficult for SMEs because with no down payment or progressive payment, it adds to the financing costs of SMEs. Given the current high-interest-rate environment, it will be challenging for SMEs to bid for such Government projects. Project tenders that do not offer deposits or progressive payments typically favour the large companies with deep pockets, especially MNCs. So, therefore, I urge the Government to review such practices to level the playing field for SMEs. Thirdly, on land use: thanks to the Ministry of Transport, we now have more Mass Rapid Transit (MRT) lines. Residents in the West, including those in Nanyang, are excited about the upcoming Jurong Region Line. The Jurong Region Line is not an underground line; it will run on MRT viaducts similar to most of the lines in the North-South and East-West MRT lines. The space below the MRT viaducts along the current MRT lines is not well utilised, unlike in other countries like Japan. Currently, we do see some of the spaces below the viaducts used for cycling paths. But these viaducts are near MRT stations and they are valuable land so we hope the Government can allow the space below the viaducts to be used by the private sector, especially for SMEs that provide important services such as childcare and eldercare services for the convenience of the residents. Mr Speaker, Sir, next, I want to touch on the topic of CDC Vouchers. I have spoken on this topic several times before in this House. Many residents, including those in Nanyang, are pleased with the 2024 Budget announcement of the additional $600 in CDC Vouchers for each Singaporean household. I have previously mentioned that CDC Vouchers are a better way to help Singaporeans mitigate the impact of inflation on two aspects. Firstly, the CDC Vouchers are to be spent in Singapore, mainly benefiting the heartland shops. The heartland shops benefit from these CDC Vouchers a lot. Unlike cash given under the GST Vouchers, CDC Vouchers cannot be spent abroad, especially across causeway. In addition, CDC Vouchers also have multiplier effects, as reported in the press quite widely. The only setback is that CDC Vouchers are given to each household, regardless of family size. Hence, I propose that the Ministry of Finance consider doubling the quantum of CDC Vouchers for every three registered Singaporeans residing in HDB flats.[+1 sentence] For households that do not need the CDC Vouchers, they can choose to donate the vouchers to those who need them more or simply refrain from spending, allowing the Government to redirect the resources to other more urgent needs. Lastly, I would like MOH and MSF to consider incorporating inflation or the Consumer Price Index, or CPI, into the formula used to determine the income criteria for various Government financial assistance schemes.[+2 sentences] The CPI component could function similarly to the price index used by the Energy Market Authority to determine electricity tariffs and how the Public Transport Council uses the price index in the fare adjustment formula to determine the adjustment of public transport fares. This price index is crucial, as inflation has been high over the last three years and is likely to remain elevated in the next couple of years. In fact, the real income of Singaporeans has declined by 2.2% in 2023, even though the nominal income has increased.[+6 sentences] This is a double whammy for low-income Singaporeans. When nominal income increases, many Singaporeans no longer qualify for financial assistance, as the Government only adjusts the income criteria very infrequently. At the same time, these low-income Singaporean families require more financial assistance as their real income has decreased in a high inflation environment. I understand that MOH and the MSF have promised to review the income criteria for blue CHAS card and financial assistance periodically. From experience in the past few years, "periodically" means once every few years. This is acceptable when the inflation rate was low in the pre-pandemic situations. But in the current high inflation rate environment, where periodic reviews are done every few years disadvantage low-wage Singaporeans very greatly. Hence, I appeal to MOH and MSF to incorporate the price index into the income criteria for determining financial assistance to provide for low-income families. In short, the periodic review should occur yearly or even quarterly, rather than once in a few years' time.[+1 sentence] Mr Speaker, notwithstanding the above, I support the Budget.
Mr Speaker4 words
[+1 sentence]Ms Ng Ling Ling.
Ms Ng Ling Ling (Ang Mo Kio)1559 words
[+5 sentences]Mr Speaker, I welcome the comprehensive packages in Budget 2024, with its focus on building our shared future together in the next decade as a nation that aims to remain vibrant and inclusive, fair and thriving, resilient and united. Last year, I rose to speak on three areas in my Budget Debate speech to urge strong efforts by the Government to: one, support working adults; two, care for our seniors; and three, support our young couples and families. For this year’s Budget, I would like to continue focusing my speech on considerations and support for these three groups who made up most of the residents in my Jalan Kayu Constituency. In the Jalan Kayu constituency, the largest segment is aged between 20 and 60 years old. They are mostly working adults who may be embarking on their first job to sustaining employment as far as possible in their senior years, all with the hope of retiring with comfort and confidence. As such, the Budget packages announced that can affect some of their career trajectory and opportunities are of great interest to them. I am delighted to hear that the Government is introducing the new SkillsFuture Level-Up Programme to better support mid-career workers. This includes a $4,000 top-up SkillsFuture credit in May to encourage more mid-career workers to refresh their skills and progress in their careers.[+1 sentence] However, I am concerned about the low take-up rate of individuals attempting to upskill or consider mid-career switches through the SkillsFuture Scheme so far. As data published from SkillsFuture Singapore (SSG) last year showed, across all ages, seven in 10 Singaporeans have not yet used their SkillsFuture Credit since the scheme started in 2015.[+13 sentences] I understand from some of my residents that despite the generous SkillsFuture Credit, time for attending approved courses is a major factor in them using up the credits. As such, I would like to ask the Government how it can further support employers to enable their employees who are motivated to upgrade, to be given more training leaves and time-off to pursue upskilling courses and more so, to embark on another diploma programme as the new top-up to the scheme will enable. Another consideration is the age of the Singaporean interested to utilise the top-up credit to stay employable. Let me share the story of one of my residents, Mr Lee, who is 64 years old and looking for employment. Mr Lee came to my Meet-the-People Session and shared that he held a diploma in mechanical engineering from Singapore Polytechnic and an advanced diploma in manufacturing technology many years ago. He had also taught modules and given lectures to ITE students previously. Mr Lee is healthy and hopes to continue working but he struggled in his job search due to his age. I worked with Workforce Singapore (WSG) to make referrals and tried to assist him in the journey. His case highlights the need for a more inclusive, flexible approach to career continuation for our older workers besides upskilling. For a case like Mr Lee, how likely would SkillsFuture Level-Up Programme help in his job search if he does invest time to take up another diploma? This is something in the mind of some of my residents in their 60s who are keen to continue to pursue life-long learning and to work well into their 60s and 70s, if they are in good health. Next, let me move to another group of important Singaporeans, our young seniors in their 50s. During my house visits and grassroots events, many of these young seniors have shared with me that they welcome the move by the Government to introduce the Majulah Package to better assure their retirement needs. One of these is the Earn and Save Bonus of up to $1,000 annually to help young seniors accumulate more retirement savings.[+10 sentences] A group of them are, however, full-time caregivers to their elderly parents who are in their 80s and 90s and who are frail. They shared with me that the Majulah Package would have been helpful for them too, but family caregiving is not recognised as a formal employment. Will the Government be open to adjusting some of the criteria for the Majulah Package's Earn and Safe bonus, such as by establishing the family members' genuine needs for full-time caregiving, and the duration of caregiving provided, to include this group of young senior caregivers, who are also concerned about their own financial needs, so that they can also benefit from the package? I also welcome the move by the Government to raise the Enhanced Retirement Sum from three times the Basic Retirement Sum, to four times, to allow more members, aged 55 and above, who wish to put more of their accumulated CPF savings to receive higher CPF payouts on retirement. Nevertheless, I would like to raise a concern for some single seniors, aged 55 years old and above whom I have met at my Meet-the-People Sessions, who have yet to settle their housing needs. The latest Population Trend 2023 showed that the proportion of singles rose across all male and female groups aged 25 to 49 years, between 2012 and 2022. This would inevitably mean that we would have more individuals who are approaching the age of 55 years old, who are still single. During my Meet-the-People Sessions, I have come across cases where the single seniors, who are 55 years old and above, who have finally succeeded in balloting for their own HDB 2-room Flexi flat, and were looking forward to having a home of their own as they reach retirement, but they are unaware that the sums from their Ordinary and Special Accounts, that have been transferred into their Retirement Account when they reached 55 years old, could not be used when their house came, for payment beyond the loan they can get from HDB at that old age. Some of them were disappointed that the extra sums transferred into their Retirement Account could not be reversed when they needed the amount to pay for these BTO flats. Even though they have tried to appeal to the CPF Board for the withdrawal of their Retirement Account for their flat purchases, the recourse for them is limited, as the CPF Board also needs to ensure that the Retirement Account amounts are maintained to support their retirement needs. Although the Enhanced Retirement Scheme is helpful for those seeking higher CPF retirement payouts, I urge the CPF Board to highlight and explain the policies for transfers into Retirement Account clearer and to work with HDB to advise those who have not yet settled their housing needs, to be more mindful of the amounts to be transferred into their Retirement Account. Lastly, I would like to speak about the aspirations of our young couples and families, and how they can be better supported to achieve their dreams of home ownership and starting their own family. I am glad that the Government has introduced the Parenthood Provisional Housing Scheme or PPHS (Open Market) Voucher in this Budget for one year to support eligible families to rent a HDB flat in the open market.[+3 sentences] I have encountered many residents coming to seek help at my Meet-the-People Sessions to secure HDB flats to start a family. They are usually young couples who have not been successful yet in their balloting for new flats – be it BTO or Sales of Balance flats – but hope to have a home to start a family soon or have a baby coming on the way. In fact, the request for assistance in balloting for new flats usually forms the majority of my Meet-the-People Session appeals to HDB for my young residents, especially during the BTO launch seasons. Could the Government consider extending the new PPHS (Open Market) Voucher also to couples who have been applying, but have yet to be successful in balloting for a new flat, especially those who are expecting their first baby?[+1 sentence] Finally, I also believe that more needs to be done to alleviate the fear of having children due to the high cost of living in Singapore. According to a survey done by Channel NewsAsia and YouGov in 2023, 52% of those below 35 years old cited the affordability of raising a child in Singapore as the main reason for not wanting to have one soon.[+5 sentences] As Budget 2024 looks towards supporting families at each stage of our lives, I hope that the Government can consider placing more importance on implementing comprehensive strategies, such as creating a social support ecosystem for mentoring young couples in financial planning, financial management, so as to reduce their financial anxieties associated with raising children in Singapore. Mr Speaker, as we look towards building a shared future, we must continue to adapt and evolve our support for the diverse needs of our people. From working adults striving for career advancement, seniors navigating their golden years, to young families dreaming of a brighter future, our policies must continue to be inclusive, flexible and forward-looking as we prepare for the next decade. Let us continue to work together to uphold the values of inclusivity, resilience and unity, ensuring that every citizen, regardless of age or life stage, can look forward to a thriving future, prepare for the challenges of today and the opportunities of tomorrow. Mr Speaker, I stand in support of Budget 2024.
Mr Speaker3 words
[+1 sentence]Mr Murali Pillai.
Mr Murali Pillai (Bukit Batok)2838 words
[+2 sentences]Mr Speaker, Sir, on 21 April 2023, during the debate on the President's Address in this House, there was an important agreement reached across the aisle between the hon Deputy Prime Minister and Finance Minister, Mr Lawrence Wong, and the hon Leader of the Opposition, Mr Pritam Singh. Both of them agreed that there is no place for populism in Singapore. Deputy Prime Minister Wong characterised it as follows: "Both sides of the House, we stand for a democracy that is maturing, a serious Government and a serious Opposition. But we say no to populism and political opportunism ever taking root in this House and in Singapore." This was a laudable bipartisan moment.[+21 sentences] It is also recognition of the fact that in countries where populism has taken root, societies have become divided, people have become polarised and the trust between the people and the Government weakened. Singapore should not follow suit. The agreement, however, presumes that we know what populism is. But do we? Most academics and commentators agree that the core feature of populism revolves around the division between the "people" on one hand and "the elite" on the other. Cas Mudde stated, "It is a thin-centred ideology that considers society to be ultimately separated into two homogenous and antagonistic camps, "the pure people" versus "the corrupt elite"; populist politicians advocate that they represent the "whole people" whereas the elite represents "special interest", regardless of the truth of the matter. The framing of issues is usually confrontational, antagonistic and emotive. This sort of populism – once we see it for the grandstanding and posturing – is really not very hard to reject. It is mere opportunism played out in the political arena. This is what I call "weak populism". But there are two further elements to populism. First, it is not always easy to see through grandstanding rhetoric and recognise opportunism in its true face. Second, populism is not always mere words – it also reaches into real policy action with a specific approach, which I call a "fool's gold" promise. Populism in action lulls people with the promise of easy money, soft compromises, zero trade-offs. These two elements – words and deeds – make up what I call "strong populism". And notwithstanding the forging of the agreement in Parliament, there remains no guarantee that this sort of populism will not take root in Singapore. Structurally, we will always be vulnerable. This is because, as in all modern democracies, we have a representative government, where a minority – that is the elected – represents our people, the majority, and has the mandate to govern. The suspicion that this representation is imperfect will always be there. We have seen several examples where people's fears, especially during crises, are capitalised by populist politicians espousing radical change. I will give two examples: one from the right and the other from the left. In November 2023, in the Netherlands, the Freedom Party, a far-right political party that fanned Islamophobia and anti-immigration sentiments amongst its people, with promises to de-Islamicise the country, made huge electoral gains and was the clear winner by a wide margin.[+3 sentences] It is poised to feature in a coalition government. Should that happen, it would not be difficult to imagine the impact on the cohesion of the country across race and religion. Let me identify the specific populist lever here – the use of religion and nativism to divide and polarise a country. In 1998, the late Mr Hugo Chavez, a charismatic Venezualuan leftist leader, came to power after promising to use Venezuala's vast oil wealth to reduce poverty and inequality.[+47 sentences] As President, he launched programmes that offered free or highly subsidised goods. He passed away in office in 2013. His policies continued though. In the end, the country's economy shrunk and hyperinflation set in, despite it being an oil producer. Again, let me identify the specific populist lever – which is to use price-distorting policies to give short-term, apparent benefits to people, at the cost of the country's long-term economic health. Both these acts are forms of strong populism to me. From my research, I noted a number of writers, particularly Prof Simon Tormey, who have observed that in recent times, the world is facing a populist insurgency. The fact that such political opportunists have taken in so many voters across so many countries, shows us that it is no easy matter to see populism for what it really is. We, as a country, therefore, need to develop the capability to recognise and emphatically reject this insidious and seductive form of divisive politics. If we do not do this, the consequences for us as a small nation will be serious. Just last week, I learnt about a speech that our first Foreign Affairs Minister, the late Mr S Rajaratnam, made in the UN General Assembly in October 1971. He said to the effect that small nations need to keep their own houses in order, to be able to secure their places in the world. In other words, small nations need to ensure that they retain social cohesion and political, as well as economic stability for the long term. The implication is clear. Unlike bigger countries, small nations like Singapore, when they fall victim to divisive politics that populism brings, they will be easy for the picking. They would no longer be taken seriously by their bigger neighbours. Once that happens, small nations would not have the ability to protect and promote their national interests in the international arena anymore. In other words, we will have a "double whammy", domestically and internationally. Therefore, our commitment to reject populism in its strong form, must therefore carry a commitment to educate all Singaporeans to recognise it when we see it and call it out. Which brings me to my second caution. Fool's gold and the easy choice. The rejection of strong populism commits us to a specific duty. It is a duty to make hard choices, to be accountable to the people of Singapore, by way of political and practical solutions to the social imperatives of our nation. The critical difference between this "hard choice" approach and a populist approach to policies is two-fold. First, this should be done without the histrionics that populism often attracts. I must say here that I am for even more scrutiny of policy proposals and performance from political leaders, from both sides of the aisle. What I am against here the chest-beating, sabre-rattling politicisation of issues that get in the way of true analytical discourse. Without the "noise", there will likely to be better engagement on the substance of the matter. In the end, there will be clarity on what parties are agreed and what they are not. This is what we should aim for. I feel that this distillation process is essential. Otherwise, there is a danger of performative politics entrenching itself in this House. Second, I believe details matter. We have reached a point in our country's development where solutions to most things are complex, and sometimes, finely balanced. It is characteristic for populist politicians to be short on details when advocating for a policy change. We politicians, from both sides of the House, need to do the homework, understand the background facts, and also understand how the status quo was forged, highlight the trade-offs inherent in the policy proposals, separate facts from fiction and then, go on to make arguments as to why the balance should be struck one way or another. I would also add one other point. Political leaders in office should eschew the tendency to just label policies as "populist", even though they may in fact receive broad support of citizens when what they really want to do is to make the policies sound unreasonable and irrational. This is a point that Francis Fukuyama made – and I agree with him. It is incumbent on leaders to go beyond labelling, highlight the precise aspects of the proposed policies that they are concerned about. It is this process of responsible contestation and distillation of ideas and proposals which, in my respectful view, will serve as a bulwark against the emergence of populism in its strongest form in Singapore. Through this process, there will be better accountability to our people. Our people, noting the areas where politicians are agreed and where they disagree, will be better placed to choose which future they wish to ascribe to through the ballot box. Let me underscore the point by making reference to the debate at the last session of Parliament on the national reserves. In opening the debate, the hon NCMP Mr Leong Mun Wai highlighted what he referred to as "social ills" that must be addressed. These included cost of living, social inequality, mental health and declining total fertility rate. To this list, the hon Leader of the Opposition, in his speech during the debate on the Motion added healthcare costs and intergenerational equity. Both hon Members advocated for the slowing of the growth of reserves so that more money can be spent on these areas.[+4 sentences] I, for one, do not see these human conditions as diseases or "ills" but as imperatives for the Government of the day, as moral directions for us to apply our best minds and our utmost resources. These social imperatives cannot be denied, but they cannot be solved by mere handwringing, or by profligate spending. Our duty is to be accountable in the way that I have outlined above, by a serious political commitment and spending our time, energy and resources in formulating and explaining our policies. Importantly, we need to be aware of the parameters of the hard choices at play and to reject the "fool's gold approach". To explain its hard choice in rejecting even more spending of the income from the reserves, the Government has stated that the reserves provide substantial "passive income" for expenditure in the Annual Budgets and given our unique vulnerabilities, we need to grow the reserves to ensure that we have a chance of overcoming what future challenge that may come our way.[+16 sentences] These points were articulated so well in my hon friend, Mr Shawn Huang's speech which I heard earlier today. Putting aside the use of monies from the reserves for the moment, I think there are two points arising from what both the hon Members have said that will find agreement on both sides of the House. First, that the social imperatives identified by both of them are legitimate. These imperatives require the attention of this House and the Government. In fact, I would say, as a backbencher, much of what I do in my constituency for my constituents revolve around dealing, amongst others, with such issues. Second, as responsible MPs, both sides of the House will reject spending for merely the sake of spending. This constitutes fiscal prudence. Hence, to make the case to spend more money will involve taking at least the following steps. First, an examination of the existing programmes that the Government has for the imperative in question. Second, a calculation of how much the Government is committing or spending on these programmes. Third, a performance assessment or review of the programmes. And finally, the articulation of the case for more spending on the imperative which will have to include dealing with the Government's points on "passive income" that the reserves currently provide and having sufficient ballast for the future. At this point, I would like to deal with the hon Leader of Opposition's point raised in his speech earlier that the Government should be even more forthcoming with information to make better decisions on the Budget. With respect, this is a red herring. There is already sufficient information available. In fact, at the last Sitting, the hon Prime Minister gave us a Master Class. Hon Members may recall he asked us to take out the back of our envelopes and follow him in doing the sums. He projected that the returns from the reserves at about 4%; he then said if we were to spend 2% for the Budget, that means 2% for the reserves. So, the reserves will grow at a rate of 2% per year and that more or less, keeps up with the GDP. So, we roughly know what is the band of the NIRC which has remained stable and contributes about one-fifth of our revenue.[+13 sentences] We also know that the variance of the operating revenue and the expenditures within a band of about plus or minus 4%. Of course, there would be situations where the predictability may be affected by, say, market situations. For example, for property tax, it went up because the AV went up and that is a function of the market. For that kind of situations, all we can do is we make best predictions and then make adjustments as we go along. But these will be the inputs for which we would have available for the purposes of making sure that whatever we are articulating as policy proposals for more expenditure can be supported and fiscally prudent. The hon Leader of the Opposition made reference to an article which appeared on 19 February in The Straits Times and he pointed out that some economists had also made the point about lack of information being forthcoming from the Government. One point to note, as he had stated, is that most economists lauded the Budget. One economist had asked about the use of pre-funding Government programmes, for example, the Pioneer Generation package and he suggested that there should be more transparency in relation to this plan. But the reality is, every year, the statement of accounts is presented to Parliament. That statement of accounts is actually audited by the independent auditors. All MPs can ask questions and it is also subject to scrutiny of the Estimates Committee. And, of course, drawdowns are also subject to scrutiny of the Auditor-General. Another economist felt that the amount of past reserves should be disclosed. This is something which, as we all know, the Government has a conscientious objection to. But most importantly, as I said earlier, the NIRC amount can be estimated and that is the important part for Budget planning.[+3 sentences] For these reasons, I would say that there is no real obstacle for anyone of us in this House to articulate holistically why more money or more resources should be spent for a particular policy imperative. I will now provide an illustration on the working of the framework that I suggested by dealing with the Cost-of-Living imperative. In October 2022, the Government unveiled a support package to give Singapore households additional help to deal with rising prices. The amount of monies committed for these programmes is a matter of public knowledge – $1.5 billion. Deputy Prime Minister Wong, in his announcement, said that the package was designed to fully cover the increase in cost of living for lower-income households and to cover more than half the increase in the cost of living for middle-income households.[+15 sentences] It is entirely open to hon Members who wish the Government to spend more to tackle cost of living issues to make the case that the 50% mark is insufficient for middle-income households and argue that it should be higher, say, 60%, 70% or even 100%. They should articulate how such a move would be in the better interest of Singaporeans and Singapore as a whole. What then this leads to is the crystallisation of a sum that is needed to fund the advocated policy proposal from the reserves or elsewhere with the accompanying reasons. The political office holder responding to hon the Member's proposal, if he disagrees with the proposal, will be well advised not to simply shrug it off by labelling it as populist. Rather, he must tackle the proposal head-on and explain why the current spending levels are sufficient and should be maintained, having regard not just to the specific issue but the big picture as well. Through this, we will gain a clear understanding of the points of agreement and disagreement as well as the reasons in support of the respective contentions. Singaporeans will be better able to follow the debate and the implications of the policy proposals should they be implemented or rejected. It is, of course, open to hon Members across the aisle to make their plans part of their election campaigns even if they may be rejected by the Government. That is their prerogative. But they must have such plans in the first place. If they do not, it is merely promising Singaporeans as a share of a piece of gold that disappears after election day. I view this as healthy politics as both sides will then present their cases to our people. In the end, it will be fellow Singaporeans who will judge and decide through the ballot box. This is how we prevent populism from rearing its head in our politics. This is how a high level of accountability to our people will be maintained.
Mr Speaker7 words
[+1 sentence]Mr Murali, you have a minute left.
Mr Murali Pillai132 words
[+6 sentences]Very well, Sir. If that is the case, I will just end off by saying that the social imperatives are upon us. We all know this and it is no great epiphany to point these out. If we are to really say that we have a serious Government and a serious Opposition, as exhorted by Deputy Prime Minister Lawrence Wong, the focus must fall on the generation of solutions to such imperatives and a reasoned articulation of why these solutions create better outcomes for our people whilst being fiscally prudent. And by democratic acclaim, let us stand behind the ones which we believe, as elected Members, most benefit the people of Singapore for now and the future and by so doing, reject populism in its strongest form. I support the Budget.
Mr Speaker3 words
[+1 sentence]Mr Pritam Singh.
Mr Pritam Singh286 words
[+16 sentences]Thank you, Mr Speaker, and I thank Mr Murali Pillai for his speech. I have been trying to follow very carefully what he has been suggesting. I think the broad strokes, typical of Mr Murali Pillai, you would not really disagree with them. But in terms of populism, I thought it would be important for me to just come down to some specifics. He mentioned some references in my speech to the 19 February Straits Times article. I think the point that I made in my speech was that article showed how people outside of this House, Singaporeans, in the context of the Forward Singapore exercise, were also looking at fiscal sustainability, fiscal balance, how the Government raises revenue and its expenditure policies. And in that regard, the point I made was we had put forth a proposal to smoothen that conversation, to better that conversation for the benefit of all Singaporeans. I understand he moved on later to talk about certain proposals that we have made for which the PAP has a conscientious objection. I think that is where I would like some clarification from him. If there is a conscientious objection, then what happens to the populism argument? Is it wrong for the Opposition to bring up those points? The second clarification I have is, again, bringing it down to an example. In this debate so far, we have the PAP Members speak up about building BTO flats in advance. What sort of numbers would the Member expect from anyone across the aisle or even in his own party, raising in Parliament, to substantiate that argument? Some clarity on that would be helpful. For the moment, I will leave it at these two clarifications.
Mr Speaker3 words
[+1 sentence]Mr Murali Pillai.
Mr Murali Pillai467 words
[+6 sentences]Mr Speaker, Sir, I thank the hon Leader of Opposition for giving me an opportunity to clarify certain aspects of my speech. Let me just take the point about conscientious objection. I would like to clarify that what I was referring to in my speech was in relation to the fact that we do not disclose the full entirety of the value of our reserves. So, that is the reference to our conscientious objection. And it was in the context of referring to one of the economists featured in the article which the hon Leader of Opposition referred to. There, the economist said that we should know the full amount; then, we would know whether the spending is high or low. The reference to conscientious objection is really the arguments made by the Government in the Motion on national reserves which I am sure the hon Leader of Opposition is familiar with. But more importantly, I made the point that for the purposes of the Budget, if one can calculate the NIRC already and I made reference to the hon Prime Minister's masterclass, in relation to how the reserves are projected to grow and the fact that the NIRC contributions are relatively stable.[+3 sentences] As far as the issue of the purpose of referring to the article itself, I take the hon Leader of Opposition's point. I understand that it is really with the view to provide further feedback on the Forward Singapore exercise and I welcome them. Finally, the point that my hon friend referred to is in relation to the building project of HDB. If we were to go through the analytical framework that I have suggested, the point is really about a Member of the Opposition, for example, articulating that even more houses should be built than what the Government is proposing, then what really needs to be done is to, first, identify the programme, highlight and find out how much exactly is being spent or committed for the purposes of building X number of flats, for example, and then also, in the same process, nail his colours to the mast and say exactly what he stands for in relation to the number of flats that is to be built, why is this important and then deal with the financial issues by reference to the allocation of the spend for the other aspects of the Budget as well.[+1 sentence] What I think would happen through this articulation, using this framework, would be a laudable outcome, which is that the people of Singapore outside this House would know that it is something that is being proposed, there is seriousness in the proposal because the facts and figures are there and then you could juxtapose what is the Government's position on the matter against the hon Member's position.
Mr Speaker3 words
[+1 sentence]Mr Pritam Singh.
Mr Pritam Singh101 words
[+2 sentences]Just a quick response to Mr Murali Pillai on his clarifications. In the case of the BTO example that was raised as part of this debate by a PAP Member, that example then would actually fail the test that Mr Murali Pillai has brought up. Similarly, when other Members on the other side say we want to introduce a scheme, such as Carefare, or they speak of — nobody said cost of living crisis, but I heard affordability crisis today by PAP Members.[+2 sentences] I am assuming that in Mr Murali's schema, that analysis would also have to follow. Just for clarification.
Mr Speaker2 words
[+1 sentence]Mr Pillai.
Mr Murali Pillai116 words
[+4 sentences]I thank the hon Leader of the Opposition for pointing out and asking whether the framework I have applies to hon members from both sides of the aisle. The short answer is yes. This is an exhortation not specifically to the hon Leader of the Opposition, or rather, hon Members from across the aisle, but it is actually from both sides of the aisle. And for anybody who wishes to make a proposal that involves extra spend, then you need to go through the analytical framework and I think then there will be clarity as to whether or not, ultimately, it is in the better interest of Singapore and Singaporeans to proceed with the extra spend.
Mr Speaker3 words
[+1 sentence]Mr Pritam Singh.
Mr Pritam Singh47 words
[+2 sentences]Just a last clarification. So, just to push the Member a little bit more. In the case of a commitment made by the Government, for example, to spend $40 billion up to the end of the decade for ForwardSG initiatives, should these also be laid out earlier?
Mr Speaker3 words
[+1 sentence]Mr Murali Pillai.
Mr Murali Pillai173 words
[+6 sentences]Mr Speaker, Sir, I am happy to be pushed by the hon Leader of the Opposition. I think I will just basically deal with it on a point of principle, and while he can take suggestions from my colleagues from the PAP, I can also refer to suggestions made by hon Members from his party. I still remember an example of setting up the Parliamentary Budget Office and that was a proposal made in this House and there was really no understanding as to how much money that would entail in not just setting up the office but in terms of its operations as well. So, I would rather that the points I made not be obscured. Let us stick on the principle and the focus is really to make sure that the ugly head of populism does not rear in our politics. And, thankfully, that is a bipartisan point and I do hope that, on both sides, there will be an opportunity to reflect on the contributions I made in this House.
Mr Speaker11 words
[+2 sentences]Assoc Prof Jamus Lim. You have a clarification for Mr Pillai?
Assoc Prof Jamus Jerome Lim (Sengkang)216 words
[+7 sentences]Thank you, Speaker, for the opportunity to clarify some points made by the Member Murali Pillai. I would just point out two things. First, I would respectfully disagree first that, with his claim that just because all the necessary information was provided by Prime Minister Lee with regard to this back-of-the-envelope calculations, it would be therefore reasonable for us to take his calculations as self-evident. Let me be clear, far be it for me to challenge the first Wrangler in Cambridge for his Maths. But I believe that he introduced a number of assumptions about expected returns to reserves and GDP growth and, indeed, about the amount that would be returned to the reserves based on the way that the Government calculates the primary surplus vs the IMF recommendations. So, my question is: if the Member accepts that these assumptions are not necessarily self-evident, is it reasonable, in a debate, for us to question these assumptions? My second point builds on this and I ask if the Member would think that the Government would be comfortable with making the kind of public policies that they have proposed just based on the publicly available information that is currently available to the Opposition or whether the Government would actually require more information that is not made publicly available.
Mr Speaker3 words
[+1 sentence]Mr Murali Pillai.
Mr Murali Pillai254 words
[+3 sentences]Thank you, Mr Speaker, Sir. Sir, in reference to the hon Member Assoc Prof Lim's first question about the propriety of the assumptions, this is a point which has been discussed at length. Let me just say that what is relevant for the purposes of the Budget is the proportion of NIRC. Even if we were to put aside the assumptions of growth, the fact is that the NIRC, which is reflected in the Budget, has been relatively stable and it is now for every dollar that has been spent, 20 cents comes from NIRC.[+3 sentences] So, from the perspective of anybody proposing to spend more, these facts would be important. I do accept that my hon friend across the aisle may have a different view about the extent of the information that is needed. But the point I am making, and I guess we can agree to disagree, and I said this advisedly, that this actually is a red herring. Because all the information needed to calculate revenue is there, in terms of NIRC, in terms of the operating revenue expenditure which falls more or less within a defined variance as well.[+2 sentences] So, for these reasons, I think we are not disadvantaged. As far as the second point is concerned, and I stand corrected, I think my hon friend mentioned about whether the Government would be comfortable—I am sorry that I kind of stopped there, if the hon Member could just clarify the purport of his question, I will try my best to answer.
Mr Speaker3 words
[+1 sentence]Assoc Prof Lim.
Assoc Prof Jamus Jerome Lim60 words
[+3 sentences]Yes, my clarification is simple. The Government routinely makes policy. So, my question is whether the Member thinks that the Government would be willing to be comparably hamstrung in terms of only making public policy on the basis of all the publicly available information or they feel that the Government can only make policy when there is additional proprietary information.
Mr Speaker2 words
[+1 sentence]Mr Pillai.
Mr Murali Pillai116 words
[+4 sentences]Thank you, Sir. I think there is a false premise in the question. It is about the Government being hamstrung in relation to public information. I mean the point is this. As far as the Government is concerned, it puts out the operating revenue, it puts out the proposed operating expenditure and there are, of course, constitutional requirements to make sure that the Budget is balanced and it is against that backdrop that we can do the analysis as to whether the proposals meet the aspirations or the requirements of Singapore and Singaporeans for now and the future.[+1 sentence] So, I see this as based on a false premise and, therefore, I will not answer the question.
Mr Speaker9 words
[+2 sentences]Assoc Prof Lim. Hopefully, it is the last clarification.
Assoc Prof Jamus Jerome Lim67 words
[+5 sentences]Much obliged, Speaker. I will be very brief. So, the Member Murali has mentioned repeatedly that there is a red herring, that we have all the information that is required based on the fact that the share of NIRC is stable. My question to him is simple. Does he think that this stable share has nothing to do with the assumptions about expected returns or GDP growth?
Mr Speaker2 words
[+1 sentence]Mr Pillai.
Mr Murali Pillai79 words
[+1 sentence]Mr Speaker, Sir, as far as the issue of it being stable, that is an empirical fact. So, that is something that is being set out in the Budget Statement. So, as far as contributions are concerned, of course, there is a certain projection and is made by reference to a certain framework.[+1 sentence] So, there is no — I mean, subject to the assumptions inbuilt in the framework, it is not just plucking a figure out of the air.
Mr Speaker8 words
[+2 sentences]Let us move on. Mr Ong Hua Han.
Mr Ong Hua Han (Nominated Member)2532 words
[+3 sentences]Mr Speaker, thank you for allowing me to join this debate. Sir, Budget 2024 as delivered by Deputy Prime Minister Lawrence Wong is a sustainable and forward-looking one. At the same time, it seeks to address immediate cost-of-living pressures. The fact that we can take a medium- to long-term outlook and yet expect a small surplus of $800 million reflects our privileged financial position.[+15 sentences] For this I am thankful. Budget 2024 is also about building our shared future together. It is about refreshing our social compact. If these phrases sound familiar, it is not just because we have heard them many times today already, but because they are the same phrases used to describe Forward Singapore. In other words, Budget 2024 is the first step in bringing Forward Singapore, the vision of our nation's future, to life. Forward Singapore mentions "inclusiveness" as a shared value that must be upheld. The word "inclusive" or "inclusion" has likewise been used many times in this House. When a word has been used so often, it runs the risk of losing its meaning. When was the last time we paused to think what "inclusion" really means? In this context, I would like to dedicate my speech today to talk about inclusion or social participation of persons with disabilities in Singapore. At its core, social participation refers to the active engagement of individuals in all aspects of society. Today, I will look to cover five areas, from education, transport, sports, housing, to employment. To prepare for this speech, I thought it would be best to hear directly from the voices of young persons with disabilities (PwDs). I wanted to know how they saw Singapore, through their unique lenses and lived experiences. Underpinning this is a firm belief that understanding this well will guide us towards more inclusive and effective policies. As such, I collected the experiences and thoughts of 136 PwDs between the ages of 15 and 35 through a public consultation in the form of an online survey over the course of a few weeks.[+9 sentences] To those who earnestly contributed, thank you for indulging in my unpolished attempt at gathering feedback and for your valuable insights. I will be sharing some of your ideas and hopes today. For PwDs, social participation is not only essential for their personal well-being but also for fostering a sense of belonging and inclusion within society. Social participation encompasses the ability to interact meaningfully with others, access shared public spaces and services, and participate in enriching and fulfilling activities. True integration enriches the social fabric for everyone, cultivating a culture of empathy, diversity and mutual respect. It should not be surprising then that education should serve as the foundation for social inclusion. Education, especially at a young age, equips PwDs with the knowledge, skills and opportunities they need to succeed in life. Programmes, such as the TRANsition Support for InTegration (TRANSIT), is a great way to positively integrate students with behavioural difficulties into mainstream settings. To ensure a smooth transition from school and foster a truly inclusive society, it is also crucial to address the social challenges faced by PwDs with special education or SPED school backgrounds. According to MOE, in the past three years, 18% of students with autism from SPED schools continued their education in mainstream secondary schools after passing the Primary School Leaving Examination (PSLE). A further 18 SPED school students with autism transferred midway to mainstream schools after being assessed to be suitable.[+26 sentences] Thirty-one percent of the autistics I surveyed said they rarely interacted with students without disabilities during school activities. Outside school, 35% said they rarely interacted with their non-disabled peers and 15% had no such interactions. The two most common reasons given were previous experience of name-calling or bullying and concerns about acceptance. In the face of this, we have to ask ourselves what can we do to minimise such seemingly common negative experiences. One possibility may lie in bridging the awareness gap. School settings are a great way for mainstream students to benefit from meaningful interactions with their peers with disabilities. It breaks down social barriers and will reduce awkwardness later in life. One suggestion that was shared with me, was to incorporate awareness lessons specifically about disabilities into the school curriculum. We could also go one step further and impart such lessons organically during Physical Education (PE). When I was in school, I was often – by default – entrusted with the role of safeguarding my classmates' mobile devices when they did their PE lessons. It was always my honour to be given such great responsibility at a young age. This role, though, kept me on the sidelines. I vividly remember one exception, when I was first invited to play a game of poison ball in Primary school, by our favourite PE and form teacher. It was a rare opportunity for me to bond with my classmates in lighter settings. I enjoyed those moments. To foster awareness and acceptance of others, play time is the best time. How can we do more of this, rather than relying on the spontaneity of a few good teachers? Could MOE study ways in which we could institutionalise more inclusive PE programmes in mainstream schools? Sports is often regarded as a powerful social leveller; this is a great opportunity to harness the same to weave inclusivity into the fabric of early education. Sir, the ability of PwDs to participate freely in shared spaces also hinges on our commitment to ensuring comprehensive access and seamless public transportation. In the face of Singapore's restrictive car ownership policies, this is doubly important. PwDs do appreciate the accessibility features in our public transport network. Some that were shared with me include: wheelchair zones in buses and trains, generally well-designed MRT stations and the MyTransport.SG app, which shows bus arrival timings. As a regular MRT user myself, I share these positive observations. Compared to many other cities in the world, we are blessed to have an MRT system that is generally quite accessible for wheelchair users. However, there is more that can be done in this area. In my survey, 63% of those with physical disabilities said they use public transport two days or less in a week. Forty-two percent of this group rarely uses or totally avoids using public transport during peak periods.[+15 sentences] Difficulties encountered when using public transport include: platform gaps in the MRT system, slippery floors on buses that cause wheelchair sliding even when the wheels are locked and unexpected closure of the only accessible route. Other PwDs also face different types of problems while taking public transport. One PwD shared that no one offers a seat on the MRT even when a yellow card with details about their medical condition is prominently displayed. Another also shared the same concern about the lack of acceptance of invisible disabilities – this individual has neuropathic pain due to surgery and sometimes needs to sit down to minimise pain. I understand that the Ministry of Transport (MOT) through LTA has been working on this area, introducing programmes, such as the priority cabin pilot and the invisible medical condition card. "Hardware" solutions like gap fillers, while not able to fully solve for the height difference between the platform and train floor, helps to narrow the train gaps and enhance safety. Given awareness and acceptance of less obvious conditions still fall short, could MOT study ways to further elevate the visibility and understanding of the invisible medical condition card? Earlier, I made a brief mention of sports in the educational setting. In the broader context, sports and recreation plays a vital role in promoting physical and mental well-being among PwDs and promote social inclusion. Competitions like the Special Olympics and the Paralympic Games, provide opportunities for PwDs to showcase their talents and abilities on a global stage. These events not only empower PwDs to pursue their passions and flourish, but also challenge stereotypes and limiting perceptions about disability. Our national athletes fly the Singapore flag high at regional and world level competitions and are elite performers in their respective fields. But what about those who do sports recreationally? Access to sports and recreational activities remains a challenge for many PwDs due to a lack of inclusive programming or facilities, their medical condition or a combination of these factors. The Ministry of Culture, Community and Youth (MCCY) has been making progress in ensuring that more sports facilities are accessible and inclusive. For example, I understand that SportSG is on track to make all 27 ActiveSG gyms inclusive by 2026.[+10 sentences] On top of this, SportSG is developing an inclusive ActiveSG gym orientation programme, to encourage gym usage by PwDs, which is a good initiative. Interestingly, based on my findings, 67% of those with physical disabilities have not used any of their free ActiveSG credits. This is 59% for autistics and 58% for those with sensory disabilities. During the weekend, I did my regular swim at an ActiveSG Sports Centre – a routine I have kept up for many years now. As always, I observed no other wheelchair user in sight. This is despite facilities being outfitted with accessible ramps and toilets. Apart from improving infrastructure, we must therefore make the effort to help more PwDs feel empowered and safe to exercise and play sports in shared spaces. Boosting PwD sports participation is something that we should strive for and I will speak more about this during MCCY's Committee of Supply. Moving on, housing is the cornerstone of the Singaporean dream. For PwDs, this is no different. Eighty-one percent of the PwDs I surveyed, said that they wish to buy their own house in future.[+18 sentences] Yet, 48% of those with physical disabilities rated the likelihood of purchasing a house between one and three out of 10, with 10 being the likeliest. Thirty-four percent of autistics I surveyed rated the same. Much like everyone in Singapore, cost of housing is a common concern for these groups too. We must do more to facilitate home ownership among PwDs. There are significant financial barriers to PwD home ownership, because of additional expenses they incur in their lifetimes and/or lack of stable employment. We should look towards bridging this gap. One suggestion raised to me is subsidised rental programmes for PwDs. As independent living may be a daunting prospect for some, why not lower the barriers to entry – let PwDs and their families have a tangible experience of what is possible in a financially accessible way, while they work towards home ownership? Access to good housing fosters a sense of community and a sense of having a stake in our country. We must explore innovative solutions that empower PwDs in this regard, tailored to their varying levels of independence. I will also raise the topic of inclusive housing policies during Ministry of National Development's (MND's) COS debate. Lastly, on employment. Meaningful employment is vital to economic independence for any adult and adds to the feeling of having achieved. However, for PwDs, the path to meaningful employment is often clouded by challenges and barriers that hinder their potential and opportunities. One PwD shared that during job interviews, interviewers did not think that they would be able to work. This was despite years of different job experiences. Another shared about their very low income level. Many PwDs also work part-time, often not by choice. According to MOM, there is a 13% median pay gap between PMETs with disabilities and those without. The ratio of part-time to full-time employed PwDs in the workforce is approximately one to four.[+1 sentence] Some of the key barriers often encounter by PwDs in relation to employment is discrimination, lack of accommodations and limited access to training and career development opportunities. While I acknowledge the Government's acceptance of the Tripartite Committee's final recommendations, which excludes reasonable accommodation provisions from the initial form of the upcoming Workplace Fairness Legislation (WFL), this decision poses significant questions.[+13 sentences] It becomes crucial to understand the Government's strategy for ensuring that PwDs receive the reasonable accommodations they need to participate in the workforce. We must address how to prevent these accommodations from being left to the discretion of individual employers, which could lead to subjective biases. At the workplace, the welfare of PwDs is also not something to be overlooked. Thirty-nine percent of those I surveyed said they were often or always experiencing feelings of loneliness at their workplace. Some PwDs hoped for more support from their teammates at work. For others, it is as simple as being invited for lunch. We spend so much of our time at work. A little more attention and effort from each of us could go a long way to make a positive difference to those around us. In Budget 2024, SkillsFuture has been presented as a key pillar of Singapore's social compact. In other words, it serves as a social leveller in Singapore. To ensure it truly serves its purpose, we must ensure it is accessible to all groups of Singaporeans – including PwDs. According to feedback gathered from PwDs by the Disabled People's Association (DPA) Singapore, PwDs still face significant barriers in accessing the SkillsFuture system. This ranges from course materials not in accessible formats or training providers unwilling to provide reasonable accommodations. While I understand that SkillsFuture SG works with the Enabling Academy and disability organisations, such as DPA, to help training providers offer reasonable accommodations, implementation is not mandatory.[+15 sentences] The Enabling Academy also curates courses specially for PwDs as an alternative. Although well intentioned, these courses are significantly limited in scope compared to the extensive offerings available within the broader SkillsFuture system. This not only restricts opportunities available to PwDs, inadvertently causing them to fall further behind, but also risks further segregating them from wider society. In light of this, I strongly urge the Government to deepen its commitment to inclusivity in Budget 2024 and ensure that we make SkillsFuture accessible to all users. Harnessed correctly, SkillsFuture has big potential to not only enhance career opportunities and professional enhancement for PwDs but also to cultivate greater societal integration and strengthen our social fabric. Sir, let me now close. In preparing for this speech, I recalled the words of American writer, Max Ehrmann, "You are a child of the Universe, no less than the trees and the stars; you have a right to be here." Mr Speaker, inclusion is not just a matter of accessibility or accommodation; it is not merely about enabling one to hold on to a job, make a living. No – it is about thriving. It is about ensuring that every person, regardless of their abilities or disabilities, has the opportunity to fully engage in community, to enjoy life and pursue their aspirations. Society must give every Singaporean the courage to dream. By breaking down barriers, challenging stereotypes and fostering inclusive environments across various domains, we can create a society where all individuals – including PwDs – can be a part of a greater whole and contribute meaningfully. Let us work together to build a more inclusive Singapore, where everyone has the opportunity to reach their full potential. Let us make Forward Singapore a reality for all. Sir, I support the Budget.
[+9 sentences]Sir, I support the Budget Statement by Deputy Prime Minister and Finance Minister. I appreciate the efforts by the Government for the financial policy of the Government to look after everyone. There are provisions to help individuals, help families, workers and businesses. Many people view the Budget Statement as simply an announcement of the goodies which the Government dishes out for its citizens. I really hope that we can change that mindset. The financial policy of the Government must be not just to help our citizens tide over their current issues but also to provide a roadmap for Singapore's future. If the Government does not plan for the future, then we are merely putting out fire every time a crisis happens. Sir, there are just four items that I would like to talk about. First is cost of living. We had an extensive debate in Parliament in November last year, about the increased costs of living. Thus, I am glad that the Government continues to acknowledge the increased costs of living and has enhanced the Assurance Package given to the tune of $1.9 billion so that everyone benefits and those who need more help get a little bit extra. The disbursement of cash, GST vouchers, U-Save rebates, S&CC rebates and CDC Vouchers will certainly help residents cope with the increased costs of living.[+12 sentences] It should not be seen as an "ang pow" or as gift to citizens, but it is meant to alleviate the increased expenses that every household is facing today. However, my concern is that such cash, CDC Vouchers and other rebates cannot be a long-term solution. After a while, citizens may keep asking for more and more cash handouts and rebates. Eventually, we may possibly develop a crutch mentality for such handouts. Sir, I worry for the day when due to exigencies like another COVID-19 pandemic and the Government cannot balance its Budget, what then will the Government do? Hence, I wish to urge the Government to review the reasons for the increasing costs and to find ways to mitigate such increases. Many businessmen that I speak to complain that the two main reasons for costs inflation is firstly, escalating land costs; and secondly, labour costs. The businessmen lament that if the Chief Valuer continues to assess properties at a high price, then the rental of shops, offices and other industrial buildings may never come down. A case in point is when the Government rejected a bid for the Marina Gardens Crescent site because the bid was too low. This means that if the Government maintains that the right price for land is a higher price based on the valuation set by the Government, then land costs will always remain high, and this will in turn cascade down to the ultimate user of the properties, who are the tenants. Sir, I urge the Government to consider setting some form of conditions or restrictions on the sale price or rental price for some commercial properties so that we can moderate the rental prices of properties, and hence, keep the cost of land down. For labour costs, I believe that many businessmen gripe about being unable to find workers for some of the less-desired work that Singaporeans shun. This shortage of workers can be seen clearly in the cleaning industry where many cleaning companies simply cannot find cleaners, for example for the Town Council conservancy contracts or the cleaning contracts for the hawker centres. So, I urge the Government to review the foreign worker dependency ratio in areas where we are quite certain that Singaporeans will not want to work.[+12 sentences] This will help businesses survive and help keep the costs of labour more manageable. Next, I will talk about preparing for the future. I applaud the efforts of the Government to strengthen SkillsFuture. The programme was launched in 2015 and each Singaporean received a credit of $500 into their account. A further top-up to the SkillsFuture Credit was made in 2020. The SkillsFuture programme is an important principle that learning is for life; every Singaporean must do their part to continually upgrade themselves. Sir, I confess that it took me almost six years before I used the SkillsFuture Credit to attend a Vietnamese course from a language school. It has been many years since I attended formal lessons in classes. As expressed by the hon Member Dr Wan Rizal, I was very nervous about having to attend classes and eventually I was told that I had to pass a test before I could make a claim for the SkillsFuture Credit. But these lessons has allowed me to build up confidence that with some effort and perseverance, we will be able to adapt to learn new skills. So, my intent is to try to pick up conversational Bahasa Melayu sometime this year or next. And sometime later, I would like to take up a basic course in plumbing at ITE so that I can learn some life skills or take some courses to learn how to maximise the use of AI to improve my life. But, Sir, the important message from the Government is that each one of us is responsible for equipping ourselves for the future – whether it is for self-improvement or to improve our career prospects, that is for each individual to decide. And for citizens in their 40s or 50s, having the $4,000 credit and the opportunity to learn updated skills to enhance their employability is so important.[+10 sentences] They can also tap on various other Skills Development Fund grants to help pay for their courses. Next, Sir, I would like to talk about supporting the retrenched workers. In March 2017, I had asked the Government to consider mandatory retrenchment benefits for workers who had lost their jobs due to retrenchment. In my speech made seven years ago, I had said that for the worker who is retrenched without any compensation, it is a frustrating time for him as he struggles to provide for his family. Thus, I am truly glad that the Government had in principle agreed that we can do more to support workers who are involuntarily unemployed because displaced workers are already straining to make ends meet. I look forward to hearing more details of the scheme so that citizens who lose their jobs involuntarily can have some temporary relief while they re-skill themselves and find another job. Finally, supporting the retirees. Sir, within my estate, there are several retirees living in private properties who are either living off their pension or living on their savings. They have worked hard their entire life to contribute towards building up Singapore. And some of them have the fortune to invest their savings into buying a private property for their golden years where they hope to live the best part of their life. The Assurance Package has certainly helped them and I want to express my deepest appreciation to the Finance Minister and to the Government for sharing part of Budget 2024 to residents living in private properties.[+1 sentence] Some retirees are better off than others. But for those who have no other source of income other than their savings or pension, I wish to make a pitch for them and to ask for a review of the owner-occupation property tax hike. I appreciate the Government's gesture for adjusting the Annual Value bands for owner occupied residential tax rates. But for this group of retirees without income, the increase in tax rates last year has caused them distress.[+1 sentence] May I ask the Government to consider a special property tax relief for this small group of people. The 24-month instalment does not help them because it is still the same tax amount payable by these owners which they will have to dig into their savings, nor do they benefit from the other tax measures like the income tax rebate because they do not have any income. So, Sir, I urge the Government to consider showing appreciation for this small group of retirees without any income by acknowledging their contributions to Singapore and by offering them a special property tax relief.[+1 sentence] Sir, I look forward to the Government's response and I repeat my support for Budget Statement 2024.
Mr Speaker29 words
[+1 sentence]Mr Lim, you are a good role model of life-long learning – lawyer, future plumber and for those who do not know, he is also a black-belter in Taekwondo.
Mr Speaker4 words
[+1 sentence]Ms Poh Li San.
Ms Poh Li San (Sembawang)1039 words
[+7 sentences]Mr Speaker Sir, I am in favour of the 2024 Budget, in particular, the $3.5 billion allocated to Age Well SG to assist seniors to age actively, healthily and happily. I look forward to adding more senior-friendly facilities and amenities in our housing estates. However, I hope that beyond adding hardware, we can also use the funds for heart-ware programmes There are two areas I would like to address. One, inter-generational preparation and safeguards towards degenerative ageing conditions like dementia, and two, programmes that will increase social sustainability amongst the elderly. In my October 2022 Adjournment Motion, I shared three ideas on impending dementia emergency for inclusion in the Healthier SG framework. Today, I would like to highlight how dementia and community mental health efforts can be part of a broader social-health integration. In recent years, as more caregivers come forward to share their struggles caring for loved ones living with dementia, Singaporeans are increasingly aware of this condition. By 2030, there will be around 152,000 persons projected to be at high risk of dementia.[+2 sentences] Presently, almost every child is using digital devices. This is a worrying trend. In 2022, an American study detailed how, Gen X, Y and Z, and even younger generational youths will have a further four-to-six-fold increase in risk of Alzheimer's disease and other forms of dementia.[+10 sentences] This is largely due to the prevalent use of computers, mobile screens and digital computing. Dementia as a societal reality will affect our population as a whole. MOH should consider commissioning similar studies to look into how we can prepare for the fight against dementia. At Sembawang West, we have initiated some programmes and these are some examples. Back in October 2022 and at around the same time of my previous Adjournment speech on dementia, the Sembawang West team brought together a panel of community leaders, local caregivers and people living with dementia. The purpose was to discuss the difficulties that the caregivers face and for the community leaders to understand the user experiences these individuals would prefer. Since then, regular discussions facilitated by AWWA CREST and Dementia Singapore have been organised. Together with AWWA CREST, Republic Polytechnic and People's Association and grassroots volunteers, the working group also convened a four-day hackathon for hyperlocal dementia ideas for the Woodlands region. In addition, a Community Living Resource initiative for the Woodlands Region will be launched soon. This will be organised by agencies such as Care Corner, Club Heal and Sembawang Town Council. Earlier this year on 6 January, our local ground-up Sembawang-Woodlands Dementia Search Activation Network (D-San) Telegram group was featured at the #DementiaFriendlySG exhibition at the National Museum.[+19 sentences] We are glad to see how the awareness and public campaigns of dementia-friendliness have spread across Singapore since the first dementia-friendly community was launched in 2012 at Yishun. These DementiaFriendlySG efforts could only be possible with our "many hands on Deck" collective efforts across the various community partners in Singapore over this past decade. I would like to acknowledge the contributions from the founding members of our Dementia Workgroup at Sembawang West – Soh Lai Yee, MaryAnn Khoo, Nicodemus Ching, Samuel Lau, Noraini Yusof and Carol Tan. We appreciate what you have done for us. On another note, I would like to highlight what many of us are very concerned about these days – mental wellness of caregivers. Many of my fellow MPs have been speaking about mental wellness. But in the context of dementia, many caregivers living with people with dementia are likely to be psychologically impacted. We have to ensure that all caregivers and community volunteers are regularly monitored and that they are constantly supported by social workers. My next point is about the integration of health and social services. More synergies can be unleashed if service boundaries across health and social services are integrated. MOH campaigns such as Healthier SG, National Mental Health and Wellbeing and Action Plan for Successful Aging are efforts towards achieving a healthier nation. Oftentimes, these objectives can be quite similar. Our medical, health and social services are structured to serve different boundaries across Singapore. Restructured hospitals are clustered intuitively to serve the East, North, Central, and West and South regions of Singapore. As a result, professionals from agencies such as the Agency for Integrated Care (AIC) and MSF have to understand their service boundary in detail while also being well-informed of the service boundaries of other services. Some services such as MSF's co-funded programmes like the Family Service Centres have bespoke boundaries based on the geography of where the majority of social needs to be focused. Other services such as AIC-co-funded programmes like CREST and COMIT mimic grassroots and constituency boundaries so that they can have greater synergy with the grassroot leaders. MSF's Social Service Office (SSO) and AIC's Silver Generation Office (SGO) are located all over Singapore with the intention to develop the networks of ComLink and promoting active aging respectively. These regional offices, despite being similar in nature, have different considerations in determining their service boundaries, like MSF's SSO using the Urban Redevelopment Authority's (URA's) planning area regions and the AIC's SGO using constituency boundaries. The issue is not in having service boundaries, but rather in having disparate and differing methods in deciding service boundaries. Healthier SG requires a seamless coordination between the medical, social and community services and different approaches may lead to increased friction for professionals and make it more difficult for local ground-up social-health coordination by the various community agencies and medical institutions. We must decisively synchronise our regional medical and social services in their service boundary in order to ensure long-term medical-community partnership. Each town can offer a suite of services across the medical-social spectrum, advancing local medical-social integration.[+1 sentence] This synergy would exponentially improve the community social-health integration and strengthen our overall national heart-ware resilience. It may be big step forward, but it may also be necessary if we wish to have a seamless integrated social-health system. These plans will provide Singaporeans with greater access to community senior and mental health services at locales where they live. I hope MOH will consider strengthening the resilience and heart-ware of communities and integrating the service boundaries across health and social services.[+1 sentence] Mr Speaker, Sir, I support the Budget.
[+8 sentences]Mr Speaker, when I speak to many residents on what they are looking for in the year's Budget, many reply, "Will the Government give us more this year?" There seems to be a growing expectation, especially with the cost-of-living pressures, that every Budget should have a giveaway package, such as our Assurance Package. And even after all the announcements are made on the full extent of the Budget, when asked for their views, there are some who continue to focus on the immediate needs, such as how much more Community Development Council (CDC) Vouchers they will be receiving. However, more and more residents come up to me and share that they are getting increasingly worried about our future, if Singapore can continue to grow and prosper and if this trajectory and Budget is sustainable. The phrase used by Deputy Prime Minister Lawrence Wong in his Budget speech was, "cautiously optimistic". Deputy Prime Minister Wong shared that there is considerable uncertainty in the outlook and the risks are tilted to the downside. What struck me was the challenges that he shared ahead. He mentioned how the international environment has darkened dramatically, something that was also picked up by the Leader of the Opposition yesterday. The three decades of peace and stability in the post-Cold War era is now over, and he shared that we now lived in an era of conflict and confrontation.[+16 sentences] And the Deputy Prime Minister also mentioned that the world will be more violent, as we see a growing zone of impunity involving armed conflict and terrorism that cannot be easily resolved by the global community. When we look around us, the world seems to continue to be more fragmented as major powers are prioritising national security over economic interdependence. Deputy Prime Minister Wong also mentioned that it would be messier and more unpredictable. If we take a step back and observe the world around us, we can see many examples of conflicts or of communities wedged apart by differences, or of fragmented post-election struggles to form government and of parliaments in deadlock that they cannot pass important bills to help the country. Very often, the fractures and the wounds driven by wedging differences often lie so deep that it will take generations to resolve and mend. If we look at the world around us, Singapore sticks out like a sore thumb, for what we have is an anomaly. And this did not happen by chance and should not be taken for granted. In the past few years, how Singapore came together – not without our own fair share of challenges – has enabled us to sail through this storm. With the uncertainties and challenges ahead, how we continue to stay together with our refreshed social compact and our focus on keeping our society strong and united will be integral to define how well we can navigate the uncertainties ahead, turn challenges into opportunities and progress for Singapore and ensure that even with all the challenges, we continue to look out for one another and care for one another, in a vibrant, resilient and inclusive community. And it is through that lens that I will respond to Budget 2024. Firstly, how do our schemes and policies work together to drive progress for Singapore? Secondly, how do we ensure that everyone enjoys the progress and we continue to provide more support to those that need help? And lastly, how do we ensure that the progress is sustainable for our future generations? Mr Speaker, Sir, it is of no doubt that quality investments are the lifeblood of Singapore's progress. We must have a strong, vibrant and innovative economy which will then bring good jobs and hence, better lives for all Singaporeans. That is the formula for economic progress in Singapore. However, the competition to attract quality investments is getting stiffer. We have heard of countries, such as Japan, Germany and the United Arab Emirates, rolling out vast amounts of subsidies to attract investments. I agree with Deputy Prime Minister Wong that we cannot afford to engage in this "bidding war" with the major economies, but what we can do is to strengthen the vibrant ecosystem that makes it conducive to attract investments in Singapore.[+5 sentences] Mr Speaker, let me declare that in my previous and current roles in strategy and business development for a multinational enterprise (MNE), I have had the opportunity to understand the considerations an MNE has before it invests into foreign countries and what makes them decide to trigger that investment. A conversation that I had with a Senior Executive of a large MNE at the Singapore Airshow best sums it up. Beyond the buzz of the dynamic display, he mentioned, while overlooking the hall, "There is no place in the world where we have such a clear view of the ecosystem of support for any investment, such as that shown in Singapore." True enough, at the front of the hall, we have the Economic Development Board (EDB) hard at work attracting the investments. We then have JTC Corporation championing sustainable industrial development. MNEs looking to develop their business, including our local homegrown MNEs, like SIA Engineering Company and ST Engineering, pursuing business development. This then brings in jobs globally for our local small and medium-sized enterprises (SMEs) who, together with its workers, have a fair share of the pie through schemes, such as the Partnerships for Capability Transformation scheme.[+5 sentences] We then come to the next question of how to develop the workforce capability? We had Workforce Singapore (WSG) in the exhibition hall promoting the sector, encouraging the Career Conversion Programme to bring more mid-career professionals into the industry and skills upgrade, through SkillsFuture, to better prepare the workforce for the growth of the industry. At the side of the hall, we had AeroCampus, where schools were sharing courses on aerospace engineering to prepare our talent pipeline, and the students toured the AeroCampus, learning more about the industry from seasoned professionals. There is no single ingredient of how we continue to attract quality investments into Singapore, but rather how our schemes, policies and agencies continue to collaboratively synergise. Working together to create a vibrant and innovative economy is our competitive advantage to the world. We must continue to balance these levers and leverage on more to continue to make Singapore a vibrant and viable investment location. Hence, I am glad that in Budget 2024, it was announced that there are $3 billion investments in the Research, Innovation and Enterprise (RIE) 2025 grants, $2 billion top-ups to the National Productivity Fund (NPF) and Financial Sector Fund each and the enhancements to the Partnerships for Capability Transformation.[+2 sentences] While I support the intent, given the size and scale of the NPF, how do we ensure that the funds are effectively used by businesses to drive real productivity, add value to the industry and transform the industries? Given that the proposed top-ups to NPF is half of the budget of the Ministry of Culture, Community and Youth (MCCY), how do we measure success so that we can quantify the returns on this investment? As a member of the Ministry of Communications and Information (MCI) Government Parliamentary Committee (GPC), I am also glad to see our commitment to invest in more than $1 billion over five years for our National Artificial Intelligence Strategy 2.0.[+8 sentences] I will elaborate more on it in the Committee of Supply (COS) debates. Something that I have also always talked about in this Chamber is the rising cost of doing business and the uncertain impact of the implementation of Base Erosion and Profit Shifting (BEPS) 2.0. This is something that I have raised in the Goods and Services Tax (GST) amendment Bill in November 2022, Budget 2023, National Productivity Fund Bill in August 2023 and in this Budget debate again. In the GST amendment Bill, I have also challenged the perception from some of the Members that BEPS 2.0 alone will be sufficient to make up the "hole" left behind by not raising GST. I am glad that in yesterday's speech, I may have heard Mr Louis Chua agreeing with Deputy Prime Minister Wong's position, that there will be spending to offset impact of implementing BEPS 2.0 and there is still a lot of uncertainty on how businesses and countries will react. The Member goes on to say that he hopes that the introduction of Refundable Investment Credit does not go up against the spirit of the global BEPS 2.0 implementation. He also mentioned that he hopes that it is not returned back to MNEs in other forms. I find that as an extremely worrying position. Similar to my speech, the Leader of Opposition quoted Deputy Prime Minister Wong's speech that the "international environment has darkened dramatically" and we expressed caution towards Singapore's future in the uncertain global environment. I can tell you for certain that it is getting increasingly difficult to attract foreign investments into Singapore and I am glad that the Refundable Investment Credit is an additional tool introduced to assist in attracting investments into Singapore.[+8 sentences] Mr Chua mentioned that we should not go against the spirit of BEPS 2.0. But I am worried if, philosophically, he is comfortable with limiting the capability of the tools that we have to attract investments? To attract investments – our lifeblood for Singapore – here is where theory diverges from reality, where we are fighting tooth and nail for more investments into Singapore. Is this what Mr Louis Chua is advocating for? I can assure those in the Chamber that attracting investments into Singapore will continuously be more challenging and we want to equip ourselves with the full disposal of tools to attract good investments into Singapore to create good jobs for our people. Secondly, how do we ensure that everyone enjoys the progress and we continue to provide more support to those that need help? I am pleased to hear the continued commitment to upskill and reskill our workers through our SkillsFuture Level-Up Programme, provide enhancement support to our low-waged workers through the enhancements of the Workfare Income Supplement (WIS), SkillsFuture Mid-Career Training Allowance and the introduction of the Institute of Technical Education (ITE) Progression Award. Enhancing the effectiveness of SkillsFuture to focus on capability building and real productivity improvement is something that I have often spoken about in Parliament too. I have raised this in my maiden speech, in the Budget Debate 2022, Income Tax (Amendment) Bill 2023, National Productivity Fund (Amendment) Bill 2023 and SkillsFuture (Amendment) Bill 2023. Hence, I welcome these enhancements, especially the $4,000 SkillsFuture Credit top-up, for selected industry-oriented training courses as it will enable our workforce to focus on capability development to drive innovation towards higher value outcomes.[+5 sentences] Lastly, how do we ensure the Budget is sustainable for future generations? Mr Speaker, Sir, the Budget tackles the immediate challenges brought about by the higher costs of living, pursues better growth and jobs by anchoring quality investments, equips our workers for the future economy, creates more paths towards equality and mobility, provides more assurance for families and seniors, invests in a safe and secure Singapore and safeguards energy security amidst the energy transition. There are many challenges ahead of us and there will be pressures to spend more. The Budget addresses the key challenges and builds our capability as we look ahead and it does so with a balanced fiscal position, where we do not spend beyond our means. I am heartened to hear the reassurance from Deputy Prime Minister Wong on upholding the ethos of fiscal discipline and responsibility to ensure our fiscal position always remain balanced, sound and sustainable. As we head towards the uncertain future our fiscal discipline, our refreshed social compact and our focus on keeping our society strong and united will be integral to define how well we can navigate the uncertainties ahead, turn challenges into opportunities and progress for Singapore and ensure that despite all the challenges ahead of us, we continue to look out for one another, care for one another, in a vibrant, resilient and inclusive community.[+1 sentence] Mr Speaker, Sir, I support the Budget.
Mr Speaker3 words
[+1 sentence]Mr Louis Chua.
Mr Chua Kheng Wee Louis (Sengkang)33 words
[+1 sentence]Mr Speaker, just one quick clarification for the Member Mr Sharael Taha. So, if I am hearing him correctly, is he saying that we should then go against the spirit of BEPS 2.0?
Mr Sharael Taha68 words
[+2 sentences]I would like to thank Member Mr Louis Chua for his question. Mr Speaker, Sir, I am not saying that we should go against the spirit of BEPS 2.0. I am just saying that when it comes to attracting investments, we should not limit our capability to attracting investments, which would mean requiring us to provide certain benefits or support in order to bring the investments into Singapore.
Mr Speaker3 words
[+1 sentence]Ms Sylvia Lim.
Ms Sylvia Lim (Aljunied)1368 words
[+24 sentences]Thank you, Speaker. Sir, in this Budget, I and others born in or before 1973 have been called "young seniors". These days, when younger commuters give their seats up to me on the Mass Rapid Transit (MRT), I no longer feel insulted but accept with grace. That said, with better life expectancy and health, 60 is the new 40. We still have much to contribute as citizens. Today, I wish to focus my speech on older workers and how we should be tapped on as a resource for the good of the nation. What can older people contribute? A lot. Last week, veteran Hollywood director Martin Scorsese won the prestigious honorary Golden Bear at the 74th Berlinale for lifetime achievement. For close to 60 years, Scorsese was at the helm of countless groundbreaking films, the latest being "Killers of the Flower Moon" released last year, starring Leonardo DiCaprio and Robert De Niro. He announced that his next project would be a film on the life of Christ. All this, at age 81. Singapore, too, has its own role models. The late Ms Teresa Hsu Chih, who died at the ripe old age of 113, was dubbed Singapore's Mother Teresa. The retired nurse founded charities caring for the aged, the sick and destitute, and was still actively involved in charity work after turning 110. Sir, here, I hint at a cultural mindset that we need to change. Over the years, I have met many older residents whose job search suggests age discrimination. Let me take just one instance. There was a male resident who had decades of experience in healthcare management. He was well-groomed, communicated well and seemed fit. Yet, he found it near impossible to land an interview, let alone secure a job – in the same industry, healthcare – in positions either equivalent or less demanding than he had previously held. He was in his 70s. Younger seniors aged 40 and above are also not sparred. Just last month, the British Broadcasting Corporation (BBC) released a radio documentary on ageism in the workplace and interviewed mid-career Singaporeans; they shared their difficulties on just getting employers to give them a chance to show what they were capable of. Indeed, according to the Ministry of Manpower's (MOM) Fair Employment Practices Reports, age was the most common form of discrimination encountered during job searches.[+1 sentence] Yet, the fact is that there are jobs waiting to be filled. According to the MOM's Labour Market Report for the third quarter of 2023, there were still more job vacancies than job seekers.[+18 sentences] The ratio of job vacancies to job seekers was at 1.58, which was higher than pre-pandemic periods. The sectors that saw significant vacancies included Health and Social Services, Information and Communications, Professional Services, and Financial and Insurance Services. While there may still be some physically demanding sectors that may not be suitable for older workers, this space has decreased over time. It is clear that jobs have evolved in the advent of technology and artificial intelligence (AI). On this issue, Dr Helen Ko, Senior Lecturer at the Singapore University of Social Sciences (SUSS), wrote a commentary for CNA entitled: "Seniors do well at their jobs yet ageist myths and negative stereotypes persist." She opined that it was not the age of a worker that was the most important, but whether the demands of work exceeded the worker's capabilities. She noted that in this modern era, health and technology improvements meant that there were few jobs that the average 70-year-old could not do. The World Health Organization (WHO) has put out many studies on ageism in recent years. The WHO literature refutes many misconceptions about ageing. It has been noted that there is no typical older person, and that some 80-year-olds have levels of physical and mental capacity that compare favourably with 20-year-olds. Thus, age should not be used as a proxy for capability. Also, as life spans increase, many older people experience longer health spans. So, each cohort of the older population is effectively younger and should not be discriminated against because of age. Having older citizens engaged in the workforce has immense benefits for society as a whole. If a significant proportion of older and middle-aged people are unemployed, especially those in the lowest income groups, they will become more dependent on informal family assistance, Central Provident Fund (CPF) savings and Government transfers or charity. This will increase social stratification and social division in our country. Sir, at this point, I should acknowledge that the Government has various incentive schemes to encourage employers to hire older workers. These include various grants and the Senior Employment Credit (SEC), which offers wage offsets. As of September 2022, the SEC has been taken up by more than 100,000 employers and benefited more than 460,000 senior workers.[+8 sentences] While these incentives are appropriate and necessary, I believe we can attain even higher labour force participation of older workers if we change any ageist mindsets. To this end, I am looking forward to the anti-discrimination legislation to be unveiled later this year. The various stakeholders involved have rightly identified age discrimination as something to be tackled. To make the legislation more effective, it should permeate the entire human resource process. In the UK, for instance, I understand that the Equality Act 2010 protects people of all ages regarding employment, recruitment, promotion, reward and recognition, redundancy and vocational training. Thus, for example, the UK legislation has made it illegal for recruiters interviewing potential hires to ask their age or date of birth. If our upcoming legislation has this effect as well, it would potentially be a game changer. Next, I would like to turn briefly to the related topic of how to ensure our older workers can retrain. To assist mid-career workers, this Budget introduces three measures under the SkillsFuture Level-Up Programme, for Singaporeans aged 40 and above.[+3 sentences] I would like to make some observations about this initiative. While there is a minimum age of 40 to access these measures, there is no maximum age. I agree with this approach. Not having a maximum eligibility age impliedly recognises that a worker remains potentially employable, regardless of age.[+1 sentence] This is laudable. I move to the first measure of providing a new $4,000 credit to enrol in courses that are targeted at employability outcomes. If the intention is to assure enrollees of better employability outcomes, will there be any condition attached to participants, such as to secure jobs in certain sectors? As for the second measure of providing additional subsidies for a full-time diploma study in any area, it was not mentioned that increased employability was a goal of this measure. Would it then be possible to sign up for such subsidised courses simply for enrichment purposes?[+13 sentences] Even if so, I would say that there is utility in this, as it keeps the minds of seniors agile and keeps them healthy longer. It could also allow them to become effective volunteers in our non-governmental organisations (NGOs) and charities, even if they are not earning a salary. Finally, on the third measure of full-time courses that will attract a monthly training allowance of up to $3,000, it would be useful to know what the eligibility conditions are and whether there are any employment outcomes attached to these. Sir, having managed and taught continuing education and training (CET) courses myself for more than a decade, I have personally seen the strong desire of adult learners to improve themselves. Many of them do not come from privileged backgrounds and they value the second chance, as it were. For adult learners to succeed, having course fee subsidies and employer support is critical. CET is a worthy cause, as it is an important aspect of social mobility. Sir, let me conclude. I have focused on how older workers are a national resource that should be leveraged on, for the benefit of society. We still have work to do to tackle age discrimination if we are to maximise our country's potential and well-being. All of us should be lifelong learners, or risk becoming obsolete. As I said at the start of my speech, 60 is the new 40. Let us embrace this reality with renewed confidence.
Mr Speaker26 words
[+3 sentences]Ms Lim, like you, I am also a "young senior". And like you, I, too, enjoyed the movie "Killers of the Flower Moon". Mr Don Wee.
Mr Don Wee (Chua Chu Kang)1828 words
[+3 sentences]Mr Speaker, Sir, I support the measures in this Budget to retain Singapore's competitiveness and to position us for the next lap. My suggestions and clarifications stem from business owners, newspaper reports and forum letters, which I have encountered since 16 February 2024. I would like to begin with the various tax schemes. Pillar Two of BEPS 2.0 introduces a minimum effective tax rate of 15% for large MNEs.[+1 sentence] I applaud the Government for being nimble and progressive in reassessing Singapore's existing suite of tax incentives, noting that other jurisdictions are also undergoing tax incentive reforms, ahead of the landmark move. The introduction of the Refundable Investment Credit scheme will help existing companies and potential investors impacted by the BEPS Pillar 2.[+11 sentences] As a tax credit with a refundable cash feature, it is an attractive and flexible scheme supporting a range of high-value economic activities, including manufacturing, green transition activities as well as research and development (R&D). The proposed Refundable Investment Credit seems to be based on qualifying expenditure. Can the Government make the scheme available to businesses which are not as expenditure-heavy, such as the ones that are tech solutions related, but also can bring economically beneficial activities to Singapore? Would the Government consider awarding tax credits on output and volume-based features as well? Next, may I appeal for the scope of qualifying activities under the Approved Foreign Loan incentive to be expanded beyond capital-intensive productive equipment investment? Under the scheme, the withholding tax is exempted or is applied at the reduced rate on interest payments on loans taken. I also recommend that the withholding tax concession be extended to support companies in undertaking other economically productive activities in Singapore, including commodity trading, intellectual property (IP) rights acquisitions, mergers and acquisitions (M&A) activities as well as R&D. Can the Government consider expanding the scope of qualifying IP rights under the Intellectual Property Development Incentive to include other intangible assets, such as plant variety rights, designs and utility models? Next, would the Government further liberalise GST treatment for input tax claims on carbon credit trading-related expenses? Enhanced tax deductions would be helpful for the businesses that purchase voluntary carbon credits to manage their emissions targets. Can all yields deriving from certain qualifying green investments made by Singaporean investors overseas be exempted from corporate tax here, similar to the foreign-sourced dividends? To encourage the early adoption of electric vehicles (EVs), can the input tax be claimable on the GST incurred for expenses related to these EVs? I welcome the increase of the SkillsFuture Credit from $500 to $4,000.[+7 sentences] To develop Singapore's workforce further, I also propose to increase the cap for tax relief on course fees for personal development. The Course Fees Relief has been capped at $5,500 since 2011, for individuals taking courses to upskill or gain academic, professional or vocational qualifications. As costs increase, it may be time to increase the cap, to further encourage individuals to invest in their future by upskilling. To better support the families amidst rising costs, I propose that the Government reviews the quantum for the Qualifying Child Relief when computing personal income taxes. Next, on SMEs. More targeted funding support can be provided to SMEs to invest in carbon-pricing and modelling solutions, as well as projects such as value-chain emissions management and decarbonisation. These measures can include a further deduction on the expenditure incurred or co-funding on such projects, subject to a cap. A limited time frame of two to three years of assessment can be used to ensure the effectiveness of the measure. I also welcome the Government's plan to expand the Partnerships for Capability Transformation scheme, which aims to promote more and deeper collaboration between the multinational corporations (MNCs) and SMEs.[+12 sentences] Enhancing partnerships to include capability training, internationalisation and corporate venturing is highly beneficial for our SMEs in a world where advances in technology are progressing at an unprecedented rate in a turbulent global environment. Sustainability is an area where the SMEs can work with the MNCs who are usually the "queen bee" buyers, on opportunities to become more competitive. Presently, environmental, social and governance reporting only applies to listed firms, but SMEs should take stock of their carbon emissions as legislation in some other countries require firms all along the supply chain to comply with sustainability standards. Mr Speaker, in Mandarin. (In Mandarin): Recently, many SMEs are constrained in what they can bid for, such as projects like the JTC proposed Coastal Development Tender, which award points to bidders that have the experience of completing projects overseas. I am cognisant that this criterion is not compulsory. However, few Singaporean companies have the experience of securing projects overseas, thus Singaporean companies feel disadvantaged to earn these additional points. In order to earn these additional points, local companies are encouraged to form a joint venture (JV) with larger Korean or Chinese companies, so that the JV has a higher chance to win large infrastructural projects in Singapore. I was informed that there is limited transfer of knowledge as these large JV partners are only interested in the manpower resource, which include the foreign workers quota that their Singaporean JV partners possess. Hence, the transfer of knowledge is very limited. Many business owners had informed me that there is a shortage of heavy vehicle parking lots near their drivers’ residences and many business owners even pay for their workers' extra transport expenditure. Can the Government convert vacant premises like schools or JTC sites into carpark lots, regardless of how short term it may be? This would help to reduce some of the companies’ expenditure. I hope that in the short term, the Government can also relax the diversity quota criterion in the Complementarity Assessment Framework for Employment Pass Hires, as firms find it hard to meet the requirement in a tight labour market. I hope that there can be flexibility in quota adjustment under the Manpower for Strategic Economic Priorities Scheme, which allows eligible firms to hire S Pass and Work Permit holders beyond their existing ceiling for about three years.[+11 sentences] The Government could also review the current foreign worker quota to allow them to be pegged to job roles, instead of the current classification. : Would the Government consider providing more incentives to companies which practise inclusivity hiring of seniors, the disabled and those with special needs? Presently, the Government provides an Enabling Employment Credit paid to employers of persons with disabilities (PwDs) aged 13 and above and earning below $4,000 a month and the Open Door Programme Job Redesign Grant by supporting up to 90% of the job redesign costs. I propose going further by giving tax rebates, higher quotas for hiring foreign workers and more points awarded when bidding for Government projects. Companies have noted a shortage of local talent in some areas but, sometimes, part of the problem is that they have inherent biases and refuse to consider certain groups of potential employees, even if they have the matching skillsets. These include young seniors or the group defined as being between the ages of 50 and 60. A challenge for them is finding meaningful work that allows them to use the skills they have developed over the years. Many young seniors are medium-skilled for the most part, with some high-skilled workers. They have higher expectations for the jobs that they are doing and are less likely to be willing to take lower-skilled jobs. Like many of the older Singaporeans, they face challenges like age discrimination at the workplaces, questions about whether they can continue in their current roles, seniority, salaries and so on, until they reach the retirement age. Along with encouraging this group to work for as long as possible and as long as they want to, it is also important to incentivise businesses to configure jobs in a way that actually makes it more acceptable for them to work longer. As wages become more stagnant, would the Government consider extending progressive wages to more sectors and up the income ladder? Next, on uplifting lower-wage workers, I welcome the increase in the WIS payout to $4,900 and the increase in the qualifying income cap of $3,000.[+5 sentences] While social support schemes, such as ComCare and the recently enhanced ComLink+, have been introduced to boost lower-income households, these schemes tend to target the lowest income group in our population. However, many Singaporeans who fall below the 20th percentile of population by household income need more help, too. WIS has been enhanced over the years to better support this larger group of lower-income workers. However, an individual worker is often responsible not just for themselves but for their dependants, too. As WIS is still disbursed at the individual level, it does not fully account for the heavier financial burdens that some of these workers may face when raising young children, supporting elderly or caring for family members with special needs, especially with the cost of living rising. Would the Government consider indexing WIS and social support schemes to inflation or the consumer price index annually?[+14 sentences] The annual review of WIS can be administered similarly to the Public Transport Council's annual fare review exercise. An increase in the proportion of WIS payouts allocated to cash can also help households to meet their immediate needs. With current inflation outpacing the CPF Ordinary Account interest rate of 2.5%, it would be more practical for WIS recipients to have more cash in their hands. WIS should also be recalibrated to take into account household incomes and size. The current WIS is pegged to an individual, using the worker's age, employment status and income to determine the disbursement amount. But this supplement is provided even to a lower-wage worker in a wealthier household. Instead, a household-based WIS would provide a higher monthly payout to lower-income households with more dependants. This will be a more holistic approach to take into account the overall financial situation of a household. Singapore has many social support schemes for lower-income families with different eligibility criteria. Essential workers need the help most but they have the least time and capacity to navigate their eligibilities and to apply for the various schemes. They also face challenges learning about and taking advantage of the latest upskilling measures, including those introduced in this Budget. They may lack the awareness and knowledge about where and how to apply for training programmes and what kind of courses suit them. Furthermore, in view of the number of job and training scams in the market these days, we also need to help them navigate and avoid this pitfall. Would the Government consider a more systematic framework to reach out to and coach these workers on the safe path to training? Public education campaigns must be conducted to ensure that these workers know where and how to avail and take advantage of these training grants and courses through trustworthy channels.[+1 sentence] With this, I would like to conclude with my support for the Budget.
Mr Speaker3 words
[+1 sentence]Dr Syed Harun.
Dr Syed Harun Alhabsyi (Nominated Member):3055 words
[+5 sentences]Thank you, Mr Speaker. I would like to, first, thank the hon Deputy Prime Minister and Minister for Finance, as well as the various Ministries in rolling out the proposals for Budget 2024. With the advent of emerging technologies, including artificial intelligence (AI), coupled with a proliferation of social media yet to be fully understood and its impact realised, the world is moving incredibly fast and at a blistering pace. The pace of change in the world today and, indeed, in Singapore, is no longer just a function of linear years, months, weeks or days, but the pace of change globally has profoundly accelerated since the turn of the century. Stasis today no longer means we will be left behind by a mere few steps but inevitably left behind exponentially further and further with the passage of time if gaps are left unaddressed. A deep concern I have is the impact on those left behind as Singapore attempts to surge ahead and maintain its pace in the world today and, in tandem with this concern, is the profound issue of social mobility. My contribution to this Budget debate seeks to raise greater awareness on the topic of social mobility, its importance and value to us as a people and as a country in the context of our Budget in 2024.[+20 sentences] When we talk about social mobility, a few things come to mind. First, whether some of us care to admit it or not, each and every one of us here have benefited from some form of privilege. Whether we may have been born into some form of wealth and socioeconomic privilege, whether we had the privilege of good health, a decent upbringing, stability in the household and loving parents, or the privilege of teachers, confidantes, mentors or friends who looked out for us, gave a word of advice or nurtured us to who we have become and where we are today. My humble view is that no story of any success bore out of the efforts of a single individual alone, but it had to be that alongside that valiant individual's effort, the village around him or her made it possible for success to first take root. Second, we know not everyone has this privilege. We hear of children born into dysfunctional families, suffering abuse and afflicted by trauma. We know of families where breadwinners or other members are suddenly saddled with debilitating illness and disability and how that can catastrophically change the outlook of a family within an instant. We hear tales of families so big relative to the size of their physical house that the only true privacy one has from the shared space is only when he or she is in the washroom. We also hear of neighbourhoods of rental flats where children grow up in less than savoury environments, confronted with an early introduction into a life of antisociality, drugs and crime, and where Police presence is not uncommon. Third, that the true distance between the two, having such privilege or otherwise, can actually be quite the fine line. It is a fallacy to think that our station in life is set at birth and that things cannot upend themselves. Sides can change, illness can hit and jobs can be lost. In our fast-paced world, despite our best efforts, sometimes change can be unforgiving, dramatic and merciless. In this paradigm, an understanding of the importance and acceptance of social mobility is critical for our society. At the level of the individual, as much as we do not wish it for anyone, we cannot ignore this vulnerability and pretend like it cannot happen to any of us. We must accept with some humility that the success that has befallen us is not necessarily the result of hard work alone but that of our favourable social milieu, the people around us and, some would argue, chance to a significant extent. The reverse also holds true; that for many individuals and households assessed as low in their socioeconomic status through a measure of their income or financial ability, many find themselves stuck, not by virtue of a lack of hard work, effort or intellect. Some have not yet been blessed with the privilege of opportunity and mentorship, they may be encumbered by ill health and disability, or just born into circumstances that snared them early into a cycle of poverty, scarcity and hardship. When we take a deep look at success through the lens of inequalities and social mobility, we then are able to view our own successes with some modesty and romanticise less about the gallantry of our own efforts, and we view the lack of success in others with much concern and interest into their well-being and life circumstances. Many Members have, before me, spoken about social mobility in this House in the past. Truly, social mobility is, indeed, the cornerstone of a fair and just society.[+3 sentences] It allows for individuals to move up or down the social escalator of life, regardless of their initial background, ethnicity or economic status. Some would describe it as a social ladder, but I contend that things are moving at such a pace that makes an escalator a more apt descriptor. In our dynamic and fast-paced world, trying to achieve social mobility remains a constant moving target and it has not been easy to keep pace and ensure full equitability in opportunities for all. As a society though, we must continue to commit to giving our best to get this right for all Singaporeans.[+16 sentences] For without social mobility, there is little hope, opportunity, growth and success for the underprivileged and most vulnerable amongst us. There will be entrenchment of privilege and, in fact, distrust and discrimination will only fester and proliferate, gnawing and tearing at the social cohesion we have taken so long to build and strengthen. Everyone, regardless of their life circumstances, deserves a fair and equitable chance at success. Today, Mr Speaker, we are perhaps more coordinated than we were decades ago in wanting to gain traction for social mobility. We have the hon Minister in-charge of Social Services Integration as well as the Rehabilitation and Social Mobility Policy Department, as part of the Policy and Planning Directorates of the Ministry of Social and Family Development (MSF). We recognise that in wanting to empower and uplift the most vulnerable, it requires a whole-of-Government approach. We cannot afford to take on the issue of social mobility and its layered challenges piecemeal. Problems relating to early access to education and health, employment opportunities and steps towards housing ownership must be addressed collectively. We know that ComLink+ attempts this today and the intent is to take a holistic and wrap-around approach to support families. I can see how some of the proposed changes in the Budget will help address social mobility to some extent. For example, enhancing the Assurance Package lends confidence to each Singaporean household that there is something for everyone and no one is left behind, especially at a time when there continues to be inflationary pressures and rising costs of living. When coupled with the Enterprise Support Package, even as businesses seek to transform and strengthen their workforce, the true yield and benefit also go to the Singaporean workers, for it gives them opportunity to upskill, develop and grow alongside that of the business enterprises they work for. That the Government continues to pay close attention to local enterprise, especially smaller firms, is heartening and we hope that this seeds confidence for our local businesses to grow further and for them to flourish even beyond our shores. I echo the Deputy Prime Minister’s call that we need to deepen this culture of lifelong learning and skills mastery to develop every Singaporean to their fullest potential and for each and every one of us to have the opportunity for productive and meaningful careers. The SkillsFuture Level-Up Programme actually makes me feel young again. What this programme does is that it gives a second wind of opportunity to learn a new skill, especially in a world where things have moved so quickly and technology has outstripped skillsets learnt from what feels like a lifetime ago. It gives support to our workers to take that step towards learning again. And both the $4,000 SkillsFuture Credit Top-up and the opportunity to have a renewed access to subsidised full-time diplomas are very much welcoming news to me. I wonder if the Ministry could share what the thought process behind this was, in terms of how the $4,000 top-up amount was arrived at and why not more, the choice of 40 years old as the age to introduce this programme and why it is limited to a diploma programme only.[+2 sentences] I wonder if it were possible to consider introducing this at a younger age, say, 35, and whether degree programmes could be permitted as well. While some individuals may be keen to spread some breadth to their knowledge base by taking a diploma unrelated to their existing expertise, others may be keen to dig deeper into their field of interest and pursue a degree instead. I am also heartened by the ITE Progression Award. It is a welcome nudge for ITE students who qualify to continue on to pursue a diploma and that upon completion of the said diploma, to get a further $10,000 CPF top-up in the Ordinary Account.[+5 sentences] From time to time, I hear of young talented ITE graduates who do well in their courses but stop short of wanting to continue. Sometimes, the draw of the gig economy or full-time employment in the short term, coupled with the pressing need to contribute to the family’s household income looks like a reasonable option to enter the workforce, rather than be confronted with another three years of education at a pace of learning that is faster than before. When they enter the polytechnic after finishing ITE, it will also be apparent that they are older than their peers who may have come directly from secondary schools. The adult in the room will recognise that in the longer term, a diploma would be of natural benefit, but consider also a young person from a family of less privilege, pressed with imminent caregiving responsibilities of his siblings and wider family at an early age and no direct sight of the longer-term implications of such a decision. My view is that through the ITE Progression Award, while relatively modest and encapsulated within the CPF construct, there are practical benefits that could nudge more to consider strongly to move on to diplomas if they qualify. I hope that the Ministry monitors this trend to see how it encourages more ITE graduates to pursue diplomas and, if proven beneficial and well-received, to consider a greater quantum for them in time. I wonder if the Ministry could confirm whether this could be retrospectively introduced to former ITE students already currently in polytechnics or those who have recently graduated this year.[+12 sentences] This would go a long way in helping them move forward into the next phase of their lives and in giving their best to their current studies. Mr Speaker, other than dollars and cents, really, the challenge of social mobility is about building self-confidence and self-esteem of the vulnerable and less privileged in themselves. This is harder to quantify and we can never emphasise this enough, for it is a delicate process and we need to get it just right. For those of us who have ever tried a hand at making bread, it is the yeast that makes bread rise. We can knead the bread with all our might and effort, add the ingredients like flour, water, salt and sugar, and yet it still does not rise in the bread pan. Yeast is one of those delicate ingredients in bread that can be hard to quantify, and its introduction into the recipe is almost an art and takes careful judgement. Social mobility is the same. It is not a mere insertion of quantifiable ingredients and an anticipation that things will rise automatically. The Budget is helpful, the funds are important and so is the structure to enable it. But we must remember that the exercise of social mobility is also just about maintaining dignity and autonomy. It is about knowing that society has your back and are rooting for everyone to succeed. Our social policies can only come to life when, at the last mile, we deliver them with a genuine and determined desire to uplift, with a care and concern deserving of a fellow brethren with a shared Singapore identity and a genuine belief that the vulnerable, having been played a card of less privileged circumstances in life, deserve to succeed, too. In my volunteering capacity, I remember interviewing for a scholarship, a young lady from a single parent household, formerly from a neighbourhood secondary school, having done part-time work to support her family, but yet also scoring a near-perfect grade point average (GPA) for her polytechnic studies. What struck me and my fellow panellists most about our interview with her was how unaware she was, notwithstanding her sterling grades, about her potential options to study, flourish, to be exceptional and to take on the world. Her intellect, humility, real-world resilience and results notwithstanding, she had a lack of role models, was oblivious to the plethora of global options at her feet and how, with the right support, in good time, she could pave the way for her family to a better life, potentially lifting not only herself but also her mother and siblings out of their current life circumstances.[+17 sentences] Because of her background, she genuinely had no access nor sight to see beyond what her lived reality could offer, and her aspirations and ambitions were much constrained and reduced from what she could have easily attained. The truth was neither she nor her family had the social capital to envision a future beyond the horizon of what they could reasonably see. There are gems in the rough arising from many of these families. They are borne from a life of adversity, hardship and challenges, and what some of their children need is really a fair and equitable opportunity. These children often grow up faster than most, their negotiation skills drawn from the uncertain and harsh environment they have grown up in, and they possess an adaptability and resilience that can be hard to replicate and teach in the classroom. Especially when we see deep potential and exceptional qualities in an individual child, if we were to fully affirm our ethos of social mobility, we must be able to give him or her access to the full swathe of options and the full mile to realise their potential. And when we shed light on these options, it must be coupled with a genuine desire that they deserve to be successful, too. Across all Ministries, whether it be in addressing inequalities of access to health, education, housing and social support, I believe, Mr Speaker, we have the structures and unitary components in place. In theory, the bread pan is ready and we have got all the ingredients for the bread in the mix. The yeast sometimes can be a little tricky and fickle to get going, and it takes patience for the bread to rise. Similarly, in delivering a Budget towards realising social mobility, the constitute ingredients like funding, structure and processes matter, but they do not matter as much as how we approach the issue in a spirit that genuinely cares and is concerned for the most vulnerable in society. Finally, Mr Speaker, social mobility has its lessons for us as a nation, too. We have done well in our 58 years since Independence. We must recognise that in as much as Singapore starts from a strong position today, that we are doing well through our fervent efforts to improve and strengthen Singapore society, and that we are on a reasonable cadence for continued success, we must also have the humility to accept that we arrived here in 2024 with a little luck against the odds stacked against us in history, recognise the privilege of standing on the shoulders and wisdom of leaders before us, and that the starting point for Singapore today in 2024 has arisen from inherited structures and efforts of generations of Singaporeans prior. We, too, are privileged. There are others who may not be as fortunate to be where we are today and we remain a country many others seek to emulate. We must guard this privilege well and be custodians of Singapore’s continued prosperity, but at the same time, we cannot also turn a blind eye to other calamities in this world, such as places of war, conflict, crises and disasters. In light of that, the Overseas Humanitarian Assistance Tax Deduction Scheme (OHAS) is also a welcome reminder of our privilege as a Singaporean society, and the depth of means to which Singaporeans have, relative to others around the world, to provide and support people in crisis to rebuild their lives again.[+5 sentences] This is an extension of our lived ethos and values as a Singaporean society that everyone deserves a chance at success, that not all lived realities are made equal and that privilege exists in many shapes and forms. It is not wrong to live a life of privilege, to compete fiercely and strategically for our survival, and to want to do well for ourselves, our families and our next generation. However, with the blessings of privilege, we must recognise that our environment, the people around us and chance had a significant role to play. Tempting as it may be to only give ourselves a pat on the back, we cannot discount the role that others have had to play in our success story, be it our accomplishments as individuals and as a nation. The humility keeps us grounded, informs us of a worldview of care and concern for others and further fortifies us as a society of ethical values, compassion and kindness. With that, Mr Speaker, it is my hope that the delivery of this Budget in the coming year continues to further erode inequalities and lends opportunity for social mobility to continue taking root in our midst. I rise in support of the Budget Statement.
Mr Speaker4 words
[+1 sentence]Mr Christopher de Souza.
Mr Christopher de Souza (Holland-Bukit Timah)2221 words
[+21 sentences]Thank you for allowing me to join this Budget debate. Today, we are at the cusp of a transformation that ranks among the most profound of them all, the AI transformation. Many have spoken on this, so I rise to speak on two specific aspects. First, how this transformation affects our social compact, and second, how Singapore has and should continue to approach the governance of AI. To truly understand the societal implications of AI, we need to, first, understand what we are dealing with. While there are many kinds of AI systems out there, most contemporaneous AI systems are based on machine learning (ML). ML systems are trained on data to produce insights and predictions, and they have become more prevalent in the early to mid-2010s. In the late-2010s, deep learning, a subset of ML, grew in prominence. This utilises neuronetworks, which comprise layers of nodes similar to a human brain that process inputs and produce outputs. These systems are also able to adjust their weights, thus increasing the model's accuracy over time. Most recently, the technology that has taken the world by storm is, of course, generative AI (genAI). GenAI utilises deep learning, but the difference is that through new techniques and mechanisms, they can be trained on large sets of unstructured data. The result is foundational models, that is, models capable of producing output for a wide range of tasks without having to be specifically trained for it. Yet, notwithstanding the capabilities of AI today, we must remember that we are talking about artificial narrow intelligence (ANI), which is able to only do specific tasks well, rather than artificial general intelligence (AGI), which connotes AI that is able to perform a wide range of tasks that a human can normally do. I have spent some time delving into the technicalities because I believe it is important to bear this in mind when we talk about AI affecting our social compact. Mr Speaker, many hon Members have, in past Sittings, alluded to the multitude of benefits and dangers that AI brings. I do not wish to rehash what had already been said. Instead, I believe we must be careful on how we tread this line in encouraging AI innovation and adoption while continuing to support our people and their livelihoods. One concern is how the AI age will affect jobs. Alarmist headlines emphasised the loss of jobs to AI, but actually, the key to making AI-enabled jobs rather than replace jobs is to allow people to find their passion with new responsibilities that require uniquely human abilities. With every industrial revolution, the economy changes and so do jobs where what is required of humans also change. The current fourth Industrial Revolution is no different. It was estimated that in the United Kingdom (UK), over 20 years, seven million existing jobs could be affected by AI. But very critically, 7.2 million jobs could be created.[+12 sentences] So, that, in fact, is a net gain in jobs. But what we must ensure as a Government is that no one slips through the cracks, to ensure that every Singaporean, as we become an AI-enabled society, will have that opportunity to learn and grow, and none of us need fear being replaced. We must also consider that not everyone can make such transition at the same time and at the same pace. But, through the right assurances and infrastructure, we must help every Singaporean realise their core and unique human skills and show them how these skillsets remain relevant and even while their job scopes encompass more decision-making and creative responsibilities. Mr Speaker, as mentioned, we are talking about ANI today. ANI systems have limits beyond which human intervention is required. In fact, the more unprecedented and complex the situation, the better humans are at managing it, because we have a sense of judgement, empathy and values that no AI system can foreseeably replace. Mr Speaker, there is another dimension when talking about AI and jobs. With the help of AI, we can feed datasets into deep learning models to look upstream and understand the root causes of various societal issues. Not only should we aim to figure out how to support those who are vulnerable in our society, especially those vulnerable to the coming changes, we should also try to ensure that they do not reach that point of vulnerability in the first place. Sir, Singapore has not been standing still on these developments. On the contrary, we have been moving very thoughtfully and proactively in the realm of AI governance. For instance, in 2019, the Personal Data Protection Commission (PDPC) first realised the modelled AI governance framework.[+5 sentences] This was then refreshed in 2020. The model framework provided organisations with practical guidance on how to deploy AI in a trustworthy and responsible manner, and as the first of its kind globally, positioned Singapore well in the global discourse on AI governance. In 2020, the Infocomm Media Development Authority (IMDA), PDPC and the Lee Kuan Yew's Centre for Innovative Cities at the Singapore University of Technology and Design (SUTD) launched a guide to job redesign in the age of AI. The guide adopts an industry-agnostic and human-centric approach to show how existing job roles can be redesigned to harness the potential of AI so that AI augments, rather than replaces, jobs. The guide also provides real-life examples of how companies have empowered their employees through job redesign and training. Since 2022, Singapore has also launched initiatives, such as AI Verify and AI Governance Testing framework and toolkit, one of the world's first, and in January 2024, a new modelled AI governance framework for GenAI systems.[+5 sentences] Further, just this month, Singapore led the release of the ASEAN guide on AI governance and ethics. These, which are just the tip of the iceberg, showcase the thought leadership that Singapore wields regionally and, I might say, globally in the space. I would like to take a moment to recognise all the hard work that our public officers and political office holders have put in to bring Singapore to where we are today in such a dynamic and fast-changing environment. Mr Speaker, Sir, we are certainly not the only country to have developed a national approach towards AI governance. Over 60 nations around the world have some form of regulation. The United States (US) has a blueprint for an AI Bill of Rights for responsible design and use of AI. In the European Union (EU), the AI Act, which recently received political endorsement, adopts a risk-based approach to regulating AI applications and rules surrounding transparency. China has adopted outcomes-based regulations, including interim measures for the management of GenAI services and the Internet information service algorithmic recommendation management provisions.[+27 sentences] Singapore's approach has never been to take another country's approach and apply it wholesale. Instead, we watch global developments closely and tailor them to our needs while introducing fit for Singapore measures. But what we also need to watch out for is the risk of international fragmentation. This is where countries adopt their own unique regulations of AI, resulting in a patchwork, often quite irrational, of global regulations and heavy compliance burdens for companies looking to provide AI products and services across borders. This is why international corporation to build regulatory into operability is important. Singapore points double down on these efforts while developing our governance approach in a risk-based and pragmatic way. We should also study how our international counterparts address the impact of AI on jobs, societies and the social compact, and act decisively so that we maximise the benefits of AI for Singapore. Mr Speaker, it has been over a year since ChatGPT launched into the forefront of the world's consciousness. The GenAI technology behind ChatGPT showcased exactly the benefit and risk dichotomy AI technologies present to our societies and economies. With Singapore's pragmatic and forward-thinking approach, let us plant the seeds and shape the future of trustworthy AI today. That was meant to have been the concluding remarks of my speech. But I would like to also make some comments on the hon Member Ms Sylvia Lim's speech, a couple of speeches before me. As I understand, Ms Sylvia Lim's position is that we should not disenfranchise our senior workers. I could not agree more. If one were to study the Budget speech delivered by Deputy Prime Minister Lawrence Wong, there are a number of key initiatives. In fact, a whole raft of measures that are targeted to assist our seniors to not only age actively, but also to reskill, upskill and re-enter the workforce. So, I enjoin the hon Member Ms Sylvia Lim to have a care and look at what we are doing, the $3.5 billion for Age Well SG. And what is the purpose behind this? It is to empower active ageing. Or a MediSave bonus of up to $300 for all adult Singaporeans born in 1974 to 2003. Why? For the assurance for healthcare. We will increase quarterly payments from the Silver Support Scheme by 20% and raise qualifying household income thresholds to $2,300. Why? To support seniors in their retirement needs. And the list goes on. But specifically, if I have not misunderstood hon Member's speech, is the aspect of re-employment and jobs. And here, I would also like to invite the Member to take a look at what the Government is doing to have mid-career reskilling. We are providing $4,000 in SkillsFuture credits for mid-career top-ups in May 2024, which can be used for selected industry-oriented training courses with better employability outcomes, and up to $3,000 monthly SkillsFuture mid-career training allowance for up to 24 months for selected full-time courses.[+30 sentences] But I have learnt, over the years, in this Chamber, that statistics do not necessarily make the point as well as stories do. So, let me share with you that while we have all these measures in place and there is a lot of deliberation, a lot of the need to balance competing interests and pushing out new policies, funding them, ensuring the revenue is there for them. But at the end of the day, as MPs and Members of this House, at least, the elected ones, have a duty to ensure that these policies and measures meet their intended need on the ground. Let me share with you a story which, I think, meets the concerns of what Ms Sylvia Lim raised. This is a story of a resident, Mr Subramaniam, whom I have known for a number of years. He is now 65 years old. Some years ago, we met and he shared with me that he is looking to upskill himself and he wants to get a security guard licence. I said, "Mr Subramaniam, why would you like to get a security guard licence?" He said, "Because I will be able to upskill, earn more money for my family. I have a wife, and I have one son, Ramasamy. We live in our one-room one-hall flat in Ghim Moh", an area in the ward that I am responsible for. So, I said, "Yes, we will do our best to get you a security licence." He did. We have seen Ramasamy grow up. He went from Henry Park Primary School to Fairfield Methodist Primary School. He did well enough to get into ITE. He got a 4.0 out of 4.0 GPA in ITE. He went on to Singapore Institute of Technology (SIT) and he did one semester in Glasgow, and he is doing very, very well. And along the way, when we meet, whether at market visits, home visits or when he comes in for Meet-the-People sessions and we have a chat, and the relationship is now a friendship. I asked Mr Subramaniam, "What did you do with your upskilling and reskilling? He said, "Mr de Souza, I got a job in Changi Airport." So, I said, "Changi Airport? You live in Ghim Moh. How long does it take for you to get to Changi Airport?" He said, "An hour, an hour and 20 minutes." And I said, "And an hour and 20 minutes back." So, he said, "Yes." I said, "Why?" He said, "Because at Changi Airport, the pay is better, and I want the best for of my son." So, when we talk about wanting to provide for our seniors, I agree that policies and statistics can be quite clinical and impersonal. But that is what we are called to do in this House; to make the policies and the statistics and change the lives of our residents.[+2 sentences] That is our vocation. That is our calling. And when Ramasamy came in with his certificate from SIT, the family said and shared with me, "Now, I think it is time for us to buy our flat." That was a very moving sharing with the family. So, I could not agree more with Ms Sylvia Lim's point that we cannot forget our seniors.[+1 sentence] I agree wholeheartedly with that. But where I diverge humbly and respectfully is that we are doing that. We are pushing out policies, we are pushing out initiatives and we are pushing out a lot of fiscal provision.[+2 sentences] The bridge is us and it is for us to accomplish that vocation to the best of our ability. With that, Sir, I support the Budget.
Mr Speaker2 words
[+1 sentence]Ms Lim.
Ms Sylvia Lim220 words
[+7 sentences]Thank you, Mr Speaker. I must say that I am really rather puzzled by Mr de Souza's response to my speech and perhaps, respectfully too, I may suggest that he has misheard me. First of all, you know, he says to have a care as elected Members of Parliament (MPs) for what the Government is going and, in my speech, actually, I strongly endorsed the continuing education and training (CET) initiatives. Having been a person that has been involved for more than a decade in managing and teaching CET courses, I see the value and I did say so in my speech. I have also acknowledged the SkillsFuture Level-Up Programme in detail. So, I think he has misunderstood or has not heard what I have said and kind of accused me of not acknowledging Government's efforts. I do not think that is true. The main focus of my speech really is on older workers and how we need to tackle ageism in workplace and the Government's own statistics, MOM's own Fair Employment Practices reports, highlight that age discrimination is the main form of discrimination that needs to be tackled.[+1 sentence] While I am happy to hear that his resident has done so well, has he not come across any residents who are older who have faced age discrimination in the workplace?
Mr Christopher de Souza267 words
[+8 sentences]I thank the hon Member for giving me this chance to reply. I did not hear the hon Member talk about all the different measures that we have in place to support the seniors which I went through. The Member may have alluded to the upskilling which I alluded to. I think what is important is to not dichotomise, not say, "Look, this is water and oil and what we are going to do at the policy level doesn't actually trickle down to the low level." It does. And the reason why I gave an example is to show that we are meant to be the bridges. If we see that there is ageism, as I have seen and as I have tried humbly, to the best of my ability, to bridge, then we should. That is my point. Not to throw the baby out with the bathwater. These are a slew of measures that work in concert with each other – the fiscal measures as well as what we do on the ground for residents to job match and to ensure that they get as close to a job as they want, not only for their own sake but for the sake of their residents.[+2 sentences] So, I do not think I misread or misheard Ms Lim's speech. I think it was largely based on ageism and my humble response to that is, if you look at all the fiscal measures, and the grind and the work of the MPs on the ground, I think we do have a chance of a winning formula for our seniors.
Mr Speaker2 words
[+1 sentence]Ms Lim.
Ms Sylvia Lim35 words
[+2 sentences]Sir, I do not wish to prolong this matter. I think the Hansard will speak for itself of what I have said, and I do not agree with what he has accused me of saying.
Mr Speaker3 words
[+1 sentence]Mr de Souza.
Mr Christopher de Souza177 words
[+5 sentences]I think "accusation" is a very strong word. I am not accusing the hon Member. I am summarising what I think her point is and her point is really that there is this stark, prickly, difficult and possibly unassailable issue of ageism. I agree that it is a difficult issue. I agree that it is an issue on the ground. I do not agree that it is unassailable. And the formula for that, the remedy or the solution for that is what the MPs do on the ground to bridge that gap, to translate fiscal policies and all that Deputy Prime Minister Lawrence Wong had said in his Budget 2024 speech into real-life examples of how this has worked and impacted families.[+2 sentences] So, I make no accusations. I seek to re-orientate the House into how the Government is vested with this issue and has put in place all the initiatives to try to overcome it. But the winning formula really is, as backbenchers, our calling and our vocation, to bridge that gap.[+1 sentence] And I genuinely believe that.
Mr Speaker2 words
[+1 sentence]Ms Lim.
Ms Sylvia Lim34 words
[+1 sentence]Thank you, Sir. I never said that ageism is unassailable and, in fact, in my speech, I expressed the hope that the upcoming anti-discrimination legislation would move the needle and be a game changer.
Mr Speaker3 words
[+1 sentence]Mr de Souza.
Mr Christopher de Souza11 words
[+1 sentence]I thank Ms Lim for agreeing that ageism is not unassailable.
Mr Speaker18 words
[+2 sentences]I assure Members that everything that is said here will be captured in Hansard. Leader of the House.
[+1 sentence]Deputy Prime Minister Heng Swee Keat.
The Deputy Prime Minister (Mr Heng Swee Keat)4790 words
[+1 sentence]Mr Speaker, Sir, first, let me thank the Leader and all Members of this House for giving your assent for me to give a very long speech. I hope that your patience will pay off in that you will enjoy your lunch when you are much hungrier. I rise in support of the Budget, which lays out a confident path forward for Singapore, as our domestic and global environments change.[+1 sentence] I would like to focus on one aspect of the Budget Statement, growing the economy, which is one key part of Deputy Prime Minister Lawrence Wong's Forward Singapore Movement. The global economy goes through cycles and we are currently facing a slow growth, high inflation environment. This year’s Budget, including the Enterprise Support Package and enhanced Assurance Package, is comprehensive and includes good support for companies and households to tackle immediate challenges.[+28 sentences] We also face sharp shocks to the economy from time to time, most recently with the COVID-19 pandemic. Colleagues would remember the five Budgets that we had to approve in 2020. Responsive monetary and fiscal policies can provide stabilisation through the cycles and shocks to ensure that we do not fall into a deep hole. But in order to grow our economy for the long term and to grow sustainably, we need to embark on structural changes, structural policies which would transform our economy. Only then can we create good opportunities for Singaporeans and generate the resources for uplifting our people. Such structural policies include what Ms Denise Phua said of the potentially game-changing investments to support and uplift workers, a theme which many of you have also spoken on. So, growth is important, but it is also getting harder to achieve because of both internal and external factors. As a small and open economy, Singapore depends on our connections to the region and the world to grow and thrive. Today, the external environment is more difficult. While globalisation over the past three decades has brought great benefits and progress, the mood has since shifted from collaboration to competition. This is, in part, driven by technological innovations, including automation and AI, which are reshaping jobs and competitiveness across industries and countries. Some major economies have turned more protectionist and insular and even adopted industrial policy to support strategic industries. "Friend shoring" and "de-risking" are quoted as strategies to strengthen resilience. These have reconfigured economic linkages and global supply chains. From globalisation anchored in economic competitive advantage, we are now seeing fragmentations based on political alignment. This, together with the recent upsurge in geopolitical unrest, has brought new uncertainties. Internally, our domestic environment is also more challenging. Singapore's economic structure is now closer to that of a mature economy. The days of "catch up" growth are over and our resource constraints – labour, land and carbon – are becoming biting. Economic growth is the sum of labour force growth and productivity growth. But with our ageing demographics, the local labour force growth is shrinking quickly towards zero. So, we must therefore find ways to double down on productivity-driven growth. But this too, is hard. Many advanced economies have only managed to achieve average real value-added per worker growth of less than 1% per annum over the past decade. And even as we invest in strengthening productivity, such as growing depth in certain industries, it is impossible to match the scale and size of larger economies. Put together, these sound pessimistic, but I am, in fact, upbeat about Singapore's prospects. Overcoming challenges and finding new opportunities has been in our DNA since Independence. Each time when the odds were against us, we rallied together to find new ways forward. Our economy managed to chalk up growth of 5% in the 2010s, even as labour force growth slowed to 2.1% per annum.[+2 sentences] Our sound monetary and fiscal policies have enabled us to stabilise our economy through various economic cycles. They also provided the confidence for long-term planning by companies and households, and ensured sustainable economic growth. To continue growing the economy, we need structural policies to drive productivity-driven growth and take Singapore forward. We must continue to undertake and intensify our restructuring along three prongs.[+18 sentences] First, our economic transformation movement has achieved steady momentum. To sustain this, there must be shared ownership and leadership in the coming years. Second, we are shaping and strengthening our innovation ecosystem to enable high value, cutting-edge work to be done in Singapore. Third, we must lean in to foster greater connection and collaboration and strengthen Singapore’s standing as a Global-Asia node for technology, innovation and enterprise. First, on transformation. When the Future Economy Council was formed in 2017, a key piece of work it embarked on was the Industry Transformation Maps (ITMs). The ITMs were not merely about developing plans to be executed. The process of doing so was equally, if not more, important. The process involved 23 industries each identifying trends, challenges and opportunities they faced, then developing strategies to enhance productivity; restructure jobs and reskill workers; strengthen innovation; and internationalise. The ITMs represent a more mission-focused and industry-driven approach to tripartism, where our Government agencies collaborated with businesses and trade associations and chambers (TACs), while our unions worked with companies to support workers' reskilling and enterprise upgrading. Through the ITM process, stakeholders across each industry built trust, identified synergies and shared resources and experiences. In so doing, they supported one another towards the shared goal of ensuring that their industry, enterprises and workers remained relevant and competitive. In 2021, the ITMs were refreshed to take into account post-COVID-19 realities, including the importance of resilience and sustainability. This shared ownership of transformation is critical in today's world of accelerated changes and shifts, as it affords greater agility in our responses. Government plans and programmes will remain important, but when enterprises and workers embrace transformation, they can be at the forefront of seizing opportunities. In some countries, transformation invokes anxiety and trepidation as it is associated with job loss or companies being forced out of business. In contrast, our 2023 National Business Survey showed that almost all businesses polled recognise the importance of business transformation, up from 61% in 2017. Our workers are not only aware of the need to upskill and reskill, but have also taken action. Our overall annual participation in SkillsFuture initiatives has increased from 380,000 people in 2016 to 560,000 people in 2022.[+2 sentences] While the efforts will take time to bear fruits, the indicators, so far, are positive. Even amid structural shifts and sharp shocks from the COVID-19 pandemic, our economy has performed well and enabled us to grow the economic pie for all Singaporeans. Between 2016 and 2023, our economy achieved real value-added growth of 2.8% per annum. In the same period, our productivity growth, in terms of real value-add per worker, was 1.7% per annum.[+3 sentences] This is stronger than that of advanced economies like South Korea, the US, the UK, Germany and Switzerland. With these productivity gains, businesses were also better able to cope with the inevitable cost increases. Incomes rose as our economy and productivity grew. The median income of full-time residents grew at 1.5% per annum in real terms from 2016 to 2023.[+36 sentences] We will release a fuller report of the ITM efforts in a few months' time. We have been able to sustain this transformation and achieve good outcomes because of our unique approach to tripartism. This productive collaborative relationship between employers, workers and the Government enables us to shape transformation and growth to be fair and inclusive. It is a very precious asset to keep Singapore dynamic and harmonious. In a world that is more fast-moving and complex, working in concert is even more important now so that we can harness one another's strengths to move forward faster and together. Transformation must be a sustained movement. Like any successful movement, it draws strength from the trust and confidence of each stakeholder to collaborate. I thank our many leaders in the business sector, unions, TACs and academia for their contributions. One change which I observed, which we must build upon and expand, is how we have evolved our tripartism towards co-ownership and leadership. For instance, we convened the Emerging Stronger Taskforce at the height of the COVID-19 pandemic to explore how Singapore could rebound stronger. A key idea of the task force is the Alliance for Action (AfA), which mobilised private and public sector leadership to tackle specific, high-impact issues. We have launched several AfAs. For example, the Singapore Business Federation and leading business leaders proposed an AfA on business leadership development. This AfA put together a concrete set of initiatives to grow our local timber and groom global-ready talent. Another AfA, on supply chain digitalisation, led to the establishment of the Singapore Trade Data Exchange (SG TraDex), a common data infrastructure that enables the trusted sharing of data across the trade ecosystem. This has grown more pertinent with the supply chain disruptions that we are now experiencing from geopolitical unrest. So, I thank members of the Emerging Stronger Taskforce and Minister Desmond Lee and Mr Tan Chong Ming for co-leading the task force. Our TACs also helped their members navigate challenges and seize new opportunities. During the COVID-19 period, our Chinese, Indian and Malay Chambers of Commerce and Industry encouraged and supported SMEs to digitalise, both to ride out the pandemic and to position themselves well once business resumed. The National Trades Union Congress (NTUC) has been a significant leader in transformation. In line with its commitment that “Every Worker Matters”, NTUC has gone beyond the traditional notion of unions by partnering companies to transform and provide better prospects for their workers. Over the past five years, NTUC has worked with nearly 2,000 companies through the company training committees (CTC). Through ops-tech roadmapping or operations technology roadmaps and skills gaps analysis, these committees helped to uplift companies’ organisational capabilities and improve work prospects for their staff. Think about it. It is highly commendable that NTUC is not fearing technology, not fearing how technology will displace the workers, but is actually taking concrete action to uplift workers with technology, and this will become even more important as technology advances and more of our workers grow older. So, I hope that this House will embrace this same spirit when Members are debating the importance of technology. One company which benefited from such a committee was Elitez Group, which provides human resource solutions. Partnering the Food, Drinks and Allied Workers Union, Elitez Group tapped on the CTC grant to implement two business transformation projects. These enhanced productivity and freed up capacity for its staff to be trained in higher-value tasks. As a result, 15 of their senior and professional workers were upskilled and received wage increments. A small step, but a big lesson for everyone. It is also heartening to see larger companies serve as “SkillsFuture Queen Bees”, leaning forward to help other companies within their industries transform. For example, our logistics industry comprises many SMEs and is highly fragmented. ST Logistics, as the appointed SkillsFuture Queen Bee, shared its expertise and provided guidance on workforce transformation to smaller companies. In doing this, we upgrade not just individual companies, but tap on the broader ecosystem to achieve synergies and grow together. Most importantly, we should be proud that our workers are taking ownership of their lifelong learning journeys and career development. Some 192,000 Singaporeans utilised their SkillsFuture credits in 2022 for self-initiated learning.[+1 sentence] This is encouraging. Going forward, mid-career Singaporeans can use the new SkillsFuture Level-Up programme, with advisory and support from our agencies, unions and industry, to further their knowledge, skills and careers.[+27 sentences] This complements ongoing efforts to create pathways for continuous learning and upgrading through our Institutes of Higher Learning, often in the form of stackable micro-credentials, to build industry-relevant skills. In fact, I would encourage colleagues to look at the websites of all our universities to see the range of programmes that they have. And, as Mr Darryl David said yesterday, we must strengthen the linkages of our Institutes of Higher Learning (IHLs), businesses and unions further. Taken together, Singapore’s approach to transformation is a proactive and collaborative one involving different stakeholders. This is unusual and enviable, as it enables us to build capacity and capabilities not just in certain pockets, but across the board. This is how we ensure that the opportunities and benefits arising from transformation can be shared by all, and Singapore grows in an inclusive manner. I have spoken about how we are sustaining our transformation movement, through implementing the ITMs and strengthening collective ownership across different stakeholders. Let me now turn to another aspect of our next phase of our transformation. I earlier mentioned how technology and innovation are reshaping competitiveness across industries and economies. This is something that the ITMs take into account so that industries and companies can remain competitive and ahead of the curve. Mr Christopher de Souza earlier had spoken at length on AI, in particular, generative AI, and so did Dr Tan Wu Meng earlier. For Singapore, technologies, such as AI and automation, augment our human resources and if we learn how to use this well, AI can be our augmented intelligence, as the Member mentioned earlier. So, we should think hard about how the future of jobs and skills will be transformed with automation and AI and, in turn, how we can restructure our work and reskill our workers proactively to take advantage of these changes. Singapore’s next bound of growth must be powered by an economy that is technology-intensive, innovation-driven and sustainability-focused and provide good jobs for our workers. How do we achieve this? First, to capture new opportunities, we must be at the forefront of understanding, discovering and translating science and technology to advance existing key economic sectors while building capabilities for new economic drivers of the future; researchers in our universities and research institutes to generate the body of basic scientific insights; companies and startups to translate these insights or discoveries into innovations and solutions that can be applied to industry needs or market demands; and finally, the right training and support for workers to take on new jobs created by these opportunities, which I had spoken about earlier. This value chain is what we call the research, innovation and enterprise (RIE) ecosystem. The objective is to establish winning advantages in key economic sectors to strengthen Singapore’s position, uplift our local companies as well as create good jobs and opportunities for Singaporeans. To achieve this, the Government must work closely with our RIE stakeholders – researchers, IHLs, startups, local companies and multinational enterprises – to co-fund and grow the ecosystem. This requires proactive shaping and patient investment. Given our inherent small size, we need to develop our local researchers and nurture our enterprises and startups while also attracting leading global companies and top research and entrepreneurial talent to form a strong ecosystem. Many Members have earlier spoken about AI, and I would like to add that AI is one form of deep tech. There are many other forms of deep tech, and our biomedical sciences industry is a good illustration of this. Biomed is a deep tech area where scientific expertise is critical but the impact may not be immediately apparent. Over the past two decades, we had steadily built up the ecosystem of researchers, companies and a skilled workforce. When COVID-19 hit, these capabilities enabled us to contribute to the global fight, including the development of diagnostic tests. This patient investment has also nurtured Singapore startups, like MiRXES and Lucence, whose groundbreaking solutions are making good progress in their next phase of development in large overseas markets like the US. As such, the additional S$3 billion injection to our 2025 RIE plan, announced at Budget by Deputy Prime Minister Lawrence Wong, is a timely one, as we seek to deepen capabilities in new growth areas like AI, sustainability and advanced manufacturing.[+1 sentence] Our efforts are going well. Singapore is ranked fifth in the 2023 Global Innovation Index, and the top in Asia.[+1 sentence] Many MNEs have chosen to site their research and development (R&D) and innovation centres in Singapore. Total business expenditure on R&D has grown significantly over the past decade, on par with GDP growth.[+11 sentences] We also attract global startups, funders and founders to Singapore through a vibrant slate of events, from the Singapore Week of Innovation and Technology (SWITCH) to the Lee Kuan Yew Global Business Plan Competition. We have done well on innovation input. Our institutions and researchers have developed strong niches in areas like biomed, quantum and material sciences. We must now press on and continue to strengthen commercialisation and translational capabilities, to produce more “output” and capture value amid shortening innovation cycles and intensifying competition. mRNA technology, the basis of COVID-19 vaccines, is a very good example. While the scientific research had begun in the 1970s, it was only in the 2010s that drug companies saw the potential in nucleic acid therapies and invested in translating the science into therapeutics. This was how they were able to develop effective vaccines within such a short time span. With such a long gestation period, it is important that we proactively shape and grow the ecosystem with other RIE stakeholders, including global companies, startups and funders. Even as we continue to attract the right companies and stakeholders to grow our ecosystem, we can do more to deepen the innovation capacity of our students, researchers and enterprises. We want to foster a generation of entrepreneurial youth and there are opportunities, such as the National University of Singapore (NUS) Overseas College and the Nanyang Technological University (NTU) Overseas Entrepreneurship Programme, to provide exposure to our students. Patsnap, one of our homegrown unicorns, is a product of such efforts. Co-founder Jeffrey Tiong first developed the idea of building a patent and technical intelligence search engine during his NUS Overseas College internship in Bio Valley in Philadelphia. Today, Patsnap has more than 12,000 customers in over 50 countries.[+10 sentences] For our researchers, the opportunity to work with other global researchers is a valuable one. Through our Campus for Research Excellence and Technological Enterprise (CREATE), we are convening groups of top researchers from partner universities and local institutions to address complex interdisciplinary challenges in fields like urban planning and climate change. We have more than 20 corporate laboratories, such as Applied Materials' partnership with the Agency for Science, Technology and Research (A*STAR) and NUS, which is geared towards Advanced Packaging and Advanced Materials research for the semiconductor industry. It is especially heartening that Nanofilm, a nanotechnology unicorn spun off from NTU, recently set up a corporate lab there in NTU. We hope to encourage more of such examples, to inspire our students to strengthen our ecosystem. We also have the Industrial Postgraduate Programme where students do full-time postgraduate studies while undertaking an industrial R&D project at participating companies to help them gain industry-relevant R&D skills. In the area of deep tech, where innovation output is potentially high impact, but the process is lengthy and high-risk, we are doing more to support venture building, complementing efforts by the private sector. The objective is to support deep tech startups in overcoming technical, financial and market challenges while accelerating their growth. NUS' Graduate Research Innovation Programme and NTU's Innovation and Entrepreneurship initiatives are just two platforms to do this. Both universities recently partnered Xora Innovation to pilot the launch of deep tech startups that are globally competitive and can address large global market opportunities. Amperesand, the first deep tech startup supported under this partnership, has already raised over US$12 million in seed funding to scale up its solid-state transformer technology for the fast charging of electric vehicles.[+4 sentences] Amperesand plans to deliver their first systems worldwide by 2025. We are also supporting our enterprises, especially SMEs, to engage and participate in R&D, innovation and capability development activities. Our SMEs need not worry about their lack of scale, as they can tap on the research expertise and resources of our polytechnics to support them in their innovation journeys. There are 12 Centres of Innovation, covering sectors like aquaculture, built environment and electronics. The Enterprise Innovation Scheme provides tax deduction and allowances on qualifying expenditures like R&D, intellectual property (IP) registration, IP rights acquisition, training and innovation projects with our IHLs.[+24 sentences] The Technology for Enterprise Capability Upgrading (T-UP) Programme supports pioneering SMEs in developing innovative products and processes by seconding public research scientists and engineers. Lion TCR, which develops new cancer immunotherapy products to treat life-threatening viral-related cancers in Asia, is one example. With the support of two scientists from the A*STAR Singapore Immunology Network, Dr Wai Lu-En and Dr Sarene Koh, Lion TCR's R&D efforts enabled its product offerings to be more cost-effective than current options and also improved its production efficiency. This has fueled Lion TCR's business growth and contributed to the company's global expansion. For innovative local enterprises, joining up with larger companies provides opportunities to capture a steady stream of business and upgrade their innovative capacities. The aerospace industry is one such example. We just had the Airshow and top global companies, like RTX and Rolls Royce, have chosen to anchor in Singapore to tap on our strong base of precision engineering companies. Avionics companies, like Thales, are also having a deep presence in Singapore. Under the enhanced Partnerships for Capability Transformation Scheme that was announced at Budget, SMEs can partner larger companies to scale up and go overseas. And this is how we overcome our constraints of a small, domestic market. This is also a win for larger companies which can tap on the innovative capacities of the smaller companies to stay ahead of the competition. The RIE ecosystem is wide-ranging with numerous players. For it to work well and result in tangible outcomes for Singapore and Singaporeans, we must invest in the different domains while weaving them together intentionally to build strong and reinforcing connections. Our IHLs and research institutes must continue to invest in basic research and building up world-class capabilities, while also linking up with the industry to translate peaks of excellence into viable commercial products. We must continue to encourage our local enterprises to innovate and tap on larger local companies and MNEs to scale up and grow. The goal is for them to be key regional or global players in their own right, providing solutions that the market seeks. By developing a stronger innovation ecosystem, we create a conducive environment for leading local and global companies to deepen their presence here and attract global funders and startups to be a part of our ecosystem. And in so doing, we sustain a virtuous cycle of creating more opportunities for Singaporeans and for Singapore. This brings me to my final point. Given today's contested and uncertain world, Singapore must deepen our standing as a Global-Asia node for technology, innovation and enterprise to create new value for ourselves, the region and the world. Singapore is an outward-looking nation by necessity. It plays out in the way we build transformative capacity across different sectors and stakeholders and shape a strong RIE ecosystem that brings together the strengths of domestic and external stakeholders. These two elements reinforce our reputation as a trusted connector and node and our value add in a more volatile and uncertain world. Our robust regulatory and legal frameworks are longstanding strengths that provide the confidence that Singapore is a trusted and reliable partner. We have built up strong connections to the region and the world through our extensive set of agreements. We have 27 Free Trade Agreements (FTAs) in force, 42 International Investment Agreements and around 100 avoidance of double taxation agreements, and we have since innovated and evolved new forms of cooperation, such as the four Digital Economy Agreements.[+1 sentence] We have also strengthened connections to innovation nodes around the world through our Global Innovation Alliance. Our 21 nodes across Asia Pacific, Europe and the US facilitate Singapore-based enterprises to explore new markets and reap synergies.[+2 sentences] Thus, even as the rhetoric grows and cooperation slow, businesses and countries know that Singapore continues to be a constructive and neutral location for business, innovation and talent. This is how the Economic Development Board (EDB) has, over the past two years, managed to secure investment commitments, which are above its medium- to long-term goals. The 2023 commitments are expected to create over 20,000 jobs, with a projected contribution of $26.7 billion in value-added per annum. And this is why Singapore is home to some 37,000 international companies and 7,000 MNEs, many of which use Singapore as their regional headquarters.[+16 sentences] Singapore continues to be among the largest sources of foreign investments into China and India, reflecting our value as a gateway for companies to explore opportunities there as well as in ASEAN. We must, therefore, lean in to foster greater connection and collaboration at all levels. Domestically, it is about fostering co-ownership and leadership through the ITMs and our ongoing transformation efforts so that our industries, companies and workers are empowered and confident as they ride through new waves of change. It is about deepening linkages across our innovation ecosystem and connecting with other ecosystems and stakeholders, so that we can harness science and technology to find solutions to global challenges and unlock economic value. And beyond that, it is about leveraging our trusted reputation and extensive networks to encourage like-minded partners to grow in Singapore, through Singapore and with Singapore. Mr Speaker, Sir, let me now say a few words in Mandarin. (In Mandarin): Since the founding of our nation, Singapore's economy has developed rapidly. Besides the relentless efforts of our people, maintaining economic openness, promoting trade and attracting foreign investment have also been key to our success. Today, the global situation is unstable. Contestation between major nations, wars and disruption to the global supply chain and other factors have cast a shadow over the economic outlook. Many Singaporeans are concerned. Will our economy continue to thrive, and will Singapore continue to prosper? My answer is: I am very certain that Singapore can achieve this. To continue promoting economic growth, we must continuously increase productivity, facilitate economic transformation, strengthen the innovation ecosystem and enhance international connections and cooperation, leading Singapore forward through a multi-pronged approach. Firstly, we will continue to drive economic transformation to better respond to the changing economic landscape. In 2017, we established the Future Economic Council and formulated the ITMs, which has enabled our economy to maintain a steady momentum in the face of challenges in recent years. What heartens me is that our business leaders and employees are aware of the importance of transformation and skills upgrading, and act proactively.[+1 sentence] Secondly, we must continue to strengthen our RIE ecosystem. This will allow us to consolidate our momentum in key economic sectors and enhance the competitiveness of local enterprises.[+1 sentence] In a conducive environment for innovation and business, leading companies can expand their operations here, enabling us to attract more investors and startups to develop in our country, creating better jobs and opportunities for our people. Thirdly, we must strengthen international connection and cooperation to consolidate Singapore's position as a Global-Asia node for technology, innovation and enterprise.[+7 sentences] Therefore, in the current trend of global instability and a slowdown in international cooperation, we should uphold our consistent approach and continue to strengthen international cooperation, allowing international partners to recognise that Singapore is a reliable partner and giving businesses the confidence to invest here. Mr Speaker, Sir, since our Independence, our forefathers have overcome various challenges and painstakingly built today's Singapore. Whenever we face difficulties, we will unite and seek new paths forward. Therefore, even in the face of current challenges, I believe that Singapore's future is still bright. Because I am confident that we can unite and move forward together to build a better Singapore for our people and our future generations. : Let me now conclude in English. Mr Speaker, Sir, the world may be more difficult and our domestic constraints may be more challenging. But I have laid out the strong basis for my optimism that a small and open economy like Singapore can continue to thrive and secure our next bound of growth. By serving as a trusted node and connector, we can create value by facilitating connections and building new linkages in today's fractured global landscape. We can offer a strong innovation ecosystem with leading capabilities, talent and companies, making Singapore an ideal base to grow and build new ventures.[+2 sentences] And with tripartism fuelling our collective transformative capacity, Singapore and Singaporeans can remain well-placed to partner others and seize new opportunities with confidence. This is how we can continue to keep our economy innovative and vibrant, and build a better Singapore with opportunities for all.
Mr Speaker3 words
[+1 sentence]Mr Gerald Giam.
Mr Gerald Giam Yean Song (Aljunied)143 words
[+2 sentences]Sir, I thank the Deputy Prime Minister for speech. I would like to ask some clarifications. The Deputy Prime Minister said that AI can be our augmented intelligence and that we should think hard about how jobs will be changed with automation and AI, and he said that we need to reskill our workers to prepare for AI. However, given that seven in 10 people have not used their SkillsFuture credits since the scheme was started in 2015, does Deputy Prime Minister Heng Swee Keat think that it will be useful to expand the use of the SkillsFuture credits beyond core subsidies and give all students and workers more opportunities for hands-on practice with deep tech tools, like AI?[+1 sentence] This could give results by helping them to boost their productivity at work, for example, summarising long documents or drafting professional emails and reports.
Mr Heng Swee Keat431 words
[+15 sentences]I thank the Member for the question. In the first place, there are already a range of courses and, as I have said, when we look at the industry transformation and the workers' needs, what is very important is to ensure that the training and the utilisation of the skills are done in tandem. It is very good that workers are taking ownership of this training to upgrade themselves, but the impact will be even greater if they work together with the companies. Which is why I mentioned in my example of how the NTUC is working with the company to do operations and technology (opstech) roadmapping, to do transformation and, in tandem, work on the redesign of jobs and the reskilling of workforce. And it is not just in AI. It is in every domain of the technology that we want to make use of, that we want the society which is a lot more digitalised. If you remember, even for our digital payment system, during the COVID-19 pandemic, we rolled out the CDC Voucher scheme, for which the Mayors came out with the idea. Later on, we moved to digital vouchers. Huge efforts were put in by our agencies to train our hawkers to install these devices and to learn how to use it. Just last evening, I was talking to a group of my residents during the Meet-the-People session, about what they were doing and how they were learning to use this. And everyone expressed appreciation. So, our approach, whether it is the use of AI, the use of mRNA technology the use of simple digitalisation tools, has been an inclusive one. That is, we look at what needs to be done and deploy the right tool for the right task, and not just AI. Secondly, one other very important thing the Member must bear in mind is that AI is a very rapidly developing field and it is something which our researchers are working hard on, to look at the different techniques of AI – it is not just GenAI, but the whole range of different AI systems that are being used – and how that can be used in conjunction with our needs. So, understanding what the real needs are and what you can serve, what are the safeguards that we need to put in place to ensure its proper use and how to put this together in a way that advances not just R&D work, but also the reskilling of workers, has to be done in an integrated way, and not in bits and pieces.
Mr Speaker4 words
[+1 sentence]Assoc Prof Jamus Lim.
Assoc Prof Jamus Jerome Lim (Sengkang)157 words
[+3 sentences]Thank you, Speaker. I appreciate Deputy Prime Minister Heng Swee Keat's discussion of the importance of SkillsFuture. In principle, I do not disagree with the potential benefits of the scheme. Yet, as my hon friend has shared, statistics reveal that, in recent times, take-up remains low. And in fact, many have yet to exhaust their SkillsFuture credits, even as the Government has proposed that we increase them. But perhaps, what is even more damning is that older workers, exactly the group that we hope will take on this task of reskilling, display significantly lower take-up rates. My question is, in light of the wrenching changes that AI will usher in, how would the Government ensure that SkillsFuture will actually be able to increase its take-up rate and fulfil the objective of reskilling that it was meant to accomplish or is it revealing that there is a continued scepticism among our workers of the benefits of the scheme?
Mr Heng Swee Keat405 words
[+18 sentences]Mr Speaker, Sir, I hope that Assoc Prof Jamus Lim is not a pessimist, because the Member said that the take-up rate is low and so on. You can look at it as a glass half empty or glass half full. Name me a country which has started such an extensive SkillsFuture framework. I was the Education Minister for five years. Our students have done so well and now, our older workers are working hard to learn new skills. Name me a country where the NTUC is not only accepting change, but is embracing change and being a partner for change, in working on the Company Training Committee, in working with companies to do, not just training, but surprisingly, opstech roadmapping. They were trained by researchers from A*STAR to look at how companies can adopt technology and, in the process of adopting technology, how jobs can be redesigned and reskilled, so that workers can take on better jobs, with this huge amount of SkillsFuture funding and the range of courses. I think the Education Minister and the Minister for Manpower will speak more on this later. So, we will have to take a different approach for different groups of workers. For those who are able to take ownership and do the courses on their own, who want to change their jobs, there is a range of options available. There are many companies that are taking action to redesign their workflow. I have been working very closely with the Singapore Business Federation (SBF) and that is why I mentioned earlier that the SBF has also set up an AfA on business leadership development. I have met the team who are doing this and, in fact, they are making very good progress. So, we have got to upskill everybody at all levels, including the CEOs of companies, to embrace change. It is very good, in my view, that we are able to achieve this progress over time. And, in fact, instead of saying, "Oh, I am skeptical, I am pessimistic", if the Member has good suggestions on how we can do this better, play a constructive role, because with his professorship, he would know this well – play a constructive role, be a part of the team. We have so many members of the academia who are working with us and giving us excellent ideas. So, if the Member has great suggestions, I am open to considering.
Mr Speaker3 words
[+1 sentence]Mr Gerald Giam.
Mr Gerald Giam Yean Song121 words
[+3 sentences]I thank the Deputy Prime Minister for responding to my question but, perhaps, I was not clear enough in my question. I was not asking about more training. My point was that training has its limits and the adoption of the SkillsFuture credits is nowhere as much as what we would have hoped for. Only three in 10 have used their SkillsFuture credits.[+2 sentences] And so, the glass is not even half full, in that respect. To acquire skills, workers need hands-on practice, which is why we are calling for an expansion of the use of SkillsFuture credits to use it for, perhaps, subsidies for the use of AI tools, so that they can increase their productivity and get some hands-on experience.
Mr Heng Swee Keat276 words
[+11 sentences]Speaker, I remember Mr Gerald Giam's question is whether it can be expanded for other areas in a more appropriate way. This is certainly an area which the Ministry of Education (MOE) and MOM will be happy to consider if you have specific good suggestions about exactly how it can be used. I have tried to sketch out what different people are doing – from the company training committees of NTUC to what the IHLs are doing. I suggested to all Members earlier to take a look at the websites of our universities and polytechnics, and they can see the range of courses that people can undertake and, with the SkillsFuture Level-Up Programme, there are even more courses that they can undertake. For workers who need help, support and encouragement, we should all do our best to encourage them. That is why WSG and SkillsFuture Singapore have been mounting lots of programmes to reach out to residents, not only in trying to get a job, but also, my residents are asking, what are the courses they can do? I myself have participated in many of those outreach programmes and I must say that the response of many of our workers, including senior ones, is very encouraging. You are right that training is not everything. It is one aspect of it. You need a collective effort, including by the managers and owners of businesses, to say, "I am going to take training seriously, but more importantly, not just training for its own sake, but how training can be translated into better job performance. And therefore, we can have productivity growth and I can reward my workers better".
Mr Speaker4 words
[+1 sentence]Assoc Prof Jamus Lim.
Assoc Prof Jamus Jerome Lim97 words
[+4 sentences]Just a quick clarification on my part. I absolutely agree that the SkillsFuture is a good programme in principle. And the challenge that I would put to the Government is how to ensure that it fulfils its original objectives. As for our participation in various suggestions for how we can improve it, I have made suggestions within the context of this House, but if we receive invitations from the various Ministries for us, or any of my Workers' Party (WP) colleagues to participate in these kinds of discussions, we would be more than happy to do so.
Mr Heng Swee Keat126 words
[+9 sentences]Assoc Prof Jamus Lim, you do not need an invitation. You are free to provide your suggestion. After all, are you not from WP? And by the way, let me make it clear that I have heard MPs on both aisles speaking about workers, and we have a very strong presence of our union MPs here and they will be speaking even more on this. So, we all care about Singaporeans, and we want to do the best for them. So, you are welcome to give me your ideas, if you have very specific ones. But let me say that I would have to consider it, together with all the other good ideas. But good ideas are always welcomed. And I am just waiting for them.
Mr Speaker9 words
[+1 sentence]Ms Denise Phua, did you raise your hand earlier?
Ms Denise Phua Lay Peng (Jalan Besar)267 words
[+3 sentences]Yes, Speaker. I would like to also support Deputy Prime Minister Heng Swee Keat's "glass half full" perspective. We might actually be a victim of our own success. The SkillsFuture Credit take-up or adoption rate must not be seen as the only indicator of learning.[+6 sentences] Because of the big push for lifelong learning, I think, during that time and even now, there are many free courses that are implemented. For example, I know that many IHLs – NUS, for example – have given a lot of free CET courses that do not require the use of SkillsFuture credits, in a sense. When the CDCs implemented the CDC Vouchers scheme, we had the whole pool of IMDA Digital Ambassadors who went all out to teach our merchants and our seniors, for example, how to use the digital vouchers. And it came free! It did not require the use of SkillsFuture credits. At the same time, I think, because what NTUC does – the free trainings, the training plans and so on – those courses are sponsored and paid for by the companies. While we know that we can use more of the SkillsFuture credits, that must not be the only indicator, because there are lots of free programmes that did not require the use of these credits.[+4 sentences] But do not let this go away. We have needs for that. I think there is more to do. But I just want to say that, let us not get too hung up on the adoption of the SkillsFuture Credit, because there are indeed, many courses that are free for now.
Mr Speaker6 words
[+1 sentence]Deputy Prime Minister Heng Swee Keat.
Mr Heng Swee Keat165 words
[+2 sentences]Mr Speaker, Sir, I would like to thank Member Ms Denise Phua for her comments because her comments reminded me of the tagline that I always said when I was in MOE – that you can learn from anyone, anytime, anywhere. In fact, peer learning is a very important aspect of that learning. In short, it is really about an attitude towards learning, that we must inculcate this interest and passion to learn, and learn throughout your lives. It is not about the take-up rate and not about the courses, it is not about putting up more of these.[+4 sentences] Because a lot of the infrastructure and a lot of the courses are already there. It is not a question of why do you not do more of this or more of that. I think we can all focus on how we encourage everyone, young and old, to learn something and you can learn from anywhere. It does not mean you must take a formal course.
Mr Speaker6 words
[+1 sentence]Mr Muhamad Faisal Bin Abdul Manap.
Mr Muhamad Faisal Bin Abdul Manap (Aljunied)1203 words
[+3 sentences]Mr Speaker, Sir, in my time as a MP representing Kaki Bukit division of Aljunied Group Representation Constituency (GRC), I have had many interactions with Singaporeans, individuals and families from low-income households. These households have been most affected by the rising cost of living in Singapore and the issues they face are multi-faceted. When Deputy Prime Minister Lawrence Wong delivered the Budget Statement earlier this month, I was heartened that there was significant attention given to this segment of our country's population. Today, I will speak with that light in mind. It was reported on 12 February 2024 that the lowest-earning households in Singapore saw their real incomes dropped by 1.7% in 2022, after accounting for inflation. The same report, the data from the Department of Statistics, showed the median household income for the same period rose by 2.8%.[+23 sentences] In response, the Government has ramped up support packages for the lowest earners in this year's Budget, adding onto the measures that had been announced and implemented in 2023. Deputy Prime Minister Lawrence Wong has also provided some details on the ComLink+ progress packages, where families with children from low-income households can receive financial top-ups when they work with family coaches assigned by the Ministry of Social Development and Family (MSF) on an action plan to meet certain goals. These goals include having children enrolled in preschool education, gaining employment, improving their financial stability and saving for home ownership. Sir, I gather from the information released to-date that one of the goals of the ComLink+ progress packages is to prevent intergenerational poverty from taking root any further and I support moves that prevent further stratification of society. In my experience, most, if not all, parents want to send the children to preschool and share a common desire to see their children get a good education. What often prevents them from sending their children to school are other tangible factors, such as the lack of places in nearby centres, concerns over their ability to pay the fees even after subsidies and financial assistance, pick-up and drop-off timings because the parents are working shift, among others. Top-ups to the Child Development Account (CDA) are useful throughout a child's education journey. However, they have far less of an impact on the immediate challenges a household may face in trying to keep their little ones in preschool. I welcome the lowering of fees at childcare centres under the Partner Operator and Anchor Operator Schemes as well as the expansion of subsidies. I believe this will go a longer way towards helping lower-income families send their children to preschool. On the matter of employment, low-income earners are among the most vulnerable segments of our workforce. Aside from their lower wages, job security is another concern for many low-income earners, particularly those in professions with no specialised skills. Low-income earners worry about being replaced easily or retrenchment, which can have an upsized impact on their families' livelihoods. I look forward to receiving more details about the assistance that the Government is planning for the involuntary unemployed. The WP has called for the introduction of redundancy insurance since 2006. By whatever name, a scheme that provides a net for Singaporean workers who find themselves suddenly out of job due to events out of their control is something that is needed in a time where job security is not assured. Sir, I note that the Government will be ramping up support for the reskilling and retraining of our workforce. I believe that despite this move, there will remain a sizable portion of our population that is wary, not because of the support level but because they are unsure of whether undergoing reskilling will improve their earnings and job security. The other generations may also need more help in assessing their training funds under SkillsFuture as many of them are not IT-savvy. Sir, I believe every Singaporean aspires to own a home for themselves. But for young Singaporeans from low-income households, the path to home ownership is more fraught with risks. The two primary concerns are affordability and availability. I note that support under the employment and saving packages are kept at $30,000. If you assume a 50/50 split in the amounts the household received for each section, the maximum amount of household receives for purchasing their own home is $15,000.[+2 sentences] After including the grants, the price of a 3-room flat in the February 2024 launch of Build-To-Order (BTO) projects ranges between $127,000 and $172,000. Assuming the household successfully applies for a housing loan, the downpayment involved could range between $25,400 and $34,400. Even after accounting for the household contribution, the total level of support would be insufficient for the downpayment.[+11 sentences] Families with children find it more difficult to save to buy their own house because there are more immediate needs to be met daily. The wait for a BTO unit can range from around three years at the fastest, assuming there are no construction delays. Even for Singaporeans from middle-income families, the long wait throws a spanner in the works when they are planning for marriage and children. For lower-income families with children, the wait can have a bigger impact. It is a sad and unfortunate reality that the living environments in rental flats are often not conducive for young children. There are stresses and pressures that arise that have an impact on their longer-term development. A more proactive approach may be required, for example, giving such households, which are ready to purchase their own home priority in the in the Sales of Balance Flats exercises or providing them assistance with purchasing a resale flat at subsidised prices. Sir, there is a segment of low-income households who face a particular problem with securing housing – Singaporeans with foreign spouses who have not obtained permanent residence. They are not eligible to apply for a flat under the Public Rental Scheme as that spouse is not a permanent resident (PR). They also do not have enough income and/or savings to purchase their own flat. The situation affects their relationship with their spouse. The Singaporeans whom I met in this situation have been unsuccessful in applying for their spouse to obtain PR status or even a Long-Term Visit Pass (LTVP). They are effectively deprived of having a matrimonial life with their spouses in Singapore. Some of them also rely on their spouse to be their caregivers. We need to consider streamlining a path towards naturalising foreign spouses in Singapore, which includes housing policies for such families.[+2 sentences] Sir, my final point is one that I have raised on previous occasions. I would like to reiterate my call that Singapore adopts the social protection framework developed by the International Labour Organization (ILO), an introduction of an annual social protection report which tracks the effectiveness and efficacy of our policies to uplift society. With clear key performance indicators, such as improved per capita household income benchmarked against the median, we can better track how well policies are working and do the necessary fine-tuning.[+3 sentences] Sir, the United Nations (UN) is one that takes care of all segments and leave no one behind. I believe this is the sentiment all of us can get behind. Sir, I support the Budget.
Mr Speaker3 words
[+1 sentence]Mr Edward Chia.
Mr Edward Chia Bing Hui (Holland-Bukit Timah)1885 words
[+21 sentences]Mr Speaker, Sir, Budget 2024 empathises with the cost-of-living pressures experienced by all segments of Singaporeans and brings immediate relief. It includes enhanced Assurance Packages, rebates, SkillsFuture support and more CDC Vouchers. These measures show our commitment to Singaporeans that we have got their backs. Budget 2024 also recognises that these are short-term measures. In the medium to long term, we need to boost real incomes in the face of rising inflation, especially for the middle-class. This is the only way to improve our standard of living. To do this, we must equip our workforce with the skills for new jobs. We also need to support our employers to find new markets and grow. Workers should remain relevant and firms have to remain competitive. Workers' real wage growth can only be sustained when employers grow. I have advocated in this House for measures that bolster businesses' competitiveness, enhance local enterprises' capabilities, such as carbon accounting to align with new procurement criteria, facilitate firms' growth through initiatives like Partnerships for Capability Transformation, and ensure retirement adequacy for seniors along with the creation of age-friendly facilities for them to lead active and purposeful lives. I am heartened by the additional support allocated in Budget 2024 for these crucial areas. Mr Speaker, Sir, the initiatives announced in Budget 2024 are well-crafted and the challenge now is to ensure translation in the real economy that leads to real wage growth for Singaporeans. Firstly, I will address measures to support lower-wage workers and attract MNEs. Secondly, I will share the challenges of hiring the right talent and the necessity of aligning workers' skills with company needs through programmes, like SkillsFuture Level-Up and the Job Skills Integrator programmes. Thirdly, I will explore alternatives to promote inclusivity and a sense of ownership among employees, enhancing their motivation and contribution to their companies. Lastly, I will propose a focus on Enterprise Singapore accreditation programmes to incentivise companies to prioritise inclusivity and social equity, fostering a more inclusive and sustainable economic environment. Sir, first, support for lower-wage workers is crucial. Most of our workers are employed by our SMEs. Hence, support for our SMEs is critical to uplift local workers. A key area of concern for our SMEs is cash flow. The enhancement of the Progressive Wage Credit Scheme is a step in the right direction.[+1 sentence] However, annual reimbursements can strain cashflow. Hence, I would like to ask if the Government can consider shortening the period for reimbursements to aid enterprises' cashflows.[+3 sentences] Secondly, we need to equip our workforce with the necessary skills and competencies to drive our nation's growth and innovation. Employers often tell me they struggle with hiring the needed talent to transform. This challenge has also grown due to rising manpower costs and a tight labour market. The SkillsFuture Level-Up Programme offers an additional $4,000 credit.[+3 sentences] This is a commendable initiative to support individuals in pursuing skills development and career advancement. The eligible courses are selected courses that are oriented towards meeting industry and employment needs. I would like to ask how these programmes are selected or curated to keep up with job disruptions. What is the structure in place to ensure a swift feedback loop from employers on the relevance of curriculum and what are the procedures to ensure timely adaption?[+13 sentences] It is crucial to ensure that these programmes are aligned with the evolving needs of the job market and provide relevant skills for the future workforce. The Job Skills Integrator Programme, introduced in Budget 2023, identify the nexus between new skills workers need and corporate objectives. I would like to ask how the Jobs Skills Integrator Programme dovetails with the SkillsFuture Level-Up Programme. Human resources (HR) play a vital role in guiding employees to maximise benefits for the company with clear objectives. We need to examine how can HR act as an in-house career advisor. With enhanced SkillsFuture funding, the challenge is to ensure that employees, while in their jobs, can identify and acquire new skillsets aligned with corporate objectives. To do this, HR roles, particularly in our SMEs, will need to broaden. HR's spectrum ranges from administrative payroll tasks to the HR business partner (HRBP) role, which interfaces with the business to support its needs. However, most SMEs may not have an HRBP role, leading to a lack of corporate alignment. For SMEs without an HRBP, chief human resource officer (CHRO)-as-a-service can be a solution to mimic the HRBP role and maximise SkillsFuture credits. This service could provide significant value for the SME sector and help grow SMEs to be large local enterprises. Another feature of the SkillsFuture Level-Up Programme is the Financial Support for Full-Time, Long-Form Training. This is yet another major shift in our nation's support of life-long learning. Adult learners can take time off to pursue a long-form diploma with a provision of a monthly allowance of up to $3,000 for 24 months.[+16 sentences] This addresses the basic cost of living needs of an adult learner. However, some employers have expressed concerns regarding the depletion of their workforce, as more employees take time off to pursue new diplomas. Could full-time diploma programmes be adapted to allow workers to continue working part-time in a firm? This arrangement benefits employers by mitigating manpower shortages while enabling workers to stay abreast of industry trends during their diploma pursuits. Also, how does SkillsFuture Singapore's existing career transition place and train programme align with and support this new initiative? Mr Speaker, Sir, we need to align workforce training with corporate objectives and ensure that HR processes effectively guide employees towards skill development that benefits both the individual and the company. This alignment between employees and employers maximises the translation benefits of the SkillsFuture Level-Up Programme. Thirdly, as we strive for innovation and technological advancements, we must promote greater inclusivity at the firm level. Given the increasing disruption in job scopes, there is a pressing need for improved job re-design capabilities. Alongside the support for acquiring new skills announced in Budget 2024, it is essential to develop measurement tools and benchmarks for employers and HR to equitably assess salary ranges for newly acquired skillsets. This ensures that as employees upskill and both the individual and firm productivity improves, the gains are equitably shared between employers and employees. I would like to seek clarity on how the Government intends to provide job re-design measurement tools and benchmarks to facilitate the fair valuation of new skills sets in relation to productivity growth. Furthermore, there is a growing body of evidence indicating that returns on labour are increasingly overshadowed by returns on assets, exacerbating the wealth gap in our society. Concurrently, employers are contending with high staff turnover rates and seeking effective talent retention strategies. Often, there is frustration due to misalignment between employees and the firm. Therefore, I suggest implementing measures that enable employers to share in asset appreciation upsides while strengthening the alignment between employees and the organisation. One promising avenue is the more widespread adoption of Employee Stock Ownership Plans (ESOPs).[+3 sentences] ESOPs grant employees the option to purchase shares at a set price upon meeting performance goals, aiming to retain key staff long term. Psychologically, ESOPs instill a sense of ownership, boosting motivation and performance. This benefits both employees and employers, enhancing motivation, ownership and long-term success. In the Netherlands, the tax point for stock options has been shifted to a more favourable time for employees, that is, when the shares become tradable, rather than at the moment of exercise or alienation.[+7 sentences] This change, effective from January 2023, helps employees manage the financial burden of taxation on stock options. In Bulgaria, amendments to the Commerce Act have led to the creation of the Bulgarian variable capital company, tailored to start-up technology companies. This new company type offers greater flexibility, for example, by reducing administrative requirements related to shareholding structures. In Ireland, some schemes allow for share allocation or options to employees, which include tax benefits after a certain period of shareholding. There are also alternatives to ESOPs. For example, in the US, companies offering Phantom Stock Plans or Restricted Stock Units (RSUs) may benefit from tax deductions when the awards vest, providing they meet certain conditions. This encourages companies to implement such plans as part of their overall compensation strategy. Comparing these models to Singapore's current tax incentives; while Singapore has a framework to support share-based remuneration, there may be room to expand these incentives to encourage a broader range of alternatives to ESOPs.[+11 sentences] This could involve introducing specific tax deductions or grants for companies adopting Phantom Stock Plans, RSUs or other innovative compensation models, thereby promoting a more flexible, diverse approach to employee ownership and participation. Lastly, as we strive to create a more inclusive environment within the firms, it is also essential to consider how we can leverage investment and purchasing decisions to promote social equity. This brings us to the concept of impact investments and the importance of environmental, social and governance accreditation programmes. Shaping investment decisions can promote social equity. Encouraging investors to support employee-focused companies drives change. The rise of impact investments creates opportunities to direct investments toward inclusive firms. Increasingly, investors seek impactful capital utilisation. This presents an opportunity to connect capital with accredited enterprises. The landscape of capital flows has evolved to bolster impact-driven enterprises. This evolution entails a blended approach that merges philanthropy with investments. Blended capital encompasses grants, recoverable grants and equity, reflecting a convergence between philanthropy and impact investments. To augment this trend, I suggest that agencies, such as Enterprise Singapore and National Volunteer and Philanthropy Centre (NVPC), collaborate to devise programmes aimed at expanding the deployment of blended capital.[+13 sentences] With increased consumer awareness, especially among the younger demographics, individuals prefer supporting positive-impact enterprises for societal gains. Environmental, social and governance-based accreditation can catalyse a shift towards virtuous purchasing and investing, fostering greater societal impact through these enterprises' endeavours. To incentivise companies to prioritise inclusivity, I have called for the promotion of accreditation programmes, such as Company of Good by NVPC and B Corporation (BCorp). These accreditation programmes are important for investors and consumers to evaluate businesses that promote greater inclusivity. Acknowledging companies' commitment through such programmes deepens their impact. A prominent local illustration of NVPC's Company of Good accredited entities is ABR Holdings, renowned for operating the popular Swensen's chain of restaurants. ABR Holdings collaborates with organisations, like Association for Persons with Special Needs (APSN), Asian Women's Welfare Association (AWWA) and Yellow Ribbon Singapore, to offer training and employment opportunities to individuals with special needs and ex-offenders. ABR Holdings not only serves delectable cuisine but also dishes out kindness to our community, exemplifying its commitment to social responsibility. By amplifying the prominence of ESG accreditation schemes, fostering blended capital investments and promoting purchasing support for inclusive firms, we initiate a cycle of investment and social impact, ultimately advancing toward a more inclusive society. In conclusion, Sir, Budget 2024 is a testament to our commitment to Singaporeans' dignity and stability, providing immediate relief and laying the foundation for long-term prosperity. By addressing the needs of our lower-wage workers, enhancing workforce training, promoting inclusivity within firms and leveraging impact investing, we are charting a course towards an inclusive and sustainable future. These initiatives underscores our dedication to ensuring that all Singaporeans share in our nation's success. Mr Speaker, Sir, I support this Budget.
Mr Speaker5 words
[+1 sentence]Senior Parliamentary Secretary Eric Chua.
The Senior Parliamentary Secretary to the Minister for Social and Family Development (Mr Eric Chua)1677 words
[+2 sentences]Mr Speaker, last year in April, when this House debated on a Motion of thanks for the address made by the former President, I made a case for adopting a life course, case management approach to support persons with disabilities (PwDs) and their caregivers. A familiar face that a PwD and their caregivers can talk to, candidly on future-care planning, employment or, perhaps, even where they could pick up a recreational sport in the community. To enable PwDs to flourish, our national roadmap for disability inclusion, the Enabling Masterplan 2030 (EMP2030), identified three strategic themes: one, to strengthen support for lifelong learning; two, to enable independent living; and three, to create inclusive physical and social environments for persons of all abilities.[+3 sentences] Along with that, 14 focal areas, such as "learning beyond schooling years", "inclusive employment" and "inclusive public spaces" were highlighted. Consistent with the recommendations of the masterplan, I maintain that more can be done for this community. Since the launch of EMP2030, we have continued to push ahead with our agenda of disability-inclusion. The first Enabling Services Hub (ESH) in the Tampines West Community Club and the Enabling Business Hub (EBH) in Jurong launched last year, were a few examples.[+29 sentences] The ESH and EBH symbolise our ambition to do better as a society. One where PwDs can partake freely in the community, just as any other abled-bodied person can and would without fear of stigma. It also paints our vision for a more inclusive workplace, one where more PwDs can sustain gainful employment, thrive and flourish. As we continue pushing in this direction, I hope that as a society, we can work together to empower our brothers and sisters of all abilities, enable them to realise their maximum potential and to lead meaningful lives. To do so, policies and programmes alone are not enough. We also need persistence and participation – your participation, everyone's participation – to make disability-inclusion a hallmark of Singapore society. In many areas, such as inclusive employment and availing of independent living options, the Government can and will take the lead. Yet, in other domains, such as the shifting of mindsets, everyday accommodations, community organisations, social service agencies, individuals like you and I, we all have a role to play. Today, I dedicate my speech to the sharing of some everyday challenges that PwDs and their caregivers face, particularly those that exist at the intersections of service provision. I recently spent good time talking with Dr Lim Hong Huay, a developmental and behavioural paediatrician. Beyond her professional credentials, she is a mother and caregiver to two children with special needs and, to her, I owe a vote of thanks for the central ideas in my speech today. I will touch upon three key ideas, namely: one, the critical role of the caregiver; two, better information and awareness; and three, stronger professional collaboration. First, on caregivers. All of us, disability or otherwise, visit a doctor occasionally. How differently then does a PwD experience the healthcare system? A point Dr Lim made left a deep impression in me. The difference, she said, "was in the medical professional's practice of "the art of medicine"". According to an article in the Canadian Medical Education Journal, the "art of medicine" is simply a clinician's way of being when interacting with patients and family members. How doctors, nurses and allied healthcare professionals diagnose, explore treatment options, communicate and promote healing, these are examples of "the art of medicine". This made a lot of sense to me. After all, we are first and foremost, human beings, not merely humans doing. For patients with disabilities, particularly those who cannot effectively express their own thoughts and feelings, the practice of the "art of medicine" becomes even more cogent. How a patient with disabilities respond to prescribed medication, side effects they may experience and so on, is often told through the keen lens of the observer, and that is their caregivers. Therefore, how healthcare professionals interact with and co-opt caregivers in the process of promoting healing is instrumental. Caregivers are also often best placed to advise healthcare professionals on potential triggers, for example, bright lights, colours or sudden loud sounds, that might spark adverse reactions in their charges. Triggers differs from patient to patient and, therefore, including and intimately involving caregivers when working with patients with disabilities would, in many instances, aid the work of healthcare professionals. Second, information and awareness. To be sure, there are many well-meaning healthcare professionals who want to better serve patients with disabilities and their caregivers by planning out their service experience in advance. They can be supported to do so if they have more ready access to information, such as an individual’s disability status, and are more aware of their accommodation needs. Better capture of disability data and sharing across sectors, including social services, healthcare and transport, would enable professionals to plan and do better for PwDs that they serve, according to their unique circumstances.[+1 sentence] For instance, in healthcare, a longer stretch of consultation may be scheduled for patients who may face difficulty expressing themselves. A fixed rhythm of consultation sessions may be planned for patients that are used to certain set routines, for instance, seeing a doctor only in the mornings or scheduling patients only at the start or the end of a shift to significantly reduce wait time.[+6 sentences] All of these are plausible, and these tweaks can be quite easily made, so the service experiences that PwDs and their caregivers have with the healthcare system can overall be more positive. Finally, my third and last point on tighter cross-sectoral professional collaboration. In their life course, PwDs and their caregivers interact with professionals and organisations from different sectors – doctors and nurses in the hospital or clinic, teachers and allied educators in the special education (SPED) schools and occupational or speech therapists in the social service agencies (SSAs). Across different sectors, we need to grow a culture of tighter collaboration. Cross-disciplinary sharing of professional practices would be a great start. Take, for instance, medication. For some PwDs, medication is sometimes prescribed to help them manage behavioural outbursts.[+6 sentences] For example, risperidone is an anti-psychotic medication quite commonly prescribed to manage psychosis-induced agitation. We sometimes hear anecdotes of PwDs being taken off such medication prematurely, sometimes due to caregivers’ concerns or purely streetside hearsay about the potential side effects of such medication. Having non-healthcare professionals who interface with the PwDs and their caregivers on a more frequent basis – for instance, their speech therapists – can help to allay unfounded concerns of family members and overall, this represents a net positive for the PwDs. In other instances, tools such as visual scheduling used by social service professionals to communicate a sense of routine and rhythm, particularly for autistic individuals, might unfortunately not be well understood and, hence, much less deployed as a communication strategy by healthcare practitioners when working with these individuals. My wish, therefore, is to see more sharing of professional practices across domains, so that there is not only better appreciation of each other’s work, but the opportunity to enlist one another in mutually reinforcing each other’s work is not lost. There are obvious benefits to be had if professionals in different sectors could understand and help reinforce key messages among PwDs and their caregivers. For instance, having healthcare professionals take a more 360° view of the patients and caregivers they serve, by reinforcing messages, such as the importance of future care planning where opportune or, even better, refer them to organisations like the Special Needs Trust Company (SNTC). In other instances, having social work professionals help clear up doubts that PwDs and their caregivers might have about policies, such as CareShield Life, would only benefit the very individuals and families that these professionals from the different sectors are all trying to serve.[+2 sentences] One last point on cross-sectoral collaboration. When PwDs move across different service sectors in the course of their lives, there almost always exist, today, an inevitable resolution loss in terms of what each successive organisation knows about the PwDs. Information such as unique circumstances that might trigger a meltdown, habits or routines unique to each person, the loss of such information along the way, among others, that affords each organisation working with the PwDs and their caregivers a better chance of providing a more person-centric service has to be minimised.[+11 sentences] This goes back to the point I made last year about taking on a case management perspective for each PwDs and how we should support them and their caregivers more systematically throughout the course of their lives. Mr Speaker, in Mandarin. (In Mandarin): Mr Speaker, the Enabling Masterplan 2030 has outlined our country's vision and plan to build a more inclusive society over the coming years. We hope that every individual in our nation will have the opportunity to reach their full potential. In my speech today, I would like to propose three key points for consideration and discussion. First, in supporting the journey of PwDs, caregivers play a pivotal role. Where feasible, we should allow caregivers to participate in professional processes, such as medical consultations. Secondly, if healthcare professionals can have more information about PwDs, such as their individual circumstances and medical condition, they can better plan services and provide better care for PwDs and their caregivers. Third, professionals from different industries, when serving PwDs and their caregivers, can also collaborate more closely to provide a seamless service, focusing on the PwDs. : Mr Speaker, our journey in disability-inclusion has been built upon the hard work, sweat and tears of many professionals in the social service, healthcare, education and many other sectors, as well as the many PwDs and their caregivers who have worked tirelessly to get us to where we are today. Standing on the shoulders of those who have come before us, it is now up to us to pick up the mantle, carry the torch and strive towards the day we work the word "inclusion" into obsolescence. Mr Speaker, I support the Budget.
Mr Speaker4 words
[+1 sentence]Mr Zhulkarnain Abdul Rahim.
Mr Zhulkarnain Abdul Rahim (Chua Chu Kang)2417 words
[+15 sentences]Mr Speaker, Sir, thank you for allowing me to participate in this debate. I rise in support of the Budget Statement made by the Deputy Prime Minister and Minister for Finance. Sir, Deputy Prime Minister Wong said that Budget 2024 is about acting on the belief that so long as we stay united, work together and continue to keep faith in each other, we will be able to weather the storms ahead and emerge stronger. I resonate with that and share this belief. I welcome the approach to draw from fellow Singaporean’s collective experience, expertise and feedback during the Forward Singapore conversations. This Budget takes those conversations forward and make them into concrete actions for our future. I am particularly interested in the measures to help our households and providing more assurance for families and seniors. My speech will be focused on housing options and enhancing liveability in the housing environment for families and seniors. Firstly, on housing options and accessibility. During last year’s Budget debates, I raised several proposals to further refine the balloting process for BTOs for families and young couples. I am glad that the Government has not only adapted such recommendations but also ramped up the supply of BTO flats to meet the demand for housing. White waiting for their BTOs, I met many young couples in Keat Hong who are living with their parents. They are newly married and waiting for their flats in exciting new BTO developments in Bukit Batok and Tengah. Most importantly, while living with their parents, they get to save up and enjoy the support to take care of their children and access to many childcare centres and amenities in the neighbourhood. Keat Hong, where they grew up, is a place of warmth and familiarity. But family circumstances change and with the welcoming of another baby or two, the living conditions in the flat will be too cramped. Hence, I welcome Deputy Prime Minister Lawrence Wong’s announcement in this year’s Budget of the new Parenthood Provisional Housing Scheme (PPHS) (Open Market) Voucher for one year, to support eligible families to rent an HDB flat in the open market.[+20 sentences] This helps young couples who are waiting for their BTO flats to have temporary housing. Previously, they need to join the waiting list for rental flats from HDB and the open market rental are out of reach for them financially. All of these policy changes show that the Government listens intently to the various feedback via numerous consultations or through the Meet-the-People sessions appeals that we MPs sent on behalf of residents, for me, every Monday in Keat Hong and, after careful studying, implements them into action. The Government lends a listening ear and extends a helping hand. In Malay, Sir. : This Budget provides more support for families in terms of financial assistance and housing. This comprehensive approach means that the Government not only helps specific groups but all levels of our society, from senior citizens to families to workers. One issue of concern is housing matters, especially for young couples with young children. Last year, I suggested a way to further fine-tune the application process for HDB BTO flats. I observed that the suggestion provided was not only considered but it was also employed to help young couples who have just got married. To help them, Deputy Prime Minister Lawrence Wong has also announced a new voucher scheme that helps young couples to rent a house from the open market during the period when they are still waiting for the completion of their BTO flats. This voucher will help many from our community to get interim housing. One of my Keat Hong residents, Mdm Nur, together with her husband and child, are living with her sister’s family while waiting for their BTO flat to be ready in four years’ time. A total of eight persons are living in the 4-room flat. Her elderly mother who has mobility issues is also living with them. Mdm Nur cannot afford to rent from the open market due to her household income. Hence, she applied for a rental flat from HDB. However, the PPHS application opens once every two months and each application will take about four to six weeks to process. In the meantime, she is expecting another child and so, she would like to have some certainty and stability in her housing arrangement. During my Meet-the-People session, I appealed to HDB on her behalf, not just to get a rental flat, but also proposed alternatives like subsidies in the open market. I am glad that the proposal is now being considered by the HDB with the availability of rental flats vouchers in the open market. The PPHS (Open Market) Voucher will be useful for families like Mdm Nur to have interim housing.[+1 sentence] I welcome this change. However, since according to HDB, the average waiting time for BTOs is between three to four years, I hope that such vouchers for rental flats in the open market can be provided for a period of two years, so that such young couples with children can enter into a longer tenancy period.[+9 sentences] This will provide greater stability for themselves and their children. I hope more support can be provided to help our young couples and families alleviate their concerns for housing. I look forward to the announcements from the Ministry of National Development in this regard. The hon Mr Faisal Manap had earlier suggested that residents of public rental houses be given priority to buy houses. But for me, this refers to just one aspect. We should also address the other aspects. We should not view the housing issue in silo. This is because there are many aspects of family life that should be considered and addressed. Hence, with the joint effort of partners such as M3@Towns and the Dian Project, which engages families living in rented homes, we can provide support in various aspects including health, children's education and family matters. Project Dian@M3 is rolled out in Bedok, Geylang Serai, Jalan Besar, Jurong, Chua Chu Kang and Tampines, and now supports more than 400 families in rental flats.[+10 sentences] This is our collective effort. All these help families to move from rental homes to their own flats and not only for them own their homes, but also to ensure that they have stable jobs, educated children, a healthy family and a happy marriage. By having all of that, there will be stability in their lives, which is what we wish everyone to have. This is the way. : Mr Speaker, Sir, one other aspect of housing is having lift access. Chua Chu Kang Town is undergoing various exciting developments, like the Jurong Region Line and a new hawker centre to be constructed in the town central. There are many residents who have lived in Keat Hong for decades and so they wish to live out the rest of their lives here. As I had stated earlier, there are also many young couples drawn by the exciting upcoming developments and have moved into the estate. However, there are several blocks that had been designed originally without direct lift access, though they come with added privacy and exclusivity for their home owners. Nevertheless, as residents live in their blocks over the decades and age in place, direct lift access has become more important to them. I had raised this issue numerous times in this House. Even after HDB’s Lift Upgrading Programme (LUP), there are still about 150 blocks remaining in Singapore that do not have direct lift access.[+1 sentence] There are segmented HDB blocks which have segments that do not have direct lift access, meaning that affected residents would have to take the lift to a floor, walk along a corridor or passageway, navigate and thereafter take the stairs up or down to their unit. Out of these 150 segmented blocks, 20% of them in Singapore are found in Keat Hong, which means these families do not have same-floor lift access.[+25 sentences] For residents who have been living in such units for decades, they now face difficulties and inconvenience as they age in place. I have spoken up previously on the LUP, the Lift Access Housing Grant and other solutions to support these families. I wish for more support in this regard. One resident, Mr Tan, is an elderly man with an adult son who had suffered from stroke. He had been taking care of his son for decades. They live in a segmented unit in Keat Hong with no direct lift access. Previously, going to medical appointments would be a hassle, with him carrying the son down the flight of stairs to the next floor and navigating the corridors to the lift lobby. Now, with the Town Council, we provide complimentary stair-climber services that Mr Tan can call on so that we can assist him and his son the flight of stairs using a stair-climber machine. Food or package delivery personnel also find it difficult to deliver because of the block layouts and differing lift access navigation routes. Some furniture or bulk delivery services are not available as well to these segmented units without hefty charges. In times of fire or medical emergency, our first responders also may find it difficult and there is a time lag to reach these segmented units in time. To help with the situation, we have introduced the Keat Hong WayFinder Maps at lift lobbies in segmented blocks. But this is just an interim solution. Mr Speaker, Sir, do you know that in the US reality television (TV) series Amazing Race 2002 Season, there was a Singapore leg where contestants had to navigate a challenging detour. This was held in our segmented block in Chua Chu Kang. And during this detour, contestants had to find the right lift lobby, go up the correct flight of stairs to get to a segmented unit, where a contractor with a distinctive look in yellow boots will be waiting for them. It was Phua Chu Kang in Chua Chu Kang! After many frustrating attempts, contestants finally managed to find the unit. My point is this: if the segmented blocks are so hard to navigate that they are deemed a worthy challenge in an international reality TV series, imagine the daily struggle for our residents, especially the elderly and those with young children. We have to acknowledge the changing dynamics of our communities. With an ageing population and an increasing number of families residing in our flats, the need for adequate lift access is more critical than ever. Lifts are not merely mechanical devices; they are the lifelines to connect us to our homes and communities. With age, stairs can transform from a simple climb to an insurmountable obstacle. Accessible lifts provide a sense of autonomy and dignity to our elderly community members. The same scenario can be applied to our families with young children and strollers who will need to navigate up the multiple flights of stairs daily. Based on my survey during house visits, almost two in three segmented unit flats in Keat Hong have either an elderly person or a child living there.[+2 sentences] In this regard, may I propose the following? Firstly, enhance the Lift Access Housing Grant (LHG) from the current $30,000 to $50,000, which will make it more attractive for take-up. In an answer to my Parliamentary Question, there were 28 approved applications as at December 2021 for LHG out of an estimated 2,000 affected HDB units that have no lift access.[+6 sentences] That is a mere 1.4%. Secondly, consider implementing chair lifts or, where technically possible, ramps or spiral ramps to connect a segmented unit floor to a floor with direct lift access. Thirdly, where technical solutions are not possible, perhaps HDB can consider compulsory acquisition of such units and convert them to public rental housing, so that the occupants of such units will not be inconvenienced by the permanent absence of direct lift access because they are transient and will only be living for a short period of time. Lastly, revisit the funding criteria model for LUP. Instead of considering the directly affected units, HDB currently only takes into consideration the affected units which are directly affected by the lack of lift access. We should also consider the other benefiting units which will benefit from the additional lifts that can add as contingency or redundancy plans. By including such an approach, the dwelling units for each block that will benefit from LUP, using the examples in Keat Hong, would improve from a mere 12% to 15%, to more than 50% of the entire block. This means that the costs can be shared among more households to come within the LUP cost cap.[+1 sentence] We should not discount the generosity and empathy of fellow Singaporeans to shoulder the burden of such LUP costs together. During the Selective Renewal Lift Programmes in Keat Hong, many non-segmented unit households experienced for themselves firsthand how it was like to live in a segmented unit when their serving lifts were temporarily shut down for renewal. The residents told me that they now empathise and would support a different approach towards LUP costing.[+11 sentences] I hope we can study these proposals and help our family residents. Mr Speaker, Sir, in conclusion, I raise these examples on housing options and lift access for the elderly as a microcosm of what we can achieve together for fellow Singaporeans in this Budget and those to come so that our fellow Singaporeans can choose to live where they love and continue to love where they live. In making our common spaces more accessible, we create environments that promote social cohesion and well-being. In helping our young couples to attain their dream homes, we not only fulfil their aspirations, but we also provide hope for their children. In embracing the importance of the lived environment and housing, we foster a sense of unity and belonging among our fellow Singaporeans, making this country truly a home we love where we live. Deputy Prime Minister Lawrence Wong mentioned the need for Singapore to remain steadfast and united to weather the storms ahead. "Ships do not sink because of the water around them. Ships sink because of the water that gets in them." We must be united in spite of the foreign disruptions, divisions or influences. This Budget is a stark reminder to all of us to remain so in facing future challenges together. Mr Speaker, Sir, I support the Budget Statement.
Mr Speaker45 words
Mr Zhulkarnain, I have a few of those blocks in my constituency.[+1 sentence] So, I can fully empathise with you. When I do visits to those blocks, you need more patience, you need to cater more time and you expend more energy.[+1 sentence] Ms He Ting Ru.
Ms He Ting Ru (Sengkang)2752 words
[+12 sentences]Mr Speaker, the title of this year's Budget, "Building our Shared Future Together", is one which all of us should strive for. In the WP 2020 Manifesto "A Singapore For All", we outlined our vision for Singapore, which has a place for each and every one of us. It is a positive development that we have agreement across aisle for ideas, such as supporting involuntarily redundant workers financially through a difficult period as they look to find their feet again. As a nation, we should be proud to see such good policies come to fruition because they work towards making sure that everyone benefits from our nation's progress. To take the next step forward in Singapore's development, we should work on our expanded vision of progress and this vision can only truly and meaningfully be expanded if we have trust. In other words, we need to trust others with different views from us that they, too, are acting in good faith, even though they may differ in perspective. In particular, apart from asking people to trust our public institutions, we should ask ourselves if we trust our people. If not, why not? How do we work to ensure that trust is a two-way street? I will highlight some examples showing how trust is not yet a two-way street in Singapore, and try to explain why and how we should make it a two-way street. The second half of my speech will speak of how we measured dividends we will reap if we achieve this mutual trust, and I will set out what this expanded vision of progress could look like. First, what does the public know and what should the public know? The yearly revenue and expenditure estimates are a good place to start. This year, military expenditure is a single line $19 billion expenditure without further breakdown, despite making up 17% of the Budget.[+1 sentence] While official secrets are a concern whenever we talk about the military, is there really no middle ground in offering detail on the expenditure? Likewise, in the case of the Police expenditures contained in the estimates, where projects named "Arapaima" and "Aegis" are allocated hundreds of millions of dollars each but the public are not provided even with a one-line description.[+14 sentences] How does one debate whether this spending is economic, efficient, effective or even enough? Furthermore, with the Enterprise Support Package and a myriad of other schemes announced in the Budget, would there be publicly available targets published as to how many firms are reached and how the money is being put to use? How does the public know if schemes such as these, which is spent out of the public purse, are successful? Do we measure policy success by how much is spent or is success a measure of its outcomes? The WP called for the creation of an Independent Parliamentary Budget Office three years ago, but what is more fundamental is the willingness to publish details. In 2012, then-Deputy Prime Minister Tharman Shanmugaratnam said, "Trust and transparency are two different parts of a system of accountability". While there are admittedly security concerns, which means full transparency is not always possible, the solutions that WP has brought up in the past, like the Independent Budget Office, disclosing more information to Standing Select Committee members with secrecy safeguards can help negotiate this often difficult balance. The Government needs the err on the side of transparency, publishing as much as possible, and it needs to agree to publish what is asked for, balanced against security interests. Legal instruments, such as formal right-to-know legislation, will help define what can and cannot be published. But the right to know is not accountability for accountability's sake. It helps us to have debates in good faith. If the Government sees that it has already been held accountable, then it debates with different views in good faith, which is the second point I would like to make. With the Gini coefficient, for example, the Government has said that there is less inequality than other countries in the Organization for Economic Cooperation and Development (OECD) before taxes and transfers, but does this feel like the case when we speak to our residents? And if not, why? Perhaps, it is because Singapore's Gini coefficient cites income from work while OECD countries count income from all sources, and commentators have also pointed out that household expenditure survey data has shown that income from non-work sources has been increasing in Singapore or, perhaps, it is because Singapore's Gini coefficient covers only Citizens and Permanent Residents (PRs), unlike other countries, and does not reflect that much of our essential but lower-paid blue-collar work, which is performed by our total foreign workforce of 1.5 million individuals.[+2 sentences] With over one in four Singaporeans marrying non-residents, some of these workers are also integral parts of our families here in Singapore. But perhaps, a more significant contributor to this feeling is that there is another way of looking at our wealth, namely, wealth inequality. The UBS' Global Wealth Report indicates that Singapore's wealth inequality in 2022 is 78.8, substantially higher than Taiwan's 69.8, Korea's 67.9 and Japan's 65.[+12 sentences] The OECD also states that we need to use a different measure to measure wealth inequality, and I believe that this can apply here, too. However, data on the distribution of household wealth is not easy to come by. The Government previously said in 2018 that its Gini coefficient calculation needs to reflect the full range of Government policy interventions that are unique to the Singapore context. This is broadly true. Singapore does have unique policy interventions, given its small size and open economy. But this rationale, this focus on insisting that there is a right context, should not be justification to block the publication of data that people would like to see. Trust is a two-way street and the lack of trust from the Government in not providing data to debate certain topics will breed the distrust in it in some quarters. On tackling inequality, aside from what specialists with an economics background tell us, I can only express what my constituents say and feel. If the public sees a gap in the information, then public agencies should, within reason, fill the gap with the correct information rather than say that there is no need to fill the gap. My third point is that the Government should probably trust citizens to co-create. Forward Singapore is a good start. But we can take reference from the concept of citizens' assemblies. A well-known example of this is in Ireland, where the Irish parliament directors established a citizens' assembly in 2016 to deliberate several socially contentious issues. Ninety-nine citizens, demographically suited to representing Ireland's electorate, were chosen to deliberate the issues, with experts also brought into the forum to provide testimony and discuss case studies.[+10 sentences] Its findings on issues, like abortion, helped inform a referendum on the issue, with some praising the process for being depoliticised, bringing logic to a divisive issue and providing a space for listening, understanding and empathy to differing opinions. Further exercises, similar to Forward Singapore, can thus bring in more independent expert testimony to provide evidence to participants, and these experts can and should have conflicting views. Exercises could then be designed to accurately reflect Singapore's demographics. Just as importantly, the Government should take up the task of responding directly to the findings and explaining what recommendations it would sign into policy and which it would not. There should be periodic independent public reviews of the extent to which goes out and such exercises have been met. It is only with building our trust in the public can we meaningfully move forward to build a shared future together, which means proper transparency and accountability. To bolster this, we need to properly measure our progress and to measure things that matter to us. For many years, both within this House and without, we have heard proposals of how important it is to measure how our country is doing beyond gross domestic product (GDP). However, periodic reassurances during Budget, Election and national conversation times that we are looking at Singapore's other factors of development apart from GDP are not enough. Measuring progress beyond GDP has to be part of our DNA. We must regularly quantify, measure and publish details on how we are doing and to ask that our policies formally consider the impact that they are having on these indicators, and whether or not our various policies and initiatives are successful in improving our collective well-being. I would therefore like to reiterate the call I made two years ago, for Singapore to have a dashboard with measurements of how we are doing beyond GDP measurements.[+3 sentences] This is already not a new idea, and we can take a leaf out of New Zealand's living standards framework dashboard. The New Zealand treasury publishes details about the measurement to use and for ministries on priorities for informing well-being, and it is fully disclosed to the public for transparency. The indicators show trends over time, distribution across population subgroups and, importantly, give the Kiwis a direct chance to view how their government is doing in improving their country's well-being. While the specific details of what should be included in Singapore's dashboard would be subject to input from public bodies and the wider community, I believe the key areas that should be covered include the measurement of unpaid work, natural resource use, specifically, our people, externality cost in a form of environmental sustainability footprint, leisure value and our collective and individual well-being.[+12 sentences] Earlier this month, during the Motion to debate mental health, I had spoken about our collective and individual well-being and what we can do to develop our strengths to protect against ill mental health and to promote flourishing. I had also, in 2022, spoken about issues relating to our environmental footprint. Thus, I will focus today on the areas of unpaid work and investing in our people. First, unpaid work, that is what which does not receive directly remuneration but which nevertheless has an impact on our economy. This is usually broadly divided into informal care and domestic work, unpaid reproductive labour and voluntary work. For informal care, in particular, the Forward Singapore reports states that the Government will give more assurance to Singaporeans that they will be taken care of. This is particularly important to probably understand the often unpaid and unsung work and needs of our carers who are already delivering on our nation's collective responsibility. In 2020, I called for, among others, time-use surveys to be conducted to better understand the work being done by our informal carers. Since then, the National Council of Social Service (NCSS) has published a survey in 2022, which aimed to better understand issues surrounding quality of life for carers. This comes after the 2013 survey of informal caring in Singapore. While it is good that we are paying attention to the topic by having periodic in-depth surveys on specific issues relating to the provision of informal care, what these surveys do not contain is a regular and easily quantifiable measure of the contribution that is being made to our society and also indirectly to the economy. Various academic papers have pointed out that the lack of a measurement of the total value of informal care giving in Singapore makes it challenging to inform and guide public policy. Although, in 2021, the Duke-NUS team estimated an annual cost of caregiving time of between $2.5 to $3.5 billion in informal care being provided for seniors aged 75 and above who need human assistance of daily activities.[+1 sentence] This is clearly a non-trivial amount. Additionally, the Forward Singapore report also lists a variety of ways and means which policy can better support informal carers, such as enhancing parental and infant care leave, allowing more flexible work arrangements, and also financial support in the form of the Home Caregiving Grant and defraying early intervention costs for families with special needs children.[+12 sentences] What strikes me, though, is that many of these policies have an underlying assumption that informal carers want to and are able to stay in some form of paid work as much as possible. Likewise, there is also little public information to measure the amount of unpaid domestic labour and voluntary work being undertaken in Singapore to formally acknowledge and incorporate the contributions that are being made to the nation. Measuring the value of involuntary work was a call made by a 21-year-old undergraduate in the forum pages recently, which I quote, "We should do so, in order to give a fuller picture of how our economy is performing." Having an annual figure of measuring unpaid work should also allow us to directly see if there are any effects that external shocks and events have. For example, whether and how the amount of informal care is affected by an economic downturn, which segments of the population are more affected by it and to allow the public to measure on a regular basis – the impact that our policies are having to support unpaid work. Moving to our people; our only natural resource. This is another way of measuring how we value and consequently invest in our citizens. The New Zealand Living Standards Framework measures this as an integral part of the wealth of the nation in the form of human capability, defined as knowledge, physical and mental health and cultural capability. It includes in educational indicators as well as measurements on not just life but healthy life expectancy. In line with an increasingly VUCA world – that is, more volatility, uncertainty, complexity and ambiguity – there is now rightfully more emphasis on lifelong learning and enhancements to the SkillsFuture movements are undoubtedly welcome for those who are considering pursuing midlife or mid-career training. Increasingly, we are also hearing about how paper qualifications should and will become increasingly obsolete. However, I hope that policies to encourage ongoing training do not inadvertently perpetuate an emphasis on paper qualifications. Additionally, I hope that the SkillsFuture framework continues to work towards being more attractive and inclusive for Singaporeans across a broad spectrum. It is clearly an area which needs more work, as can be seen by utilisation rates of around 50% in 2022.[+2 sentences] In short, we have to address structural barriers that may be preventing Singaporeans from making use of the schemes. After all, many workers have cited issues, such as the lack of time and the opportunity costs associated with attending classes, and have expressed reservations about forfeiting annual leave entitlements or the need to forego hourly wages to do so. Calls, such as those made by NTUC, for paid learning leave can go some way to addressing these structural impediments to workers taking up useful training programmes.[+7 sentences] Additionally, there have been concerns raised about the inclusivity of SkillsFuture clauses raised by non-governmental organisations (NGOs), such as the Disabled People's Association, which ask that more can be done to get training providers to provide reasonable accommodations to enable PwDs to attend courses. There are also reservations about having courses exclusively catered to PwDs, such as those through the Enabling Academy, which many in the community feel may be well meaning but ultimately, exclusionary. Finally, I hope that priority will be given to sectors and areas where our social needs are strongest, when it comes to deciding where the $4,000 top-up for SkillsFuture Credits can be spent rather than focus only on industries that seem to have strong economic growth potential. This would include care skills and training programmes in the wake of the accelerating needs of our ageing population, and also training in the fields of mental health, such as psychology, psychotherapy and counselling, and towards building a sustainable and strong contingent of the newly announced family coaches, whom MSF will deploy to work with vulnerable households. To conclude, I hope that more than half a century of nation building means that we have now arrived at a stage where a diversity of views has a place in our society and that respect for disagreement is a hallmark of trust that is a two-way street. Greater transparency and more meaningful in-depth discussion may mean that we may take a more deliberative approach to public policy, which, in turn, should be seen as a means to improve. It is this approach to transparency and accountability, together with measuring our progress beyond GDP, that will ultimately help better inform our public policy debates and co-creation.
Mr Speaker4 words
[+1 sentence]Mr Chong Kee Hiong.
Mr Chong Kee Hiong (Bishan-Toa Payoh)1375 words
[+14 sentences]Mr Speaker, Sir, this is a forward-looking Budget with a balance of measures to help households and companies deal with rising costs and to make longer term preparations for the future. One of the highlights of this Budget is the strong support for the upskilling and reskilling of our ITE graduates and middle-age and older Singaporeans. Reinforcing a continuous learning mindset and identifying improvement opportunities among Singaporeans will enable the population and Singapore to remain relevant in the evolving global economic landscape. The education top-ups, subsidies and monthly training allowances are unprecedented in scope and scale. This is a huge investment in our people. I have two suggestions. Firstly, the Government should consider tying up with the relevant industries to co-create curriculum and encourage pre-graduation job confirmations, so that upon completion of the courses, the graduates can have a higher rate of success of being hired by companies needing their newly acquired skills. One of the common feedback from some graduates of "train-and-place" programmes is that they have difficulties in finding jobs on their own. Secondly, the Government should track the graduates of these courses and their subsequent employment and salaries to evaluate the effectiveness of this policy. As this is intended to be a long-term policy, at substantial recurring cost to our country, the Government should measure if the investment is yielding satisfactory results. If not, reviews, adjustments and changes will have to be made along the way. Next, I would like to speak on support for SMEs. The underlying cost structure of our SMEs has changed significantly over the years. I appreciate the near-term relief measures in the Budget to help them cope with the rising costs. The $1.3 billion Enterprise Support Package will go a long way to help companies tide over current challenges and build long-term capabilities. The increase in the maximum loan quantum under the EFS-SME Working Capital Loan to $500,000 will help them meet higher capital and cashflow requirements in an environment of rising costs.[+2 sentences] Some SMEs find it increasingly challenging to participate in Government projects as project scales increase, translating into higher capital and cashflow outlay and tender specifications. The Government can be more thoughtful in running the tender process to be more inclusive. Regarding the additional $3 billion commitment to the $25 billion RIE2025 plan and over $1 billion investment in the next five years into AI compute, talent and industry development, may I suggest that a portion of both be ringfenced for SMEs or collaborations involving SMEs?[+24 sentences] We all know it is not easy for our SMEs to do R&D and incorporate AI development into their enterprises on their own, due to their smaller sizes and resource constraints. They need Government support for funding and collaboration with researchers and universities, as well as partner companies upstream and downstream. Otherwise, the digital divide between SMEs and MNCs will become wider. Singapore is a small economy, and our economy is expected to grow at a slower pace going forward. It has become more urgent and important for our SMEs to source for more business and revenue overseas. To develop their businesses beyond our shores, SMEs need to understand and adapt to the dynamics of foreign jurisdictions, with all their different jurisdictions and ways of doing business. Hence, there are opportunities to tap on the experience and skillsets of older professionals, managers, executives and technicians (PMETs) to assist SMEs in these aspects. For senior PMETs who seek changes in their careers or who are not employed, will the Government consider designing a systematic, structured framework to match them with SMEs which require their experience, knowledge and skills in the relevant markets and sectors? SMEs can leverage on their know-how, prior exposure to and familiarity with foreign markets to better navigate through the complexities and avoid potential pitfalls. Next, I would like to speak on a topic which I have been following up on over the last few years, "Buy Singapore". I would like to focus on our agrifood sector today. This is because it is a key pillar of our national food security, an issue which had been brought to the fore during the COVID-19 pandemic. We must be prepared for other crises in the future and the more local food production services we have, the less vulnerable we are to supply disruptions. We must continue to support and boost this sector, and ensuring its viability, alongside others, such as manufacturing and financial services. To strengthen food security, besides sector-friendly Government policies and financial support, we need to develop a whole ecosystem to make the agrifood sector a significant economic sector. Given a higher cost structure and lack of economy of scale, the strength of the Singapore dollar, our local produce is more expensive than imported produce. To differentiate our local produce and justify their premium, we need to increase consumer awareness about the advantages and benefits of our local vegetables, fruits, eggs and fish, among others. What public awareness and education programmes are in place to build up this knowledge and boost demand from our local consumers? At Budget 2017, I appealed to the Government to do more to boost local demand by including a "Buy Singapore" requirement in their sourcing contracts. I would like to urge the Government to consider this again. A stronger official mandate will go a long way to boost demand. This will also send a signal to the market and consumers to support our own and encourage our local companies to keep improving. In addition, are we on track in the development of local expertise for this sector? From agrifood practitioners to researchers, we need to nurture a new generation of talents in our technical institutions, polytechnics and universities to support the development of this relatively nascent sector, especially when we include the more cutting-edge developments, such as lab-grown protein and meat. Would the Government provide an update on the progress of $60 million Agri-Food Cluster Transformation Fund?[+1 sentence] It was announced at Budget 2021 to help us move towards the "30 by 30" goal of producing 30% of Singapore's nutritional needs by 2030. Are we on track to meet this target? How much of the fund has been disbursed and what kind of projects does it support?[+6 sentences] At the Budget debate in 2021, I had suggested that the Government includes agrifood developments in its green bond and loan issuances, and sizing them such that even small investors can participate in and do their part to support the growth of Singapore's agrifood sector. Would the Government share an update on what has been done to include our agrifood sector in our green finance market? I would also like to reiterate my appeal for the Government to consider more risk co-sharing with investors and banks for green and sustainability-linked projects. Most of these will continue to be pioneering initiatives lacking track records. The Government's support will provide green start-ups higher chances of bringing their visions to fruition. Lastly, I would like to ask about the progress and impact on Flexible Work Arrangements (FWAs) on our workplace and economy. The Tripartite Guidelines on Flexible Work Arrangement Requests (TG-FWAR) are expected to be released later this year. The guidelines could include examples of reasonable and unreasonable business grounds to justify why requested FWAs can or cannot be provided. I understand that for most of the public sector, working up to two days a week from home is the norm.[+6 sentences] Has the Government conducted any measurement of the effectiveness and efficiency of this arrangement on public service delivery standards to date? What have been the benefits and challenges of FWAs which had arisen in the past couple of years? In particular, as multiple members of the family from different organisations may be working from home at the same time, how do we safeguard against the inadvertent exchange of confidential information and the potential misuse of such information? What are the lessons the public sector had learnt which can be shared with private enterprises and organisations? A deeper understanding of the relationship between FWAs and efficiency, information security and productivity can help us to come up with FWA policies that support and reinforce our global competitiveness. With this, I would like to conclude with my support for the Budget.
Mr Speaker4 words
[+1 sentence]Ms He Ting Ru.
Ms He Ting Ru41 words
[+1 sentence]Thank you, Mr Speaker, just a quick clarification. Earlier on, in my speech on the SkillsFuture framework, I mentioned utilisation rates of around 50% in 2022.[+1 sentence] It was my mistake. [self correction]What I meant was training rates of around 50% in 2022.
Mr Speaker4 words
[+1 sentence]Assoc Prof Jamus Lim.
Assoc Prof Jamus Jerome Lim2792 words
[+13 sentences]In his Budget Statement, Deputy Prime Minister Lawrence Wong spoke about AI as a general purpose technology, like electricity in internal combustion engine, the computer or the Internet as such technology, AI, indeed has the potential to touch every aspect of our lives. Like Deputy Prime Minister Lawrence Wong, I firmly believe in the transformative power of AI for the future of our shared economy. In an earlier speech on amendments to the National Productivity Fund, I explained how AI carries both perils as well as promises. But if we truly embrace this vision, I believe that we must also transform how we approach our policies in this AI age. This must go beyond pursuing excellence in AI research, embedding AI in Government services, upgrading our broadband infrastructure or even assure that our firms rapidly adopt AI. Such goals outlined in the National AI Strategy 2.0 are indeed laudable but incomplete. Rather, the impending structural shifts that our economy will face will alter the way that our businesses, workers and students will operate. One can think of this as a complement to the Member Dr Tan Wu Meng as well as Mr Christopher de Souza's earlier speech, but not just about the policies of today but also of tomorrow. Researchers suggest that AI adopting firms tend to be larger, younger and relatively more productive. But to fully reap the benefits of AI in our economy, firms that are likely to fall behind, the SMEs, which are especially the incumbent firms in non-tech and non-professional sectors, must be presented with strong and urgent incentives to adopt AI. This is a non-trivial task. Small firms are almost, by definition, that way because they have been relatively slower in seizing business opportunities and rationalising costs. The owner of a "mama shop", a renovation contractor, a hawker stall or a car workshop may feel that AI has no direct implication for how they run their businesses and, hence, prefer to adopt a wait-and-see attitude toward adopting AI solutions for their company. Singapore's participation in the OECD-led BEPS 2.0 framework affords us a tailor-made channel for creating incentives for AI adoption across a whole range of firm types.[+1 sentence] Pillar 2 allows for refunds of certain classes of investments to be treated as income rather than tax exemptions. Deputy Prime Minister Lawrence Wong's proposed Refundable Investment Credit appears aligned with such qualified refundable tax credits.[+4 sentences] This suits per additional investments in not just R&D and innovation, but also the adoption of AI-enabled digital and professional services. Yet, some words of caution are in order. First, such incentives will be greatest for the largest firms since these are the ones covered directly by BEPS. But we must not forget SMEs and ensure that our "mom and pop" shops also see the strong benefits to pursuing Refundable Investment Credits, ideally through expanding outreach and promotion of the proposed scheme. Second, while there is room for defining the scope of such credits, it is important to be mindful that BEPS rules permit countries to independently apply a top-up tax, which they may do if they believe that the tax rates imposed on firms domiciled here circumvents the spirit of the 15% minimum or subverts the intent of the credit to encourage sustainability or knowledge generation, in particular, if the Refundable Investment Credit is perceived as an instrument designed as a loophole.[+13 sentences] And this applies, to my mind, especially for investments meant to simply increase production rather than those targeted specifically at the green transition or R&D. They may choose countervailing action and exercise the top-up over on their end, thereby undermining the attractiveness of the Refundable Investment Credit in the first place. This is why the seeming consensus arrived at in the Budget-related wish lists put out by the big four accounting firms here, all of which stressed the importance of refundable tax credits, may be worrying if, indeed, the intent was to return to a pre-BEPS world where accounting firms identify sophisticated strategies to enable MNCs to whittle away at the effective tax rates, with the concurrence of our Government. Third, we need to be aware that the traditional argument favouring tax in capital more favourably than labour, under the premise that doing so would stimulate productive investment, may have to be re-examined. This is because an AI-driven economy tends to be weightless, and encouraging investment in yet more physical capital is nowhere near as important as accumulating intangible knowledge capital. Fourth, and most generally, it is imperative that we no longer regard tax competition as our primary strategy for attracting foreign capital, a point that I had made in this House before. Rather, we should get the order right. We should aim to create an environment where our businesses are AI-enabled and our workers are AI-savvy, which will naturally attract investment from abroad. But we should not stop there. The Big Data machine-learning algorithms and large language models that are at the forefront of the AI revolution are increasingly concentrated in the hands of a few powerful firms. This calls for pre-emptive action by governments, especially those with deep pockets and sovereign wealth funds, to take active exposures in AI companies, whether in publicly traded firms or via private equity. This not only allows the public sector to enjoy a returns upside, but also to ensure that they have a voice in AI developments that is ultimately in the public interest. Of course, AI will not only alter the prospects for businesses but also our workers. Emerging evidence suggests that generative AI boosts productivity by about 14%. But among novice and low-skilled workers, the gain was far more, something to the order of 34%.[+15 sentences] This implies that AI augmentation will lead to a compression in the distribution of abilities and skills. As such, those who have hitherto been able to distinguish themselves, perhaps because of their talent or industry, may now find that edge blunted. The upshot then is that we need to question the sorts of skills that we are pushing our workforce to acquire. Sir, skills may reside in unexpected places. It is certainly popular and sexy to suggest that the future economy will be in severe need of prompt engineers, cybersecurity specialists or digital marketers. But the current scarcity of such novel jobs will probably be relieved over the next few years, leaving it more likely that the skills involved will become enfolded into more traditional positions. Professionals of all stripes will need to learn the basics of delivering prompts through generative AI models, and marketers and salespeople will need to deliver their message across all media, including digital ones. And while we can never be certain, old-school artisan or craftsman roles could well make a revival as robotics have yet to deliver the sort of sufficient quality or range of uses on this front. Moreover, certain skills that we may have until recently thought were future-proof, such as coding, writing well or statistical analysis, may quickly become devalued when AI tools can do the job just as well, if not, better, for a fraction of the cost and time involved. Instead, it is soft human skills, originality and critical thinking, empathy and teamwork, leadership and communication that will be ever more important, and these are not as easily replicable by AI. These are not skills well captured by certifications alone. Rather, they are nurtured through an emphasis on developing such ability in the classroom, even when they may not be formally evaluated. Or by self-reflection and feedback from managers and mentors, along with the concentrated efforts and experience over time in the workplace. Economists have long recognised this. Even the most rudimentary models of human capital include not innate talent and years of schooling but also experience acquired from years of working. It is imperative, therefore, that we do not devalue alternative forms of knowledge acquisition beyond the classroom. That is why I believe that not only should the scale of SkillsFuture Credit be ramped up, as Deputy Prime Minister Lawrence Wong indicated in the Level-Up Programme, but its scope should be expanded.[+3 sentences] At this point, I declare that I work at an institution that has the potential to benefit from SkillsFuture, and this is some of the suggestions that I had suggested to the other Deputy Prime Minister earlier on. This means that allowing credits to be used not only for academic credentials but also for alternative learning modes, such as apprenticeship programmes or on-the-job training. I previously raised this possibility of such an expanded scope during the debate on the SkillsFuture Singapore Agency (Amendment) Bill, held in this House last year, and via various Parliamentary Questions. I wish to elaborate on the idea here but take it a step further. I hope that we can consider allowing companies that are able to submit credible proposals for apprenticeship programmes to take on trainees that apply with their SkillsFuture credits.[+10 sentences] The offset from SkillsFuture would effectively mean a subsidised worker, which will both increase the attractiveness of taking on such apprentices while compensating the firm for the cost of on-the-job training provision. Some may argue that the intent of SkillsFuture was to equip Singaporeans with new skills, not subsidise labour costs for businesses. But this misses the reality of how many modern skills need it and even the most evergreen ones are often acquired while doing the job, not before it. A close friend of mine, who trained as an architect but eventually went on to a very successful career in finance, once shared that he was offered his first job at an investment bank despite his absent background, because they would have to teach him everything that he needed to know anyway. Furthermore, training apprentices could ultimately leave for a position elsewhere, which also represents a risk for the business. If we are truly concerned that companies may abuse the system to hire a stream of temporary workers with little transferable skills, we can always include a clause in the contract that requires a minimum duration of employment, post-apprenticeship, conditional on mutual agreement and reasonable performance, of course. Such a change in how we value skills and training in an AI-enabled economy will become more necessary in the future, not less. This is not least because we cannot yet anticipate what kinds of jobs may become displaced by AI and what would become more important? If anything, the lifespan of economically remunerative skills is likely to diminish. But while I fully agree with the importance of infusing the mindset of lifelong learning into our workforce, we need to simultaneously stress that learning and applying must not be equated to grades and certificates. Inevitably, some workers will be displaced by AI. This is why Deputy Prime Minister Lawrence Wong's indication that there will be temporary financial support for the involuntarily unemployed, in other words, support for those that have been made redundant is important.[+14 sentences] The WP supports this move, not least because we have been proposing some form of redundancy insurance since 2011. In my response to the Budget last year, I further elaborated on the desirable features of such an unemployment insurance scheme. In a nutshell, this entails balancing the trade-off between providing a safety net for those who have lost a job, also encouraging those displaced workers to expeditiously return to the labour market, rather than relying on the payouts as a crutch. Optimal schemes tend to combine reasonably generous salary replacement, albeit for limited time. If we accept that AI will alter how we work, it becomes self-evident that we also need to go upstream and rethink how the AI revolution will alter how we educate. By this, I mean education for the masses, not just building a core of AI scientists and researchers, just to make ourselves a hub for AI innovation. For starters, it is high time we internalise how straightforward knowledge accumulation and rote learning with constant repetition regurgitated through closed-book exams is no longer tenable, if it ever was in the "information is free" age of the Internet to begin with. AI will further erode the relevance of simply knowing more facts and figures, being the fastest at solving known problems or being able to memorise long lists of nomenclatures or taxonomies. Rather, we need to teach our kids how to filter information, to assess and evaluate, rather than to accept without questioning. This means that they will need to learn how to ask good questions and to identify the right from the wrong but, more often, to also recognise the new ones and know that there is not any clear right or wrong. This, in turn, requires fostering a deep, intellectual curiosity in our students, one that instils the habits and imparts the tools necessary for critical interpretation and evaluation of data, as well as information. Students need to be taught not so much what to think but how to think. That is why my party colleagues, Mr Pritam Singh and Ms He Ting Ru, emphasise the importance of access to information, so that we can encourage such thinking, even in the policy realm. This will upend many of our traditional educational strategies. First, we need to reconsider the importance of high stakes standardised tests as a performance benchmark, since AI already outperforms humans in most exams or they will in the next few years, in areas ranging from accounting, to law, to medicine, to languages.[+2 sentences] Indeed, it has even successfully drafted several Bills for legislators. While standardised testing has long been a mainstay of Asian society, the Keju was first introduced in China in the sixth century, and Indian Emperor Kharavela relied on competitive testing to select his officials in as far back as the first century BC, its continued use will need to be reviewed in light of the realities of the modern educational landscape. The tempting, but wrong, solution is to ban our students from using AI altogether. We do our students a disservice when we insist carte blanche that using ChatGPT output constitutes plagiarism, because this would disadvantage them when they enter into the real world and are forced to compete with those with greater familiarity of how to integrate generative AI into their work.[+3 sentences] But this does not mean that we eliminate assessment wholesale. Rather, evaluations should be performed continuously and holistically. We still need to impart numeracy and literacy, but these can be evaluated through dynamic debates and polished presentations through group projects and collaborative problem solving, and through the ability to pose quality questions as much as offer quality answers. Continuous assessment, a term that we have used to describe our model of evaluation since I was in primary school, needs to be taken far more seriously. And Deputy Prime Minister Wong's decision to top up the Edusave Endowment Fund has the potential to contribute to realigning our mindsets on competencies beyond grades. But I would encourage the MOE to take bolder steps, such as increasing the number of non-academic awards, making final exams just a small fraction of the overall course grade and allowing through-train education without the Primary School Leaving Examination (PSLE).[+7 sentences] I am aware of the subtle irony of this claim, coming from someone who has accumulated way too many academic credentials and taken way too many exams, and who still relies on teaching for a living. Be that as it may, I believe that we need to disabuse ourselves of the notion that the preferred path to professional, and personal, success lies solely in climbing the ladder of acquiring yet more academic qualifications. We inadvertently sell the rich diversity of gifts and talents of our population short, when we insist on holding fast to a mindset that the potential of a student is determined by how they fared in an exam when they were 12 or 16 years old. Second, even as we implement AI in our pedagogy via the EdTech Masterplan 2030, we should not forget that customised learning, fostering digital literacy and equipping students with 21st century skills, all come back round to our teachers. Even as we fully empower our teachers with AI tools, we must also confer to them additional latitude to deliver the curriculum as they see fit, and make them facilitators rather than lecturers, or else learners will never fully exploit the full potential of AI. Doing so will unlock what Sal Khan, founder of the online learning platform Khan Academy, characterised as "infinitely patient tutor ", a development that our tuition-obsessed nation will surely appreciate. Finally, we also need to ask if the usual Nitec/Diploma/Degree pathway is still relevant in a world where the correlation between doing well in tests and translating that to practical performance is being increasingly challenged.
Mr Speaker6 words
[+1 sentence]Assoc Prof Jamus, your last minute.
Assoc Prof Jamus Jerome Lim188 words
Deputy Prime Minister Wong's announcement of the ITE Progression Award, an effort to provide additional financial support to ITE graduates seeking to enrol in diploma programmes, should thus be viewed in light of what AI means for credentialism. While upgrading skills is undeniably important, promoting the acquisition of yet another paper qualification may be an incomplete assessment of the upgrader's abilities or, even worse, proffer a misguided reassurance that doing so will necessarily translate into a job and hence, be disappointed.[+2 sentences] I will conclude. Mr Speaker, while my speech has stressed on the importance of relying on AI to reshape our businesses, workers and students, we must not also forget that AI will transform the manner which we as policymakers approach our task. The last thing we want from a 21st century government and legislature is more canned answers and pro-forma solutions that look like they came out of ChatGPT. More crucially, we need the courage and conviction to forge a new way forward that is unshackled from our old ways.[+1 sentence] This is something that AI, designed to riff off the existing corpus of knowledge, can never do.
Mr Speaker49 words
[+7 sentences]Order. We have been in the Chamber for close to four and a half hours. I propose to take a break now. I suspend the Sitting and will take the Chair at 3.15 pm. Order. Sitting accordingly suspended at 2.56 pm until 3.15 pm. Sitting resumed at 3.15 pm.
Mdm Deputy Speaker3 words
[+1 sentence]Mr Neil Parekh.
Mr Neil Parekh Nimil Rajnikant (Nominated Member)1583 words
[+10 sentences]Mdm Deputy Speaker, thank you for allowing me the opportunity to discuss the Budget as presented by the Deputy Prime Minister earlier this month. In my view, Budget 2024 cares for people, helps businesses focus their attention on improving, upgrading and expanding both locally and internationally while ensuring that business costs are better managed with Government assistance. Budget 2024 also boosts Singapore's premier position for attracting quality investments and helps create high-quality jobs for graduates coming out of our institutes of higher learning. The big question before all of us is the need to remain committed to achieving these objectives as one people, one nation, one Singapore. With a cautiously optimistic outlook for 2024 and the economic stability that many of our trading partners are experiencing, Singapore businesses can breathe a sigh of relief. However, Singapore needs to remain vigilant in view of the current geopolitical tensions. An escalation in any of the current conflicts could significantly impact a small, open, trade-reliant nation like ours, potentially affecting energy stability, inflation and global commodity prices. The business community welcomes many of the initiatives outlined in Deputy Prime Minister Lawrence Wong's Budget 2024 speech. Let me very briefly touch on some of them. The measures in the Budget to support and stimulate growth by managing rising business costs are greatly appreciated. The $1.3 billion Enterprise Support Package, which includes a 50% corporate income tax rebate capped at $40,000 and a minimum cash benefit of $2,000, will be particularly advantageous for our SMEs.[+7 sentences] Given the four consecutive contractionary quarters faced by SMEs in 2023, as reported by OCBC's quarterly SME Index, this package is timely. The Corporate Income Tax rebate provides temporary relief, enabling businesses to sustain operations and employment. This intervention is a strategic move to alleviate financial pressures, encouraging firms to invest in productivity enhancements. This could lead to a more resilient business environment and a win-win situation for the Government and business owners through greater economic activity and increased tax revenues. The Enterprise Financing Scheme enhancements, including the SME Working Capital Loan increase and the enhanced maximum loan quantum for the trade loan, are also welcome developments. These adjustments will facilitate access to operational cashflow for SMEs and support businesses in internationalisation, ultimately reducing operating costs through leveraging comparative advantages in different sectors. These enhancements also facilitate businesses with greater access to financing and capital and to capture new growth areas. Introducing the SkillsFuture Level-Up Programme for Singaporeans aged 40 and above is a commendable step. Including the $4,000 SkillsFuture Credit top-up that fills the need for lifelong learning, even in times of inflation. This initiative, coupled with the Mid-Career Enhancement Subsidy and a monthly training allowance of up to $3,000 for up to 24 months will significantly motivate individuals to enhance their skills.[+8 sentences] I believe the SkillsFuture Credit top-up will not only nurture talent but also allow those unemployed to build skills in different sectors and improve their employability into new roles by pursuing full-time diplomas at polytechnics, ITEs or arts institutions. This provides a win-win scenario for both individuals and businesses. Individuals are well-equipped with better skills, lowering unemployment rates and pursuing jobs in sectors that offer better financial opportunities for their families. Businesses benefit from an increased talent pool with qualified individuals ready to dive into their sectors. The extension of the credit to 30 June 2025 will also allow individuals more time to decide on the career paths more suited for them and consider additional expenses when deciding to attend the courses. However, it is very essential to bring along employers on board and change their mindset on investing in employees' training without fearing that they will leave after training. It is also important that employee training support includes workplace training, to improve the employability outcomes of our nation's investment in the training of our workforce. As Deputy Prime Minister Lawrence Wong has highlighted, the most sustainable way to counter inflation is by bolstering our productivity by investing in human capital. Not only will empowering individuals with new and improved skills enable us to elevate real income through productivity gains, this will also allow Singapore to be better prepared for the ever-changing economic climate as well as create an agile and relevant workforce to better solidify our position in the world as more than a financial hub. I also believe the minimum cash payout of $2,000 to all companies which employ at least one local employee is clearly a new feature that will benefit many Singaporeans.[+12 sentences] Madam, now let me touch on some of the other big-ticket announcements in Budget 2024. The investment in schemes aimed at improving R&D and productivity, alongside advancements in AI and the nationwide broadband network will drive local productivity growth and attract foreign direct investments into Singapore. The RIE2025 plan, with the NPF and the Financial Sector Development Fund (FSDF) are strategic initiatives designed to cement our status as a global hub for innovation, technology and financial services. By fostering R&D, promoting the commercialisation of innovative technologies and enhancing productivity, these programmes ensure our competitive edge in a high-value, efficient economic landscape. More importantly, these initiatives are progressive, ensuring that businesses lacking expertise and the ability to integrate with pre-existing technologies remain competitive and included. Notwithstanding the uncertainties surrounding it, the implementation of Pillar Two of BEPS 2.0 on 1 January 2025 is a good strategic move for Singapore. Beyond low corporate taxes, Singapore offers a conducive investment environment with a skilled talent pool, a stable and business-friendly political climate, low crime rates, a robust judicial system and top-tier educational opportunities. These factors make Singapore an attractive hub for MNCs, even with a potential increase in corporate tax rates. I also want to highlight the measures in Budget 2024 to touch on a very important subject, which is enhancing the retirement adequacy of Singaporeans. The announcement for the closure of the Special Account and the transfer of the monies to the Retirement Account (RA) in 2025 is, in my view, a move in the right direction. There will be short-term pain for a few, while there will be medium-term and long-term gains for many. I also consider the most significant retirement-related move in the Budget to be the increase in the Enhanced Retirement Sum (ERS), which will enable members to receive more income from CPF Life. From 2025, the ERS – the maximum that can be put in the RA – will be raised to four times the Basic Retirement Sum (BRS).[+1 sentence] This is very significant in our society which is ageing fast and with many more Singaporeans living long, healthy and satisfying lives. With the higher ERS, a member can receive $3,330 a month from age 65 for life, against currently $2,530 at the current ERS level.[+2 sentences] With a prudent lifestyle, Singaporeans can retire and live gracefully in their golden years. However, I recognise the fact that for many of our fellow citizens, the most immediate goal is to reach the level of Full Retirement Sum (FRS), which remains at two times the BRS. In order to make the path to FRS and then eventually ERS less steep, my recommendation is for the FRS to be adjusted down to 1.6 times the level of BRS from the current 2.0 times. In dollar terms, from the current level of $213,000 to $170,400, a reduction of $40,600 in the threshold.[+13 sentences] The lowering of this threshold will allow many more of our fellow citizens to enjoy the higher payout that comes with meeting the FRS. Having some familiarity with how annuity payments are calculated and paid for, may I suggest that CPF LIFE and other annuity providers plan for these higher payouts for more citizens by increasing the duration of their fixed income portfolios? With interest rates at or close to the highest levels in the last decade, this is perhaps as good a time as any to increase the duration of their fixed income portfolios and enjoy the high rates that go with the longer duration. Also, I would encourage the Government to re-energise its financial literacy campaign. While some of our fellow citizens are sophisticated, intelligent investors, many still do not understand basic concepts, such as the long-term benefits of compound interest. I would also encourage the Government to formulate a detailed but simple delivery platform to explain these CPF changes to our senior citizens. We want every Singaporean to be well informed about the rationale for this move and how it will help them when the time comes for everyone in the near future. In summary, this is a Budget that directly confronts the reality that cost-of-living pressures exist for individuals while rising costs for businesses are a major challenge. It balances these two issues while reducing the risk of overheating the economy and increasing inflation. I believe this Budget will give businesses the necessary confidence to expedite their capital investment plans, which, in turn, will lead to growth in GDP and the creation of high value jobs. In my view, the most important aspect of this Budget is that it provides for significant increase in benefits for individuals and companies without any new tax increases and without any need for any short-term deficit financing. Maintaining fiscal discipline and protecting our Reserves is of paramount importance in what is likely to be a decade or two of rapid changes in the global economic environment with significant impact on a small, open economy like ours. Mdm Speaker, I wholeheartedly support this well-balanced, prudent Budget.
Mdm Deputy Speaker4 words
[+1 sentence]Mr Xie Yao Quan.
Mr Xie Yao Quan (Jurong)2329 words
[+36 sentences]Madam, it takes two hands to clap. That was my first and foremost reaction to this year's Budget Statement, aptly titled "Building Our Shared Future Together". The annual Budget has always been about much more than how the Government spends in different areas. Fundamentally, the Budget has always been about the People's Action Party (PAP) Government's agenda for governance – its plans, its priorities, its statement of intent – and undergirding all these, a manifestation of the PAP Government's ethos and core values in governance. And for this year's Budget, the statement of intent is unmistakably about the 4G team's Forward Singapore agenda – to move Singapore and Singaporeans into an even brighter future. In the Deputy Prime Minister’s words, Budget 2024 presents the first installation of plans in the Forward Singapore agenda. This must imply subsequent installations to come – "akan datang" – and I look forward to the unveiling of these future plans in good time. But as it is, the first installation of plans, as presented in Budget 2024 is, in my view, already breathtaking. The plans are bold, they are ambitious and they brim with gumption. They are a breathtaking set of plans. But they are also plans I can describe in one phrase, that remind us that it takes two hands to clap, the Government, on the one hand, and citizens, whether individual or corporate and, oftentimes, the whole of society, on the other hand. The Government and citizens – two hands to clap. The plans in the Forward Singapore agenda require the Government, citizens and the whole of society, to work ever more closely together, take action together, in order to make the plans happen. This, for me, is the crux of Forward Singapore. In other words, beyond having more information to facilitate further discourse, for me, the crux of Forward Singapore is really about action, taking action together, Government and citizens, individuals and corporates. Redoubling our commitment to work with each other and build a shared future together. Because for a Singapore this advanced in its development and with scant playbooks to follow, for a Singapore that is navigating uncharted waters in an increasingly complex and troubled world, it can no longer be about the Government delivering the goods and citizens merely receiving. Going forward, it has to be about the Government and citizens figuring things out together, feeling the stones as we cross the river together. Building our shared future together. And it takes both hands to clap. That is what our social compact going forward must look like. So, for the rest of my speech, I will talk about how we need to apply this basic orientation of action and collaboration between the Government and citizens in four areas under Forward Singapore and this Budget: housing, education, low-wage workers and healthcare. First, housing. The PPHS (Open Market) Voucher supports couples with a child or children and waiting to collect keys to their BTO flats to rent HDB flats temporarily from the open market. This is an important move by the Government to complement the PPHS, which the Government is already ramping up. But for the Open Market Voucher to work, landlords – HDB flat owners – in the open market must play their part. As it is, we know anecdotally that landlords are less willing to rent to couples with a young child because of potential disamenities. And so, it is not about rental price or rental market but it is about tenant profile. The Government cannot force or compel landlords to rent to couples with a young child. The Government can only provide the right scheme, the right market incentives, but the market must rise to the occasion and landlords have to do their part in order for the scheme to work. It takes two hands to clap. Second, on education. The Government is taking huge steps forward in this Budget. One huge step is the SkillsFuture Level-Up Programme to support more mature workers. Let me first offer some quick thoughts on the $4,000 top-up in SkillsFuture Credit and whether this is really too little or insufficient to cover course fees. Let us look at things in perspective. For part-time and post-diploma programmes, the full fee is typically around $19,000. But the Government is already subsidising 90% of such fees for Singaporeans aged 40 and above, or around $17,000, such that the nett fees payable to the Singaporean is less than $2,000. And so, the SkillsFuture Credit top-up of $4,000 will more than cover the typical fees after subsidies for part-time and post-diploma programmes.[+1 sentence] As for a second full-time diploma programme, the full tuition fee from a quick search online is typically around $12,000 per year, or $30,000, over 2.5 years. But for all Singaporeans, the Government is subsidising 75% of tuition fees, or almost $23,000 over 2.5 years. And so, when Deputy Prime Minister Lawrence Wong said in the Budget Statement that the Government is giving every Singaporean aged 40 and above a second "bite of the education subsidy", this bite is, in my mind, worth $23,000.[+3 sentences] On top of such subsidies, the Government is extending to the individual $4,000 in SkillsFuture Credit to cover more than half of the balance of the tuition fees. And so, the out-of-pocket fees for a second full-time diploma comes up to about 10% of full tuition fees. I think this is a fair deal. Indeed, on top of all these subsidies and credits, the Government is also introducing a training allowance tagged to one's average recent income to reduce the opportunity cost of pursuing full-time studies mid-life. This training allowance is capped at $3,000 per month for up to 24 months; so, up to $72,000 in total.[+4 sentences] This is a truly bold step and I think it will be a game-changer. But indeed, if I were to have any criticism on the Level-Up Programme, it would be about this training allowance. Because, generous as it is, I wish the training allowance had covered Singaporeans for up to 30 months, instead of 24 months, so that the entire duration of a full-time diploma programme can be more or less covered. That six months more of financial coverage for an adult learner with a family, with caregiving needs, will mean a world of difference. For the Government, this would mean an additional cost of up to $18,000 per citizen.[+16 sentences] But I think the difference it will make will be well-worth the cost. But coming back to taking two hands to clap. The Government has made this bold move through the Level-Up Programme for more mature workers. I think it is really up to our citizens, both individual and corporate, to work with the Government to make things work. For individuals, to take the plunge and seize the opportunities to get a comprehensive skills reboot and secure for yourself a second wave in your career and life. And for individuals, it is also about making and embracing an intergenerational classroom, where younger and more mature learners learn how to learn together. This does not come naturally and it will take effort. For corporates – enterprises and employers – they need to recognise the tremendous value of Singaporean jobseekers who have taken this skills reboot and operated in an intergenerational learning environment. Recognise the tremendous value that this training provides, hire the jobseekers and offer them roles and packages that reflect their true value. Another huge step taken in education in this Budget is the ITE Progression Award to help young ITE graduates get a diploma and move themselves onto a better career and wage trajectory. It is a huge step by the Government because it will uplift ITE graduates early on in their lives, reduce inequality and keep social mobility alive. It is another truly bold step, another game-changer in my mind, in the Forward Singapore agenda. And so, I disagree with the Progressive Singapore Party (PSP), who has said that the $10,000 award upon graduation and to be paid into CPF Ordinary Account is not so helpful, because it creates differentiation among diploma graduates. Well, the reality is, half of every cohort passes through our polytechnics and so, within our polytechnics, there are vastly different profiles of students with vastly different needs. And so, a differentiated approach for different polytechnic student profiles is pragmatic. And more importantly, it is fair. The starting pay for an ITE graduate is around $8,000 lower than that for a diploma graduate on a full-year basis. And so, the gap in CPF Ordinary Account contributions alone is around $1,500 per year.[+7 sentences] Therefore, the $10,000 CPF Award can be seen as helping diploma graduates coming through the ITE route to close the gap, just in terms of Ordinary Account contributions, that is equivalent to the first six years or so of their working lives. The Award helps them close this gap and helps them to catch up with their counterparts in terms of saving for a HDB flat. I think this is patently fair. It is the right thing to do and I am glad that the Government has taken the bold and decisive step to do it. But again, it takes two hands to clap. So, while the Government has taken this bold step, I hope more ITE graduates will be encouraged to take up this scheme, and upskill and uplift themselves. And as importantly, I hope more ITE students, both current and future, will have a strong goal to work towards and be strongly motivated to do well in ITE to qualify for polytechnic. And for our corporates – our enterprises and employers – I hope they will accord ever greater recognition of the skills that both our ITE and polytechnic graduates possess, and join hands with the Government to continue uplifting the wages of both our ITE and polytechnic graduates in the workforce.[+1 sentence] Madam, thirdly, on low-wage workers, there is strong consensus in this House to uplift them. And last year, the Government has announced it will invest up to $9 billion over five years, in both Workfare and the Progressive Wage Model (PWM), to achieve this.[+18 sentences] The PWM works hand-in-hand with Workfare to uplift low-wage workers. Progressive wages are really "minimum wage plus". They are good for low-wage workers. And so, there is really no fundamental ideological difference between minimum and progressive wages that warrants our rehashing and repeated debating in this House. Rather, I think what this House should really discuss is how to make progressive wages work for our workers, how to translate policy into real outcomes on the ground. And on this, it really takes two hands to clap. The whole of society has to do its part. Take the security industry, for example. There have been instances of service buyers – corporate clients – reducing the workforce mix when calling for new tenders because of progressive wage. In other words, because the wages of not just security officers but also senior security officers and security supervisors have to go up under the PWM, but the service buyer's budget remains the same, the service buyer cuts its requirement for senior security officers and supervisors in a new tender. This runs against the spirit of progressive wages. It causes our senior security officers and supervisors to lose out. In order for the progressive wage policy to achieve real upliftment of low-wage workers, service buyers must be prepared to pay more. It takes two hands to clap. Fourth, on healthcare. I cheer the increase in per capita household income thresholds for various subsidy tiers. It is timely and it will give more than a million Singaporeans higher healthcare subsidies and keep alive the promise of affordable healthcare for Singaporeans. Specifically, it will allow, amongst other things, more Singaporeans to requalify for the "blue" Community Health Assist Scheme (CHAS) card. I have met so many residents who got "bumped down" to the "orange" card or "green" card because their children are staying with them are earning a bit more than the "blue" card threshold. And so, with the revision in income thresholds more Singaporeans will get to keep their "blue" card or regain their "blue" card at renewal.[+10 sentences] The Government has heard and heeded the concerns of Singaporeans. And this is excellent news. But it takes two hands to clap and so, I hope with this enhancement and with the larger Healthier SG movement, all Singaporeans will really take ownership of their health and make full use of the infrastructure, programming and financing support provided by the Government to stay healthy and lead long and happy lives. Madam, let me conclude with a final thought. While the Forward Singapore agenda reminds all of us of the need to each play our part, it is also a real luxury that we are able to talk about these exciting plans and have sufficient funds to back up these plans. This has not happened by chance. Rather, it is the direct outcome of sound fiscal decisions taken year after year, over many years. Fiscal decisions, including the GST, starting in 1993, then 2002, 2007 and, most recently, 2022. Our GST journey has spanned more than 30 years, more than half of our existence as an independent nation, taking the right decisions, time after time, steadily building up a sustainable revenue base for Singapore and designing a system of GST and transfers that is fair and progressive, does not hurt the poor and taxes primarily the higher-income Singaporeans and foreigners but benefitting all Singaporeans. This is what successive PAP governments have done. Had we taken the easy way out on GST each time, starting from 1993, we would be $19 billion poorer today, literally. Nineteen billion dollars is our entire health budget. It is our entire Education and early childhood education budgets combined.[+2 sentences] It is also almost our entire Net Investment Returns Contribution (NIRC) today. And so, had we taken the easy way out on GST each time —
Mdm Deputy Speaker10 words
[+1 sentence]Mr Xie Yao Quan, you have less than a minute.
Mr Xie Yao Quan78 words
— starting from 1993, we would be talking today about using almost all of our Net Investment Returns and not just a bit more than half of it. Had we taken the easy way out on GST each time, starting from 1993, we would be wringing our hands today, instead of talking about taking two hands to clap, amidst all the exciting plans under Forward Singapore.[+2 sentences] Fortunately, we are where we are today. Madam, I support the Budget.
Mdm Deputy Speaker6 words
[+1 sentence]Minister of State Mr Desmond Tan.
The Minister of State, Prime Minister's Office (Mr Desmond Tan)3285 words
[+5 sentences]Mdm Deputy Speaker, the Labour Movement welcomes the Government's support for workers in this year's Budget – a bold and balanced Budget, a forward-looking, a Forward Singapore Budget that reflects our social compact and our workers' compact, and a budget that addresses and takes into account NTUC's recommendations following our #EveryWorkerMatters Conversations, the report that was tabled in September last year. At the joint press conference on 6 February 2024, NTUC's Secretary-General and the President of the Singapore National Employers Federation (SNEF), warned that we could expect a challenging year ahead. Great power contestation and regional conflicts have disrupted global supply chains and reshaped economic activities, leading to a rising inflation, affecting both businesses and individuals around the world, including Singapore. NTUC also conducted our annual Economic Sentiments survey recently with 2,000 respondents. About two-thirds noted that their income has not kept up with living costs especially affecting our seniors. Amid double retrenchment figures and slowing wage growth, the survey revealed worrying trends, with 40% of all workers expressing the likelihood of job loss in the next three months, up from 25% in 2023.[+15 sentences] This suggests prevailing insecurity, fear of job cuts and potential uptake in retrenchments in 2024. So, what does all these mean for our workers and for NTUC as a Labour Movement? Does it mean we will have to brace for tougher times? Yes, but we also need to seize opportunities for change and for transformation. It is times like these that NTUC remains steadfast in our unwavering commitment to providing support for all our workers. My fellow Labour MPs will cover a range of topics that addresses the needs, the aspirations, the concerns of different segments of our workforce. My speech will focus on three key areas. First, amid uncertainties, how the Labour Movement and NTUC will continue to journey with our workers. I will make a call for workers and companies to join the union, for better protection as well as for business success. Second, I will give an update on NTUC's efforts to support workers' upskilling through various schemes and initiatives. And finally, I will continue to speak up for our middle-aged and middle-career workers who are facing significant challenges. First, why join a union? Recent wave of lay-offs globally and locally has heightened apprehensions among workers about job losses. An example is the Lazada Singapore retrenchment which has brought into focus the role and the value that unions can offer to all workers as well as to businesses. Allow me to elaborate. After the abrupt lay-off, Lazada Singapore Private Limited and the Food, Drinks and Allied Workers Union (FDAWU) eventually reached an amicable settlement.[+1 sentence] And now, they are focused on building a strong partnership for the mutual benefit of the company and for all the workers that are affected. The resolution includes an enhanced support package and training fund for affected members under the union's scope of representation, many of whom, in fact, are PME workers.[+2 sentences] Lazada's commitment to maintaining open communication with FDAWU is encouraging, underscoring the vital role the unions play in securing favourable terms for our workers, particularly during retrenchments. I mentioned that many of the Lazada employees are PMEs. With 51% of NTUC members now being PMEs, NTUC will continue to represent all workers, regardless of collars, age or nationality or, what we often say, "All can".[+25 sentences] Let me cite another example of how NTUC can support and the union has helped another PME. A senior account manager worked for 10 months and resigned in June 2023. During that period, she managed to close sales target for two separate teams, but she was told that if she was to leave earlier, she will not be eligible for the commission for her first team if she resigned. So, she sought the assistance of the Singapore Industrial and Services Employees' Union, after failing to convince the company herself. The union represented her case and met with the management and eventually, the management investigated and agreed to pay the commission by the end of last year. In the end, the member was grateful and maintained a positive relationship even as she left the company. PMEs or not, union members can benefit from NTUC membership on workplace issues. But it is not just a matter of supporting only our workers. NTUC believes in achieving win-win outcomes by supporting businesses to grow the pie so that workers can benefit by sharing the gains. NTUC leans forward to support our unionised companies in hiring, in job placements, upskilling and training and, more recently, in business transformation. Allow me to say an example of how NTUC supported our unionised company, Dyna-Mac Engineering Services Private Limited. During the oil price crunch and COVID-19 pandemic, the company was experiencing business downturn. A newly appointed Executive Chairman and CEO, Mr AC Lim, shared that he was at his wit's end trying to turn around the company, when the Shipbuilding and Marine Engineering Employees' Union introduced him to the company training committee initiative (CTC). Dyna-Mac took the leap of faith, formed the CTC and embarked on the OpsTech roadmap. Through the process, the company reaffirmed their business direction and goals, and received support from the CTC Grant. Today, Dyna-Mac is in the black and workers are sharing in the gains. So, when I joined Mr Lim at the last panel discussion on CTCs, he expressed strong appreciation for how NTUC has helped his businesses and his workers. When I tell this story, unions and even businesses around the world may not appreciate how a union can actually support businesses or even employers. But with NTUC and Singapore, because of our unique tripartism, we were able to secure better outcomes for workers by not just supporting workers directly but also going upstream to support businesses. It is in tough times that the value of NTUC will come to the fore, in protecting our workers and helping companies grow their businesses. So, I urge all companies and workers to consider joining the NTUC family because, as brothers and sisters, we will grow the business together and we will ensure we secure better wages, better welfare and better work prospects for all workers. Next, I will speak about how NTUC plans to continue our support for workers' upskilling. This is not new. NTUC has always maintained that for our economy to grow, our competitive advantage must be a skilled and quality workforce that is future ready. But why is there an urgency now to step up our efforts in upskilling and training? According to the World Economic Forum 2023's Future of Jobs report, over 75% of companies are planning to integrate Big Data, cloud computing and AI technologies in the next five years.[+1 sentence] While all these advances are expected to enhance productivity and drive growth, there is an anticipated short-term impact on workers and their livelihoods. Based on NTUC's annual Economic Sentiments survey, 3% already experienced negative impacts on their jobs as a result of AI and 15% are worried that they will lose their jobs.[+6 sentences] And of these, two-thirds are PMETs. Last year, in the US, one of the longest labour disputes involving over 10,000 Hollywood Television and Movie Writers represented by The Writers Guild of America, along with 160,000 actors affiliated with other guilds, brought the entertainment industry to a standstill. The writers' main concern was the extensive use of generative AI, such as ChatGPT, to create scripts, raising fears that studios may therefore exploit AI to replace screenwriters and to reduce fees. After negotiations, Hollywood writers secured control over AI to prevent its use as a tool to replace them. Additionally, white-collar layoffs seen in companies like Google, Duolingo and UPS are increasingly tied to productivity-boosting technologies like machine learning. This trend highlights AI's roles in automating routine tasks, affecting both blue- and white-collar jobs. The rise of AI and automation may lead to job displacements across sectors, including those in the high percentage of PMEs who form 60% of Singapore's workforce today.[+13 sentences] This underscores the need for a "just transition", ensuring that as AI changes work, society and the economy, the transition is implemented fairly, equitably and with considerations for all workers and communities. To navigate this transition, it is imperative for workers to engage in continuous learning, consistently updating our skills. Our Founding Father, Mr Lee Kuan Yew, once referred a letter from the former chairman of the Japan Productivity Centre, Mr Kohei Goshi, who played a significant role in fostering a culture of productivity in Japan. Mr Goshi drew on the wisdom of a Chinese philosopher, Guanzi, and I quote, "一年之计，莫如树谷；十年之计，莫如树木；终身之计，莫如树人。" Translated, it means one may grow grains or trees for short-term gains but for longer rewards, one has to invest in growing men or in developing talents. As we chart our way forward, NTUC pledges to continue championing our workers' interests to take action for them and with them. I am heartened to share that despite the uncertainties of technological disruptions, 52% of workers foresee the need to upskill to adapt to the rise of AI, based on NTUC's annual Economic Sentiments survey. NTUC Learning Hub, for example, has recently launched the "X for Everyone" series of courses, addressing emerging technologies crucial for modern workplaces, such as generative AI, cybersecurity and cloud computing, as part of the Tech Talent Academy. I encourage all workers to update their skills to remain proficient in the face of the rapid developments in these vital technologies. Another initiative NTUC is working relentlessly in promoting upskilling is to drive the CTC, an institution to complement to SkillsFuture, and an initiative between employers and the unions to support businesses' transformation that can result in company-initiated training and skills upgrading for workers. Since its inception in 2019, we have made tremendous progress. I am happy to update that we have formed over 1,900 CTCs to date, approved 168 companies CTC-grant projects, helped over 2,600 workers to receive an average of 5% wage increase and/or benefit from a career development plan and also equipped over 125,000 of our workers with skills to secure better wages and better work prospects. I would like to share an example of a successful CTC collaboration with a progressive employer, Hydroflux Marketing, a homegrown company specialising in water filtration solutions. Through OTR, Hydroflux formulated a business strategy plan identifying areas for digitalisation, talent development and growth opportunities. With support from the Singapore Manual and Mercantile Workers' Union, the company successfully secured a 70% grant approval for its CTC project, benefitting 38 workers, 12 receiving an average wage increment of 8% and 26 impacted by the implementation of a career development plan.[+11 sentences] Prior to the CTC initiative, sales staff faced limited career advancement opportunities. But with a new plan in place, Hydroflux is committed to providing career development structures exemplified by success stories, like Ms Alyssa Lim, who transitioned from an air stewardess to now a sales role. Ms Lim's dedication led to her promotion to a Senior Lifestyle Specialist role, showcasing the positive impact of CTCs and the implemented strategies. So, we hope more companies will work with NTUC in forming CTCs and developing strategic plans for both business and workforce development. NTUC urges companies to tap on the CTC Grant that helps to navigate trends, such as AI, support workers' upskilling and enhance business productivity. Besides partnerships with the employers, NTUC also works with our SkillsFuture Singapore. In June 2023, WSG piloted a Workplace Skills Recognition programme (WPSR) with NTUC and the National Centre of Excellence for Workplace Learning (NACE) in two sectors, the retail and the food services sectors. NTUC has been working closely with SSG and NACE to introduce CTC companies within these two sectors to pilot and to embark on a Workplace Learning:READY Mark certification. With good ground feedback and success from companies, such as King's Cart Coffee Pte Ltd, NTUC will continue to work with SSG and NACE to onboard more CTC companies to this initiative. In this regard, we hope that WPSR can be expanded to more sectors and availed to more companies for their benefit. NTUC remains committed to offering comprehensive support for workers navigating through career transitions. Today, I am pleased to announce that starting from 1 April 2024, NTUC's Employment and Employability Institute (e2i) will assume an expanded role in the personalised placement landscape through the transfer of designated career centres and Jobs and Skills Centres from Workforce Singapore. With more strategically located career and job services touch points across Singapore, NTUC's e2i will bring personalised career coaching, job matching and skills upgrading services closer to the individuals in the heartlands and help all Singaporeans across diverse work types islandwide to find better employment and employability.[+29 sentences] More details about this development will be announced shortly. Finally, I will speak about the support for a segment of our workers that is very close to my heart and have faced significant challenges – the middle-aged mid-career working people. In my campaign speech in 2020 on national television, I spoke about this segment and that I will do my utmost to support them in their livelihood, to give them greater purpose and dignity. I did so in Pasir Ris, bringing job opportunities, organising job fairs and career networking sessions and working with many Government agencies. But despite these efforts, many still struggled, and I met them across the constituency. I met this gentleman who was in his 50s when he decided to return from overseas to Singapore because of his son's National Service (NS). He was confident he would secure a job easily, given his extensive experience in sales and also management. He applied for numerous jobs during COVID-19, got a few replies and a couple of interviews, but zero offers for two years. Although it was not explicit, he sensed that companies find that his age could be a barrier. Some even said he was overqualified for the post that he applied for. This gentleman was not looking for a high-paying job. He was prepared to take a pay cut, learn new things, go into a new area and start all over. But he was just not given the opportunity to do so. His wife has a health problem, his two children are not yet working, and he still has to put food on the table. So, he turned to driving Grab. At least that helped him to feel useful and helps to contribute to his family. After a year, he was finally offered a job at a fraction of his last drawn pay – even below what he could earn by driving Grab. He could not accept the offer and, as time passed, his confidence in himself, and also in the job market, dipped. I recall receiving a message from him at 4.00 am one morning. And it says: "Mr Tan, I am still struggling to get back to normal employment to deal with life. Ageism is very real. Having worked so many years and so much effort to upgrade myself to stay relevant. Why are people like me still struggling?" Well, thankfully he finally landed a good job after three to four years. His persistence has paid off. And, in between, he upgraded himself, took some courses and continued to persevere. But his struggle is real and I think he is probably not the only one who faces the same problem. We have to do more for people like him, especially given our ageing workforce and manpower shortage. That was why, during Budget last year, I called for the Government to provide more support for mid-career workers by expanding the SkillsFuture Career Transition Programme to more sectors, so that more workers can benefit from the scheme and also to consider introducing training allowance that was introduced during the COVID-19 for trainees under this scheme. I also called for the Government to review training funds and allowances to support our workers in alleviating their concern for the lack of time and finances and opportunity costs when attending training. So, I was particularly excited when Deputy Prime Minister Lawrence Wong announced in this year's Budget a very significant training boost for mid-career workers in his Budget speech, and I thank the Government for the decisive move in Budget 2024 to recognise that our mid-career workers who are above 40 years old need more help.[+2 sentences] In my interactions over the last two weeks with many workers, including the gentleman I spoke about, these announcements are very welcomed and timely. Many commented the schemes announced are well thought out and decisive, and for a group of workers that really face difficulties. We look forward to more details to be announced at the Committee of Supply by the Ministries. Now that the Government has made a very significant move and NTUC has continued to step up our upskilling and job supporting efforts, I hope that the employers will join hands with us, do your part to better support our mid-career workers, to more hire more of these workers, to pay them fairly based on their skillsets and experience and to provide protected time-off for their training and consider ways to recognise their skillsets.[+5 sentences] Mdm Deputy Speaker, in Mandarin, please. (In Mandarin): Esteemed colleagues in Parliament, since the announcement of the 2024 Budget, we have received a lot of positive feedback from workers. The Government has proposed many measures and schemes to support mid-career workers, uplift low-wage workers, assist young workers and families, help middle-aged workers obtain retirement adequacy and aid Singaporeans in coping with the cost of living. These measures and schemes were proposed after listening to the feedback and voices of workers and have taken into account the recommendations from the NTUC's #EveryWorkerMatters Conversations report. Our workers will benefit from the various plans and measures introduced by the Government. Additionally, we sincerely hope that more workers can achieve these three points: firstly, join the union to bring more security to their careers and lives; secondly, make good use of the SkillsFuture training subsidies to enhance skills and keep pace with economic transformation; and thirdly, we urge middle-aged and mid-career workers to make good use of the subsidies provided by the new SkillsFuture Level-Up programme to pursue professional courses and strengthen their employability. All Singaporeans aged 40 and above can receive an additional $4,000 subsidy.[+8 sentences] NTUC will continue to support workers in enhancing their skills, obtaining better wages, welfare and work prospects. We also encourage workers to make good use of these schemes and measures introduced by the Government and NTUC. As the saying goes, learning is like rowing upstream, not to advance is to retreat. The same goes for building a career; not advancing is akin to retreating. For society to progress and economy to grow, workers must upgrade and the tripartite partners must work together. United, we can help workers improve and create a better future. : The year 2024 is expected to bring challenges for both workers and businesses. However, echoing Deputy Prime Minister Lawrence Wong's sentiment, and I quote, "Singapore can take heart that the country has navigated similar external disruptions and shocks in the past and each time had emerged stronger than before." Our resilience is evident in successfully weathering recent challenges, such as the COVID-19 pandemic, with tripartism at the very core of our efforts. NTUC remains committed to our partnership with the Government and the industry stakeholders with an unwavering focus on workforce development because every worker matters. We encourage workers to join NTUC, we call on more companies to collaborate with us on CTC and extend our gratitude to Government for the substantial support for mid-career workers in this Budget.[+1 sentence] Mdm Deputy Speaker, I support the Budget.
Mdm Deputy Speaker3 words
[+1 sentence]Mr Patrick Tay.
Mr Patrick Tay Teck Guan (Pioneer)571 words
[+4 sentences]Thank you, Mdm Deputy Speaker. I rise in support of Budget 2024. It is a well-considered budget that aims to strengthen our nation's resilience to withstand the challenges of an uncertain global economy. We are entering an era of work that is marked by precarity, where job security is no longer a guarantee. In 2023, retrenchments in Singapore more than doubled to 14,000 and the myriad of challenges, uncertainties and volatility persists.[+11 sentences] The climate crisis and new technologies like generative AI will bring about disruption and transformation to our economy, including the labour market in both speed and scale. Jobs and skills obsolescence will persist and therefore workers of all collars and ages are now more vulnerable and understandably anxious about the way ahead. Earlier this month, NTUC's annual Survey on Economic Sentiments echoed this same worry and anxiety on the ground, where more workers are concerned about losing their jobs compared to the preceding year. At the same time, there are ongoing challenges of inflation and rising costs of living. From groceries to electricity and water bills, Singaporeans who find themselves out of a job are facing increased financial strain in meeting their basic needs. During this exceptional and critical time, it is therefore imperative for the Government to re-evaluate our approach to unemployment and job loss. We must assure workers who find themselves involuntarily displaced or transitioning into more resilient careers that they will not be left behind without support. We must also equip our workers with the resources and skills necessary to strengthen their employability. Only by investing in our collective resilience and prosperity can Singapore prevent the adverse repercussions of economic restructuring and emerge stronger together. To this end, I will focus on what I will call as the "2S" areas, of Support and Strengthening, for our workers: Support for the Unemployed, and Strengthening SkillsFuture and CET. The first "S" of Support for the unemployed is a call I first made more than 10 years ago, here in this House in 2014. I have checked Hansard and found that the late Dr Goh Keng Swee, in March 1970, also in this House, spoke about and analysed the unemployment insurance, and also consulted the ILO before the Government made its stance and stated its approach. I am heartened that after a decade of lobbying, more MPs have joined me in this call including our Opposition MPs, that it has been adopted by the Government through Forward Singapore last October and announced by Deputy Prime Minister Lawrence Wong in his Budget Speech this year. Temporary financial support for the unemployed has increasingly emerged as a key recommendation from the Labour Movement's engagements with workers and union leaders in the past few years. It started as a key recommendation from the NTUC-SNEF PME Taskforce, which I co-chaired with SNEF in 2021 amid COVID-19, where we consulted over 10,000 members of the public, union leaders and business leaders. It was reiterated again in our NTUC's renewed Workers' Compact last year, following a year-long engagement with over 42,000 workers, through our #EveryWorkerMatters Conversations.[+2 sentences] PMEs represent a segment of our workforce that are particularly precarious when they become unemployed, because they typically have more dependents to take care of but take a longer time to find a new job due to their age and expected income. Upon re-entry to employment, there is also an increasing propensity for them to suffer from wage loss.
[Mr Speaker in the Chair]1360 words
[+54 sentences]Yet, unemployed PMEs are generally less likely to receive support from the Government in view of their earlier higher income. As a result, they may feel compelled to rush into the first job offer they find rather than taking the time to upskill or search for a job that better fits their skills, experience and aspirations. These workers may then find themselves entrenched in ill-fitting jobs in the long term. According to a recent joint research study by NTUC and the Singapore University of Technology and Design (SUTD), this gap may have already materialised in our labour market. The study found that one in four workers experience under-employment arising from skills-jobs mismatch or, in other words, are over-skilled or overqualified for their current jobs. I think the greatest concern is with involuntary underemployment. I will share the findings from the report in due course on a separate platform, including on my socials. After a decade of tireless lobbying, I am therefore elated to see our efforts recognised in the Budget 2024 with the announcement of a new temporary financial support scheme by the Government for involuntarily displaced jobseekers while they undergo training or look for better-fitting jobs. As the parameters of this scheme are being deliberated, I urge the Government to extend coverage to as many workers as possible, including the broad middle of affected workers and not just those in the lower-income bracket. Allow me to elaborate. Two major disruption cycles to our local workforce are already in place – the phasing out of fossil fuels to transition towards renewable energy and the rise of GenAI. This means that previously secure jobs in fossil fuel energy production could face redundancy, as a necessary and inevitable focus on renewable energy demands different skills. AI is also expected to disproportionately impact PMETs, who make up slightly more than 60% of the workforce today, due to the computer-based content-generation work inherent to PMETs. Already, industry giants, such as Shell and Grab, have announced hundreds of job cuts from their Singapore offices, citing these two disruption cycles as reasons for restructuring. As we continue to expect continued restructuring, reorganisation, and re-prioritisation in 2024, we must all stand prepared for any curve balls by ensuring that workers affected have the support and resources they need to adapt to and thrive in a new economic landscape. Although these industry changes may render some jobs and skills obsolete, they also have the potential to create more sustainable and meaningful jobs with better wages and generate new in-demand skills. If we are to ride this wave of change, we will need to reskill our workers and help them navigate career transitions. Temporary financial support will therefore serve as a lifeline for displaced workers by providing them with ample space and time to upgrade their skillsets and secure better jobs. To ensure the successful implementation of this scheme, I would like to propose five areas of consideration on designing this scheme, which I call the "5A"s. First, applicability. Temporary financial support for the unemployed should cover the broad middle of affected workers rather than only those whose incomes fall below the national median wage or lower-wage workers, to ensure that all who need support will receive it. I also implore the Government to consider extending support to those retrenched as well as those involuntarily unemployed for genuine reasons. By the same token, sector-specific support for workers in industries that may experience cyclical downturn will be a great augmentation, so that companies can cut costs to save jobs and not cut jobs to save costs. This will also nudge and encourage at-risk workers to proactively fortify their careers by upskilling or reskilling to transit to more sustainable careers. Second, amount. Financial support should entail a sufficient amount that can tide affected workers over, based on a reasonable societal standard of a worker and his families' basic needs. Third, ample time. The duration of financial support should suffice such as to allow for effective reskilling and job-matching while ensuring that the unemployed can get back to work as soon as possible and not become under-employed involuntarily. Fourth, active labour market policy. Financial support, if any, should be reciprocated by workers doing their part to actively search for jobs and diligently attending training to ensure the affordability and sustainability of the scheme. Fifth, and finally, accessibility. Access to financial support should be simple, seamless and prompt. More importantly, the scheme must not just be about providing financial help but must encompass active career guidance, coaching and employment facilitation to help those involuntarily unemployed workers identify suitable career pathways and access funded training under the SkillsFuture ecosystem. This leads me to the second "S", strengthening SkillsFuture and CET. As Deputy Prime Minister Lawrence Wong mentioned in his Budget statement, the Government and NTUC has consistently championed SkillsFuture and CET as pathways to good jobs and better wages. I would like to call for the Government and employers to continue working closely with NTUC and the Labour Movement to strengthen the SkillsFuture and CET ecosystem and better support workers' upskilling, employment, employability and career progression. I recognise that the Government has invested heavily in providing training opportunities and generous subsidies, particularly through the newly-announced targeted $4,000 SkillsFuture Credit top-up which will be a great boon for our mature workers, and enhanced subsidies for selected programmes and training allowance for mid-careerists aged 40 and above from May this year. I look forward to hearing the fuller details at the Ministry of Education Committee of Supply. However, I wish to submit three points in this respect. First, I applaud the SkillsFuture Credit top-ups and acknowledge that those below 40 years will eventually get a bite of this cherry when they reach 40 years old. However, I submit that we should extend the access of this $4,000 to other vulnerable groups of Singaporeans besides mid-careerists, such as the retrenched, unemployed and freelancers in need of individual initiated training and who may fall outside the scope of this top-up. I also look forward to more details on the types and category of courses which this $4,000 can be used for and for the Government to not just consider those programmes that lead to certifiable courses, but those that lead to employment and employability outcomes, whether directly or indirectly. This will include coaching and mentoring training to maximise one's potential and enhance career progression and employability. Second, career conversion programmes (CCPs) should be widened to cover even more sectors and industries, as the current offerings may not be extensive enough to fully realise the potential and capabilities of those keen to embark on a career change voluntarily or involuntarily. Third, in my work with the unions and the Labour Movement, I have gathered feedback that the current CCP model may not be viable for many PMEs, due to the relatively lower monthly training allowance during their period of training for some of the CCP courses. I think a good and useful proxy would be the IBF's Technology in Finance Immersion Programme, which offers a monthly training allowance of up to $5,500. With the latest announcement of a training allowance of up to $3,000 for those undertaking selected certification and qualifications on their own, I opine that the training allowance of our CCPs should be increased to keep pace with rising median wages, household expenditures, inflation and rising costs of living. To conclude, while the challenges ahead appear daunting, let us remember that to pave the way for progress, we must first face adversity head-on. And the only way we can emerge stronger is together. Successfully transitioning our workforce through the rapid structural changes in our economy and seeking out new opportunities will require tripartite collaboration to help workers bounce back from setbacks and bridge the skills divide and gap. This can be achieved through the dual effort of Supporting the unemployed and Strengthening SkillsFuture and CET. NTUC believes that "Every Worker Matters". We care and we will continue to take action to support all workers, so that no one is left behind as we strive towards better wages, welfare and work prospects. Mr Speaker, I support the Budget.
Mr Speaker3 words
[+1 sentence]Mr Melvin Yong.
Mr Melvin Yong Yik Chye (Radin Mas)1915 words
[+2 sentences]Mr Speaker, I support the Budget, which seeks to tackle immediate cost-of-living pressures, create more paths for social mobility and forge a stronger shared future. Today, I wish to highlight the anxieties that many Singaporeans face in our current employment climate. MOM's preliminary data has shown that retrenchments have more than doubled in the past year and this is expected to rise even further.[+4 sentences] I will also talk about how we can better support our low-wage workers, by expanding the PWM to other sectors and exploring the Career Progression Model for skilled professions. Sir, Budget 2024 continues the trend where social spending makes up the largest part of the Government's spending plans. It is no secret that Singaporeans are anxious about the steady and unabating rise in our cost of living. All of us would have felt the impact of inflation when we buy our meals at hawker centres and when we pay our monthly utility bills. In NTUC's most recent annual survey on economic sentiments, 63% of respondents felt that their income did not increase sufficiently to match the rise in the cost of living.[+1 sentence] Our survey also found that older workers felt this more acutely, likely due to the short runway they have till retirement. Many young seniors in Radin Mas have also shared with me their growing worries about retirement adequacy, wondering if their retirement nest eggs can survive being eroded by inflation. I am therefore heartened that Budget 2024 will enhance the Assurance Package by $1.9 billion.[+2 sentences] The additional CDC Vouchers, the Cost-Of-Living Special Payment, U-Save and service and conservancy charges (S&CC) rebates will go some way in helping Singaporeans defray the rise in prices. In addition to alleviating immediate cost-of-living pressures, Budget 2024 continues the Government's trend of increasing our social spend to cater to a rapidly ageing population and to ensure social mobility. Between 2010 and 2019, we nearly doubled our social spending to $37 billion.[+40 sentences] During this term of Government, the budget allocated to MSF will increase by about 18%, from $3.9 billion in FY2020 to an estimated $4.6 billion in FY2024. I fully support this, and I will speak more about the good work done by MSF during the COS debate. As we build our shared future together, we must retain our core identity as an inclusive society, a society where no one will be left behind. The private sector and civil society can also do their part in the fight against inflation. I am happy to read about exemplary companies, such as NTUC FairPrice, Sheng Siong and DBS, just to name a few, that have rolled out meaningful initiatives to help consumers stretch their dollar. NTUC has rolled out various measures to help Singaporeans mitigate the rise in cost of living. Initiatives, such as the $8 FairPrice Return Voucher for every $80 nett spend using CDC vouchers and the GST offset on 500 essential items, have helped many Singaporeans defray inflation. At Kopitiam, union members can enjoy a breakfast set starting from $2.20. Transport workers continue to pay 60 cents for a cup of "kopi O" or "teh O" at over 50 canteens operated by the National Transport Workers' Union. I was also heartened to read that DBS has extended its Five Million Hawker Meals initiative, which allows patrons of various hawker stalls who use the DBS PayLah! app to get up to $3 off their meals every Friday. Hawkers in my Radin Mas constituency tell me that this has helped to boost business and my residents tell me that the $3 offset is indeed substantive. I encourage more companies to join NTUC and DBS in helping to alleviate the cost-of-living pressures for everyone. Sir, various community initiatives have also sprung up to help tackle the increasing prices of our everyday essentials. In Radin Mas, we launched the "It’s On Me" programme in 2021, where patrons to Redhill Food Centre and Telok Blangah Crescent Food Centre can pay a little extra when buying their own meals to treat someone else, someone who may be in need. Since its launch in 2021, the programme has given away more than 100,000 free meals. Beneficiaries have told me that they deeply appreciate how, as a community initiative, "It's On Me" does not require any means testing. To further assist vulnerable residents, Radin Mas launched the EZ-Meals programme just last month. Beneficiaries can approach more than 80 participating hawker stalls within the constituency to offset $3 from the price of their meals. This helps to keep the cost of food low for some 200 beneficiaries while providing a wide variety of food options. To help consumers find the best deals and stretch their dollar, the Consumers Association of Singapore (CASE) launched the Price Kaki app in 2019 to allow for an easy comparison of prices of daily essentials. The app has since been downloaded by more than 150,000 users who use it to check the prices of over 10,000 daily essentials and about 75,000 cooked food items islandwide. I am also glad that HDB and Government Technology Agency (GovTech) had recently launched the Great Budget Meal Hunt, creating a portal to crowdsource budget meal recommendations located at HDB coffee shops. Together with Price Kaki, this will provide consumers with greater awareness and more choices to help them stretch their dollar. Following the success of the Price Kaki app, CASE realised that, over time, we have built up a substantial number of "super users". They use the app daily and share deals with their family and friends, often by sending a screenshot of what they see on the app across their WhatsApp groups. The Price Kaki team has spoken to some of these super users, who tell us that they hope to be able to share these "lobangs" and promotions within their own neighbourhoods with other users using the app, so that we can build micro-communities of like-minded individuals. I call these users our "Price Kaki Champions" and we value their feedback. CASE will, therefore, enhance the app by launching a community feature in Price Kaki. This new function will be available in a few days' time and will allow users to share reviews, in-store promotions and tips to better stretch their dollar. We will also grow our community of Price Kaki Champions offline, so that we can bring the benefits of Price Kaki to as many consumers as possible. I am happy to announce that CASE will work with the People’s Association (PA) to recruit 2,000 grassroots volunteers across all constituencies as Price Kaki Champions. These volunteers will help to suss out deals within their own neighbourhoods and teach others to use the Price Kaki app to find the best deals. As we grow our network of Price Kaki Champions, I am confident that we will further improve price transparency, promote cost-consciousness and empower consumers to make better value-for-money purchase decisions. Mr Speaker, the long-term solution against inflation must be an increase in real wages to ensure that workers keep their jobs and wages keep pace with the rise in prices. At NTUC, we believe that jobs are the best welfare and full employment is the best protection for our workers. This is especially true for our lower-wage brothers and sisters, who have seen their wages decrease in real terms in 2023. I was, therefore, heartened to read how all three of our local banks, DBS, UOB and OCBC, are giving their junior staff a one-off payment to help them cope with cost-of-living pressures. But beyond company-specific initiatives, NTUC has been relentlessly championing for a way to increase wages through upskilling skills and improving productivity. We first conceptualised the PWM for the cleaning sector and expanded it to other sectors where outsourcing practices were common, such as security, landscape and lift and escalator maintenance. Workers have benefited through faster wage growth. From 2022 to 2028, workers covered by PWM can expect cumulative wage increases of up to 80%.[+10 sentences] Members would have read news that countries with minimum wage policies are now starting to look towards the Singapore PWM, recognising that minimum wage had become a wage ceiling rather than a floor, resulting in stagnant wages in these countries. Mr Speaker, PWM operates within a framework that carefully balances multiple factors, including industry dynamics, economic sustainability and prevailing labour market conditions. It is a pivotal component of Singapore's strategy in pursuing sustainable income growth and plays a crucial role in uplifting the earning potential of workers across a spectrum of sectors and occupations. Despite initial concerns, empirical evidence has demonstrated that the implementation of PWM does not lead to job losses. This achievement is attributed to our tripartite process to establish consensus and buy-in, ensuring that any wage increases are acceptable and feasible for employers, thereby safeguarding against any adverse impacts on employment levels. While the overarching goal of PWM is to improve the livelihoods of workers, achieving parity between their wages and those of university graduates, as suggested yesterday by the hon Member Mr Raj Joshua Thomas, poses challenges. These challenges stem from the need to navigate various constraints, including ensuring that wage adjustments remain manageable for employers, contribute to the sustainable operation of businesses and do not jeopardise overall employment levels. In sum, PWM adopts a pragmatic approach focused on raising wages sustainably. By adhering to this approach, PWM continues to serve as an effective tool for sustaining income progression while simultaneously addressing the diverse needs and complexities of both workers and employers within the broader economic landscape of Singapore. Sir, while we have come a long way for PWM, we must always look ahead. The Labour Movement has proposed for elements of PWM to be expanded to more roles, such as strata management and pest management.[+1 sentence] Beyond our lower-wage workers, we must also uplift our skilled trade workers to develop their skills, attain mastery and build long-term careers. One of the announcements that stood out to me in this Budget was the ITE Progression Award to empower our ITE graduates to upskill to a diploma earlier in their career. They will get a total of $15,000 in top-ups when they complete their diploma.[+2 sentences] Having a skills-based, job-relevant diploma will certainly give a helpful boost to our ITE graduates. NTUC will work with agencies to develop Career Progression Models with specific career and accreditation pathways for skilled trade workers and essential workers. Most recently, MOM launched a Progressive Wage Portal for our lower-wage workers.[+9 sentences] The portal will allow PWM workers to view their PWM wages and job levels that their employers have placed them on. The Labour Movement commends MOM’s efforts in raising public awareness of PWM requirements. NTUC will continue working with our Tripartite Partners to ensure compliance with PWM wages and requirements. NTUC cares because every worker matters, and we will not hesitate to take strong action against any company which attempts to circumvent these PWM requirements. Mr Speaker, Budget 2024 continues a streak of caring Budgets by PAP. Inflation dynamics are still in flux and concerns about the cost of living will not go away. But I am glad that the 4G team, led by Deputy Prime Minister Lawrence Wong, have set their sights on addressing acute challenges that Singapore faces, such as tempering inequality and sustaining social mobility. In building our shared future together, we must continue our tripartite efforts to expand PWM so that workers will continue to have good jobs and a growing income to combat inflation. Mr Speaker, I support the Budget.
Mr Speaker3 words
[+1 sentence]Mr Desmond Choo.
Mr Desmond Choo (Tampines)1952 words
[+9 sentences]Mr Speaker, Sir, thank you for allowing me to join the debate. When Deputy Prime Minister Lawrence Wong delivered the Budget two weeks ago, my immediate reaction as the Chairperson of the GPC for Manpower was that it was a Budget that had workers' interest at the very core. Headlined by the SkillsFuture Level-Up Programme with a second subsidised diploma and generous training allowance, workers would find significant help in the workplace. The natural question was whether the Budget had missed out on certain aspects of supporting workers and to ask for them during the debate. Yet, we do know a single year’s of Budget does not make for robust and thoughtful national capabilities. Each successive year’s Budget should build on each other. It is worth examining how this term of Government has built up critical employment infrastructure. The Budgets from 2020 to 2022 were focused on preserving lives and livelihoods. For example, the Jobs Growth Incentive (JGI) was highly successful in supporting local hires during COVID-19. From FY2020 to 2021, $6.2 billion was spent on JGI to boost local hires. It supported close to 709,000 local hires by 83,000 firms between September 2020 and February 2022.[+10 sentences] It also led to an increase of about 90,200 local hires. This roughly translates to a significant spending of $8,700 per local worker who has benefited from the JGI. Similarly, the SGUnited Jobs and Skills Package provided jobs, traineeship opportunities and skills enhancement programmes. Over FY2020 to FY2021, $2.2 billion was set aside for SGUnited. From April 2020 to April 2022, more than 200,000 local jobseekers benefited. Around eight of our 10 trainees secured employment. There was further progress in creating a more equitable society. Income inequality is now the lowest in over two decades. This is owed, in no small part, to the schemes to uplift lower-wage workers through expanding PWM and reforming the Local Qualifying Salary (LQS), as Member Melvin Yong had pointed out. The Progressive Wage Credit Scheme (PWCS) was launched in 2022 to support employers to adjust to the expanded PWM. In Budget 2024, the Deputy Prime Minister announced a further $1 billion top-up to PWCS.[+11 sentences] This is complemented by raising the minimum qualifying salary under the WIS Scheme. WIS was enhanced in 2020, 2023 and will be again in 2025. Collectively, this will benefit around half a million Singaporeans. Enabling Employment Credit was also created in 2023 to help workers with special needs or disabilities. There were also decisive moves on Workplace Fairness and Platform Workers over this term of Government. The net effect is a tapestry and trampoline of support schemes that help workers of all ages, abilities and skills. This was built across successive Budgets, working with the unions and employers. Indeed, we must always find ways to improve on the Budgets to help Singaporeans further. This is our duty as Parliamentarians. But we can do so today from a place of strength and comfort. It is from this foundation of strength that I would like to examine how we could support our younger workers. Global uncertainties, such as shifting supply chains and geopolitical tensions, have resulted in fewer jobs being created. This year, the Joint Autonomous Universities Graduate Employment Survey showed that the proportion of university graduates who found employment within six months of taking their final exams dropped to 89.6% in 2023 from 93.8% the year before.[+43 sentences] Our younger people are naturally anxious about transiting to the workforce. Our year-long Every Worker Matters Conversations run by NTUC in 2023 also reflected similar sentiments. This year’s Budget builds capabilities to help our young Singaporeans to succeed. Investment in innovation and training systems can bring in new enterprises to create better jobs for them. So, the future is a bright one. However, young Singaporeans still face two rather formidable challenges: one, transition to an economy shaped by AI and climate change; and two, navigating the workplace that ironically has more options and thus, harder to land on a desired career. I will take them in turn. We are at the doorsteps of a seismic shift in the economy with the rise of AI. Just not too long ago, coding was deemed as the skill of the new economy. Even I was tempted to take up coding, but I could not really do it. It was almost a must-have for young people to seize new opportunities and thrive. Yet today, AI can already perform entry-level coding easily and some even for free. ChatGPT could do it. That, I could do. We can only imagine that, in time, it would be capable of, if not already so, sophisticated coding. What does that leave for the many students and young people who have been learning coding in school? And this is just coding that might be adversely impacted. Most young people would need to work with AI regardless of their occupations or industries in the future. How do they work with AI, co-pilot it to become more creative and better in exercising human judgement? AI would lead to job creation and job losses. AI advances and adoption by companies would be non-linear and, therefore, highly disruptive. The core job requirements and skills for many jobs would have changed. There would be a greater emphasis on analysis, working with clients and strategic thinking. For our young Singaporeans and workers, they would either be riding this tremendous wave or be sunk by it. Their era would be defined by AI. How can we ensure that our youths are AI-ready? Should IHLs include AI as part of all courses? And do all our workers and educators now need to have AI booster courses? The next challenge is that of green transition and the impact on jobs and training. Take, for example, our nation's vision to achieve 100% cleaner energy vehicles by 2040. ITE currently offers automotive technology and engineering courses, which primes its students with appropriate skillsets for electric vehicles (EVs). However, what would happen to our workers who only have skills to repair internal combustion engines (ICE) vehicles? Those students with mechanical engineering skills would need to acquire new skills quickly. Should they not be able to transition fast enough, they would be out of work. We must embrace the green transition whether we like it or not. Man cannot reverse climate change. Today, 52% of Singaporeans or young Singaporeans foresee the need to upskill to adapt to the rise of AI and this is especially so among our younger people. They will need to retrain shortly after graduation if they find themselves on the wrong side of the economic transition. At the heart of this endeavour lies the concept of a "just transition". This is more than just adapting to economic shifts. It embodies a worker-centric approach to ensuring that the transitions our workers undergo are fair, equitable and sustainable. This was also the point raised by Minister of State Desmond Tan. To this, I wish to speak on key areas ensuring a “just transition" to the new economy for our young workers. Over the past three Budgets, I have called on the Government to provide subsidies for Singaporeans to pursue a second degree or diploma to remain future-ready. I am heartened with the Government's move in Budget 2024 to enable Singaporeans middle-aged and above to receive full Government subsidies to pursue a second diploma. There is also the SkillsFuture Level-Up Programme, with a SkillsFuture credit of $4,000 and monthly training allowance of up to $3,000.[+6 sentences] Our workers and unionists appreciate that these are substantive support to transit into new careers. As part of a "just transition" for younger workers in trades that would be adversely impacted by large structural shifts of AI and green transition, I hope that the Government can provide similar support to our younger workers. For example, one of the young persons we met was Darren, a 24-year-old ITE student studying business administration. He aspires to open an automotive workshop in the future but he would need automotive skills, especially those pertaining to EVs. He would need support to pick up these skills to make the career transition. Younger Singaporeans ITE and polytechnic diploma holders might take as long as five years before being able to tap on their SkillsFuture credits. Furthermore, for those affected or displaced by AI or the green transition, they would arguably need the same support as those in their middle-age. I hope that the Government can consider lowering the SkillsFuture Credit eligibility age down from the current 25 years old to empower more younger people to upskill and reskill, and to provide subsidised diplomas for those affected by AI and green transition.[+22 sentences] Beyond this, there would be instances, such as in legal services, where a degree is needed for career transition. Would the Government consider also providing subsidies for second degrees? Next, companies must also be fair and transparent with their employees in the use of AI and how it would impact them. It is not desirable to stand in the way of progress, but it is equally undesirable to have sudden dislocation and displacement of workers. The failure to manage the transition well might cause disturbances as large as what the US automakers faced with strikes by workers concerned by the job losses due to the transition to EVs. It was also what happened with the Writers Guild of America strike. "Just transition" also requires providing younger Singaporeans with more opportunities for transition. Career trials for younger Singaporeans can help in navigating a complex workplace. WSG Career Trial encourages jobseekers above the age of 16 to go through a short-term trial before considering formal employment. The supply and diversity of these trials are needed to cater to the broad interests of our students. Could the Government consider enhancing subsidies to host companies to increase the supply of such career trials? NTUC has engaged more than 10,000 young people in a landmark Youth Task Force report last year to develop ways to help our younger Singaporeans. It launched the NTUC Career Starter Lab to enable our younger people to transition smoothly to the workforce via career trials and mentorship. The Labour Movement will always do its part alongside the Government to help our young workers. Lastly, on overseas work exposure. It can equip our youth with invaluable skills and opportunities to pivot when necessary. We need to increase both the number and diversity of opportunities. For example, the Ministry of Law (MinLaw) inked the memorandum of understanding for the Singapore-Shanghai Lawyers Exchange Programme. Lawyers can learn new skills from their counterparts and also enter new markets. I hope that there can be more of such partnerships by other Ministries and businesses, especially that of our MNCs. The Global Ready Talent Internship Programme encourages Singapore enterprises to train young local talent through local and overseas internships. Could the Ministry look into expanding the reach of the programme to more host companies, whether based in Singapore or otherwise? Perhaps there is scope to remove the 30% local shareholding condition to expand the reach of such programmes to our MNCs.[+1 sentence] Mr Speaker, Sir, the future is tumultuous, but we can master it as we always had. In this new chapter, we need to help our young workers to put on the full armour of adaptability and resilience in a world whereby they may be assailed on all fronts. We need to help our young workers understand the new economy's impact on their livelihoods and strengthen their career paths.[+1 sentence] In doing so, we can forge a path towards a more just, equitable and sustainable future. NTUC will remain alongside each and every worker through the uncertain times because #EveryWorkerMatters.[+1 sentence] Mr Speaker, Sir, I support the Motion.
Mr Speaker4 words
[+1 sentence]Ms Yeo Wan Ling.
Ms Yeo Wan Ling (Pasir Ris-Punggol)1960 words
[+2 sentences]Mr Speaker, our Labour MPs and I bring to Parliament with us today the challenges, dreams and hopes of our hardworking, dedicated Singaporean workers, many who have charted rewarding careers by dedicating themselves to their crafts and trades, many who have shouldered resolutely, the weight of their work responsibilities with the gravity of their familial caregiving duties, and even so, the rising class of gig and platform workers who are bravely charting new work norms and pushing boundaries on fair treatment and safety nets for retirement and workplace injuries. As our workforce ages and the aspirations of our workers changes, our Workers' Compact – our social and economic contract with our workers – must be renewed such that working towards better wages, welfare and work prospects continue to be a collective goal for workers, employers and the Government. In this respect, the NTUC concluded a year-long conversation with our workers, 42,000 workers to be precise, to understand the dreams and challenges of our workers in modern day Singapore.[+10 sentences] In our conversations, balancing caregiving duties with work responsibilities has become top of mind for our workers. In a Singapore that is ageing rapidly with a smaller family nucleus, more workers are now caring for their senior loved ones, young children and infirm family members. The going can get quite tough for our workers, many who are new generation two-shift workers. After a hard day’s work, they go home to immediately start on their second caregiving shifts at home, and it is Groundhog Day for as long as their loved ones need care. Our Labour Movement knows the importance of building up a strong ecosystem to empower and equip our working caregivers to stay in their jobs. In 1977, the NTUC set up its first childcare centre, which would eventually become MyFirstSkool, an island wide network of kindergartens and childcare centres that facilitates mothers returning to work with a peace of mind. Since 2012, our Labour Movement had advocated better workplace conditions for nursing mothers under our Project Liquid Gold. We have called for family care and eldercare leave to be made mandatory since 2013, with one of the first calls being made by none other than Mdm Halimah Yacob herself. Recently, I also made a call to employers to extend family care leave to include caring for aunts, uncles, nephews and nieces. And yet, even with all of these, we recognise that FWAs would be a critical pillar in this ecosystem of support for our caregivers. In a recent NTUC Women and Family-PAP Women’s Wing survey of some 3,000 working caregivers, close to 90% said that FWAs would be a very important factor for them to choose to stay or return to the workplace.[+1 sentence] Indeed, the Unions have been advocating for FWAs since 1995, when we introduced FWAs in our collective agreement negotiations. With over 12,000 companies being signatories to the 2017 Tripartite Standards for Flexible Work Arrangements, and the tailwinds afforded by COVID-19, the time is now to make FWAs a workplace norm.[+9 sentences] At the heart of successful FWAs, a culture of trust must be created in the workplace. Workers must be responsible in the use and request of FWAs and be accountable for work outcomes as agreed with employers. Employers must create a culture sustainable for FWAs, redesigning their jobs for flexi-load, flexi-time and flexi-place, and re-engineering their organisations and management to embrace FWAs. I believe employers see FWAs as a tenable, sustainable way to retain and attract talent, but some of our SMEs may find it challenging to implement this on the ground in a productive manner. For employers, FWAs must lead to productivity gains. The NTUC, together with its partners, like the Institute for Human Resources Professionals, have started on this process of equipping and enabling our more progressive companies. Unionised companies keen to use FWAs for talent management and productivity have strategised and reorganised themselves through CTCs and facilitated roadmapping exercises with the NTUC. One such company is Chye Thiam Maintenance (CTM), which is unionised under our Building Construction and Timber Industries Employees' Union. CTM piloted, with the NTUC's Women and Family Unit, the "C U Back at Work" programme and this is aimed at attracting women caregivers to return to the workplace. Using a mix of a paid pre-employment training programme, with flexi-time and flexi-place work arrangements, the programme has since attracted some 800 women returners into its prospective pipeline.[+12 sentences] This success did not come easy, as the company had to re-engineer its HR processes and is now embarking on a digital scheduling programme. In order to make FWAs a workplace norm, we must equip our companies with the necessary resources and expertise to execute this to achieve win-win employer-worker outcomes. This means availing organisational excellence tools and consulting expertise to our SMEs. This means providing our SMEs with plug-and-play technology software for managing flexi-time and flexi-place schedules. This means facilitating SMEs with training programmes to upskill their workers and their potential pipeline of workers. I call on the Government to consider FWAs as a critical workplace priority and to invest more resources to guide and equip our companies on its roll-out. Mr Speaker, I would now like to touch on another important refresh in our new Workers' Compact, that of protecting and caring for our vulnerable workers. Many of our workers have chosen gig work and the shared economy as it affords them the gift of flexibility, and there is a certain romanticism in being able to have full control of your work life. But is this really true? Unlike the self-employed workers or "towkays" from yesteryears, most who run sole-proprietorships and are in control of their charge rates and their opening and closing hours, the majority of our platform workers today, such as private hire drivers, our delivery riders, by virtue of the fact that they depend on a shared platform with set rules and business guidelines for their livelihoods, are often subject to management controls by these platforms. While we argue that our drivers and riders can choose to move on to another platform if one fails them, the fact of the matter is that all platforms have their own set of rules and business priorities which our platform workers need to adhere to. Over the weekend, I had a "lo hei" and kopi chat with some of our riders in Punggol. Our riders shared with me that due to the way that some platforms structure their incentives, which directly affects their livelihoods, many riders end up having to work seven days in a week.[+12 sentences] This is to achieve their incentive levels and not to "lose" the levels they have already achieved. Some expressed their angst on what they call "glitches" on the platform apps, where they do not get as many jobs as they get nearer to their incentives goals or are assigned jobs that are far away when actually, there are delivery riders nearby. I also learnt that our riders are penalised if they are late to report to their shifts. Yes, by the way, most platforms organise their riders by shift timings and our riders have to vie for the shift timings that they want. And they tell me that they can be fined, even if they are late by mere seconds. One rider shared that he was fined for being two minutes late. Mr Speaker, in the hustle and bustle of our everyday lives, even I find myself, at times, sliding into meetings one or two minutes late. I cannot fathom how stressful this is for our riders, battling traffic and road conditions and areas with poor signals. I recall meeting Mr K, and this is not his real name, a food delivery rider several times over the past three years. Mr K has late-stage cancer, but together with his family, have decided that he would continue work for as long as he can as a delivery rider. Over the years, he has shown me how worried he is about his healthcare and retirement expenditures, and his family has reached out to me to find out more about CPF top-ups and the CPF Matched Retirement Savings Scheme. Lately, Mr K ran into an issue with his platform partner. He had missed a message from the platform, relaying that they had moved earlier the last date of collection for the vouchers that he had rightfully earned as part of his incentives. It was $250 in vouchers and, even with several appeals and appeals from the Delivery Association and explanations of his poor medical condition, the platform refused to budge on their decision to not give him the vouchers.[+2 sentences] In the end, we assisted Mr K financially, locally from the community. As more Singaporeans choose to be in the shared economy and as more platform companies take root in Singapore and evolve their business models, our platform workers, their rights as workers and their grievances and aspirations must be represented in better, more impactful ways. The Advisory Committee on Platform Workers has recommended the need to set workplace injury and retirement safety nets for our workers, many who are vulnerable, like Mr K.[+13 sentences] I call for additional protections and representation for our workers in the areas of earnings, benefits and welfare. More transparency must be given by the platforms. For platform workers wishing to transit out of platform work, we must also prep for their long-term career resilience with upskilling. I call for more accessibility to upskilling courses for our platform workers and livelihood support, while they are undergoing training. Mr Speaker, I will now touch on a very resilient group of workers who have kept our nation going, despite, sometimes, being taken for granted by the public eye. I am referring to our skilled tradesmen in professions, like plumbing, electrical work, air-conditioning servicing and mechanical repairs. Our skilled tradesmen and women have forged fulfilling careers over the years, but as Singapore transformed itself economically over the years, these taken-for-granted but essential trades are at risk of a diminishing Singaporean worker base. We must continue to make these trades viable and exciting, with visible and attainable career pathways to attract new talent. My work at the NTUC has allowed me to engage with our trade guilds and societies, and these engagements have yielded pragmatic insights into the matter. Given that master tradesmen are forged from a blend of strong foundations in theory and practical unique ground experiences, it makes sense that we strengthen and put into the foreground our apprenticeship programmes once again. Guilds and unions are good grounds for finding master tradesmen and coupled with training programmes and institutions, apprenticeship programmes will allow for clear career pathways to be articulated and good livelihoods to be built – a career progression model! Besides youth workers, this also has good potential to be a second spring for our mid-careerists looking for a change in profession. The Singapore Plumbing Society recognised this and, with NTUC's facilitation, completed a roadmapping exercise earlier to structure training and career pathways for new members into the trade. We have seen some good, early successes of attracting younger plumbers into the trade, many who have gone on to become their own bosses in the plumbing world. I call on the Government to support our skilled trades and crafts by partnering with our guilds and unions in making skilled trades an exciting career choice once again, for our youths and mid-careerists.[+4 sentences] More training funding support through the SkillsFuture mechanism can be availed to individuals embarking on such apprenticeship programmes. Mr Speaker, NTUC cares for our workers and we will continue to work with our tripartite partners to support our workers and the Budget with impactful and innovative programmes. Every worker matters. And with that, I support the Budget.
Mr Speaker3 words
[+1 sentence]Ms Jean See.
Ms See Jinli Jean (Nominated Member)2253 words
[+21 sentences]Thank you, Mr Speaker, for the opportunity to join the debate. News platform, TODAY, reported that 13% of 1,000 plus Singapore workers surveyed by job portal Indeed.com were actively moonlighting in 2023. They had done so because they feared being stranded should they be retrenched. In the same TODAY report, one such individual, Mr Wong, aptly summed up this sentiment, "Nothing is certain. Businesses fail and people get retrenched", he said, "If one job doesn't work out, the other hopefully will." Unlike employees who have a stable job and moonlight as a "back-up", freelancers have no back-up plans. Their work embodies a continual series of gigs, without assurance of job and income security. Budget 2024 made significant policy shifts to better position our people and workers for the future. How might we, as a society, pave the way forward for our freelancers who may not fit into traditional employment and progression pathways? After all, own account workers make up close to 10% of the local workforce, with nearly 200,000 doing this as their main job. Mr Speaker, we need to do more to strengthen the lattices that empower and support our freelance workers. This matters most where freelancing is the dominant mode of work, such as the creative, media, coaching and platform work sectors. Allow me to outline to the House three precarities facing freelancers from these sectors and suggest five approaches in response. First, given the prevalence of sub-contracting, it is important to reinforce fair norms to address the precarity of the freelancer. In the post-pandemic economy, firms are increasingly turning to micro-firms and freelancers for operational needs. To achieve more with less, established firms in creative and media sectors would often parcel out work to micro-firms. Micro-firms would, in turn, rope in freelancers. This lean sourcing approach is prevalent in the coaching sector, be it sports, art, enrichment or wellness coaching. This trend is concerning. Some established firms that are main contractors have been passing on significant financial risks to micro-firms and freelancers through the sub-contracting model. Allow me to share an actual case. From late-2023, NTUC's Visual, Audio, Creative Content Professionals Association (VICPA) that I serve, has been helping a group of freelance creative and media professionals to recover a six-figure sum in total from a production micro-firm, Company A.[+1 sentence] These freelancers were owed fees for their work on the past two years' projects, which Company A was a sub-contractor. What was concerning were two terms imposed by a main contractor on Company A: one, Company A was to finance the project from the outset at a tune of $30,000 to $50,000 per project; and two, Company A could only collect all payment after project completion, and this could be three to six months later.[+8 sentences] Payment was also subject to the main contractor and client's full satisfaction with the project delivery. Although such onerous terms had surfaced on occasions before the pandemic, Company A and fellow creative and media micro-firms shared that these terms became the norm post-pandemic, as part of the de-risking strategy of established firms. So how did this impact Company A and the freelancers it contracted? Like other micro-firms, Company A was lean in staff and in cash. It tapped on freelancers for multiple concurrent projects and borrowed from banks and fintech firms to finance the projects. Company A started delaying payments to its freelancers to muster enough cash to cover pressing loan instalments and the exorbitant lending rates of fintech firms. What alarmed me was that, just some months earlier, NTUC's National Instructors and Coaches Association (NICA), which I also serve, had handled a similar case, but in the wellness coaching sector. In the case handled by NICA, those owed payments were freelance exercise instructors. In both cases, the main contractors in question were adopters of the Tripartite Standards relevant to contracting and/or procuring services from freelancers.[+4 sentences] This meant that both firms, which were established and reputable for their works, had pledged to be progressive employers and service buyers. Although the relevant Tripartite Standards guide adopters to make part-payment to sub-contractors at project milestones, both main contractors did not do so. Fellow Parliamentarian, Mr Ang Wei Neng, raised the same bugbear yesterday. Ultimately, the main contractors' inaction impacted the most vulnerable party in the link, the freelance worker. As firms continue their march to de-risk, could the Government consider levelling up and validating the Tripartite Standards that guide businesses to be fair and ethical, when contracting with freelancers and micro-firms?[+9 sentences] This would introduce baseline protection for the thousands of freelance workers in the creative, media and coaching sectors, many of whom undertake work on fees and terms communicated through skimpy text messages. This is commonplace because buyers are reluctant to write down agreements and freelancers are hesitant to insist. The Tripartite Standards that guide contracting with freelancers state that contracting parties should ink proper written agreements. Proceeding without a proper written agreement means that freelancers would have a hard time pursuing payments, should buyers default. To uphold the relevant Tripartite Standards, the Government could take a step in the direction of the Progressive Wage Mark (PW Mark). MOM's PW Mark ensures that accredited firms and their sub-contractors compensate low-wage workers fairly. In the same vein, the Government, as a buyer, could request its main contractors for creative, media or coaching work to adopt and uphold the Tripartite Standards' terms on contracting with freelancers, regardless of whether the freelancers were contracted directly or through sub-contractors. As in the case of the PW Mark, established firms that are the main contractors must, in turn, ensure the micro-firms that are their sub-contractors adopt and institute the relevant Tripartite Standards. By taking deliberate steps to reinforce fair norms, the Government can take the lead to curb freelancer precariousness arising from prevalent post-pandemic sub-contracting. Second, many freelancers are subject to power imbalance with service buyers and face stagnated rates.[+6 sentences] Even with the rising costs of business, freelancers in creative, media and coaching sectors share that it is an uphill battle to ensure their rates keep pace with costs. Indeed, many reported that their rates had stagnated or declined slightly. Why so? Seasoned freelancers have observed that, in recent years, project budgets have shrunk in tandem with intensified company restructuring and price competition. Those affected by layoffs are also competing for freelance assignments. Other freelancers noted that clients now expect them to do more work for the same rates. Despite the feelings of inequity, the power imbalance between buyer and freelancer means that freelancers have little choice but to oblige with buyer-dictated rates and terms. These trends have led to eroding hourly rates for many freelancers in the creative, media and coaching sectors, including those contracted directly or through sub-contractors for Government-commissioned work.[+7 sentences] With fewer opportunities and unstable earnings, freelancers' decision-making for their finances can be hampered, for instance, choosing between setting aside monies for emergency funds for unexpected life events and investing in their business. Some may even deprioritise purchasing insurance against workplace injuries and work liabilities, although such expenditure is necessary for peace of mind. If take-home earnings are unpredictable, freelancers would rather work than make time and effort to upskill or to market themselves. This, in turn, compromises freelancers' ability to build a sustainable business model. Freelancers have asked if the Government could consider their predicament, akin to the consideration by the Government to platform workers, including allowing platform workers to seek collective representation. In the context of the creative, media and coaching sectors, the Government, in its capacity as service buyer, could engage representative freelancer-centred associations, such as NICA and VICPA, on changes to the cost of business for coaches and creatives and to set guidelines and principles on fair remuneration. This allows the less visible yet vulnerable group of workers to collectively address the market gap. It would also provide the relevant Government bodies useful insights to update budgets for fair and equitable procurement of services from these freelancers and micro-firms. Therefore, to build sustainable and viable freelancing livelihoods and careers, I propose that MOM update the 2018 Tripartite Workgroup's recommendations on support for self-employed persons.[+20 sentences] Much has changed since 2018. Freelancers today must navigate perennial issues, such as inadequate insurance coverage, alongside new vulnerabilities, such as onerous obligations and unfair terms of buyers or suppliers. I hope that an updated set of recommendations would provide freelancers and freelancer-centred associations for coaches, creatives and platform workers with pathways for expedient and affordable recourse against unfair terms, such as unreasonable leasing claims and the lack of work insurance provision or clear articulation on work safety protection. Third, without a stable income stream and entitlements that employees have, freelancers are doubtful about their readiness and financial ability to weather life events. Freelancers can gain from a boost in terms of support for upskilling and caregiving. Budget 2024 is about uplifting workers and supporting workers with upskilling. These concepts apply to freelancers, too. Freelancers coping with ageing parents seek enhanced support while those who seek to remain relevant in tandem with economic forces seek funding support for agile upskilling. Allow me to elaborate. First, enhancing support. Many freelancers want to do right by their ageing parents. Many hope to fulfil their ageing parents' wish to age-in-place. To freelancers, supporting their parents to age-in-place means spending more time on caregiving and less time on income-earning. Over time, these freelancers might have to contend with depleted CPF and savings, reduced client base and poorer financial resilience. Caregivers who put in the hard work of caring for their loved ones at home should be recognised and supported, and not be left alone to worry about their own future. Today, caregiving grants help families with caregiving expenses. We need to do more to take care of those who care for others. We need to assure them that their own retirement adequacy is assured even as they make hard trade-offs to forgo work opportunities. How might we help to alleviate the financial stress that arises when freelancers trade work for time and mind-space for caregiving? Next, how might we introduce funding for agile upskilling by freelancers? The World Economic Forum estimated that 1.1 billion jobs could be radically transformed by technology in this decade.[+18 sentences] This would include jobs done by freelancers. Many expect AI to transform work in the creative, media and coaching fields. To employees, job scopes guide their work, whereas, to stay valuable, freelancers must quickly assimilate trends and technology to their methods. Freelancers, too, are concerned about the pace of change and whether their business models can keep up. An agile approach to training is one that allows freelancers to right-skill just in time. This requires the Government to allow and invite practitioners to take the lead in proposing what to train and how to train, especially if the know-how must be contextualised for the sector or profession. Thus, I hope that the Government, in particular, the Ministries and agencies overseeing the creative, media and coaching sectors, could consider working closely with NICA and VICPA, NTUC's affiliated associations for coaches and creatives, to develop freelancer-centred training support. Parties could proactively curate right-skill just-in-time training and tie in subsidies and credits. This ensures that cash-tight freelancers can afford the out-of-pocket training costs. The SkillsFuture Level-Up programme is a step in the right direction and would be valuable to freelancers if it could be expanded to cater to their career fields. NTUC cares because every freelancer matters. I, therefore, urge the Tripartite Partners to step forward and take action together. Mr Speaker, I will now conclude. To recap, freelancers, particularly those in the creative, media and coaching sectors, are stressed by three precarities. First, the post-pandemic sub-contracting model threatens freelancers' income security. Second, stagnated rates demoralise freelancers and erode their ability to sustain their livelihood. Third, freelancers with less resources struggle to adapt to life stage needs and macroeconomic changes. To address these three precarities, I hope the Government could consider five approaches. First, levelling up and validating the Tripartite Standards that guide businesses to be fair and ethical when contracting with freelancers and micro-firms.[+3 sentences] In the same vein, could the Government, as a buyer, request its main contractors and their sub-contractors for creative, media or coaching work to adopt and uphold the Tripartite Standards' terms on contracting with freelancers? Second, in the Government's capacity as a service buyer, they should engage the representative freelancer-centred associations, such as NICA and VICPA, on changes to the cost of business for coaches and creatives. This allows a less visible yet vulnerable group of workers to collectively address the market gap. Third, relook at and refresh the 2018 Tripartite Workgroup’s Recommendations on support for self-employed persons.[+1 sentence] The updated set of recommendations could provide freelancers and freelancer-centred associations for coaches, creatives and platform workers with pathways for expedient and affordable recourse against unfair terms, including unreasonable vehicle leasing claims. Fourth, have caregiving grants go beyond defraying caregiving expenses.[+3 sentences] Grants should recognise caregivers' labour and provide assurance for their retirement adequacy. Fifth, work with NICA and VICPA to help freelancers keep pace with industry changes and seize opportunities. For example, develop targeted training support for freelancers alongside subsidies to cover both training and opportunity costs. Freelancers make up close to one in 10 of Singapore's resident workers.[+3 sentences] Budget 2024 charts a new chapter for workers. In step with tripartism and an inclusive vision of success, these five approaches would boost freelancers' long-term capabilities and their confidence for the future. Mr Speaker, notwithstanding the points raised, I support the Budget.
Mr Speaker3 words
[+1 sentence]Mr Fahmi Aliman.
Mr Mohd Fahmi Aliman (Marine Parade)1738 words
[+15 sentences]Speaker, Sir, this has traditionally been a time when we, as a nation, delineate our goals and aspirations for the year ahead. It is thus imperative that we renew our commitment and resolve to uplift society, as Singaporeans contend with job insecurity amid the rising cost of living. I am uplifted by the central theme of this year's Budget: "Building our shared future together". As we continue to find ways to deal with the ever-evolving nature of world affairs, we must also set our eyes on how we can insulate and protect vulnerable Singaporeans from external shocks. My esteemed colleagues and I in the Labour Movement strongly support and welcome the plethora of measures introduced to alleviate the hardships that Singaporeans have experienced as a result of the external shocks, primarily from the ongoing conflicts around the world as well as improve all facets of society, amid increasing job insecurity and rising cost of living. Nonetheless, I reckon that there are sufficient opportunities and scope to assist vulnerable workers better amid evolving global developments, especially our lower-wage workers. The best way to help workers cope with cost of living is through better wages and better jobs. Speaker, Sir, in this speech, I will elaborate on how to further support our low-wage workers and also update on the M3 focus areas for efforts in assisting Malay/Muslims in the areas of employment and employability. Low-wage workers are the backbone of our society as they keep Singapore going. Engaged in the vital sectors, such as retail, hospitality and cleaning, they contribute significantly to the daily operations. Their efforts uphold essential services, ensuring the functionality of the economy. Therefore, recognising their importance and challenges is crucial in fostering economic resilience and societal well-being. Last year, I reiterated that the formation of the Tripartite Workgroup on lower-wage workers is a testament to our commitment to ensure that the interests of our lower-wage workers are protected. For the past years, the collective support from various stakeholder groups to uplift the incomes of our lower-wage workers has been encouraging. For example, the Workfare Income Supplement (WIS) enhancements, effective since January last year, were lobbied by NTUC to address rising costs of living. Last week, the Government also announced that lower-wage workers who earn $3,000 or less will be eligible for WIS in January 2025.[+7 sentences] The changes in WIS reflect the NTUC's strong commitment to support lower-wage workers. NTUC, alongside our Tripartite Partners and various other stakeholder groups, will continue to remain committed to helping workers improve their income security and quality of life and give them confidence in navigating their careers, equipping them to participate in the new growth opportunities. But how can we work towards this goal and what are some areas we can continue to look into? Firstly, the current practice of resetting benefits during contractual changes may provide flexibility for employers to adapt to evolving business needs, assuring alignment with job roles. However, this practice creates a sense of job insecurity and financial instability, especially for lower-wage and re-employed individuals. It undermines the principle of recognising an employee's length of service, neglecting the dedication and experience they bring to the workplace. Hence, it can lead to demotivation, reduced job satisfaction and higher turnover rate. Advocating force for change is essential to ensure a fair and supportive work environment fostering stability and acknowledging the contributions of all workers. Therefore, I call on the Government to consider ringfencing lower-wage workers to protect them from associated problems stemming from the practice of resetting benefits during contractual changes.[+9 sentences] Recognising the length of service at the workplace is crucial, ensuring that employees, including re-employed staff, performing the same job receive fair and consistent treatment in terms of wages and benefits. This approach promotes job stability, motivates employees and enhance overall job satisfaction. It contributes to the more equitable and supportive work environment, aligning with the principles of fairness and recognition for long-serving individuals. Enforcing these measures will foster a positive work culture and reinforce the Government's commitment to the welfare of its workforce. Secondly, in the spirit of continuing to help lower-wage workers through PWM, I echo the call from Member Melvin Yong. NTUC has identified two sectors for the implementation of PWM, namely, strata and facilities management as well as pest management. These sectors, such as cleaning and security, are outsourced sectors facing common challenges, such as cheap sourcing, which drives down wages. NTUC has conducted several engagements with stakeholders in the respective sectors and the response has been very encouraging thus far. The Labour Movement will continue to explore the inclusion of these sectors within PWM and would like to call upon all our Tripartite Partners to work with us to do so. The Labour Movement appreciates the Government's enhancements to the Progressive Wage Credit Scheme (PWCS), including raising the wage ceiling for co-funding from $2,500 to $3,000 in qualifying years 2025 and 2026, and enhancing co-funding levels for wage increases given in 2024.[+2 sentences] We believe that this enhanced funding support from the Government is timely and will be pivotal transitional wage support for employers to adjust to upcoming mandatory wage increases for low-wage workers covered by Progressive Wage and Local Qualifying Salary (LQS) requirements. Lastly, and on a related note, it is imperative that we look at parallel efforts to raise the LQS. The Labour Movement welcomes the Government's move to raise the LQS to $1,600 in July this year, up from $1,400 previously.[+8 sentences] This adjustment not only protects the financial interests of the workforce but also reinforces the principle that gainful employment should provide a standard of living that reflects the economic realities of the society in which it operates. In doing so, the LQS contributes to maintaining fair labour practices and fostering a more equitable and sustainable labour market. Therefore, I call on the LQS to be perennially reviewed, especially amid global uncertainty. By aligning the LQS with the rising cost of living, authorities aim to ensure that employees receive salaries that are commensurate with the economic demands of the time. Mr Speaker, Sir, in Malay please. : In the M3 Focus Area 4 framework, we will continue to engage Malay/Muslims, with the aim to bridge workers to employment and employability opportunities, enhancing their capability through skills upgrading and lifelong learning, and reach out to different segments of jobseekers. On a micro level, we are targeting specific groups, namely the platform workers, women, mature workers and the youth vis-à-vis career fairs, workshops and consultations. These platforms aim to exhort career and training opportunities, broaden their understanding of jobs in demand and skills required, and access job opportunities in the growing sectors. As workers' aspirations evolve, our workers' compact, our socioeconomic contract with our workers must be renewed to achieve better wages, welfare and work prospects, which remains as a collective goal for workers, employers and the Government. NTUC, with WSG and MENDAKI, through career fairs and the recent Jobs and Skills Carnival, more than 5,000 Malay/Muslim workers were engaged and close to 20% them had received further coaching and guidance through Focus Area 4’s initiatives.[+1 sentence] This includes support in, namely, career guidance, job matching and upskilling opportunities. MENDAKI has referred over 140 participants from Women At Work (W@W) to NTUC’s e2i for job assistance from January to December 2023.[+10 sentences] In conjunction with reintegration efforts by MENDAKI and other employment partners, close to 60 participants have successfully secured a job largely in sectors, such as education, healthcare, engineering, IT and finance. Apart from employment opportunities, NTUC also provides upskilling avenues that make every worker a better worker and every job a better job. Lifelong learning is a process of acquiring new skills and knowledge throughout one’s life, for personal or professional development. NTUC LearningHub (LHub) offers quality training solutions to help workers thrive and remain resilient in today’s digitally transformed economy and beyond. An individual who I would like to highlight is Ms Siti Nur Indra Jalal, 29 years old, formerly a financial advisor for five years with a desire to return to the corporate world through pivoting into a new sector. However, acquiring a new job was both challenging and daunting, especially during the pandemic period. To enhance her employability, Ms Indra enrolled into a six-month Community and Partnership Specialist programme at NTUC LHUB and is currently working as a Project Manager in Cybersecurity for an organisation. She intends to continue upgrading and equipping herself with essential skills through the courses provided by NTUC LHUB. This shows that where there is a will, there will always be a way. From the reference above, it is a good example of a mid-career switch, and it is highly plausible, especially with the newly introduced Level-up programme by SkillsFuture for Singaporeans aged 40 and above. A top up of $4,000 in May 2024 and the Mid-Career Enhanced Subsidy is a boost for individual to continue upskill and seek better employability outcomes. In addition, the monthly allowance of up to $3,000, up to 24 months, for selected full-time courses under the SkillsFuture Mid-Career Training Allowance will be welcomed by many.[+10 sentences] Therefore, I urge Singaporeans to take full advantage on the readily available programmes to level up oneself and gain better employability. NTUC, alongside our tripartite partners and various other stakeholder groups, will remain committed to helping workers improve their income security and quality of life. These include ensuring financial protection for workers in case of work injury, improving housing and retirement adequacy, and enhancing representation for a brighter future. : Speaker, Sir, in closing, this year's Budget theme, "Building a Shared Future Together", has ignited a collective commitment to navigate global complexities and safeguard vulnerable Singaporeans. While applauding the Government's efforts to alleviate hardships, we must recognise opportunities for targeted support, particularly for lower-wage workers and communities. Looking ahead, our focus would remain on addressing the challenges faced by the vulnerable workers, emphasising better wage and improved job opportunities as a solution to rising cost of living. With unwavering dedication, NTUC stands ready to champion the interests of Singaporean workers. NTUC cares for the well-being of our workers coping with the rising living expenses and is committed to enhancing wages, conditions and better support to improve quality of life. Rest assured, NTUC cares and will take action for you, with you, because Every Worker Matters. Mr Speaker, Sir, I support the Budget. Mr Speaker: Senior Minister of State Heng Chee How.
The Senior Minister of State for Defence (Mr Heng Chee How)1690 words
[+3 sentences]Mr Speaker, thank you for allowing me to join this debate. My fellow labour MPs have spoken for various segments of workers. I will focus on advancing the interests of older workers. Workers aged 55 and above make up more than a quarter of our resident workforce today.[+24 sentences] The Government and the tripartite partners have done a lot for our older workers over the years. From lengthening employment to strengthening employability and augmenting retirement needs, there had been significant progress over the years. This was even so during the COVID-19 years, in sharp contrast to what happened in many other economies where many of their older workers lost their jobs and have the problem of coming back. For the immediate term, older workers face the cost-of-living pressures like everyone else. And I thank the Government for the Assurance Package and other cost-defraying measures in this and past Budgets to help Singaporeans cope with this pressure. The help was timely and very well-received. Beyond the immediate pressures, older workers genuinely worry about other developments and for today, I will highlight three. First, they worry. There is the worry about the efficacy of ensuring longer work spans by just legislating higher retirement and re-employment ages. Why? Because such legislation, important as they are, may likely come under pressure if it is not effectively combined with skills-building. Two, the risk of skills obsolescence is increasing with accelerating changes in technology and business models. For example, some industries are facing structural shifts, such as those brought about by the green transition and others. The pervasive impact of AI on how work will be carried out is also not a trivial matter for workers. And this will increase the risk of premature displacement, despite legislated retirement and re-employment ages. Third, there continues to be ground feedback about the relative lack of equitable opportunity and access to training and skills upgrading for older workers compared to their younger counterparts. In NTUC's Every Worker Matters focus groups, six in 10 older workers who participated felt so. They felt a relative lack of opportunity for training and skills-building compared to their younger counterparts. These challenges must be properly addressed so that our joint aim of enabling older workers to continue working and saving for retirement is not undermined by the evolving demographics in our country and by big environmental changes worldwide. I thank the Finance Minister for announcing the next calibrated increase in CPF contribution rates for older workers aged 55 to 65 in this Budget and this will certainly help grow their CPF funds faster. We, the NTUC, are also grateful for the enhancements to the Silver Support Scheme, the Matched Retirement Savings Scheme and specific initiatives under the Majulah Package, such as the Earn and Save Bonus, the Retirement Saving Bonus and the MediSave Bonus. All these efforts will increase the CPF savings of older workers and make for greater security in retirement. However, it remains true that the most material way to help older workers financially in retirement is by adding to the effective working years and, here, I stress the world "effective" as opposed to legislated. During NTUC's Every Worker Matters Conversations organised last year, we asked older workers who participated what they hoped to do when they reach the current retirement age of 63. Out of the 10 who were there, eight and a half of them would say that they wanted to continue working and, out of these eight and a half, or 85% of the older workers who participated in our conversations, six out of the eight and a half, hoped to continue working in their current jobs or in the current industry where they have accumulated experience and value.[+1 sentence] Many also asked when the Government will announce the next increase in statutory retirement and re-employment ages, since there is still a gap between the current ages and the goal of reaching the retirement age of 70 and the re-employment age of 65 by the year 2030. And just to remind fellow Members here, these 2030 goals of statutory retirement age of 65 and statutory re-employment age ceiling of 70 was the work of the Tripartite Workgroup (Older Workers), whose report came out in 2019, and the roadmap was endorsed.[+1 sentence] It is now 2024. I, therefore, call on the Government to announce the next step increase in the retirement and re-employment ages soonest and to give reasonable notice to both business and workers, so that both sides can get ready in good time. We should act promptly because we are already practically halfway there in terms of timeframe so that we can implement the next increase by, say, in two years' time, that is, by 2026.[+14 sentences] I believe this is the pace that we need in order to reach those agreed goals by the year 2030, given the uncertainties that are inherent in the economic environment worldwide. Next, I will speak on the subject of equity in opportunity and access to training so as to minimise the risk of premature displacement of our older workers. Sir, when older workers expressed their hope to be able to continue working, they also shared their anxieties about this forced obsolescence, this being rendered "out of date" and then really rust away. NTUC found that more than nine in 10 older workers, besides wanting to continue working, they want to be continually trained. These workers knew that training was critical to their remaining relevant in their jobs and they particularly worry about access to training opportunities. I thank the Finance Minister for announcing the SkillsFuture Level-Up Programme for all Singaporeans aged 40 and above, aimed particularly at programmes and courses that would enhance employability. This shows that the Government is alive to the important nexus between the older workers' training and their employment and their employability. Relevance is as salient as legislation in terms of bringing about an increase in effective working years. The question is, how to make that happen? Of course, funding is important. That is why the Budget is important. Yet, together with funding and for real outcomes, effective implementation is also key. Therefore, we must scale-up mechanisms that can ensure actual implementation according to the intent in the workplace. This is why I fully support fellow labour MP Desmond Tan's call for employers to quickly work with the NTUC and our unions to form CTCs. Through active CTCs, businesses can transform faster and workers of all ages can be helped to be trained in relevant skills and to be able to grow with the companies. And, here, I again thank the Government for the $100 million funding to NTUC to scale-up CTCs in order to achieve real outcomes for all stakeholders.[+7 sentences] I also want to thank Deputy Prime Minister Heng Swee Keat for recognising the value of the CTCs in his speech earlier today. From NTUC, we pledge to work ever more closely with the Government in order to roll this out, not only in numbers but in effectiveness in order that we might be able to help as many workers as soon as possible. I ask all employers to form CTCs soonest and to work with NTUC and our unions to ensure that workers of all ages are given fair opportunity to be well-trained. These workers will then help energise your company's growth. The third area that needs tackling is that of age bias. Older workers worry about age bias in several areas, namely, access to training as I mentioned, the availability of flexible work arrangements, so that they continue working while seeing to care needs and fair consideration as job seekers after being displaced. Empirical research suggests that these fears about age bias have basis, and it requires tackling. For this reason, I look forward to the Workplace Fairness legislation and the Tripartite Guidelines on Flexible Work Arrangements Requests that the Government will be introducing. The Workplace Fairness legislation will build on existing tripartite mechanisms, such as the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP), the Tripartite Alliance for Dispute Management (TADM) and relevant joint guidelines to give even greater confidence or fair play to workers. This will be a strong national signal against various forms of workplace discrimination, including age bias.[+16 sentences] NTUC and our unions will work closely with employers to advance the interest of workers and companies. Beyond workplaces, there is also a growing need to expand and scale-up viable, accessible care services to cater to a rapidly ageing population. In the context of my focus today, I argue that this is important not only for the health and well-being of our seniors but also for the employability of their middle-aged working family caregivers. More of these family caregivers may then not need to quit work in order to undertake their care duties or, at least, to delay such an eventuality. Every year of continued working will significantly help with the retirement adequacy of the caregiver. I urge the Government to work closely and intensively with trusted partners to further develop this ecosystem, so that Singapore and Singaporeans can truly enjoy the full benefits of better health, better care, better earnings and stronger retirement adequacy. Mr Speaker, there is a saying that no one cares how much you know, till they know how much you care. NTUC stands with our older workers as they confront job insecurity and the risk of skills obsolescence. We care, not just by asking for more or just by asking someone else to solve the problem or waiting for an invitation. We put our ideas forward, we push for social change, make a real difference to their outcomes. Why? Because our workers are waiting for us to do that, and we will get it going and get it done. NTUC's approach is forward-looking, inclusive, action-oriented and practical, just like the PAP Government's. I believe that this is the right and best way to secure sustainable good outcomes for workers and for Singaporeans. Working closely with the Government and tripartite partners, we will together build a better, more caring Singapore for workers of all ages. Mr Speaker, I support the Budget.
Mr Speaker3 words
[+1 sentence]Ms Mariam Jaafar.
Ms Mariam Jaafar (Sembawang)2059 words
[+5 sentences]Mr Speaker, I rise in support of the Budget. In my speech today, I will first reflect on the asks I had made in Budget 2023; secondly, reiterate the critical role we, in this House, play in ensuring that we achieve sustained economic growth and put out a challenge to grow the economy at the top-end of the Government's target over the next decade; and thirdly, discuss the potential of AI to be a key engine of value creation and economic growth, and make four suggestions to this effect. During last year's Budget debate, I spoke for three groups who I saw, among my Woodlands residents, were being pushed to the limit of any reasonable measure of resilience that we would hope to see in our people. I argued for a stronger trampoline for: one, ex-offenders, calling for more support to get them back into employment; two, people suffering from debt burdens – calling for social support measures to consider debt repayment needs; and three, people who had lost their jobs due to retrenchments, calling for higher quantums and longer durations of financial support and assistance with reskilling and finding new jobs. I am heartened that, a year later, each of these groups is getting more support. In Budget 2023 itself, Deputy Prime Minister Lawrence Wong announced the Uplifting Employment Credit for employers to hire ex-offenders. Late last year, the Government announced the enhanced Comlink+ packages, which involved matching repayment to creditors. And in Budget 2024, while we yet await the details, the Deputy Prime Minister reaffirmed the intention first announced by Prime Minister Lee Hsien Loong to move forward with re-employment support to those in involuntary unemployment, alongside significant increases to reskilling support and training allowances.[+12 sentences] So, in basketball lingo, I am three for three, and these shifts have been long time coming, and I think it has taken some time for the external environment to get us to this tipping point. But they are really good news for my Woodlands residents and for many other Singaporeans who need that stronger trampoline. There is indeed much to welcome in this year's Budget, as colleagues before me have said. It is clear that Budget 2024 was developed with the vision of Forward SG, with the vision of a society that is vibrant and inclusive, fair and thriving, resilient and united and a growing economy. It is this last point that I wish to stress today – a growing economy. Mr Speaker, throughout my career, whether in business or in politics, I have been and remain, unapologetically, a proponent of growth. Growth allows us to provide our people and our enterprises with opportunities and better standards of living. Growth allows us to fund the increasing demand for spending on childcare, education, housing, infrastructure, healthcare and support for an ageing population. Growth allows us to tackle the greatest challenges of our time: climate change, energy transition, fighting inequality and the polarisation of society. Growth allows us to uplift each generation one after the next, securing cohesion and trust in society. So, while it is well and good to talk about scrutiny and transparency and accountability and more support for every possible segment of our population, a critical role we must play in this House is to consider the impact of our interventions, our recommendations and our decisions on our ability to sustain the long-term growth of our economy. Budget 2024 places significant emphasis on sustaining economic growth by keeping Singapore attractive as an investment destination, riding economic and technology trends to capture new opportunities and enhancing human capital. The Government aims to achieve an average of 2% to 3% GDP growth per annum over the next decade, with a focus on productivity and innovation, while recognising the constraints of labour, land and carbon.[+15 sentences] Some might say that at our stage of our development and given the constraints we face, coupled with a less favourable external environment and global uncertainties, make it inevitable that we are entering into a slow growth era where eking out a 1% to 2% GDP growth is already an accomplishment. My humble challenge to the 4G leadership team is this: how might we achieve the top-end of that target and grow at 3%? What constraints should we challenge? Where might we take bolder action? Mr Speaker, sustaining growth requires investment. I have noted earlier the significant and important investment in SkillsFuture Level-Up. I also welcome the commitments to invest in strengthening our competitive advantage through top-ups to RIE2025, the National Productivity Fund and the Financial Sector Development Fund. The introduction of the Refundable Investment Credit addresses the need for more visibility and certainty for MNEs of how Singapore will retain its attractiveness as an investment destination in a BEPS 2.0 world, albeit perhaps a little belatedly, amid moves already announced by other jurisdictions, such as Japan, Thailand and the US. For local enterprises, I am pleased to see that the Government is enhancing the Enterprise Financing Scheme, extending Skills Future Enterprise Credit and enhancing the Partnership for Capability Transformation Scheme, while also supporting enterprises to be sustainability-ready. These initiatives accord priority to enterprises that embrace the need to restructure and transform, enterprises that are willing to invest in restructuring and transformation. In a world where technology is advancing rapidly, I welcome the investment in upgrading our national broadband network and in harnessing the power of AI across key sectors. I had hoped, however, to hear that we could unlock further development of data centre capacity. But back to AI. Mr Speaker, I have spoken several times on AI and will devote the remainder of my speech today also to AI, because our ability to harness the full power of AI has the potential to boost productivity and propel us to the top-end of that GDP growth target over the long term. At this point, I declare my interest as the Managing Director and Senior Partner of a management consulting firm that does work in AI. To support the National AI Strategy and to further catalyse AI activities, Budget 2024 sets out an investment of more than $1 billion over the next five years into AI compute, including, notably, in advanced chips, talent and industry development.[+9 sentences] It seems that everyone has an opinion on AI today; whether we should develop our own large language model (LLM), whether we should pause on AI development, whether deepfakes should be regulated, and so on. My belief is that we should be very focused on how AI development can enable new business models and productivity gains and thus, create value in Singapore and beyond. We need to stay away from the hype and the noise, and anchor on value creation and on proven initiatives that will move the needle and not a bunch of what-ifs. To this end, I would like to offer four suggestions to shape our AI policy. One, scaling AI with the 10-20-70 rule. Talk to any large company and they have probably run a few AI proofs of concept by now. Some have already invested on platforms and models. But companies today struggle to scale AI beyond pilots, and many of those platforms and models have nothing running on them. The news headlines are all about the models and the tech. But if I may offer a practitioner's perspective, scaling AI requires a holistic effort. We call it the 10-20-70 rule: 10% of the effort is in the algorithms, the generative AI, artificial intelligence/machine learning (AI/ML) models; 20% in the tech and IT foundations, the model infrastructure and machine learning operations (MLOps), data quality and availability, importantly, architecture design, app integration, cloud migration and other tools; but 70% is about people and processes, ways of working, business process reinvention, adoption at scale, organisation and talent strategy and change management.[+7 sentences] In order for enterprises to unlock value from AI, the Government can provide support for them to go beyond proofs of concepts and pilots to deploying AI at scale. Two, navigating an evolving infra landscape. The technology is rapidly evolving and there will be new options and substitutes. Even in the area of chips, where one chip has emerged as the workhorse of the AI industry, other chipmakers and big cloud companies are developing and deploying their own chips specially designed for AI workloads, and one would expect the AI chip landscape and the cost of these chips to evolve significantly over the next 12 to 18 months. Moving from chips to platforms and models, in our work with companies to deploy enterprise scale-AI, we have often found that no one environment is the best for everything, whether it is in consideration of security, cost or feature set, and so on. So, let us be smart and strategic about what we invest in and when we invest. Third, deploying high impact use cases. While the technology is important, the value only comes from deploying use cases at scale based on a thorough assessment of value and ease of deployment, both horizontal use cases like customer service, that can be adopted across industries, as well as vertical use cases in specific industries, like drug discovery in healthcare. There is significant potential to tackle a few, high impact use cases that reimagine how things are done, not only in an individual company but an entire sector, particularly in sectors where we are already advantaged, say, financial services or transport and logistics, to optimise at a system level and create new sources of differentiation and competitive advantage for Singapore in these sectors.[+3 sentences] Think, for example, of anti-money laundering using advanced AI/ML approaches that look at transaction data across banks, rather than a single bank, with greater accuracy and efficiency. The Government can be not only a catalyst, but an end-to-end orchestrator, pulling in multiple stakeholders to create new products and services that can create new value and revenue streams in Singapore and also in other markets. Fourth, strengthening the role of the centre. While Ministries and agencies have the domain expertise and should drive the AI work in their respective sectors, there is a case to be made for having a strong centre that adds value by prioritising investments with the greatest public return, providing transparency and accountability, setting a coherent long-term strategy, challenging the Ministries and agencies on their AI priorities, removing barriers and resolving conflicts with other areas of the Government and drawing on best practices from across the Government and the private sector. So, I suggest that the AI and the National AI Strategy be made a priority of the Prime Minister, supported by a central team, with some parallels to the Smart Nation and Digital Government Office (SNDGO).[+7 sentences] This team can also provide functional leadership on the deployment of AI in internal functions across the Government and drive the end-to-end delivery of certain high impact use cases that can massively reduce cost and increase effectiveness in the Government itself. There is, of course, another reason for a stronger role of the centre when it comes to AI. AI will not only have significant implications for the economy, businesses or even for public services, like healthcare and education. AI will also have far-reaching implications for workers and society in ways that could have long-term consequences we never imagined. The bleakest scenarios putting us on the path to a divided dystopia when machines replace man, the benefits accrue only to the rich minority, the middle class evaporates and a deep trust deficit leads to regular social and political instability. How does the Government then confront these threats? Will there need to be, at some time in the future, a complete change in the way we look at social welfare, in the way we look at tax policy and in the way we think about trust? The complexities and cross-cutting issues involved will put a big strain on a model of Government based on a lead Ministry or lead agency, while a joint ownership model could be too fragmented. A strong centre is, therefore, needed to ensure fast and coordinated analysis, assessment and response that the public expects.[+1 sentence] Mr Speaker, Budget 2024 reflects a refreshing boldness in growing our economy, something I must say has been a little muted in recent years. AI has to be a part of a bold but credible growth plan.[+1 sentence] Mr Speaker, I support the Budget.
Mr Speaker3 words
[+1 sentence]Mr Derrick Goh.
Mr Derrick Goh (Nee Soon)2053 words
[+17 sentences]Mr Speaker, Sir, Budget 2024 is significant. It is the first Budget dedicated towards the goals of Forward Singapore, where Singaporeans collectively shape the next chapters on the way forward for our country. Although the world we live in is more complex and uncertain, I am confident that we can forge ahead with resilience and optimism. To this end, there are four key themes on this year's Budget and plans that I wish to highlight. One, sustaining fiscal and economic strength amid challenges and improving three key trends relating to: (a) accelerating local businesses' growth in the new economy; (b) thriving in a digital age; and (c) enhancing social resilience and empathy. Singapore entered 2024 into a global landscape that is bleaker and more complex than prior years. Geopolitical tensions also remain heightened. The Russian-Ukraine war persists, along with a new crisis in the Middle East. China's economy remains soft, while Japan and the UK just entered into a technical recession with two quarters of declining growth. While some bright spots include the surprising strength of the US economy, the flipside is that the interest rate decline has not yet happened and is expected to be higher for slightly longer. Such realities underscore the need for Singapore to remain united, supported by discipline and foresight in our Government's fiscal policies. I am, therefore, pleased that Budget 2024 is generous and, importantly, holistic. To me, the projected balanced fiscal position signals continued prudence while providing relief for immediate cost-of-living challenges and supporting longer-term capabilities, such as the upskilling of Singaporeans and business transformation. Recognising the longer-term need to fund our future, I supported the GST increase in prior debates but requested more help for residents to cushion against higher inflation. Hence, I am heartened that our Government has continued to follow through on its commitment to support our people with the further enhancement of the Assurance Package. Many residents I engaged over the Lunar New Year celebrations, including those at private condominiums, have expressed appreciation for the support. Sir, we must not take for granted our fiscal and economic strength, which has allowed us the capacity to navigate uncertainties better than other countries. Budget 2024 plans for a long-run GDP target growth of 2% to 3%, given Singapore's mature economy.[+4 sentences] As last year's growth was low at 1.1%, along with an outlook that remains challenging, can the Deputy Prime Minister share his thoughts on the sources and drivers of the factors supporting this more optimistic long-term growth forecast and how we can better achieve this target? To sustain economic strength, our businesses must be able to seize opportunities as they come. Yet, they repeatedly highlight labour and talent shortages, and this is also echoed by the SBF, that contrasts against the reality of continued low birth rates that are below replacement levels and jobs that are unattractive to our citizens. How may the Forward Singapore ethos apply so that the pursuit of economic growth, which may require more talents and foreign labour, that is not at all costs? While Government revenue in FY2023 was overall better than expected, I note that GST collections were $1 billion lower than estimated due to weaker imports.[+1 sentence] Should this continue, can the Deputy Prime Minister assure Singaporeans that other sources of revenue remain robust to support future expenditures and that there will be no further GST hikes in the foreseeable future? The expected top-up of funds is $20.4 billion in FY2024.[+5 sentences] This follows from $24.3 billion in FY2023. The Deputy Prime Minister had explained last year that a considerable number of these funds were drawdown funds, where spending is certain to fulfil commitments today and on an ongoing basis. Can the Deputy Prime Minister clarify the time horizons for the utilisation of these funds to benefit Singaporeans? As the FY2022 figure was much lower at $6.3 billion, can the Deputy Prime Minister also share if he expects such higher levels of funding and if the run-rate going forward will be at these higher levels? I now turn to focus on accelerating the growth of our local businesses and SMEs, as they are the backbone of Singapore's economy. Some business owners say that they face "cost of survival" pressures, in tandem with the high cost-of-living pressures faced by individuals. I, therefore, welcome the Budget's support measures that bolster near-term resilience, such as the 50% corporate income tax rebate as well as the newly introduced and generous $2,000 cash payout for non-profitable firms with at least one employee under the Enterprise Support Package.[+32 sentences] Enhancements to the Enterprise Financing Scheme are also noteworthy. Notably, the Budget has avoided more populist moves by going beyond handouts to encourage SMEs to transform for the longer term. Businesses are, by nature, economic entities which transform the use of limited resource to produce goods and services that the market demands. Those who can do so are better off and thrive in this new digital and green economy. As such, I am glad to learn of the enhanced initiatives, such as allowing SMEs from more sectors to benefit from green loans and the Energy Efficiency Grant. This is consistent with my suggestion at last year's COS debate for Government support to be more inclusive on transformational initiatives. Another key thrust of Budget 2024 is the SkillsFuture Level-Up Programme. This is a decisive push for mid-career workers to upskill and reskill, so that they can contribute in higher-value jobs and more exciting roles, in line with the broader transformational agenda. Crucially, for SkillsFuture to be attractive, a mindset shift is also required by SMEs to see beyond the potential short-term constraints, like time-off given for staff development and, more importantly, to complement the programme by investing in training and job redesign for the longer term. This will be a win-win situation for SMEs and their employees. Yet, while much is touted for SMEs to venture beyond their comfort zones, the fact is that transformation is challenging, especially in a high-cost environment, because the payback is uncertain and, often, not immediate. As such, more funding from the Budget, by itself, is insufficient. As most SMEs lack a dedicated strategy or training department, targeted facilitation is needed to guide them on how to effectively leverage Government support for meaningful transformation, so that they can learn by doing to build up expertise over time. As the key nexus between the Government and SMEs in driving engagement and advisory, there is scope to improve the execution and effectiveness of SME centres and even TACs to support this agenda. I will elaborate on this at the Ministry of Trade and Industry's COS debate. Sir, I will now turn to thriving in a digital age. Singapore has made significant strides in our progress towards becoming a Smart Nation. But as the technology space is ever-evolving rapidly, so must our efforts. Sir , I am heartened that Budget 2024 supports our National AI Strategy 2.0, in advocating for Singaporeans to see AI as a friend to increase productivity and enrich lives, instead of a foe that threatens livelihoods. As is always said, AI will not replace humans, but the person using AI will. On the international stage, we are well-positioned to have an outsized influence on the responsible development of AI, amid bigger global powers competing for AI leadership. These are opportunities that Singapore must capture to stay relevant. Yet, while we pursue opportunities in AI and other frontier technologies on one end, we must have the right foundations in place, manage risks well and leave no one behind on the other. As it is said, the art of progress is to preserve order amid changes and to preserve change amid order. While a myriad of services, such as healthcare, postal and transportation, continue to be refreshed by new technologies, with a "digital-first, but not digital-only approach", it is crucial for the pace of change to be well-ordered, thoughtful and empathetic, especially for our senior residents and vulnerable communities. A digital society must also be reliable and secure for our residents and businesses to truly thrive within. As we mature as a digitalised nation, organisations must step up their service resiliency and recoverability, with more robust contingency and crisis management plans. As more systems become interconnected and interdependent, especially those in Government agencies that we rely on daily, greater IT-related and cybersecurity risks could have systemic impacts across our society and economy. We will need to continue doubling down on multistakeholder efforts to bridge the digital divide as well as to manage the risks in this journey. The Public Accounts Committee, which I am a member of, has also highlighted these key points in its recent report. I hope more will be done in this area to frame future actions and public expectations. With digitalisation, scams have increased and surged. From the Anti-Scam Command to the ScamShield app and the Online Criminal Harms Act, the Ministry of Home Affairs (MHA) has been relentless in its fight against the scourge of scams. This has helped to keep losses flat at $650 million last year. Nonetheless, the amount is still significant, and cases have soared by 46% to an unprecedented 46,000 cases![+6 sentences] I had previously emphasised the importance of an "all-hands-on-deck" approach by stakeholders in the ecosystem and would like to recognise the combined efforts of MHA, the Monetary Authority of Singapore (MAS), banks and telcos in reducing phishing scams and swiftly introducing measures to counter malware scams. But that said, scams are most prevalent and increasing in areas, such as jobs, e-commerce and fake friend scams, where they exploit victims' emotions and psychology for them to willingly part with their money. Our agencies must be even more agile and responsive to combat scams with private sector and international partners. As this has been a key issue impacting public safety and trust and which my residents are concerned about, I hope to hear more targeted measures in this area. Sir, lastly, I will touch on enhancing our social resilience and empathy. Youths form a crucial part of our society and are the Singapore's future. The trend of drug abuse by youths is therefore worrying, as the Central Narcotics Bureau (CNB) reported more than half of new abusers arrested last year were below the age of 30.[+4 sentences] More concerning is that this trend extends from previous years, amid a backdrop of more permissive attitudes towards cannabis globally, as well as the continued emergence of new psychoactive substances and increasingly rampant use of vaporisers. The formation of an Inter-Ministry Committee on Drug Prevention for Youths in 2023 was a good move. I look forward to its plans to curb this alarming trend. Key to our social fabric, too, is community cohesion. Regrettably, the issue of noise has continued to cause friction in our neighbourhoods, with monthly complaints in the last year averaging over 2,000 cases, more than five times higher than pre-pandemic levels.[+3 sentences] I spoke on this issue at prior debates and understand work is still ongoing to establish a new unit dedicated to tackle protracted noise disputes and to enhance the current regime where mediation is voluntary. While I look forward to an update on its progress and measures, I urge for all Singaporeans, aided by our agencies, to exercise restraint and empathy so that we can continue building cohesive and resilient communities. Sir, I will now conclude. Singapore, like other countries, faces similar pressures like cost of living, on top of more unique challenges as a small island-state dependent on an open economy amid a trying global environment.[+1 sentence] Yet, we have always been able to navigate obstacles better than others to emerge stronger. Thanks to good governance and financial strength accumulated from our Reserves and its prudent use along with the diligence of those who came before us. I am glad that Budget 2024 did not succumb to populist and unsustainable initiatives. Budget 2024 is underpinned by fundamentals that is principled, disciplined and pragmatic.[+1 sentence] While there are challenges ahead, I have no doubt we can surmount them in the uniquely Singapore way, as one united people. Budget 2024 has been a fitting first instalment to realise the Forward SG goals.[+1 sentence] I support the Budget and I am confident it will enable Singapore and Singaporeans to forge ahead with resilience and optimism, towards a shared future together.
Mr Speaker3 words
[+1 sentence]Mr Vikram Nair.
Mr Vikram Nair (Sembawang)1805 words
[+12 sentences]Mr Speaker, I support this Budget. Some of the bigger challenges Singaporeans face in the coming year include the rising cost of living and economic uncertainty, with retrenchments on the rise. While the causes of these issues are global trends, the Budget introduced by Deputy Prime Minister Lawrence Wong provides important measures to address these challenges for us in Singapore. In relation to the rising cost of living, significant financial assistance is being given out each month through a range of vouchers and, for the lowest income earners, the amounts being given out would be more than enough to cover the rising costs. I am not aware of any other governments who are giving out such generous amounts to such a wide part of the population, but this does seem to be a direct way to address the issue. The matter of retrenchments is one I wish to address in more detail. I am advisor to several unions, including the Advanced Manufacturing Employees Union. This is a union that started with being a union for the metal industry workers but has since repurposed itself to reflect the development of industries and the workforce it represents. The evolution of this union is a reflection of the numerous waves of disruption it has helped the employees weathered over the years. In this capacity, I am aware of the frontline challenges and efforts of our unions in dealing with retrenchments. The labour MPs who spoke just before provided important examples of the work of our unions in dealing with retrenchment. And I encourage all employers and workers who are not already working with NTUC, to do so. According to the advanced labour estimates released by MOM on 31 January 2024, the number of retrenchments in 2023 spiked to 14,320, more than double the record low of 6,440 in 2022. Notwithstanding this, the unemployment rate remained at a relatively low rate of 2.7% in 2023. The MOM report also indicated that this was partly due to "global economic headwinds on outward-oriented sectors such as wholesale trade, IT services and electronics." However, statistics also showed that most retrenched workers re-enter the workforce within six months.[+21 sentences] Overall, employment continued to grow in 2023, albeit at a slower pace than 2022, which suggests the post-pandemic spike in employment was moderating. Most of the employment growth was in domestic-facing sectors. The upshot of these figures is that, against the backdrop of rising retrenchments, Singapore's economy is doing alright and there are opportunities for our workers to take up. The continued growth of our job market has been possible, thanks to the creative approach to developing our economy, as outlined by Deputy Prime Minister Heng Swee Keat earlier in his speech. Singapore has had some unique features in its employment market that have helped keep our unemployment rates low. First, there is less legislation and regulation as compared to many other markets. So, while this means less legislated employment rights for workers, it also means that employers are less concerned about making employment offers and employ people here. Second, the efforts of the Government to bring in new business and industries have kept investment in Singapore robust, creating new jobs and many of these companies provide higher wages and drive up the general wages across the country. Third, as there is currently little in way of direct unemployment benefits, people who lose jobs are highly motivated to find new jobs and do so. In this way, we create an environment that is conducive for job creation, hiring and incentivising people to work. If one looks at the macroeconomic employment figures, the data looks alright for Singapore. The labour market remains tight with low unemployment, which means people who wish to work will have opportunities to do so. Yet, notwithstanding the macro picture looking alright, there will be individuals who will still face disruption in their lives. For those retrenched or facing unemployment, quite often, the cause has nothing to do with their own work performance but rather due to structural reasons, including their jobs or businesses getting disrupted. In several earlier speeches in this House, I had spoken on how business cycles and lifespans of companies had gotten shorter, and industries and companies can go from boom to bust in a matter of years. This has already made the idea of lifetime employment with a single employer to the exception, rather than the rule, for many people in the private sector. Today, there is another development. Even if the industry and company remain, that does not mean the job will be there, and jobs are getting disrupted in a wide range of industries. In the technology sector, for example, some of the jobs getting disrupted by AI are, ironically, the jobs of computer programmers and engineers. Even in the movie industry, there was a dispute between the production houses and actors with arguments about whether and to what extent the industry was permitted to use the digital likeness of actors. This was part of the reason large numbers of actors and workers in the media industry went on strike in the US. Against this backdrop of even more challenges coming into the job market, I support the proposal for greater support for the unemployed.[+6 sentences] It appears that what is being envisioned is payouts to those who may be unemployed. This is not an easy area to navigate and even private providers of unemployment insurance in places like the US have stopped providing this. This suggests that they have not been able to find a financially sustainable way to provide this service. Much of the feedback I have received from this also includes suggestions that the Government should have limits on the amounts that may be claimed and the duration, so that people are properly incentivised to return to work as soon as possible. The scheme should perhaps start as a safety net of last resort, to cover people who may have more limited resources and should take into account factors, such as whether the employee received retrenchment benefits from their previous employer. Related to this, I strongly support the SkillsFuture Level-Up Programme. This, to me, seems to be an alternative but which could work quite well together with the unemployment support scheme. This provides a $4,000 top-up to the SkillsFuture Credit a person has and provides an allowance of up to $3,000 a month while a person is attending full-time courses.[+3 sentences] This is a helpful programme for anyone whose industry or job has been disrupted and needs to pick up new skills. The training allowance helps to take away some of the pain, particularly for lower-income workers, of getting a new job. Also, as there is no age limit on this, older workers can also take advantage of this, even after they have retired. Along the theme of investing in our people, the ITE Progression Award also gives encouragement to our ITE graduates to pursue diploma qualification. This is an aspiration for many ITE graduates and the support of $15,000 will be helpful, particularly to those from lower-income families.[+3 sentences] Another structural issue we face in our job market is that wages at the lower-income levels had been stagnating relative to those at higher-income levels. A number of measures have helped to address this issue, including rolling out the Progressive Wage Model and the WIS scheme, whereby the Government topped up salaries of lower-income workers. Both these schemes will continue with more generous funding available. WIS will now cover workers with incomes of up to $3,000 while the Progressive Wage Credit Scheme will also cover employees with an income of up to $3,000.[+15 sentences] While most Members in this House support the WIS, I note the PSP does not seem to support it wholeheartedly and suggests this would create a "handout mentality". Instead, they advocated a minimum wage of $2,200 a month, which they call a "living wage". I respectfully disagree with PSP on this. One of the reasons the Government is slow to impose a "blanket" minimum wage is that it is mindful that many of the lowest wages are in the lower-skilled sectors, affecting older workers and SMEs. If wages are pushed where a business cannot afford it, this may make these workers and the businesses they work in no longer financially viable. What the Government has instead done is a two-pronged approach. For those industries with profits to sustain higher wages, the PWM is being rolled out and this is better than a minimum wage because it guarantees not only a minimum wage, but wage increments for lower-wage workers. For workers whose wages remain low or those industries or jobs that are not part of the PWM yet, the WIS will kick in to provide an income supplement. WIS does not impose a burden on employers but meets the employee's need for a higher wage. I believe this two-pronged model is a better one than the model proposed by PSP. Mr Speaker, in Tamil, please. : This year's Budget provides a wide range of support for those facing difficulties. In my speech, I focused on those who may face difficulties with job losses or job disruption. Based on the employment data last year, it was clear that the unemployment rate in Singapore remained low and jobs continued to be created. However, retrenchments also more than doubled last year from the year before, with most retrenched people getting a job within six months. This means that for those who lose jobs, there are opportunities out there and it is important to keep trying for new jobs. In this Budget, the Deputy Prime Minister has introduced the SkillsFuture Level-Up Programme, which provides a $4,000 grant as well as a training allowance of up to $3,000 a month.[+6 sentences] For those who have lost jobs or who simply wish to retrain for better jobs, this provides support to do so, as it will cover course fees and also help subsidise some of the lost income with the training allowance. If you have just lost your job, this would be particularly helpful as you can continue to earn while you train. The Deputy Prime Minister also announced that he is looking into unemployment support going forward. While schemes like that have had fallen short in other countries, I trust this will be important support for those who genuinely need it, especially if they are of limited means and did not receive much in way of retrenchment benefits or redundancy pay. Therefore, I think the training grant and allowance will be two important pillars of support for those who are between jobs. : Mr Speaker, this Budget is an important one because it shows the Government "has our backs", and I have focused on the policies that help our workers. I support this Budget.
Mr Speaker3 words
[+1 sentence]Miss Rachel Ong.
Miss Rachel Ong (West Coast)1483 words
[+4 sentences]Mr Speaker, I would like to begin by extending my thanks to Deputy Prime Minister Lawrence Wong and his dedicated team for unveiling the comprehensive Budget 2024, aimed at alleviating cost-of-living concerns and promoting a more equitable and inclusive Singapore. In my address today, I will concentrate on two primary areas: one, establishing a comprehensive SkillsFuture ecosystem that is inclusive; and two, ensuring equitable insurance protection for persons with disabilities and individuals on the autism spectrum. Before I continue, may I declare that I lead a consultancy that provides selected short-form courses funded by SkillsFuture. The newly introduced SkillsFuture Level-Up Programme offers substantial assistance to mid-career individuals looking to transit into new industries while managing family commitments. Initiatives like the $4,000 top-up in SkillsFuture Credit, the extension of the Mid-Career Enhanced Subsidy and the introduction of the SkillsFuture Mid-Career Training Allowance highlight the Government's dedication to aiding all Singaporeans in upskilling, including PwDs.[+3 sentences] This aligns with the objectives of the 2030 Enabling Masterplan to raise the employment rate of working age PwDs from 30% to 40%. It is imperative that PwDs have equal access to CET programmes to acquire the essential skills needed to excel in today's job market. I applaud the Government for its substantial support towards our PwDs in their CET endeavors. Job-seeking PWDs registered with SG Enable receive additional course fee funding support of up to 95%.[+12 sentences] Moreover, the rapid expansion of the Enabling Academy to offer over 700 accessible courses within just two years of its inception is commendable. I am heartened by the collaborative efforts of the SkillsFuture team with disability advocacy organisations, like the Disabled People’s Association (DPA). However, despite the Government's robust backing for PwDs, obstacles still remain. Discussions and consultations with PwDs conducted by DPA have revealed that many PwDs encounter difficulties with CET providers who are unable to accommodate their specific needs, despite the PwDs being willing to provide guidance on how to do so. This often results in PwDs being turned away or not receiving the necessary support to fully engage in CET programmes. Those who have enrolled in SkillsFuture initiatives have also shared instances where instructors may not address their queries adequately, possibly due to a lack of knowledge and resources. For instance, visually impaired individuals have requested screen-reader friendly document formats or image descriptions for diagrams, while autistic individuals have expressed a need for more specific and direct instructions. We need to acknowledge the challenges that PwDs face in their CET journey. This should not be the experience of any individual in Singapore who seeks to enhance their skills and advance. To address these challenges, may I propose four key interventions? First, require reasonable accommodation for PwDs. In CET, reasonable accommodations refer to measures that enable PwDs to participate equally without imposing an undue burden on training providers. In Australia, where Singapore's Skills Qualification Framework is modeled after, their approved training organisations (ATOs) are legally required to provide reasonable accommodations for PwDs in teaching, learning and assessment. However, this is not a requirement in Singapore, despite having ratified the UN Convention on the Rights of Persons with Disabilities (CRPD) in 2013.[+8 sentences] SSG, in collaboration with the Enabling Academy, can work with training providers and industry partners to determine what constitutes reasonable accommodation. This can include discussions on which industry courses to prioritise as well as provide the technical assistance for adaptations. In addition, clear communication and accessible recourse should be made available for PwDs when they encounter difficulties with training providers. I propose that we start with ATOs and CET centres offering long-form or industry-recognised courses. This ensures that PwDs have access to courses that directly support employment or advancement at work. Second, market technical assistance with the Capability Development Grant. We must raise awareness as well as the utilisation of SG Enable's Capability Development Grant among training providers. This grant provides funding for customisation courses for PwDs. Based on the SG Enable’s Annual Reports from 2017 to 2020, only an average of 24 out of close to 1,000 training providers do so each year.[+14 sentences] This data is not available in the Annual Reports of 2021 and 2022. Many training providers outside the disability sector may not be aware of or are familiar with the grant utilisation. Without this knowledge, the grant's effectiveness is limited. To address this, both the grant and SG Enable’s consultancy services should be promoted together to boost utilisation. Third, capability-building for inclusive CET design. We must better equip our adult educators with skills to create accessible course materials. Adult educators play a pivotal role in making learning accessible. As content developers, they share the responsibility for ensuring its accessibility. The Institute of Adult Learning (IAL) offers programmes for adult educators to meet the qualification requirements to run SSG-funded certifiable courses. While Universal Design for Learning (UDL) principles are mentioned in IAL’s diploma programmes, the current depth does not ensure proficiency in creating accessible course materials. By integrating UDL practices into course development and setting minimum accommodation requirements, educators can reduce the need for accommodations after. Fourth, accessible information on course and accommodations pre-enrolment. Training providers should provide course information and accommodations in accessible format before enrolling to help learners make informed choices and prepare for course demands. Implementing these interventions will take time. But the launch of the Level-Up Programme presents an immediate opportunity to integrate inclusivity into our CET sector. I propose for MOE’s consideration to require the relevant training providers, particularly those running courses that qualify for the Mid-Career Training Allowance, to work with the Enabling Academy on assessing reasonable accommodations for PwDs and where found reasonable, to make provisions.[+1 sentence] Doing so will underscore our commitment to PwDs in supporting their upskilling journey, on par with our support for those without disabilities. Once more, I must applaud the Enabling Academy for your outstanding accomplishment in achieving and offering more than 700 disability-friendly courses within a brief time period. However, we aim to ensure that PwDs who possess the capability to do so are able to access the 29,000 courses available on the main SkillsFuture portal, provided that necessary accommodations are put in place.[+7 sentences] It is crucial that in our endeavours to empower PwDs through the Enabling Academy, we must strive to avoid unintentional segregation in their CET pursuits. While the Enabling Academy is a valuable complement to SkillsFuture programmes, particularly for disability types requiring significant course adjustments, an inclusive SkillsFuture ecosystem should promote an environment where both PwDs and individuals without disabilities can learn together. With the technical and financial support from SG Enable and other Government agencies, we can establish a comprehensive and inclusive SkillsFuture ecosystem. Mr Speaker, I would now like to address the crucial issue of ensuring fair consideration in insurance coverage for PwDs and individuals with autism. Earlier this month, several Members and I myself brought attention to the necessity of enhancing insurance coverage for individuals with mental health conditions. We underscored the difficulties that individuals encounter when attempting to secure insurance for physical health issues that are separate from their mental health history. PwDs and individuals with autism encounter similar obstacles when navigating the insurance landscape beyond their existing conditions. As MAS prepares to introduce guidelines for financial institutions to embrace fair and responsible practices towards customers in mid-2024, it is imperative that clear directives are established on how rejection, loading and exclusion criteria should be set for individuals with disabilities, autism and mental health disorders.[+3 sentences] These guidelines should elucidate the available avenues for recourse for individuals facing discrimination. Presently, individuals have limited options for recourse, with the only available avenue being to appeal directly to MAS. However, the explanations provided by insurance companies in response to such appeals may be biased by their internal practices. To ensure a more impartial process, it is vital to institute an objective panel of third-party evaluators comprising of Government officials, industry representatives, medical professionals and disability experts to resolve disputes and foster a more equitable insurance environment.[+10 sentences] As we strive to raise the standards of equitable insurance coverage, I look forward to Singapore withdrawing its reservations on Article 25(e) of the UNCRPD in the near future. Inclusivity is more than a mere goal. It is a collective journey that we must undertake as a united Singapore. This journey serves as a poignant reminder of our shared vulnerability. Anyone can face disabilities, whether temporarily or permanently, due to genetic factors or traumatic experiences. We are all prone to illness and health challenges that may one day impede certain functions. These proposed initiatives are not solely focused on ensuring equal opportunities. They are aimed at nurturing a society where every individual, regardless of their abilities or background, can flourish and make meaningful contributions. Let us work together to establish an inclusive SkillsFuture ecosystem and guarantee equitable insurance coverage for all. With this in mind, Mr Speaker, I lend my full support to Budget 2024.
Mr Speaker3 words
[+1 sentence]Ms Usha Chandradas.
Ms Usha Chandradas (Nominated Member)1421 words
[+18 sentences]Mr Speaker, Sir, I rise in support of 2024's Budget Statement. In particular, I applaud the Deputy Prime Minister, Mr Lawrence Wong, for his very clear statement in this year's Budget on the importance of the arts. As he has said, they help to express our unique Singaporean culture, strengthen our shared bonds and make Singapore a distinctive home. I thank him for his commitment to investing $100 million over the next four years to roll out the latest SG Arts Plan. The Deputy Prime Minister has said that more diverse pathways will be offered so that every individual can strive to be the best possible version of themselves, and this statement was particularly resonant with me. He said that we must accord greater value to those who are skilled in technical hands-on abilities as well as those with the social and empathetic traits to excel in service jobs. While the Deputy Prime Minister referred to the specific example of an ITE graduate who excelled brilliantly in his chosen path, let us also not forget the vast majority of people who work in non-white collar jobs who might not be superstars in their fields but whose labour and service is key to the functioning of our society. Just as MOE encourages us to remember that every school is a good school, it must also be the case that every job is a good job, as long as it earns you an honest wage. And this is a point that many Members have made in the House over the last two days. While this Budget highlights ITE students, members of the arts community also face struggles related to their wages and the misconceptions attached to the value of their role in society and their work. Just this past weekend after the Budget Statement, I saw an artist friend lamenting on her Instagram stories that a potential customer had enquired about the prices for her embroidery art. When she explained that her work was priced in a certain way because she had to personally commit 40 hours of painstaking work by hand, the customer replied with a flippant, "Alrighty, maybe I'll get it on Taobao." To make things worse, the artist then found online stolen pictures of her work on Taobao, and these were being advertised by unscrupulous sellers who were purporting to recreate her designs for a fraction of her selling price. This kind of careless disrespect for artistic work is something that many working artists in Singapore continue to face. Better exposure to and awareness of the arts will help our communities to understand and, hopefully, better appreciate the important role that our arts workers play in our society. To this end, the Government's plans to make the arts more accessible to all Singaporeans are indeed very welcome. I look forward to the Committee of Supply debates that will allow us to further explore the opportunities presented for the arts community in this Budget Statement. I will now move on to address two tax changes which were announced in the Budget, and I would be grateful for the Minister's clarifications on these. In this year's Budget, it was stated that in order to ensure parity in the treatment of royalty income, the current tax concession of taxing only 10% of gross royalties earned by authors, composers and choreographers or any company wholly owned by them will be withdrawn in phases, with effect from Year of Assessment (YA) 2027. For YA2027 and YA2028, eligible taxpayers may continue to claim the tax concession based on higher specified rates but with effect from YA2029, the concession will no longer be available. Taxpayers will be required to report the net amount of royalties earned and will be taxed on them accordingly.[+14 sentences] Looking at the legislative history behind this concession, I note that the incentive was introduced in the Budget Statement delivered in 1983. The then-Minister for Trade and Industry, Dr Tony Tan Keng Yam, stated that this would be, "An encouragement to creative talents, such as authors and composers." He continued that, "the concession will enable local publishers to offer better terms to authors and composers living in Singapore and abroad." He continued that, "foreign talents will find it worthwhile to get their works published here." In the year 2000, the concession was liberalised further to include royalty payments received by a composer, an author or a choreographer from music recording or film, dance or drama production businesses in Singapore. When moving the Income Tax amendment Bill in that year, the then-Second Minister for Finance, Mr Lim Hng Kiang, once again described these changes as being put in place to "encourage the development of the arts and innovation in Singapore." Sir, I have some clarifications on the changes to the concession that have been announced in this year's Budget. First, what is the rationale behind these changes? From 2024 Budget materials, it is stated that the change will "ensure parity in the treatment of royalty income", which is fair enough in principle. But if the original intent behind the concession was to provide an incentive to encourage creative work, then I hope that the Minister is able to clarify the policy intentions now behind the revocation of the incentive. My second clarification is on whether the incentive has served its purpose in encouraging the work of authors, composers and choreographers? Would the Minister be able to share the impact that the incentive has had over the years? Finally, what is the expected effect of this change? Does the Ministry have a sense of what the projected increase in revenue collection will be as a result of the rollback of this incentive? The next change I would like to address concerns the enhancements to the tax deduction for Renovation or Refurbishment expenditure, under section 14N of the Income Tax Act.[+1 sentence] The scope of qualifying deductible expenditure under this provision will now include designer fees or professional fees. This, to my mind, is important acknowledgment of the work of designers in renovation and refurbishment works, and offers a good incentive for businesses that pay their designers a fair and equitable wage. That being said, deductions are still expressly disallowed on the purchases of antiques and any type of fine art, including painting, drawing, print, calligraphy, mosaic, sculpture, pottery or art installations. While general capital allowance deductions may be available for the purchase of artworks that qualify as "plant", the Inland Revenue Authority of Singapore (IRAS) has only clarified so far that qualifying conditions may be met in hospitality-related businesses, for example in clubs, restaurants and hotels. Artwork purchases in other types of settings, such as in offices, may not qualify.[+8 sentences] I fully understand that the valuation of artwork purchases is a complicated area but there are ways to alleviate the risks associated with the subjectivity of valuation. One way is to rely on valuations from trusted and accredited valuers, and we do have a number of them in Singapore. Another way could be to expand the pool of skilled valuation professionals in the space. The Art Galleries Associations of Taiwan and Korea, for example, have formal art appraisal and valuation arms. We have, in Singapore, our own Art Gallery Association of Singapore (AGAS) and, presently, it is entirely member-run. While I understand that the Government has committed some resources to supporting AGAS' work on an ad-hoc project-basis or on a reimbursement basis, more can be done to assist the association in expanding its work so that its operational capabilities are on par with what similar associations in the region are able to offer. It would be a good start, for example, if the Government were able to empower or sponsor AGAS to commission a study on how the local art gallery ecosystem can better support our economy. This could be in the sphere of valuation or even in the area of general research into tax and economic policies which are relevant to the arts. To conclude on this point, while I welcome the enhancements to the tax deductions available under section 14N, I hope the Government will continue to re-evaluate the conditions of the scheme in future and consider whether these conditions can be adjusted to encourage purchases of art in Singapore.[+2 sentences] Tax benefits such as these will certainly contribute to the development and growth of our visual arts sector. Sir, notwithstanding these clarifications, I support this year's Budget and I thank the Deputy Prime Minister, once again, for championing the arts community in his Budget Statement.
[+6 sentences]Mr Speaker, Sir, I rise in support of Budget 2024. For Singapore to continue to prosper, we need our people to prosper. Every Budget brought forth in this House signals the Government's intent in tackling both challenges of today and seizing future opportunities for the people of Singapore. Rising costs are an ever-present challenge globally and affect how we live in every way – from our kopi-peng to chicken rice, the transport we take to work to the way we are able to care for our loved ones. This year's Budget Speech, delivered by Deputy Prime Minister Lawrence Wong, set out various measures focused on mitigating the immediate impact of rising costs on household finances. These include the U-Save and Service and Conservancy Charges (S&CC) rebates and additional Community Development Council (CDC) vouchers – tactically deployed to help Singaporeans navigate higher prices of food and electricity amidst the backdrop of global inflation. Larger families – especially those with seniors and children – get more help.[+1 sentence] I would like to make three key points in my speech: our shrinking populations lead to fragile economies and slower growth in standards of living; and as one of the fastest ageing societies in the world, the importance of upskilling our silver workforce – which cannot be understated; and the implications of a global war for talent, which is happening in an increasingly fractured world. This competition and confrontation of multilateralism can be damaging for us in Singapore.[+6 sentences] Sir, in Budget 2023, the Government sowed the seeds for a Singapore built for families, such as the enhanced baby bonus. But even as we encourage marriages and families, we must also acknowledge the other factors contributing to our declining total fertility rate (TFR): stress and health conditions which affect fertility despite couples' best hopes, involuntary childlessness, inability to secure childcare options in line with parents' wishes, housing in estates far away from grandparents or workplaces, busy schedules which make it difficult for youth to date and lifestyle choices from younger men and women who choose to stay single. But without people, Singapore cannot exist. Deputy Prime Minister has signalled the Government's clear intent in a Singapore built for families, however the effects of these policies are not immediate and our demographic challenges are pressing. We are not endowed with any natural advantages to fall back on, such as oil, vast land or precious metals. The only resource we have is our people; and so, we have to invest in our human capital. Beyond a shrinking population, we are also a rapidly ageing one and no amount of vouchers or rebates will ever be a sustainable way of lifting the standards of our people over a long period of time.[+12 sentences] To this end, I am supportive of the boost given to the SkillsFuture Scheme to build an even better future for all. My husband recounted a conversation that he had with a taxi driver to me. Uncle asked where my husband was heading to – to which my husband replied he was heading to school. Uncle said, "Wah, this age, still going to school ah? Very good." My husband said, "Ya uncle, I'm studying part-time, must upgrade and learn new skills." Uncle replied, "But all these 'learn new skills' is for young people like you, not old people like me." Being under 40, neither my husband nor I are eligible for the enhanced SkillsFuture subsidies or the akan datang top-ups. But uncle's perspective is shared by many of our older workers. Beginning again or learning something new after 20 or 30 years of working is not easy. I have shared in this House how proud I was of my parents, who had no choice after SARS to change course in their late 40s and 50s – my mum, from a homemaker to early childhood education. My dad, from more than 30 years in the airlines to a training company with his peers. For this reason, I am heartened by Deputy Prime Minister Lawrence's commitment to focus efforts on the objective of upskilling our greying workforce.[+16 sentences] Sir, there are two broad ways to use SkillsFuture. The direct way is to acquire certification – leading to a new role. The less obvious route involves a journey into problem-solving and innovation. We sometimes associate SkillsFuture with mainly "jobs of the future" – from green sustainability, to coding and artificial intelligence (AI). But seemingly unrelated courses can benefit us too. An illustration of this comes from the story of Apple. In 1972, Steve Jobs purportedly took a calligraphy class at Reed College – despite knowing that the class would earn him no credit towards a degree. He reportedly learnt about typefaces and varying the space between different letter combinations. I quote, "None of this had any hope of any practical application in my life. But 10 years later when we were designing the first Macintosh (Mac) computer, it all came back to me. And we designed it all into the Mac." We ought to help citizens understand the application of SkillsFuture credits in this manner. The knowledge and skills acquired through any learning is catalytic for generating fresh ideas and solving challenges by drawing from diverse disciplines. This culture of continuous learning and curiosity is what will position ourselves as valuable assets. We also need good public communication to support the mindset shifts required. An article published on Channel NewsAsia (CNA) on 8 September 2023, highlights issues around utilisation rates of SkillsFuture. The article noted that across all ages, seven in 10 people have not used the credits since it started in 2015.[+4 sentences] Diving into utilisation rates by age bands, we can make some observations: 16.8% from 25 to 29; 38.8% from 30 to 39; 38.6% from 40 to 49; 37.1% from 50 to 59; and 26.4% for those above 60. Utilisation rate in the 40 to 49 band is a signal of hope and we must encourage this. The availability of the credit is one part of the puzzle. However, there are other considerations requiring a shift in attitudes and mindsets and flexibility in the employment ecosystem – families being willing to shoulder more caregiving responsibilities while one spends their evenings in class; enlightened employers providing employees the time-off to do so; and society being willing to support the gap in potential loss of income for gig economy workers. According to the recent National Trades Union Congress (NTUC) Every Worker Matters Report, 77% of respondents felt they lacked the time to attend training. A separate 2021 study shared that this could be due to fatigue from work and other life commitments. We say "活到老, 学到老", but in order to effectively put this into practice we must also tackle system barriers, such as inflexible working hours – 55% of workers felt they lacked the support from their employers from self-initiated training.[+13 sentences] I am glad that the NTUC is championing these efforts. Fundamentally, Singaporeans must know that SkillsFuture is an initiative that is more than chasing certificates. It is a pathway to empowerment and progress. I would like to inquire on the complementary measures the Government is taking to nudge the utilisation rates. I also worry whether these skilling efforts will see fast enough change and we must consider how to supplement our workforce with talent in a way that is integrated with our Singaporean values and that brings additionality to our people. Sir, all this is amidst a backdrop of challenges to global multilateralism and greater competition. Protectionism is on the rise and we are seeing disquiet and unrest born from a lack of economic opportunities and inequities – US-China relations keep the world on tenterhooks; the war between Russia and Ukraine rages on; and the world feels the effects from the humanitarian tragedy and hostilities in Gaza due to the Israel-Palestine crisis, even as more call for a permanent ceasefire. Yes, Singapore has worked hard and our reputation outsizes our 700 square kilometres or so. But in a world where bigger countries threaten to dominate due to might and size, smaller countries like Singapore must navigate these turbulent waves. Each move or statement we make comes with trade-offs we must think hard about. This is our reality. And so, from the beginning, we have made it a point to emphasise rule of law, effective governance, balanced foreign relations amidst global tensions and staying open to the world. Singapore's ability to attract investment and have multinational corporations (MNCs) set up their regional headquarters here create jobs for our people. As of 2023, it is reported that the headquarters of 4,200 MNCs can be found here and is the base of choice for companies as a gateway to Asia, but we are starting to see signs of that trend being challenged.[+2 sentences] In December 2023, Unilever announced its relocation of some roles based here to other markets across Asia. Earlier this month, Electrolux also confirmed the closure of its Singapore regional office and relocated to Bangkok. A 2023 survey by the European Chamber of Commerce found that "7 in 10 businesses indicated that they are ready to relocate their employees outside of Singapore if there are no relief from rising operating costs." When businesses leave, jobs leave too.[+21 sentences] Further, other economies are competing. The UK recently launched the AI Futures Grant Scheme to attract AI researchers and engineers. Dubai has made a notable push for talent and investments through their D33 Economic Agenda and agile visa reforms. Closer to home, Malaysia initiated their 2030 National Industrial Master Plan and Indonesia launched the Golden Visa programme for high-quality investments. There is a global war for talent and investments, and Singapore needs to be the hub for opportunities that attracts, but more importantly, builds and retains the talent to help our people to prosper. Sir, in Malay please. : Mr Speaker, in my English speech earlier, I touched on how fragile our position is in the world. As a country where 90% of our food is imported from other countries and where we have no natural resources of our own – we have been fortunate to be able to attract investments, create jobs and build good foreign relations to help our country transform into a successful nation. While our reputation on the world stage outsizes our small land mass, let us not forget that this is an unlikely anomaly. But tall buildings and magnificent infrastructure alone would be nothing without peace and stability both internally and externally. We are a unique society with different faiths, races and backgrounds. As our people become more educated and their views grow more diverse, I would like to see more efforts through Forward SG to equip Singaporeans with the skills to have constructive and respectful discourses between the Government, private sector and our people; and the space to encourage effective ground-up changemaking. Peace is not top-down, but instead must be supported by bottom-up efforts and must start from the young. I would like to suggest more partnerships and cross-sector efforts in particular for our youths – for example, programmes, such as the Model United Nations, involving students across both secular schools and madrasahs, building common experiences to enable our youths to work together and interactions to allow young adults to hear and exchange views as regional or global forums. Secondly, I am grateful that the Government is setting aside $3.5 billion for the Age Well SG initiatives over the next decade. I am concerned about our seniors, especially those who have complex and chronic health needs. Obesity, diabetes, high-blood pressure – these are health conditions which threaten our quality of life. Through Healthier SG, I hope more can be done to encourage our seniors to go for regular health check-ups and connect with family doctors in their neighbourhood and more can be done early-on in their illness to prevent it from spiralling out of control and negatively impact healthy lifestyles. This is particularly important for older women – the ones who have sacrificed so much. Many of them have been so busy looking after those around them, that they do not have time to look after themselves. We must do more to support the retirement adequacy and healthcare needs of older women and I would like to ask if the Government has considered nuancing the health schemes, given that many women have less CPF savings. Beyond chronic health conditions, loneliness can have an adverse effect the lives of our elderly too. Recent studies suggest that social isolation was associated with around a 50% increased risk of dementia. I reiterate my calls for there to be targeted focus on mental well-being for our elderly and perhaps we can even take reference from the United Kingdom's Commission on Loneliness, where a Minister for Loneliness was appointed and there was strong cross-sector collaboration to tackle this issue.[+2 sentences] (In English): Sir, the many ideas shared in the House over the past three days showed the increasing social needs and growing funding required. The Government will not be able to do this alone. To this end, I am glad that the Deputy Prime Minister also announced measures to further build a stronger culture of giving that encourages collaboration – for example, the Charities Capability Fund Collaboration Grant and the efforts to work with philanthropy on the needs in society. We must work with philanthropic foundations, individuals and corporates to be strategic, complementary and catalytic in how we deploy capital towards social needs. I hope that the recently established SG Government Partnerships Office can play a role to involve ideas and efforts from our citizens, coordinate efforts and efficiently scale successful projects beyond pilots.[+5 sentences] Sir, this tiny red dot has punched above our weight. Over the decades, many hardworking individuals have built their roots here in Singapore. We are ethnically diverse and culturally open. We prospered then because of that, and we must protect this now; continue to keep our hearts, society and workforce open so we can continue to achieve progress for our people, while being firm about our values as a country on the world stage. Sir, I support the Budget.
Mr Speaker4 words
[+1 sentence]Assoc Prof Razwana Begum.
Assoc Prof Razwana Begum Abdul Rahim (Nominated Member)2452 words
[+4 sentences]Mr Speaker, let me begin by stating my support for Budget 2024. Mr Speaker, Budget 2024 is fiscally responsible, strategic and future-focused. It delivers an optimistic and balanced first instalment towards implementation of Forward Singapore. The Budget's central message is inclusivity. This Budget makes it clear that Singapore is a city for everyone and that Singapore's future belongs to everyone.[+1 sentence] Mr Speaker, this Budget provides for the private and community sectors, but most importantly, it also provides for ordinary Singaporeans: (a) families who work hard every day to make a life for themselves and their children; (b) couples wanting to buy their first home, start a family and begin their life together; (c) young people embarking on their journey of lifelong learning; (d) children, seniors and people living with a disability or struggling with a mental illness; and (e) those struggling with socioeconomic disadvantage or adversity. This Budget has something for everyone and provides both immediate relief for individuals and organisations, as well as practical and affordable policies and programmes for long-term growth and sustainability.[+6 sentences] Mr Speaker, I will now make some comments on several aspects of the Budget. In doing so, I will focus on three values – equity, transparency and accountability. The last few years have seen a significant increase in the cost of living. Interest rates have increased, making mortgage payments difficult for many and there has also been an increase in the cost of rent, general goods and services, transport and food. Many families are struggling to meet these costs and are being forced to make tough decisions about how to best provide for their children and families. Mr Speaker, this Budget contains several initiatives intended to provide relief to families, including Workfare payouts, CDC Voucher top-ups and direct rebates. These initiatives are available to all families, yet, as is appropriate, are also targeted towards those families on low incomes or living with significant financial stress. I welcome this targeted approach, as it is important that such initiatives deliver the greatest benefit to those with the greatest need.[+5 sentences] Simply providing everyone with the same level of assistance is inequitable and does little to address structural or ongoing inequalities and disadvantage. Mr Speaker, to ensure that families receive assistance that matches their need, the Government, private and community sectors need to work together. We need to reassure families that assistance is available for everyone and that there is no shame or stigma associated with seeking or receiving assistance when needed. We also need to implement culturally appropriate community education campaigns to remind all Singaporeans what type of assistance is available and how to access that assistance. This is of particular importance to those families which may have become used to living with disadvantage or who, for socioeconomic, cultural or personal circumstances, are unable or unwilling to seek assistance when needed. As well as providing financial assistance to families in need, we also need to offer targeted personal support, including financial planning, parenting programmes, life-skills, employment and housing support and mental health and well-being support.[+16 sentences] We need to adopt a holistic, comprehensive case management approach. Mr Speaker, there are many in our community who provide high levels of care to family members, including elderly relatives and family members with a disability or acute or chronic illness. Due to a range of factors, including the cost of professional care, many of those taking on short or long-term carer roles within the family home are from lower-income families. We need to acknowledge the significant financial and emotional burden that providing home care can have on individuals and ensure that those with caring responsibilities also receive the appropriate level of assistance and relief. Mr Speaker, on a broader level, Government-funded financial assistance, such as the initiatives contained in this Budget, are commendable and have been shown to have clear and measurable benefits for individuals, families and communities. They can also be expensive, particularly in the context of slowed or limited economic growth and the ongoing viability and affordability of such initiatives need to be considered. That is why we need to think long term and fiscally responsible and innovative in how we plan for our future and the future of our children and grandchildren. In today's world, it is also important that we consider how social policy can be delivered in an environmentally sustainable way and, in turn, how environmental policy can be delivered in a socially responsible way. While governments around the world are grappling with how to do this, unless we address the reality of climate change, the socioeconomic needs of our population will only increase and the cost of responding to these needs will only become more and more expensive. Mr Speaker, I, therefore, encourage the Government, private, academic and community sectors to begin an open-ended dialogue on how to continue to deliver financial assistance initiatives in a fiscally, environmentally and socially sustainable manner. I will now make some comments about lifelong learning. The European Commission defines Lifelong Learning as: "All purposeful learning activity undertaken throughout life with the aim of improving knowledge, skills and competencies with a personal, civic, social and/or employment-related perspective." This definition is preferred by many researchers and policymakers as it reinforces that lifelong learning is not confined to an employment context, but instead extends into the personal, civil and social contexts. This position is supported by the 1997 UNESCO Hamburg Declaration on Adult Learning, which notes: "Lifelong learning is important because it helps to develop the autonomy and sense of responsibility of people and communities; to reinforce the capacity to deal with the transformations taking place in the economy, in culture and in society; and to promote coexistence, tolerance and the informed and creative participation of citizens." Consistent with this declaration is the view that human capital is a key driver of economic development and that countries that invest the most in developing their human capital enjoy the most rapid and sustained economic growth and the highest quality of life. Mr Speaker, in promoting a culture and philosophy of lifelong learning in Singapore, it is important to adopt a whole-of-nation approach rather than a sector- or system-based approach. Lifelong learning is positive in and of itself and benefits society as whole, regardless of whether the learning leads to immediate or identifiable organisation or economic benefits. It is also important to recognise that lifelong learning is relevant to all Singaporeans, including the unemployed and those in platform, low-wage or manual employment.[+16 sentences] If we only encourage those in established or influential positions to undertake learning and exclude those who are frequently considered less productive or deserving, we fail to address social disadvantage and we miss an opportunity to tap into a valuable resource. Mr Speaker, in promoting a culture and philosophy of lifelong learning, we need to move away from viewing education as a time-limited activity that can only occur within traditional institutions, such as schools and colleges. Learning is an ongoing process of change and can occur in formal and informal settings, across multiple arenas and via multiple platforms. We also need to foster a flexible learning ecosystem that values and rewards curiosity, creativity and adaptability, rather than just grades or academic results and that prepares individuals to think and thrive in a rapidly changing and unpredictable world. We also need to further develop and foster partnerships among educational institutions, employers and community organisations, so as to create multiple coordinated pathways for lifelong learning and skills development. Measuring the impact of lifelong learning and its benefits is challenging. However, relying solely on hard indicators, such as economic growth or employment rates, may be counterproductive. An effective culture of lifelong learning will benefit all of society, including social factors and sustainable development, and will assist to create an inclusive economy where the advantages of growth uplift everyone rather than disproportionately favouring the already affluent. Mr Speaker, we also need to move away from thinking that the primary purpose of lifelong learning is to train employees to generate greater output. Lifelong learning also assist employees to develop the capacity to think differently and to generate new perspectives. This may lead to innovative outcomes and solutions. Employers should encourage their employees to take time away from work to learn and then create an environment within their workspace where all employees can openly share knowledge, skills and ideas. Employers should also recognise and reward employees for their informal learning achievements and not just those qualifications gained in a structured environment. Mr Speaker, I therefore encourage the Government to consider the feasibility of an inter-agency task force or commission to make recommendations to the Government on policies, programmes and strategies to embed an effective, equitable and sustainable culture of lifelong learning across Singapore. Such a task force should actively seek inputs from people from lower socioeconomic backgrounds, young people and women entering or going back into the workforce. Mr Speaker, I will now make some comments on the proposed changes to Singapore's retirement fund. In a recent report by Mercer, Singapore's retirement income system ranked 7th internationally, only falling behind Nordic and Northern European countries and Australia. Despite this, in 2023, OCBC reported that only two in 10 Singaporeans are on track when it comes to retirement planning. And in 2022, the Retirement and Health Survey reported that seven in 10 elderly Singaporeans received regular cash allowance from their family.[+6 sentences] The study also reported that an increasing number of Singaporeans consider the rising cost of living when planning for retirement, including the cost of domestic help to assist care for them and their family as they age. Mr Speaker, in Malay please. : The initiatives outlined in the Budget are intended to ensure that Singaporeans can retire at a reasonable age and are in a financial position to enjoy a quality of life similar to that when they were in the workforce. Mr Speaker, comfortable retirement is a shared responsibility between employees, employers and the Government; and all stakeholders need to work together to ensure that no one in retirement is left behind or is forced to live in poverty or significant disadvantage. To achieve this goal, we need to explain the new Budget initiatives more clearly to all employees and employers and actively encourage and support all employees and employers to maximise the social and economic benefits of this new system. Mr Speaker, retirement planning also need to be culturally specific, as religious beliefs and practices can significantly influence attitudes towards wealth, saving, and financial planning. For example, the Islamic prohibition of both earning and charging interest (riba) requires retirement funds from banks to establish alternative arrangements for their Muslim customers. Such provisions are available but may not be widely known to the Muslim community. There are several initiatives that may assist in strengthening retirement planning for Muslims in Singapore, including providing culturally relevant financial guidance; conducting seminars, workshops and outreach programs within the Muslim community that emphasize the importance of retirement planning; developing a wider range of Sharia-compliant investment options to meet the specific needs of Muslim retirees, including sukuk bonds or Islamic equity funds.[+23 sentences] Mr Speaker, in English, please. : Mr Speaker, I will now make some comments relating to healthcare. The healthcare initiatives outlined in the Budget are intended to reduce healthcare costs for all Singaporeans, including the elderly and those living with chronic health conditions. As is happening across the globe, healthcare costs in Singapore are rising. As our population ages, more and more people require increasingly expensive care and this cost inevitably falls on the consumer, insurers and the Government. To assist offset these costs, I have several suggestions. The first is to recognise the personal and economic benefits of early intervention. Many of us wait until later in life, sometimes too late, before we take measurable steps to protect our mental and physical health and well-being. We need to do more to support and encourage young people to adopt and maintain a lifelong healthy lifestyle and perhaps this could be achieved through increased community education programmes targeted at children and young people. We also need to do more to attract and recruit suitably qualified healthcare professionals and to enhance the job satisfaction, professional development and career progression of our health professionals, and we do more to monitor and support the health and well-being of our health professionals, including those experiencing burnout. While our healthcare sector continues to struggle with human resource issues, the provision of timely, targeted and professional healthcare will remain a challenge. Mr Speaker, we also need to do more to enable our elderly to live safely and with dignity and within their own homes, and to do so without having to rely on family-funded care provided by domestic helpers who frequently have little relevant formal training. We need to professionalise aged-care, and ensure that in-home care by affordable, professionally trained healthcare professionals is available when needed. Finally, we need to support and fund research into how AI can be applied across the healthcare sector more broadly, including aged care. AI technology is developing far faster than any of us can ever hope to understand. However we need to be as prepared as possible for emerging technologies and be ready to embed these technologies into existing healthcare systems. Mr Speaker, I will now conclude by making some comments about a safe and secure Singapore, and the development of National Cybersecurity Command Centre Mr Speaker, one of the fundamental roles of any government is to ensure the safety and security of its people and Singapore does this well. By many measures, we are one of the safest countries in the world and it is only because of this that we are in a position to develop and implement all of the socioeconomic initiatives contained in this Budget. Mr Speaker, we cannot, however, be complacent, and must always remain vigilant to existing and emerging threats. The socioeconomic cost of a major cyber incident could be enormous and have far-reaching implications on public trust and confidence. Mr Speaker, the development of a National Cybersecurity Command Centre is aligned with Singapore’s Smart Nation initiative and demonstrates that safety and security remain a priority for this Government. Mr Speaker, the safety and security of a nation is not only defined by its approach to hard or technical issues, but also how it responds to the health and welfare of its people. Integrating human-centric design principles and robust safety protocols ensures that our Smart Nation Initiatives not only enhance convenience but also prioritise the well-being of individuals and communities. We also need to adopt an interdisciplinary approach to cybersecurity, integrating insights, methodology and expertise from various fields to comprehensively address complex security threats.
Mr Speaker3 words
[+1 sentence]Ms Carrie Tan.
Ms Carrie Tan (Nee Soon)1678 words
[+9 sentences]Mr Speaker, I note that many of my hon colleagues have raised concerns about the sustainability of our fiscal health, given the generous support schemes that Deputy Prime Minister Wong announced, which Singaporeans are getting used to and some are starting to expect as a given. In view of such concerns, I speak to the House again on well-being and emphasise its role as a critical success factor to continued growth, to sustained growth. In my Budget speech last year, I spoke of the need to consider a different model of progress that looked beyond economic growth. To be clear, I am not suggesting de-growth. On the contrary, what I am advocating for is a mindfulness and a slowing down that can help to unlock more potential in order to sustain or even to leapfrog growth. Slowing down our minds and cutting away senseless busyness, to make time and space for things that nourish our hearts: one, family – to bear and nurture children because we desperately need to raise our total fertility rate (TFR); two, caring – to build stronger relationships and community to help alleviate costly institutional healthcare; and three, for dreaming – to nurture and actualise new aspirations. These are all desirables that Singaporeans expressed in many Forward Singapore conversations. How do we put these words into action? I use an advertising sector parlance from my early career and offer this House three strategic actions towards a big, hairy, audacious goal – the twin goals of well-being and high growth. The three strategies are: one, charting Singapore’s well-being with a Well-being Index; two, doing less to achieve more; and three, enhancing collaboration with citizens.[+16 sentences] On the first, a National Well-being Index – because we love KPIs and what does not get measured does not get tracked. Now that we have made mental health a national priority, how do we know if we are doing better? And we would not, unless we start measuring and tracking. There are already ongoing national mental well-being surveys or studies, such as the Quality of Life Survey, which is helpful to track people’s level of satisfaction with their lives. Well-being is not simply an existence of happiness or satisfaction. It is also the absence of dis-ease or dysfunctionality within our collective system. Hence, what we also need to monitor are figures such as the rate and incidences of mental health conditions, suicide rates as well as chronic disease rate, and factor all these into a set of indicators that makes sense. We need to be accountable for all the strategies that have been announced by the national mental well-being task force and make the outcomes visible and trackable. It is human nature, that when people are unwell, they worry more and become more needy, whereas a people with high well-being will feel more secure and feel that they have more capacity to give. Secondly, let us exercise our imagination to achieve more with less. It may sound easier said than done, but I offer a quick hack. Perhaps what we need to do is start approaching complex and wicked problems with new lenses – a strengths-based lens instead of a scarcity lens, a trusting lens instead of a skeptical lens. I spoke about this in my Adjournment Motion a few months ago on improving public rental housing to enable human thriving. That is one example. What other policies need a fundamental shift in philosophy and thinking? There were two things in Deputy Prime Minister Wong’s Budget announcement that signalled to me that this shift is taking place and I am glad for it. One is the extension of preschool subsidies for non-working mothers.[+2 sentences] Removing the condition of the mother’s employment tells me that the Government respects the choices women are making, regardless of what they choose and that supporting children in their early years should not be conditional. This reduces stress and enables families more freedom to navigate their caregiving needs, enhance their well-being and ensure that all children have an optimal early childhood start. The other is the SkillsFuture Level-Up Programme – providing training allowance to those who embark on full-time courses.[+7 sentences] To me, that is a very empathetic policy, showing an understanding of people’s worries and making a full commitment to support and invest in anyone who wishes to grow and upgrade themselves. There has no bond of any kind that has been announced to date tied to this training allowance, and I hope it stays that way, which signals to me the Government’s willingness to trust. To trust that citizens will make the best of the opportunity to create the desired outcomes for themselves, which is a better livelihood, and that itself is aligned with national interest. In this year’s Committee of Supply, I will be making cuts on issues related to the preschool sector, caregiving, sustainability and integrating persons with special needs, with suggestions on how shifting the underlying philosophy and narratives of some policies to a strength- and trust-based lens can help us improve and accelerate outcomes without spending as much money. Third, enhancing collaboration with citizens. The Government cannot tackle wicked problems alone. As we transition and evolve our social compact from a less educated population leaning on intellectual elites to craft and implement policies as it was in the 1970s to the 1990s, we now have one of the most well-educated citizenry globally. The Singapore Government Partnerships Office (SGPO) is hence a positive step forward that must be adequately resourced and developed.[+5 sentences] As we do this, we must recognise that we are somewhat new at this, and there may be some teething blues as we increase citizen participation and work more closely with one another. Capability-building of facilitators who have ecosystem thinking, to be skilled at navigating cross-system cultures, mobilising people and building relationships across diverse sectors is key. I recall in my first year as a Member of Parliament (MP), I sent an email to Deputy Prime Minister Mr Heng Swee Keat, who then forwarded it to the Minister for Culture, Community and Youth Mr Edwin Tong. In the email, I recommended the formation of a team of 100 organisational development-trained facilitators from diverse sectors. I am not sure if they took up my suggestion but I do see many Public Service roles now titled “Community Engagement” and I see increase in efforts to train volunteers to help facilitate national dialogue sessions. This is good and we can do more. I urge relevant resources for the SGPO and People’s Association (PA) to train and leapfrog facilitation capabilities to right-size salaries to make sure they are realistic and adequate to hire relevantly skilled people. Such support to public agencies is critical for meaningful inclusion to engage Singaporeans in sometimes contentious and difficult conversations and to do so in early stages of policy-making to avoid U-turns on policies and avoid unnecessary spending.[+4 sentences] As a social entrepreneur, I have first-hand experience of how tenacity and sustained commitment is needed for real and sustainable change to happen. And it is not always easy to keep morale high as we go through the transition blues, messiness and pains as we will encounter along the way. It is also much easier to grouse and complain than to commit time and effort to create change. And how do we keep people enthused to contribute and to stay the course? As my past three years being grassroots advisor in Nee Soon South has shown me, when people enjoy working together, they feel cared for and appreciated, the hard work is worth it. And this, we can only achieve by shifting the balance from a performance-based culture to an appreciation-based culture.[+17 sentences] To shift this, we have to slow down our pace and appreciate what we already have and take time to appreciate one another. Speaker, in Mandarin please. (In Mandarin): As the population ages, there is shortage of manpower and people's mental health is beginning to decline. How can we achieve a society that is less stressful, physically and mentally healthy and yet, continue to prosper? In the face of these challenges, it is necessary for everyone not only to be willing to speak but also be willing to act. Many people may have seen that there are many who can talk but very few who can truly do and are willing to do. Therefore, the Government continues to implement digitalisation and encourages both individuals and businesses to transform. Some residents complain that excessive mechanisation for efficiency has reduced the personal touch and I understand this very well. But is it inevitable? How can we strike a balance, using technology with a personal touch, making it convenient for us without sacrificing the interaction and communication between people? This is something we should and must reflect on. So how can we make everyone willing to act and willing to contribute? What I have experienced as a grassroots advisor in Nee Soon South over the past three years is that, as long as everyone cooperates happily, whether they are employees or volunteers, if they can be accommodating and show gratitute towards each other, they will be able to contribute joyfully and everyone can make a difference. In unity, we learn to be inclusive. In giving, we learn gratitude. I believe this is an invaluable way of interaction in our society. I hope that in the future, through our own practice, we can pass on these values to the next generation of Singaporeans. Citizens and the Government can work together so that even with fewer people, we can still get things done and sustain physical and mental health as well as continued prosperity. : With that, I conclude with a prayer that the strategies I offer – tracking our well-being, achieving more with less, enhancing collaboration with citizens, and above all, adopting a strength-based and trust-based lens, will help us on a Uniquely Singapore holy grail, towards the biggest, hairiest and most audacious goal of them all – well-being while sustaining high-growth in our economy.[+1 sentence] I support the Budget.
Mr Speaker3 words
[+1 sentence]Mr Louis Ng.
Mr Louis Ng Kok Kwang (Nee Soon)2615 words
[+51 sentences]Sir, this is a Budget about building our shared future together. A shared future that has been built on the work by all of us and our migrant workers over the past few decades. As we talk about being an inclusive society, we must not forget our migrant workers. Yet, our policies at times, show that there is an “us” and “them”. In the past eight years as an MP, I have seen firsthand the backbreaking work our migrant workers do for us. I have listened firsthand to the stories of the homes and families they left behind. And I have personally met the families they have left behind and felt the pain they feel every single day. Mazibur is a cleaner in Nee Soon East. I have known him for eight years. He came to Singapore in 2012, leaving his daughter Jannat when she was only 22 days' old. Mazibur has not returned to Bangladesh since. Jannat will turn 12 years old this year. He has missed all her birthdays and milestones growing up. When I went to Bangladesh a few years ago to meet all our Nee Soon East cleaners' families and have lunch with them, I met Jannat. It is sad that I got to meet Mazibur's daughter before he did. Jannat wrote to me and what she wrote tore through my heart. She said, "Take care of my father, I love him a lot". I promised her I would. Sir, Mazibur's story is not an uncommon one. Many low-wage migrant workers similarly endure long periods of separation from their families. As a father of three young girls, I just cannot imagine how painful and how difficult it must be to be so far from their loved ones. We enjoy time with our families in the homes that these migrant workers build and keep clean for us. The least we can do is to take care of them and ensure that these workers have safe living spaces, safe food and safe avenues for reporting illegal employment practices. In a speech delivered at the height of COVID-19, Prime Minister Lee assured our workers, "To our migrant workers, let me emphasise again: we will care for you, just like we care for Singaporeans." I am glad we do care and, over the years, our policies on migrant workers have improved. In this Budget for Singaporeans, I hope we continue to make improvements and remember to care for our migrant workers. Many of our youths have set a shining example in caring and speaking up for migrant workers. I have been inspired by the passion of these youths. One such youth is Kari Chua. Kari co-founded the migrant worker ground up Sama Sama in 2016. Sama Sama and their partners support migrant community leaders to address mental health issues, enhance the quality of life and ensure equitable opportunities for migrant workers. Migrant worker NGOs like Sama Sama back up their calls with concrete actions through ground-up initiatives to support our migrant workers. Many Singaporeans like Kari are calling for the Government to do more to treat our migrant workers fairly. I hope we heed their call. I will raise three recommendations. First, we significantly improve the living standards for migrant workers. Second, we ensure the food catered for migrant workers comply with existing food safety standards. Third, we recognise and treat kickbacks as a form of corruption, by ensuring that there are equivalent penalties and whistleblowing protections. I am not asking for any preferential treatment for our migrant workers. I ask only that we treat our migrant workers the same way that we would want our loved ones to be treated. I ask that we be fair and inclusive – have one set of policies that apply to all. My first recommendation is that we ensure that the housing standards for dormitories are at least equivalent to the dormitory conditions for our full-time National Servicemen (NSFs). I am glad that MOM announced a set of improved standards for worker dormitories last year. It is a huge step in the right direction. By 2030, the dormitories must meet an interim set of housing standards. By 2040, the dormitories must meet the new standards. MOM said that these housing standards are meant to improve the dormitories' ability to contain disease outbreaks. I am glad that MOM is acting on lessons learnt during COVID-19. In addition to addressing the public health risks, it is also right that we make sure that our migrant workers have decent living conditions. However, many feel that the interim and new housing standards simply do not go far enough. Our current standards require at least 3.5 square metres per migrant worker. By contrast, each NSF in SAF gets seven square metres of sleeping and resting space.[+1 sentence] Why the double standards on this question of public health? Viruses will not discriminate between our migrant workers and our NSFs. We are now asking for dormitories to improve this from 3.5 square metres to 3.6 square metres per migrant worker by 2030 and 4.2 squares metres by 2040.[+1 sentence] We are asking for a 0.1-square-metre increase within seven years. To put things into perspective 0.1 square metre is less than the size of two A4 pieces of paper.[+1 sentence] Another example is the spacing between beds in migrant worker dormitories. Currently there is no requirement for spacing between beds. It is only in 2040 that we will mandate a spacing of one metre between the beds.[+49 sentences] The pandemic taught us hard lessons about how diseases spread like wildfire when people are packed into tiny, cramped dormitory rooms. Yet, for the next 16 years, we are choosing to accept this risk. We are choosing to roll the dice and pray very hard that we will not have another pandemic in the next 16 years. It is a gamble with the lives of those living in the dormitories and it is a gamble with the lives of Singaporeans. I understand there is a cost factor. Business costs are rising and employers have financial constraints. We must consider this, too. MOM has said that dormitory standards cannot improve more quickly because beds are short in supply and rising in price. Surely, then, the way forward is to study and implement solutions that tackle those problems, rather than wait for them to go away. JTC used to own and manage dormitories directly. I am glad MOM will be building and owning two migrant-worker purpose-built dormitories (PBDs) through the new entity called NEST Singapore. Again, it is a step in the right direction. MOM has announced that the MOM-owned PBDs seek to promote innovations in public health resilience and liveability. They also aim to transform practices in migrant worker housing. Indeed, if the private market cannot efficiently deliver services at minimum standards and costs necessary for public health, we should ask the hard question of whether Government agencies should reassume the role of managing and operating more dormitories more urgently. By expanding the number of dormitories owned and run by MOM, there would be significant economies of scale and perhaps even lowered costs for employers. It could be a win-win solution for both employers and employees. Again, we must remember that this is a question of public health. This is a life and death issue when, not if, the next pandemic happens. We already know that the SAF was largely successful in keeping COVID-19 transmissions low. We already have a successful model to learn from – with a minimum standard of seven square metres per resident and all the measures that SAF took. All I am asking is that we learn from experience and urgently improve the living conditions of migrant workers. My second recommendation is that food catered for migrant workers is safe for consumption. Our migrant workers need a proper place to rest and proper food to eat. I am glad that MOM recently ensured that there are measures in place that protect catered food from contamination until it is collected by dormitory residents for consumption. MOM clearly takes food safety very seriously. But that solves only one part of the equation. The other parts need to be urgently addressed, too. The Singapore Food Agency (SFA) requires that all catered food be consumed within four hours after it is prepared. SFA also requires that all catered food be labelled with a consume-by timestamp. Many Singaporeans will be familiar with these timestamps for catered food or buffets. This four-hour rule is strictly adhered to for food catered for Singaporeans. However, a different set of standard seems to apply for some migrant workers. Workers tell me that many of them are catered with food without a consume-by timestamp. Many workers tell me that they regularly consume food way past the four-hour timeframe. It is quite obvious that this is true. We know their catered lunch is cooked in the wee hours of the morning before workers even leave for work. We know the food is delivered to the dormitories early in the morning as well. By the time workers have their meal around noon time, the food is way past the four-hour timeframe. We know for a fact that our requirements are being breached. The Ministry of Sustainability and the Environment (MSE) has said that in the past five years, SFA has not received any reported cases of catered food for workers in dormitories without a consume-by timestamp. MOM has also said that they have not received specific complaints from workers about not being able to consume food within a reasonable time of preparation. This is at odds with many workers' experiences and the realities on the ground. I know that MSE and SFA take food safety very seriously. I also know that MOM takes worker safety and welfare very seriously. My recommendation is that MOM and MSE work together to investigate this and set specific requirements to ensure that catered food is consumed within a safe period. Migrant workers deserve food that is safe for consumption, just like all Singaporeans. My third and final recommendation is that we recognise and treat kickbacks as a form of corruption. We should ensure that there are equivalent penalties and whistle-blowing protection. I have called for this in my previous Adjournment Motion and I am calling for it again. We know that from 2021 to 2023, MOM investigated 210 cases of kickbacks per year and took 70 employers to task each year.[+3 sentences] That is more than one employer every week being taken to task for collecting kickbacks. Also, we do not know what the full number of unreported cases is. Our laws to protect our workers are only as good as our ability to enforce our laws. We cannot enforce our laws if workers are fearful of reporting abuses when they happen. I have personally spoken with migrant workers whose employers coerced them into paying a sum of $3,000 in kickbacks. For some, this is more than four times their monthly salary.[+8 sentences] A crime had been committed against them. Yet, their hands were trembling as they spoke to me. They were fearful of the consequences of reporting their bosses. Many of these workers incur debt to work in Singapore in the first place. Losing their jobs may mean they have no way of repaying the loans they took to work in Singapore. One of them told me, "When I came to Singapore in 2016, I paid $14,000. In 2018, I paid $1,500 for my Work Permit. Now, they said that if I do not pay them $3,000, they will fire me". The worker faced the stark choice of paying his boss $3,000 to renew his Work Permit or face repatriation.[+7 sentences] The same worker told me, "I am a really poor man. I have no money to give them. In this situation, I am really helpless and feeling depressed. I am an honest and hardworking man." We can only start solving a problem by calling a spade a spade. This is one spade digging a grave for fairness and inclusiveness. What kickbacks really are is that they are corrupt gratification that employers coerce from vulnerable workers. The penalty for collecting kickbacks is a fine of up to $30,000 and/or imprisonment of up to two years per charge. By contrast, the punishment of corruption is a fine of up to $100,000 and/or imprisonment of up to five years per charge. We need to review the penalties for employment kickbacks to ensure that they are commensurate with the penalties for corruption. I propose that the maximum sentence be raised to five years of imprisonment and/or a $100,000 fine, matching the penalty for bribery under the Prevention of Corruption Act.[+3 sentences] We also need to make sure we have the same or even stronger whistle-blower protection for informers of corruption for workers to report kickbacks. The Prevention of Corruption Act has strong protection for informers. No complaints can be admitted as evidence in any civil or criminal proceedings. No witness is permitted to disclose the name of informers or any information which may lead to the discovery of the informer. I propose that we introduce whistle-blower protection for informers who report kickbacks paid to employers.[+28 sentences] We all know the zero-tolerance approach Singapore takes to corruption. Kickbacks are corruption. There is no reason to treat kickbacks migrant workers pay any differently from other corruption in Singapore. Sir, migrant workers are the builders of our society – the builders of our economy. In the words of Minister Shanmugam, "These workers are here, they are helping us to make Singapore clean. They build our HDB flats. They build our buildings. They handle our waste management. They form the base of our economy and, therefore, they help us build our prosperity. You know, we say we have 57% of Singaporeans in PMET jobs. How is that possible? It is possible because the base is built by foreigners. So, I think we have to appreciate what they do for us, and we have to have a better understanding and empathy." I am glad many Singaporeans have shown appreciation for the work migrant workers do for us. Our youths, like Kari, have been calling for our migrant workers to be better protected. Deputy Prime Minister Lawrence Wong said, "We need to do more to look out and care for the more vulnerable amongst us, including our migrant workers". I hope we can start by looking into (a) improving their dormitory standards sooner; (b) ensuring that they have safe catered food; and (c) treating kickbacks as corruption. The priority in this Budget and in our policies has to be Singaporeans. There is no doubt about that. But it does not mean that our migrant workers should be left out, left behind. To be the truly inclusive society we aspire to be, a shared future we talk about in this Budget must also include our migrant workers. To be a fair and just society, we cannot have one set of rules, guidelines and policies for Singaporeans and a different set for migrant workers. Sir, I promise Jannat I would look after her father. We should look after all our migrant workers. I do this not just because of a promise, but because it is the right thing to do. At the start of my speech, I talked about how our policies differentiate between "us" and "them". I have shared this quote in Parliament previously, and I will share it again, "There is no us and them, only us – one human family connected in ways we sometimes forget." I hope our policies can continue to change and recognise that our one human family in Singapore includes our migrant workers.
Mr Speaker11 words
[+2 sentences]Ms Hazel Poa, you have a clarification to make? Go ahead.
Ms Hazel Poa (Non-Constituency Member)255 words
In my speech on Monday, I said that the $10,000 Central Provident Fund (CPF) top-up in the Institute of Technical Education (ITE) Progression Award is differentiated treatment between polytechnic graduates. In response, the hon Member Mr Xie Yao Quan yesterday made the point that it is fair and right to compensate for the wage gap between ITE graduates and polytechnic graduates. But my point is that because this CPF top-up is given to them after they have completed their diploma courses, they are not just ITE graduates, they are Diploma holders and will be earning salaries as polytechnic graduates. So, can Mr Xie clarify what wage gap he is talking about?[+1 sentence] This is my first question. Also, going by his logic, does Mr Xie similarly think that it is fair and right to give a CPF top-up to polytechnic graduates who progress to university, to compensate for the wage gap between polytechnic graduates and university graduates?[+4 sentences] That is my second question. What about a person who starts working at a lower pay grade due to lower qualifications but, subsequently, rose through the ranks to reach the same position as someone with higher qualifications? Does Mr Xie also think that it is fair and right to compensate for the wage gap? That is my third question. Since Mr Xie is a People's Action Party (PAP) backbencher, I would also like to seek clarification from the Ministers whether they agree with Mr Xie's position and what is the position on my last two questions to Mr Xie?
Mr Speaker46 words
[+3 sentences]I do not see Mr Xie Yao Quan in the Chamber. So, perhaps, when he is back later and before we conclude the debate, if he wants to clarify, I will allow him. For now, I will call on Deputy Prime Minister and Minister for Finance.
The Deputy Prime Minister and Minister for Finance (Mr Lawrence Wong)9394 words
[+23 sentences]Mr Speaker, I thank all Members who have spoken and supported the Budget. Members have raised many suggestions during this debate. I will not be able to address all of them in my response. But I assure you that we have heard your feedback and we will study your suggestions carefully. For more detailed issues relating to specific schemes and programmes, these will be addressed later at the Committee of Supply (COS). The questions raised by Members in this debate largely revolve around three broad issues. Are we doing enough to help Singaporeans cope with higher prices? How will we achieve better growth and help Singaporeans secure a better future? Is our system of social support sufficient to support Singaporeans? So, let me address these three issues in turn. First, on helping Singaporeans cope with inflation and cost pressures. Several Members, including Mr Yip Hon Weng, Mr Gan Thiam Poh, Mr Henry Kwek and, Ms Hazel Poa and many others, spoke about this. Let us start by looking at the reasons for high inflation over the last two years and these reasons are certainly not unique to Singapore. For more than a decade before COVID-19, global inflation was generally stable, hovering at around 4% per annum. Singapore enjoyed relatively stable inflation too, and in most years, it was lower than global inflation. But in 2021, prices in global food, goods, energy markets rose quickly, as strong demand came up against constrained supply due to pandemic-related restrictions. Then, the Russia-Ukraine war broke out in early 2022. The two countries are major suppliers of key commodities, like oil and gas, fertiliser, and wheat. This brought about a further surge in prices. Many countries also saw a surge in demand for domestic services, and did not have sufficient workers to meet the demand. These are the key drivers of inflation everywhere and Singapore, like all other countries, felt the impact too. Even so, inflation in Singapore did not reach the peaks seen in several parts of the world. One reason was effective monetary policy. MAS tightened monetary policy five consecutive times starting in October 2021.[+1 sentence] This meant allowing the Singapore dollar to appreciate more quickly, which helped to shield us against the sharp spike in imported inflation. Had MAS not acted, core inflation for the whole of 2023 would have been 6.6%, instead of 4.2%.[+8 sentences] Other major central banks acted too. So, with this overall monetary tightening and the stabilisation of supply chains, significant headway has been made in bringing inflation down around the world. Our inflation too has started coming down, in line with the rest of the world. In Singapore, our headline inflation was already moderating since last year, and is expected to moderate further this year. We expect this trend to continue, similar to other advanced economies. Several Members, including Ms Ng Ling Ling, Mr Ong Hua Han and Mr Faisal Manap, also highlighted other specific cost items – namely housing and transport. So, let us drill deeper into this data. Take public housing. Over the last 10 years, the average price of a 4-room Build-To-Order (BTO) flat in non-mature estates has remained relatively stable, even as median household incomes increased.[+19 sentences] So, in real terms, the affordability of such BTO flats has, in fact, improved. The challenge we face was with the prices of BTO flats in choicer locations which are more expensive. That is why we have introduced the new Standard, Plus and Prime framework. Because with this framework, we can keep the BTO flats in these better locations affordable through more upfront subsidies. But it will be a fair system because the additional subsidies will be clawed back when the first owners sell the flats. Or take public transport, the Government is already providing generous subsidies to keep our public transport system going. Fares have increased, but household incomes have risen faster. And that is why the proportion of household income spent on public transport has fallen over the last 10 years. We also track real wages closely. As Members are aware, real wage growth was negative last year. But we know that employers, many of them, are complaining of shortage of workers and higher wage costs, especially in services. So, it is not negative across the board. Some workers were still getting real wage increases. And at the household level, there was real median income growth, on a per capita basis, per household member basis. Sir, I have provided some key data points, so that we can understand the facts around the inflation situation globally and in Singapore. In countries everywhere, including in Singapore, there tends to be a gap between economic data and perceptions. It is partly because it takes time for consumers to adjust to new economic realities. Perceptions and sentiments are clearly important, and we take the feedback from the ground seriously, but we also need to examine data closely so as to better shape policy responses. It is in this broader context that the Government had extended support packages over the last two years to cushion the impact of inflation, particularly for lower- and middle-income Singaporeans. This year, while inflation is moderating, we recognise that prices are still relatively high and there will be continued pressures for families and individuals. That is why I had enhanced the Assurance Package in the Budget.[+5 sentences] We have designed and sized the support of the enhancement carefully. There is something for everyone, regardless of age, property type, or income. But we also do not want to inadvertently stimulate demand too much and push up prices – something which Ms Foo Mee Har cautioned against. So, the support is targeted and tilted towards those with less. What will we achieve through the enhancements to the Assurance Package in this Budget? For lower-income households, it will fully cover their increase in spending due to inflation this year. For middle-income households, it will substantially cover the increase in spending due to inflation this year.[+8 sentences] We are not only helping families. We are also helping businesses cope with higher costs, especially SMEs. One of the reasons for rising business costs is higher wages for Singaporeans. For example, we are raising the wages for lower-wage workers. I am sure everyone supports this. But it will mean higher costs initially for businesses, especially SMEs. That is why the Government is doing more in this budget to co-fund the increase. Similarly, as Senior Minister of State Heng Chee How highlighted, we are raising CPF contributions for older workers so that they have sufficient savings for retirement. Again, this will lead to higher costs for businesses. But the Government will offset half the increase in employer contributions for 2025.[+41 sentences] We are doing more to help businesses in this Budget through the Enterprise Support Package. This is the most generous Corporate Income Tax rebate we have extended to date. For all eligible firms, including those that are not profitable, we are providing a cash grant. The support can be used to defray cost increases, in wages, rentals, utilities, or transport, depending on the circumstances of each business. I understand that some groups will feel that the help extended is still not enough. But I hope everyone can appreciate the bigger picture. We are going through a rough patch of high prices due to forces well beyond our control. We are not the only country facing these difficulties. The Government will do everything we can to help households and businesses to get through this rough patch. Already, the situation is improving, and it should get better this year. But ultimately, the best way to deal with inflation is for businesses and wages to grow in real terms. To achieve that, we need better economic growth. This leads me to the second issue – how can we sustain growth and help Singaporeans secure a better future? And here, many Members spoke up about this, including Ms Jessica Tan, Mr Saktiandi Supaat, Mr Shawn Huang, Mr Sharael Taha and Mr Vikram Nair, amongst others. Securing economic growth is more than just a statistic. It is about how we stay relevant, add value to the world and make a living for ourselves. The reality is that Singapore will always be a little red dot. We have no hinterland. We have no natural resources, unlike resource-rich countries like Qatar and the United Arab Emirates (UAE). If we falter, no one will come to our rescue. Moreover, businesses have so many options when they wish to invest or site their global or regional headquarters and operations. We know that Singapore is not the cheapest location. So, we must work even harder to add value and justify the Singapore premium. This is what we have been doing continually since our Independence. Our economy today reflects this progress up the value chain. Take the example of a multinational enterprise (MNE) like Siemens. It has been in Singapore for more than a century, since 1908. Of course, Siemens today has changed many times over from when it started. It has significantly expanded and upgraded its business, from a small sales office to electronics assembly in the 1970s and now it provides technologies across a range of sectors, including transport systems, water treatment technologies and medical diagnostic equipment. Last year, it announced that it will establish a new high-tech factory in Singapore, which will employ significant levels of automation and digitalisation. Along the way, Siemens has spun off new sub-units, including the semiconductor company Infineon Technologies – which some of you may have heard of – and some of these sub-units have grown into industry leaders in their own right, with their key manufacturing and research and development (R&D) locations based here in Singapore. Sir, there are many other examples like this. MNEs have continued to grow and upgrade their presence here in Singapore because they value our skilled workforce, our infrastructure and our connectivity to help them better access key markets in the region and beyond. So, when you add it all up, it means that the value-added content of our manufacturing sector has increased. We are able to command better prices in world markets and this in turn benefits our workers, who are able to enjoy higher wages. This is how we are able to stay competitive, despite our higher costs. One way to see this is to look at Singapore's share of global exports. Since 2010, even when our cost base has gone up, our share of the world’s total goods exports has been maintained at about 2%. Our share of global services exports has increased from 2.5% to 4.1%. So, we are able to hold our own, maintain competitiveness and add value, make a living for ourselves, and for our workers. The question is, how do we continue to maintain or even increase our share of global exports in the years to come? The only way is through productivity improvements, something which Deputy Prime Minister Heng emphasised yesterday. We aim for 2% to 3% economic growth per annum over the next decade on average.[+7 sentences] Of this, about one- to 2-percentage points should be from productivity improvements. To be clear, this is a very ambitious goal. Only a few countries at our stage of development have been able to sustain such high productivity growth. It requires a continual transformation of our economy. Firms need to learn new ways to do business, workers need to learn new skills to contribute differently and to embrace new technologies, and new firms in new sectors must start up and grow and more than replace the firms in declining industries. As Ms Mariam Jaafar and several Members have noted, this is a massive undertaking. But we are aiming high and we are determined to do our best to achieve this. One key strategy is to attract more high-quality investments into Singapore because these investments typically involve cutting-edge and innovative activities.[+1 sentence] They help to push the productivity frontier. That is why we need new investment promotion toolkits like the Refundable Investment Credit. Another strategy is to maintain consistent and steady investments in R&D. That is why we are making the top-up to RIE2025 in this Budget, which will sustain Government investments in R&D at about 1% of GDP.[+7 sentences] This will yield dividends over time. Some have voiced concerns about whether we will become a two-track economy – one track for MNEs and another for SMEs. I can understand these concerns, but it is not so helpful to think of the economy in terms of larger foreign and smaller local companies. A better way is to consider the two broad segments of the economy: one that is outward-oriented and another that is domestic-oriented. Every economy, including Singapore, has these two segments. And each faces challenges and business conditions. The outward-oriented segment of the economy comprises MNEs, but it also has many local enterprises, big and small. Collectively, they make up about 60% of the firms in Singapore: six zero.[+9 sentences] And there are many supplier and partnership arrangements between MNEs and local firms. We want to encourage more of these partnerships and we have enhanced the PACT scheme in this Budget to do so. Companies in this outward-oriented segment are generally more productive and also have some scale. They have to be; they compete in the global marketplace. They must continuously innovate and up their game. Otherwise, they will fall behind and they will lose their share of the global market. Not surprisingly, these companies have high take-up of Government schemes that help them invest in R&D, automation and productivity improvements. They do not need to be persuaded to do so. Everything is at stake for them. Given their higher productivity, this outward-oriented segment accounts for about 75% of our economy in terms of nominal value added.[+44 sentences] Three-quarters of our economy, outward facing. The remaining 25% of our economy comprises mainly domestic-oriented sectors like F&B, retail and construction. These are more labour-intensive. There are, of course, also domestic services which are high touch in nature, like childcare and elderly care, and they require workers. So, these domestic oriented sectors tend to be less productive than the outward-oriented sectors. That is not unique to Singapore. It is the same for all other economies. But the productivity of some of our domestic-oriented sectors lags behind similar sectors in other advanced economies. For example, take the construction sector. The productivity of our construction sector is about one quarter that of Switzerland. Of course, within our domestic-oriented sectors, there is a range of firms. Some are embracing change and restructuring themselves to be more productive, others are less ready to do so. That is why we can and we must do more to encourage and support companies, especially SMEs, in this restructuring journey. Several Members spoke about this, including Mr Chong Kee Hiong, Mr Keith Chua, Mr Neil Parekh, Mr Derrick Goh, and Mr Mark Lee, and we will consider all of your suggestions. But we also have to be careful that Government support does not inadvertently prop up outdated or unviable business models and hinder restructuring. That is why our support schemes are geared towards supporting business owners who are themselves prepared to embrace change and to adopt new and more productive solutions. This is what we have done and will continue to do. While we push hard on productivity growth, we also need our workforce to grow. This is one issue that comes up repeatedly in all our engagements with businesses, especially SMEs. They just cannot find enough workers, and they tell us all the time. Some of the increase in the workforce will come from growing our resident workforce. But we know that the increase in our own resident workforce has been slowing and will not be sufficient to meet the demands of our economy. So, it will have to be complemented by a continued inflow of foreign work pass holders. We already have in place a comprehensive system of controls to regulate the quality and the number of incoming work pass holders. This applies across every level of the workforce. At the lower end of the income spectrum, we have Work Permit holders. They comprise about two-thirds of our total foreign workforce and mostly take up roles that Singaporeans do not want to do, for example, in construction. We have not loosened our Work Permit controls. We have no intention to do so. But even at present settings, firms are able to bring in more workers, because of the demand. We are building more public housing, more residential housing projects. We are ramping up or going ahead with major infrastructure projects like the MRT, Changi T5, Tuas Port. Workers are needed to build these projects, and so the firms are bringing in more of them. At the same time, we will ensure, as Mr Louis Ng said just now very eloquently, we must make sure that we take care of these workers. So, we will ensure we have the necessary infrastructure to accommodate these workers well, including building more dormitories – dormitories with the revised standards that we have put in place based on our COVID-19 experience and more recreational centres for their well-being. That is something we owe to these workers who help to build our country. At the middle-income levels, we have Singaporeans doing the jobs, but there are not enough of us, and that is why we top up with S Pass holders and they include people doing important jobs like nurses and technicians. So far, S Pass numbers have been stable. We will continue to make sure that S Pass holders have the right skillsets and are in areas where we need them the most. At the higher end of the income spectrum, we have Employment Pass (EP) holders. These are professionals with the skills and abilities to contribute at the upper end of the workforce. This is especially so for new growth areas like AI and the digital economy, where there is currently a shortage of skilled talent, not just in Singapore but also globally. We apply salary cut-offs to ensure that the EP holders we bring in are of the right calibre. In particular, we have stated previously that we aim for EP holders to be comparable in quality to the top one-third of our local PMET workforce. To keep pace with changes in wages, we will raise the minimum qualifying salary for EP applicants.[+2 sentences] The Minister for Manpower will share more details of the changes at its Committee of Supply. This is not a new policy setting because the policy intent to ensure that the salary cutoffs are comparable in quality to the top one-third of our local PMET workforce has already been stated. That remains the policy intent, but because local wages have gone up, we will have to adjust accordingly, and the changes will be announced by MOM at COS. So, when you look at all of these different factors over the coming decade, we expect our workforce to grow at about 1% per annum, in line with the needs of the economy. This, combined with productivity growth at about 1% to 2%, is how we can achieve 2% to 3% growth for the overall economy.[+17 sentences] Why are we doing all this? It is not to chase after a target. It is not to grow for the sake of growth. It is to secure better outcomes for Singapore and Singaporeans. That is why, in tandem, we are making several other major moves. We are introducing new Workplace Fairness Legislation. This reflects the Government’s commitment to push against discrimination in the workforce and ensure fair employment opportunities for all workers. We are investing more heavily in Singaporeans, something which many Members spoke passionately about. This is how we give our people the extra advantage to compete and excel in the global marketplace. In particular, in this Budget, we are making significant enhancements to SkillsFuture and introducing new schemes to help our workers realise their full potential, regardless of their start points or stage of career. And we have focused on the segments that face more challenges. For young ITE graduates, we introduced the ITE Progression Award to encourage and support their upskilling journey. Mr Xie Yao Quan and Miss Cheryl Chan spoke about this. With this award, they will be better supported and they will have many opportunities to get an MOE-funded diploma, not just in the polytechnics, but also at other institutions like ITE, where they offer work-study programmes, as well as technical diplomas. We want our ITE students to do well, deepen their skills and go further. Get on a better career and wage trajectory in life. This Progression Award will encourage and support them in this journey. For mid-career workers, the new SkillsFuture Level-Up Programme will support them with a substantial injection of skills to improve their employability.[+17 sentences] Many Members, including Leader of the Opposition Mr Pritam Singh, Assoc Prof Jamus Lim, Mr Christopher de Souza, Mr Gerald Giam, Mr Desmond Choo and Mr Syed Harun, all spoke about this. There were many suggestions, such as to expand the scope of the SkillsFuture Credit, to reduce the qualifying age or to provide additional incentives and support. I appreciate the strong support and interest. The Level-Up programme is a significant new addition to our SkillsFuture system. Let us make this move first. We have not even talked about the details yet, which will be announced by the Minister for Education at COS. So, we will make this first move, we will consider all your feedback and suggestions, and how to further finetune and enhance the scheme, as we gain more experience over time. There is another segment we are paying close attention to, that is, Singaporeans with the potential to take on leadership positions in MNEs. Over time, more Singaporeans have taken on such regional and global leadership roles, and we want to nurture and grow this pipeline of Singaporean leaders. Naturally, there is intense competition for these highly sought-after jobs. The MNEs will and should rightfully select and appoint their leaders by merit. But when companies look for or consider people for such roles, they will typically look for those who have already spent substantial time managing an overseas operation, because remember, they are looking for regional and global leaders. So, you must have spent time overseas, running, managing overseas operations. This means that Singaporeans who would like to be considered for these positions must be prepared to be posted overseas, not just in your early 20s, when many young people like to be posted overseas, but also in your 30s and 40s when you are taking on managerial responsibilities and also when you have settled down and have families. Understandably, at that season in life, relocating overseas is not going to be easy. There are many considerations. The spouse may have to stop work for some time. The children will have to adjust to an international school, and then come back to re-adjust to the Singapore system. So, we are reviewing this, we are considering how we can support or provide more support for Singaporeans under these circumstances so that we can help support them when they go overseas, when they come back and put them in a better position to be considered for leadership appointments in their respective companies.[+1 sentence] Over time, I am confident we can develop and nurture more Singaporean experts and leaders across all fields. We have been doing this systematically in Finance for some time already and we can see the results. We now have around 4,000 Singaporeans holding senior roles in the financial sector, up from fewer than 2,000 in 2016. We now have a network of Singaporean finance leaders who come together regularly, they meet up and they support one another in their leadership journeys. We will redouble our efforts in finance and also in other key sectors of the economy.[+60 sentences] These are our plans to secure better growth and better opportunities for all Singaporeans. This is also how we take concrete steps towards helping everyone realise their Singapore Dream. This idea of a refreshed Singapore Dream was expressed by the vast majority of Singaporeans, especially our youths, during our Forward Singapore engagements. To be clear, it does not mean that Singaporeans have given up on material goals. But they want to avoid getting trapped in an endless rat race of hyper-competition. They want to find meaning and fulfilment in what they do, beyond material success. I think these are noble aspirations. There are undoubtedly some generational shifts because these aspirations are perhaps more commonly expressed amongst those born after Independence than before. My colleagues and I in the 4G leadership, almost all of us were born after Independence too. So, perhaps, we instinctively empathise with these aspirations, and as part of Forward Singapore and as a first step in this Budget, we are doing more to help our fellow Singaporeans realise these shared aspirations – by providing more opportunities and diverse pathways for everyone to excel, to develop to their fullest potential and to be the best possible version of themselves. Singapore must be defined not just by how far our talents can go, but also by how well we support one other. In this new environment, we recognise that there will be more stresses and strains on our people. With rapid technological advances and more intense competition, we can expect more churn at workplaces. Some jobs will become obsolete while new jobs with better pay will be created. All this will be very unsettling for those who are affected. This brings me to the third issue we have to address: is our system of social support sufficient to assure Singaporeans through every life stage? Again, many Members spoke passionately about this – Mr Dennis Tan, Ms Ng Ling Ling and Dr Wan Rizal, just to name a few. In fact, we have been working hard over the years to progressively enhance our social safety nets. We started in a more deliberate manner around the Asian Financial Crisis in 1997 when we first saw income trends diverging. We have continued to fine-tune and improve over the years. In this Budget, we are taking further steps to strengthen our system of risk pooling and social support. The traditional pillars in any social support system are education, housing, healthcare, work and retirement. You find this in all countries. In education, we have invested heavily in a first-class school system. We have also significantly increased our investments in preschool education, and expanded tertiary education options for our youths, including increases to the university cohort participation rates. In housing, we have public housing and the Housing and Development Board (HDB). We celebrate 60 years of the Home Ownership Scheme this year. It is a significant milestone because there is no other institution like the HDB in the world, which has provided comprehensively for the housing needs of its people. Indeed, it may even be misleading to call it “public housing”, because when you look around the world, public housing elsewhere often develops into slums or even ghettos. Our public housing is really a national housing scheme. And our housing policies are not static – we continue to review and update them and remain fully committed to keeping our national housing affordable and accessible for Singaporeans, including those from lower-income households. In healthcare, we have Government subsidies and the 3Ms – MediSave, MediShield, and MediFund. We have continued to improve on this. We made MediShield universal and lifelong through MediShield Life. We have CareShield Life for long-term care. Recently, we have launched Healthier SG and Age Well SG. In work, we have strived to create good jobs for all Singaporeans, not only to provide a good living, but also because work gives dignity and purpose in life. To uplift our lower-wage workers, we have added Workfare and Progressive Wages, as noted by Mr Raj Joshua Thomas and many others. These moves are delivering results. In retirement, we have the Central Provident Fund (CPF), which we have been enhancing over the years. We pay additional interest to help those with lower balances. We introduced CPF LIFE because Singaporeans are living longer, and we want to provide them with a retirement payout for life. We provide Silver Support for seniors who had low incomes during their working years. And now, we have the Majulah Package to help seniors accumulate more retirement savings, especially our young seniors. We will not stop here. We are continuously studying how we can do better. But let us also understand this. For those who ask for higher CPF returns, you will surely know that higher returns must come with higher risks. To what extent can retirees bear this volatility, especially when they may need to withdraw their funds in a period of negative investment returns in the markets? These are some of the complex issues that the Government has to weigh and consider carefully. But in the end, we will ensure that the CPF system provides for the basic retirement needs of all Singaporeans so long as they work and contribute to their CPF consistently. Around these five pillars, which I have just described, we have ComCare – to ensure that no family and no individual falls through the cracks. Through ComCare we provide financial assistance, short- and medium-term as well as long-term assistance to those in need. But we have gone beyond just providing financial support. We lean forward to take a more family-centric approach – bringing together different agencies and community partners, and customising support for lower-income families, especially those with young children, through ComLink, and now, ComLink+. We have also provided more support for vulnerable groups, such as children with special needs, ex-offenders and persons with disabilities, something which several Members spoke passionately about, including Mr Eric Chua, Miss Rachel Ong, Mr Ong Hua Han. The latest addition to our system is SkillsFuture. Something we started about a decade ago. We have made good progress, but we still need to do more, and that is why we have made significant enhancements to SkillsFuture in this Budget. We are also working on the new support scheme for those who are involuntarily unemployed as part of our enhancements to SkillsFuture. This will be targeted at involuntarily unemployed workers in the lower and middle-income groups. We will provide them with temporary financial support and encourage these individuals to go for training if needed, or to get matched to new jobs.[+5 sentences] In other words, this is really more of a jobseeker support scheme than an unemployment benefit. We considered whether or not to make this an insurance scheme, but for an insurance scheme to work, it will require universal enrolment, otherwise, the insurers will be cherry picking. There will be what economists call "adverse selection". The scheme will not be viable. If we make it mandatory, or require universal enrolment, this will require contributions from employers and employees. It will add to the business costs which small and medium enterprises (SMEs) and lower-income workers are already concerned about. That is why we have decided to fund the scheme using taxes instead.[+8 sentences] In other words, all of us as taxpayers and the Government will help you bounce back if you face unemployment setbacks. I thank Members who have spoken on this, especially our tripartite partners, as well as the Labour MPs like Mr Patrick Tay, who have given us suggestions and ideas for this scheme. We are working out the parameters and will share more details later this year. Sir, what I have just described are all structural moves. They are not temporary or short-term measures. We have been strengthening them year after year, and we will continue to do so. And that is why over the last 20 years, social spending by the Government has quadrupled. As a share of the Budget, we are also spending more on social support. In this Budget, half of total ministry expenditure is committed to social spending, which is a lot.[+11 sentences] A substantial portion of this is spent on structural schemes, not temporary measures. Some Members would like the Government to do even more. But other members have reminded us that the Government should proceed carefully, so as not to breed a sense of entitlement, dependency or undermine individual responsibility and self-reliance. Indeed, we are very careful about getting this balance right. We have not changed our ethos of social support – it is not about giving handouts, but giving people a leg-up. ComLink+ and the SkillsFuture Level-Up Programme have been designed so as not to erode personal and family responsibility. Likewise, the upcoming scheme providing temporary support for those who are involuntarily unemployed will also abide by these principles. We catch Singaporeans when they fall and make sure they do not fall behind. We invest in them and provide them the support to bounce back from life’s setbacks and do even better for themselves. In the end, this is about ensuring that families and individuals enjoy better incomes and better living standards. If you look over the past decade, the lower-income groups in Singapore have, in fact, progressed faster than the rest. Real incomes of the bottom 20% increased slightly faster than the middle income, and twice as fast as the top 20%.[+35 sentences] This is based on incomes alone, it has not taken in consideration our progressive system of taxes and benefits which favours the lower-income. So, if you were to add all of that together, the overall picture is in fact, better for the lower-income. But we will not stop here. We will continue to work hard to keep on improving. We learn from other countries, and we are open to all ideas – from Members of Parliament, researchers, and community advocates. That is the spirit of Forward Singapore. We will consult widely and make bold and effective changes to take Singapore and Singaporeans forward. During this debate, many Members – Opposition MPs, PAP MPs, Labour MPs – all of you have laid claim to the policy shifts announced in the Budget. Well, I am glad everyone wants to be associated with the Budget. As the saying goes, failure is an orphan, but success has many fathers, and mothers too, I should add! Basically, we welcome all who wish to associate themselves with these forward-thinking initiatives, because in truth, no one has a monopoly on ideas. There are many stakeholders also outside this House who have claimed credit and in fact, who have shared with us many ideas too. The Government has and will continue to provide more information to facilitate informed discussions of policies, something which several Members spoke about. We are committed to doing so. For example, the Ministry of Finance (MOF) publishes the Singapore Public Sector Outcomes Report every two years. This covers a broad range of outcome indicators. Not just input, but outcome indicators. We continue to finetune and improve this report. So, let us have you feedback and suggestions on what additional indicators we should track and we should incorporate. Looking ahead, there will be even more opportunities for ground-up and civic engagements, something which Ms He Ting Ru, Dr Tan Wu Meng and Ms Denise Phua spoke about. We will provide more platforms for individuals and groups to contribute meaningfully, not just through feedback sessions, but also youth panels, citizens’ panels where participants play active roles to co-create and update policies. And in the end, the real work is about translating ideas into effective policies that work for Singapore. That is our test. Is it effective? We all want better wages, better assurance, better security for our people. But what is the effective way to achieve these goals? How do you pay for them? How do you guard against inadvertent consequences? Many things start from good intentions, but they do not all achieve what is intended. These are the careful deliberations that have to be made. If we look at the many policies the Government has introduced over the years, it is clear that we are different from what other countries do. That is because we do not just blindly copy. We learn from others. We are not ashamed to say that we do so. We adapt to our own needs, we discuss with key stakeholders, especially our tripartite partners to get buy-in and then, we develop something that applies to our context. That is how we have innovated massively on the social front as we have on the economic and financial fronts.[+1 sentence] We have Workfare rather than welfare. We have progressive wages instead of minimum wage.[+1 sentence] SkillsFuture, instead of preserving obsolete jobs. And soon, support for jobseekers instead of unemployment insurance.[+11 sentences] This is not just about changing the words. This reflects our policy emphases and priorities and how we go about effecting change for the betterment of Singapore and Singaporeans. We recognise that we may not always get it right, but we will always improve and keep on doing better. We will continue to evolve and improve our system of social support. We will maintain the right incentives, actively enable self-reliance and make sure we are able to fund these schemes. This is how we sustain a social trampoline that promotes rather than dulls economic progress that ensures the fruit of progress is shared by all. This is how a strong economy and a strong society coexist and reinforce each other. Sir, our approach to investing in our people and building our social support system has yielded very good outcomes – even while we spend only a fraction of what other governments spend. Take education for example – we provide quality education that produces results. We have one of the highest mean scores in reading, mathematics and science in the Programme for International Student Assessment (PISA). Members are aware. These results give us confidence – because PISA does not test rote learning. They test students' ability to apply what they have learnt to unfamiliar settings and real-world contexts and our students do well in these tests – and we have achieved all this while keeping education expenditure at about 2% of GDP, which is less than half the Organisation for Economic Co-operation and Development (OECD) average of about 5% of GDP.[+6 sentences] Our long-term and prudent approach has enabled us to keep Government expenditure at less than one-fifth of GDP – 20% of GDP. This has in turn allowed us to keep our tax burden low. In fact, 40% of all workers do not pay personal income tax. The effective tax burden for middle-income households – at around 10% of household income – is significantly lower than other advanced economies. UK and Finland, for example, have middle-income tax burdens that exceed 30%. Our fiscal system is also fair and progressive: where those with greater needs receive more help than what they pay in taxes. The lowest 20% of households receive about $4 for every dollar of tax paid – $4 in benefits for every dollar of tax paid; middle 20% of households receive about $2 for every dollar of taxes; and the top 20% of households receives about 30 cents for every dollar they pay in taxes.[+26 sentences] Members are familiar with these statistics. We shared them before. They have not changed. But how does this compare with other countries? There are some inherent limitations in comparing across countries but we have done some computations. Singapore, in fact, does better than advanced economies, like the UK and Finland, especially for lower and middle-income households. And the statistics that I mentioned just now also do not include other intangible benefits – like access to quality education, healthcare, housing or having safe streets in Singapore. This is how we provide and take care of our people. Of course, a progressive system must mean that the better-off contribute more and this includes paying more in Property Tax for those with higher-value homes. With the Annual Value (AV) band changes that we have announced in the Budget, the higher owner-occupied Property Tax rates will apply to those living in homes with AVs above S$40,000 – or the top 7% of properties in Singapore. Top 7% of properties. Of course, within this group, there is also a range and those who pay a lot more in Property Taxes generally have homes with much higher value – we are talking about higher-end condominiums, semi-detached houses, bungalows and Good Class Bungalows. That is what the Property Tax is designed to do – it is a wealth tax for those with more assets. But we do recognise that there are some groups – especially seniors and retirees – who may need some support to cushion the impact of the Property Tax increase; and this was highlighted by several Members including Ms Joan Pereira, Mr Lim Biow Chuan and Mr Yip Hon Weng. So, beyond the 24-month interest-free instalment plan – which I have announced in the Budget – those who face difficulties in paying, especially retirees and seniors, can approach IRAS for assistance. Next, I should also deal with some specific questions on tax changes. Ms Usha Chandradas asked about the withdrawal of the tax concession on royalty income accorded to authors, composers and choreographers. The concession was introduced in 1983 as she highlighted, at the time when Personal Income Tax rates were much higher. Since then, tax rates have come down and the concession now benefits only a very small group of taxpayers. So, we have decided to withdraw the concession so as to ensure parity in the treatment of royalty income with other sectors. But at the same time, we are putting in much more resources to provide additional broad-based support for the arts sector. So, we are not withdrawing resources from the arts sector, we are putting in more resources for the arts sector. There were also other tax-related suggestions from Ms Usha and other Members of Parliament, including Mr Don Wee, Mr Edward Chia, Ms Denise Phua and others. I thank all of you for your suggestions. We will continue to review them, taking into consideration their relevance for our tax regime, costs and benefits and of course consistency with international standards. Some Members, Mr Liang Eng Hwa, Mr Louis Chua and Mr Pritam Singh, had sought clarifications on the potential revenue impact of the BEPS Pillar Two moves. The OECD's estimates imply that investment hubs could see a Corporate Income Tax revenue gain ranging from about 17% to 38%. This translates to a revenue gain of $5 to $11 billion per year for Singapore.[+2 sentences] That is based on OECD's estimates. But these estimates have not taken into account how MNEs may respond and the possibility of their activities moving out of Singapore, thereby reducing our tax base. Possibly for this reason, Hong Kong and Switzerland, which are also investment hubs, have estimated their revenue gains at $1.7 billion to $2.4 billion respectively; much lower than what the OECD has put out. So, these data points are suggestive of what the range for Singapore could be, anywhere from around $2 billion to $11 billion.[+24 sentences] But we are really not sure where we will end up because there are so many unknowns. I think no one is sure, to be clear. The OECD has also made very clear these are estimates. No one can be sure what the actual impact will be. What we are doing is to engage the MNEs better to understand how they are likely to respond, especially taking into account some of the moves we have made in this Budget and we will certainly provide our own revenue estimates in due course. In any case, any revenue impact from the Pillar Two moves will only materialise from FY2027. So, this is not something for this financial year. We have some time. We are making the assessments. We are doing the detailed projections and we will come back with detailed revenue updates. Of course, the actual amount of revenue gain and how long it will last will depend on how the competitive landscape evolves and also how much we have to re-invest into the economy. Several Members said that the whole point of BEPS is to tilt the playing field in favour of governments and make MNEs pay more taxes. I think Mr Louis Chua and Mr Jamus Lim highlighted that. I agree. That is the intent of BEPS. But there is theory and there is reality. What is the reality? The reality is that MNEs have bargaining power and governments around the world are all finding ways to favour them and getting them to invest. And you can read this. They are not even doing this quietly. They are publicly doing it. You can read this for yourself in the media – just a few days ago, Japan said that it would give Taiwan Semiconductor Manufacturing Company (TSMC) up to $6.5 billion more in subsidies for a second plant and that will bring the total subsidies to TSMC to over $9 billion. Earlier this month, the US also announced a $2 billion grant to GlobalFoundries – the largest grant from the CHIPS Act to date. These are very generous subsidies that the major economies are giving to MNEs. We are not in the same league, but we have to play a smart game so as not to lose ground and to anchor important investments here. That is why we have introduced the Refundable Investment Credit in the Budget to update our investment promotion toolkit and committed to spending more to support new investments, research and innovation activities.[+3 sentences] These moves are absolutely necessary – so that we remain in the race for quality investments and create good jobs for Singaporeans. This is not an academic exercise. This is about the lives and livelihoods of Singaporeans and we will do whatever is necessary to safeguard this, especially in a world where competition will only get tougher. So let us not be so naïve to think that the putative gains from BEPS will simply materialise in our favour. This is why, as I said in my Budget Statement, after taking into account the additional expenditures that we are likely to have to incur, I do not expect the Pillar Two move to generate significant additional net revenues on a sustained basis.[+3 sentences] I should also add that the above estimates do not take into account the impact of Pillar One, because all we have been talking about is Pillar Two. But Pillar One has been delayed and if it is implemented, it will clearly be revenue-negative for Singapore. After taking into account all this, what is our fiscal position? Last year, Ministry of Finance (MOF) published an Occasional Paper on our medium-term fiscal outlook, up to FY2030. We showed in the Paper that our spending needs would grow as a percentage of GDP – to support our ageing population, to expand and strengthen our social system and there would be a funding gap of more than 1% of GDP if we did nothing. But with the tax measures announced in the last two Budgets – including the Goods and Services Tax (GST) rate increase – we project that we would close the funding gap, provided we manage the pace of spending growth.[+17 sentences] All that was in the Occasional Paper and, indeed, this is what we have done. The tax changes have come into effect, although we have not yet experienced the full revenue impact because we have been giving out some rebates. We had also enjoyed some revenue upsides, some of it was due to sentiment-driven revenues, like Stamp Duty and Vehicle Quota Premiums; some of it due to stronger than expected Corporate Income Tax Revenues last year from a strong rebound amongst some companies post-COVID-19. So overall, we are currently in a sound fiscal position. And we are putting our resources to good use to address immediate concerns and also upcoming needs. I mean, this is no different from how one would manage your own personal finances. Imagine if you are a homeowner planning for a major renovation in five years' time. What do you do? You start setting aside resources now for the major expenditure that has to be incurred. You do not wait until renovation starts then look for money and hope that it is there somehow. In the same way, we have set up Funds to meet real commitments and real spending needs. Some of it are for recurring commitments, like the permanent GST Voucher, which we draw on year after year; for new commitments, like the Majulah Package; and for major spending needs that are coming up, like the Future Energy Fund – which will help to decarbonise our energy system. Some other countries operate differently. There are countries that make major commitments without assurance of funding. In the US they call this "unfunded mandates" – pass laws for all sorts of provisions but find the money later, "Let us not worry about money now." That is not how we do things in Singapore. If this Government makes a commitment, we make sure it is properly funded. We make sure we deliver on our promises. But let us also be clear: the days of structural fiscal surpluses in Singapore are over.[+9 sentences] If you look at our economic and fiscal situation, growth will come down. We hope to achieve 2 to 3%. Operating revenues will barely keep up with GDP growth and Net Investment Returns Contribution (NIRC) will also broadly maintain as a share of GDP over the medium-term. Our expected long-term returns are about 4%. This is updated every year. We go through a rigorous process to do so with the Council of Presidential Advisers and the President but we do not expect this to increase given the more challenging investment environment. So, the expected long-term returns are applied on the reserves – or the net asset base – and we take half of that to generate the NIRC. If we really had so much surpluses somehow streaming into the reserves, then the net asset base must be growing and the NIRC would be rising significantly as a share of GDP – but it has not and we do not expect it to do so in the coming years as well. So, operating revenues and NIRC maintaining as a share of GDP, which only means we must manage our expenditures well because only then can we continue running balanced budgets till the end of this decade. This is also why we do not look at the Budget simply as a one-year plan, but also a multi-year commitment. It is in this spirit that we have provided a preliminary high-level estimate of $40 billion to resource the upcoming Forward Singapore policy moves.[+28 sentences] The Forward Singapore report has already outlined the broad range of policy areas we are reviewing and studying. Some have been announced – details have been given out in this Budget. Others will be fleshed out in due course, as will the detailed fiscal requirements of these subsequent moves. We will also update our medium-term expenditure and revenue projections. The Occasional Paper that we had published last year may not be so occasional after all. We will keep on updating it from time to time, so that everyone will have a sense of how our fiscal trends are unfolding, not just on a year-to-year basis, but over a five- to 10-year horizon. We must continue to plan ahead, do our sums carefully and be upfront with Singaporeans on the costs of various proposals. This approach of looking and planning ahead is a hallmark of our fiscal policy. It ensures that we are able to meet our collective aspirations and seize every opportunity that comes our way. Perhaps, the Opposition takes a different view of fiscal management. Certainly, they want the Government to use more of the reserves for current spending. They suggest different ways of doing so – using revenue from land sales, waiving land cost for HDB flats, increasing the percentage of Net Investment Returns (NIR) that can be spent and so on – but in the end, they all come down to the same thing, which is to use more of the reserves today. What will this mean? Basically, we will end up with less for ourselves in the future and we will also leave less behind for our children and the next generation. Eventually, NIRC will shrink as a percentage of GDP, the funding gap will increase and our children will have to pay more in taxes. In fact, this is what many governments in the advanced economies are faced with. Their debts are rising; their deficits are rising; and their fiscal systems are at risk of breaking. Many of them have some version of an independent budget office, but it has not helped at all. Basically, no political party in these countries are prepared to dish out the hard truths. So, their policy debates are dominated by what some commentators call "fiscal fantasies". What are some of these fantasies? They include far-too-optimistic forecasting assumptions. The idea that all the funds can be raised from the rich, with close to zero consequences for the rest of the population. Or they can kick the fiscal can down the road indefinitely – just continue to spend and leave it to their children or to those not yet born to solve the problems. Let us not indulge in fantasy thinking – not in this House, not in Singapore. Having the resources to pursue a strong economy and a strong society, and to achieve good outcomes, is not a fairy tale. This is very much our Singapore reality, but it requires us to focus on prudence, fairness and sustainability. What we have is a unique and, certainly, a privileged position of strength. Many economies pay about 2% of their GDP in debt servicing for debts that have been accumulated.[+5 sentences] We are so different. We enjoy the benefits from savings from the past. To continue on a sustainable path, we must maintain our commitment to set aside enough, not just for ourselves, but also for the future. So, I call on everyone in this House. Let us commit to upholding these values – fiscal responsibility, discipline, ensure that our fiscal system meets the needs and aspirations of both current and future generations of Singaporeans. If the Opposition parties have a different view on this, I invite them to take up the challenge that the Prime Minister issued in this House a few weeks ago: make drawing more from the reserves an election issue. Let us go to the people, ask them for a mandate to change the Constitution – you can ask them to do so; compel the President to let you spend 60%, 75% or even 100% of the NIR.[+4 sentences] The PAP will join issue with you. We will present our case to Singaporeans, and ultimately, Singaporeans can decide what is the best fiscal approach to take Singapore forward. Mr Speaker, Sir, Singapore is at a critical moment of change. We are entering a different world, one that is messier, more dangerous and more unpredictable. There will be more forces that threaten to pull us apart. This year's Budget is the first step in advancing our Forward Singapore agenda.[+10 sentences] We want to refresh our social compact to keep our society strong and united in this troubled world. We want to build a better Singapore – not just for a few, but for all Singaporeans. We want to refresh the Singapore Dream and build a Singapore that is vibrant and inclusive, fair and thriving, resilient and united. The road ahead to this better Singapore will not be easy. But we are all in this together and we all have a part to play. The Government will do more to provide opportunities and assurances at every stage of life and everyone in society should contribute towards our shared goals and aspirations in our own ways. I take heart from the nation-building journey we have had so far. As one united people, we have consistently turned our challenges into opportunities and our constraints into strengths. We have done it before, and I am confident we will do it again. Sir, let us build our shared future together.
Mr Speaker3 words
[+1 sentence]Mr Pritam Singh.
Mr Pritam Singh (Aljunied)398 words
[+8 sentences]Just a quick clarification for the Deputy Prime Minister. I acknowledge and thank him for stating very clearly that the Government will provide more information in response to some of the interventions that the various MPs have made. I think this is important. I was trying to link it to the final subject matter that the Deputy Prime Minister covered about usage of reserves and so forth, or suggestions that were made by the Opposition, I think these were in a particular context. It did not come up in this debate, but certainly, in previous debates where we talked about how we can make up for funding gaps vis-à-vis GST and all that. So, the call for information actually is very much part of how the Opposition tries to understand or tries to work through a mechanism or framework of fiscal prudence as well. I will give you an example how we do that. The Finance Minister talked about unemployment insurance and I think he made clear at his round-up speech that it will be financed through taxes. The Workers' Party (WP) had proposed a scheme which was actually financed by employer and employee.[+12 sentences] So, I would be cautious to suggest that the Opposition essentially just wants to dig into the reserves because we do think about the financial prudence question quite carefully. That was just a clarification for Finance Minister. The second point is with regard to growth. I think there were Members in the House in the course of the debate who talked about growth. Indeed, growth is important. But I think the key point here is sustainable growth and I think this is the real key going forward in this decade. Because we have seen what happened one decade ago, about 10 years ago, the sort of debates we were having in this House. And the Deputy Prime Minister was there. The Government, basically Ministers, came out to say: we are slowing down growth, we have to, because the situation had changed so dramatically. Going forward, I think the real question is not so much what I think one Member I heard saying, I make no apologies for growth. I think we have to be careful if we go down that road, but to frame a conversation on sustainable growth. And then, I think there will be support for many policies that the Government proposes.
Mr Lawrence Wong362 words
[+12 sentences]Mr Speaker, on the second point, I fully agree with Mr Pritam Singh that we are all about sustainable growth. There were instances in the past where, perhaps, infrastructure was not ready, for example. And that is why we have put in place processes, updated our planning processes, made sure that we plan our infrastructure well. That is why as I highlighted just now, I went through some pains to explain where the increase in foreign workers were coming from, the large part of it are Work Permit holders, especially in construction. And there is a good reason for this. We are ramping up our building programme for public housing. We are undertaking major infrastructure projects. We need these workers to build our infrastructure and homes. These workers certainly do not compete with Singaporeans for jobs and the issue there really is about planning for infrastructure. And that is why I said just now that we are making sure that we get the dormitories ready, making sure that we build more, making sure that we build better recreational centres for them, so that they are housed well and we can take care of their well-being. So, yes, we want sustainable growth, and we will pursue sustainable growth. On Mr Singh's earlier points, I thank him for his clarification. Perhaps he could also clarify: because the WP had previously objected to GST and eventually now accepted the GST at 7%, but the debate we had earlier was about the two-percentage points increase in GST, and the options, the alternatives that the WP advocated were: use the reserves, increase the NIR, do this instead of GST.[+1 sentence] Now that we have implemented GST, as the WP said, with the 7%, now that it is done, we have accepted it. Perhaps Mr Singh might clarify, you too, perhaps the WP would accept the 9% as a reality.[+1 sentence] And would you then also say that the proposals to use more of the reserves by a higher share of NIRC are therefore no longer relevant and the WP is fully consistent with the PAP when it comes to our framework and rules for the use of the reserves?
Mr Pritam Singh225 words
[+3 sentences]Mr Speaker, I would say that when we make proposals, it is in the context of what is before us at that point in time. I think that is what I would have to respond with. Earlier on in this debate, we had a bit of a back and forth. I think Member Mr Murali Pillai and my colleague Assoc Prof Jamus Lim, engaged in an exchange about the information that we have to put together, policies, Budgets, to understand whether whatever we do going forward is going to be sustainable. I put the question to Mr Murali Pillay about what the $40 billion that has been committed by the Minister for Finance, is going to go towards.[+5 sentences] Now, we have no insight on those sort of matters. So, I cannot make any promise here that we are reneging or stepping back on a commitment to look for revenues to fund some of these policy objectives; because we do not have an insight into those things. By and large, I think the vision, or whatever it is, before the WP in particular – I cannot speak for the entire Opposition – but we will have to work with the information that we have. We are not in Government. If it means that we have to look at all options, we will look at all options.
Mr Lawrence Wong281 words
[+17 sentences]Mr Speaker, as I mentioned just now, MOF will certainly continue to provide more information, where it is necessary, where we are able to. We have been putting out more information already and we will continue to do so. If there is specific information that Members would like, we will be happy to reveal. If there is no security or difficulties, we will certainly want to put them up. That is our commitment. But the basic point I was getting at is whether or not there is a difference in our fundamental fiscal philosophy. I think that is important because there was a time when there was alignment in this House between the PAP and the WP. There was a time under Mr Low Thia Khiang where it was very clear the ethos of fiscal responsibility was the same, across both sides of the House. It seemed to me that this had changed under Mr Pritam Singh, that the position had changed under Mr Pritam Singh. The WP, of course, is free to change its position, but I think it should be clear if this is so. As far as the PAP is concerned, our position is quite clear. It does not mean that policies cannot change. Of course, we review, when circumstances change, we update our policies. But when it comes to certain fundamental principles and values like fiscal responsibility, a basic orientation, not just to look at today but for the future. This must never be compromised; this must never change. These principles were put in place by our founding leaders. They have continued under successive leaders of the PAP, and they will certainly continue under my watch.
Mr Speaker2 words
[+1 sentence]Mr Singh.
Mr Pritam Singh79 words
[+7 sentences]Thank you, Mr Speaker. I think I have heard this before in this House. The point again I would make in response to that is, indeed, I have to agree with the Finance Minister. Policies change. A People's Action Party Government yesterday would return the money that it has used from the Reserves as a matter of principle. But today, a People's Action Party Government may not return the money it uses from the Reserves. That is my response.
Mr Speaker31 words
[+3 sentences]Before I call the next Member, I just want to remind all Members. By all means, feel free to seek clarifications but do not make mini speeches. Mr Liang Eng Hwa.
Mr Liang Eng Hwa (Bukit Panjang)222 words
[+7 sentences]Thank you, Sir. I just want to bring up this point about the pre-funding of some of the major expenditures the Government committed. I do agree with the Deputy Prime Minister that we should pre-fund some of these major commitments that we have. It just demonstrates our prudence and our fiscal sustainability that the longer-term policy commitments are responsibly funded. However, it may also limit the overall fiscal impulse of a current Budget. So, I want to ask the Deputy Prime Minister: can he share whether the Government do take into consideration the utilisation of the earlier-funded packages to determine the total spending injection into the economy, so as to better calibrate the level of fiscal impulse to be injected in each Budget? So, that is my first clarification. My second clarification is related to the NIRC, which the Deputy Prime Minister also mentioned. I do note that the NIRC for FY2023 has been revised down to $22.92 billion; and the NIRC for FY2024 is $23.5 billion. So, it suggests a flattish growth in our NIRC for these two years.[+2 sentences] Just wanted to ask the Deputy Prime Minister: given that we continue to grow the base of the Reserves with half the contribution of NIRC, why is the incremental increase not as high as the previous years? Just wanted a short clarification.
Mr Lawrence Wong352 words
[+11 sentences]Sir, on the first question, the short answer is yes. We take into consideration many factors when formulating the Budget. The fiscal impulse is just one of the many factors. But in thinking about the fiscal impulse, we do not look at the fund top-ups because these do not, as Mr Liang said, contribute to injections to the economy. When we calculate the fiscal impulse, we specifically look at injections into the economy; we look at the state of the economy and we assess what would an appropriate fiscal impulse be for the Budget. But aside from the fiscal impulse, there are many other factors that we need to take into consideration too – how much fiscal space we have, what kind of fiscal commitments do we have to make, what are the needs of businesses and households during this period and then how do we allocate our resources to build a Singapore that we all desire? So, these different considerations come together and we have to balance them in order to put together the Budget. On NIRC, I have explained just now how this is calculated. The broad strokes are: there is an expected long-term return, it is assessed and then we apply it on the net asset base. In order to get a figure, we take half of it for the NIRC. Generally, the NIRC flow is stable but there will be fluctuations from time to time, because we have to update the expected long-term returns every year. And obviously, markets will move up and down then there will be impact on the net asset base. But what is important – rather than look at the year-to-year fluctuations – I think, is the recognition that the NIRC flow is not going to rise as a share of GDP as we have been trying to explain. It provides us a good stable source of revenue – it is stable as a share of GDP – we should appreciate it, but we cannot on current settings, assume or presume that this will rise as a share of GDP because it would not.
Mr Speaker4 words
[+1 sentence]Mr Leong Mun Wai.
Mr Leong Mun Wai (Non-Constituency Member)319 words
[+7 sentences]Sir, to piggyback on Member Mr Liang Eng Hwa's question on pre-funding, can I ask the Deputy Prime Minister two questions? One is that there are many questions raised during the debate on the endowment and trust funds. Another Member who has raised quite a number of questions – which I am interested – was Ms Foo Mee Har. Can I seek clarifications from the Deputy Prime Minister on the following questions: one, what is the rate of drawdown of the various endowment and trust funds and what happened to the undrawn amounts, which I have discussed and sought answers during the Public Finance Motion; two, how the Government determines whether expenditures should be paid out of endowment funds and trust funds or the operating Budget. My second question is: it was also observed that there is a fair amount of volatility in the overall Budget position, which was also pointed out by Ms Foo Mee Har. So, may I know what steps the Government is taking to increase so-called "Budget marksmanship" this year? Maybe I should go through some of the numbers to substantiate my question. One is that – first of all, the Budget for 2022 – the original estimate was a negative $5.3 billion. It was revised to $4.2 billion and then finally, the actual was a deficit of only $0.4 billion. And for 2023, the original estimate was $3.6 billion and then revised to $6.8 billion.[+3 sentences] We do not have the actual amount yet, but this revision of having a bigger deficit is on the back of what I have said yesterday; that in 2023, actually we have an unexpectedly large operating revenue in excess of our estimate, which is about $8 billion. So, despite that, the revised overall budget deficit for 2023 actually is a bigger deficit. So, I must say that that is puzzling and we seek clarification from the Deputy Prime Minister.
Mr Lawrence Wong616 words
[+34 sentences]Sir, let me take the questions in turn. On the rate of drawdown: well, first of all, I should explain. There are Endowment Funds. There are a few of them but the bulk of our Funds are drawdown Funds. That means we are actually drawing down on the Funds for specific spending needs. On the rate of drawdown for these Funds, well, it will vary from Fund to Fund. For example, GST Voucher Fund, almost two or three years we will need a top-up, because it is being drawn down and we are using it every year to fund the Permanent GST Vouchers. Majulah Package Fund will be different because it is really meant to support the Majulah Package. It will be drawn down in the first instance, but then it will continue for some time because there will be people who are young seniors who will continue to benefit from such a Fund. The Future Energy Fund is a different Fund because, there, it is not something we will draw immediately but it is not also something that we will need only 20 or 30 years from now. We envisaged spending this, say, within a five- to 10-year time frame. That is why we are setting aside resources now and massive resources are needed. We have resources today – we set aside now to cover the spending. So, the rate of drawdown will differ but the point is, all of the Fund information are published. Members can look at them and see the rate of drawdown – what happens to the Funds, how they are used and if there are any undrawn amounts left behind, they will be co-mingled back with Government funds. I mean, that is the rest of Government Funds. So, there is no issue there. I mean, this is how we will — But for most of the drawdown Funds, I would say, by and large, we expect almost all of them to be fully drawn down. So, we do not think there will be an issue with any undrawn amounts. Endowment Funds are different. Endowment Funds are set up not to be drawn down but only to use the returns and they are set up with a very specific purpose, which is that whether in good times or bad times, whether the Government has money or no money, we want to ensure that through an endowment, we are able to generate the resources for specific groups of people. And that is why Edusave is set up as an Endowment Fund rather than a drawdown fund. So, it is not contingent on whether there are Government resources or whether there are surpluses or whether there are additional monies. But students can be assured, in good years or bad years, that Edusave monies will always flow. So, these are the considerations behind the different types of Funds. On volatility, actually before COVID-19, our fiscal marksmanship was not too bad. It was within a range of within 4% to 5% of accuracy and that is comparable with many jurisdictions that we compare against. The COVID-19 years, threw many of our assumptions off, but it is not just in Singapore. I mean, name me a forecaster who can predict turning points and get the timings right of these turning points. It is inherently difficult. We are not making excuses. We know that this has happened. The recent years of COVID-19 our forecast accuracy was not as good as we would like it to be but there is a reason for it. It is because of the discontinuities, the disruptions, the sudden changes brought about by COVID-19 and we are determined to keep on doing better.
Mr Speaker4 words
[+1 sentence]Mr Sitoh Yih Pin.
Mr Sitoh Yih Pin (Potong Pasir)172 words
[+3 sentences]Thank you, sir. Deputy Prime Minister Wong mentioned just now that our NIRC, as a contribution to our GDP, is going to probably remain constant over the years. I agree with him. Three weeks ago, when I spoke in Parliament, I had said that I wish that within 10 years, our corporate income tax collections will outstrip our NIRC. But within a month, I am pleasantly surprised that it has already happened because our corporate income tax collection for this year is budgeted at $28 billion; NIRC is $23 billion – 20% more.[+4 sentences] I would like to ask Deputy Prime Minister whether we expect this trend to continue. Sir, I have a clarification for the Leader of the Opposition too. He mentioned that the current People's Action Party Government does not return Reserves to its people, whereas the past PAP Government does so. I do not understand him because, are not returns from NIRC a way of returning money to the people – unless he is talking about a drawdown on Reserves?
Mr Lawrence Wong115 words
[+5 sentences]Sir, yes, corporate income tax revenue has exceeded NIRC. It is not clear-cut to us whether this will continue. It also depends on the revenue impact from BEPS – which as I said just now, is so uncertain. There was a boost to corporate income tax revenue in these recent times, because we have seen a strong rebound among some companies; particularly in a post-COVID-19 environment – tourism, hospitality – some companies really just rebounded very strongly and that is why it has caused the revenue upsides and brought about the revenue upsides in corporate income tax revenue. It is too early to tell whether this can be sustained, so we will continue to monitor.
Mr Speaker2 words
[+1 sentence]Mr Singh.
Mr Pritam Singh129 words
[+7 sentences]Thank you, Mr Speaker. To Mr Sitoh Yih Pin, the response that I gave to Deputy Prime Minister is a point of fact. It was in response to what Deputy Prime Minister said about Mr Low having a certain position on the Reserves and that it had changed under me. I think this must be the third time he has mentioned it in this House and I have responded to it before and I responded to it the last time as well. Global financial crisis – Government draws down, returns the money and I think there were some statements made about why it was doing that. This time round, Reserves are used for another emergency and they are not returned – just a simple statement of fact. Positions change.
Mr Speaker2 words
[+1 sentence]Mr Sitoh.
Mr Sitoh Yih Pin39 words
[+2 sentences]Thank you, Sir. So, is the Leader of the Opposition suggesting that the Government has to top-up the Reserve it drew during COVID-19 because that will be a massive amount and how are we going to fund it then?
Mr Pritam Singh56 words
[+3 sentences]Thank you very much, Mr Sitoh Yih Pin. You have just made the case that I was making: in one situation, you can; another situation, you cannot. You have to look at the statements made when the money was returned, and then you see in a different situation a different context, there is a different explanation.
Mr Speaker3 words
[+1 sentence]Mr Louis Chua.
Mr Chua Kheng Wee Louis (Sengkang)132 words
[+8 sentences]Thank you, Mr Speaker. Just two areas of clarification for the Deputy Prime Minister. The first is on CPF. Does he believe that it is adequate to plan for retirement adequacy via risk-free returns instead of taking reasonable risks via a diversified, well-managed portfolio for the long term? So, in other words, if our investment entities are good enough for our collective reserves, why is it not good enough for individual Singaporeans' retirement reserves? The second is in relation to LRIS, which I mentioned during my speech as well. Again, as the Deputy Prime Minister is now Deputy Prime Minister and soon to be Prime Minister, does he intend to still follow through on the Government's acceptance of the recommendation in 2016 on LRIS? If so, when and, if not, why not?
Mr Lawrence Wong247 words
[+2 sentences]Sir, the returns may be risk-free from the CPF members' perspective, but they are certainly not risk-free rates at all. I mean, if you want risk-free rates, then they will be much lower. The reason why we are able to provide such higher rates, compared to market risk-free rates, is because there is Government support behind the CPF system and we are providing additional interests up to 6% for those with lower balances. We are designing a system that will ensure that all Singaporeans who work consistently, contribute to their CPF, will be able to have their basic retirement needs met.[+3 sentences] That is our objective. Going beyond that, can we improve it? As I said, we will continue to study. There are complexities in this and it includes the LRIS that was highlighted. It is not so straightforward because once you introduce a new element of risk in the hope of getting better returns, you have the issue of what happens when seniors retire in a bad year.[+6 sentences] Then how do you smoothen that out? Once you smoothen that out – Mr Louis Chua is from finance – insurance does not come free, who pays for the insurance? It has to come through the returns. Then, are you able to provide a better product than what is the current CPF rate? Those are the considerations and we will continue to study. We are not saying never but we will continue to work on making the system better.
Mr Speaker3 words
[+1 sentence]Mr Gerald Giam.
Mr Gerald Giam Yean Song (Aljunied)103 words
[+4 sentences]Sir, I have some clarifications for the Deputy Prime Minister regarding the jobseeker support. I understand that it is going to be funded by taxpayers and it is not an insurance scheme like what the Workers' Party has been proposing since 2006. So, I am a bit concerned now about the fiscal impact and the sustainability of the scheme. What is the quantum that is going to be given to the jobseekers and what is the duration of support that is going to be provided? I believe Parliament needs to know because we are being asked to approve the Budget for this year.
Mr Lawrence Wong52 words
[+2 sentences]Sir, the scheme is not being rolled out this year. It does not impact FY2024 Budget. We will put up, provide details of the scheme, including the detailed fiscal impact and, at that time, there will be a full debate on the parameters and the fiscal requirements and whether it is sustainable.
Mr Speaker4 words
[+1 sentence]Assoc Prof Jamus Lim.
Assoc Prof Jamus Jerome Lim (Sengkang)323 words
In an MAS macroeconomic review paper published in October 2022, a breakdown of the sources of inflation here attributed between a third to as much as three-fifths to domestic drivers, depending on the sector.[+9 sentences] What might some of these domestic drivers be? I would contend that the decision to hike GST would likely have contributed to domestic inflation. To be clear, the data used in the MAS study predates the GST hikes, but we have plenty of examples globally that VAT hikes do, indeed, spark inflation. So, my first question to Deputy Prime Minister Wong is whether he still believes that the timing of raising GST was justified or if at least a postponement – especially given how the country has bumper tax receipts from other sources in recent years – may instead have been wise. As an aside, I would state that the Workers' Party categorically objects to the insinuation that we are less fiscally responsible, not least because while it is true that it is Deputy Prime Minister Wong's prerogative to think that the alternative levers of revenue that the Workers' Party has suggested are untenable, but is not true that we do not think about fiscal balances. My second question has to do with what Deputy Prime Minister Wong said about keeping Singapore competitive in the face of BEPS. Unlike what he said, I have no illusions, in fact, about the practicality. Indeed, the design of BEPS took into account the practicality of a race to the bottom and grants countries the right to apply a countervailing top-up tax if they believe that countries have not played by the rules or at least the spirit. So, my fully non-theoretical question that I have for Deputy Prime Minister Wong is: what will the Government do if other countries choose to apply this tax top-up in response to a belief that our RIC contravenes the spirit of the refundable tax credit scheme?
Mr Lawrence Wong431 words
[+7 sentences]Sir, on GST, does it impact on inflation? Yes, it does impact on prices, but the impact is once-off. It is not permanent. We have made that point clear. MAS has made that point clear. If you look at the overall impact on inflation, actually, we have seen the impact on that monthly inflation when GST went up. But if you look at the subsequent trends down the rest of the month, inflation continues to moderate as it has in other advanced economies. You can look at the situation last year and we are quite clear that it is very likely to continue this year as well. So, the impact of GST is not the key driver behind our inflation spike.[+11 sentences] I have explained what the key drivers were and neither will it cause us to have inflation remaining high because disinflation trend is happening globally, we are seeing similar trends in Singapore and our inflation rates are also coming down. So, that is on the first point. And to be very clear, even with the GST in place, we have deferred the impact of GST on the lower-income groups with the Assurance Package by more than five years for the vast majority of Singaporeans, and it is not even a temporary relief because, for the lower-income groups, we have enhanced the permanent GST Vouchers so that GST does not hurt the poor in Singapore. We have gone through these debates extensively and I think we are in a good position to explain why the GST was needed and why, in fact, the additional revenues are needed because we can already see the rising expenditure trends very rapidly. It will happen in the next few years. If we had not done it at the time we did, when will be a good time to do it? And if we were to do it this year or next year, will the Opposition therefore support it? I seriously doubt so. So, I think our approach is, let us do it correctly. Let us do it in good time, put in place, make sure that our fiscal system remains sound and always ensure that we have sufficient revenues to cover our spending. That is what we have done. On BEPS, the RIC is compliant with BEPS.[+5 sentences] This is something that was discussed as part of the BEPS conversations. These sorts of refundable tax credits are allowed under BEPS rules. That is why we are doing it. And that is why we need to understand the realities of the world. Governments all are doing it.
Mr Speaker4 words
[+1 sentence]Dr Tan Wu Meng.
Dr Tan Wu Meng (Jurong)219 words
[+4 sentences]I thank the Deputy Prime Minister for his round-up speech. I have two clarifications to ask. One regarding the future of our fiscal reserves, the second regarding the social reserves, which I mentioned during the Budget Debate. On our fiscal reserves, Mr Speaker, we know the world ahead is dreadfully uncertain but there may also be opportunities which allow Singapore, if luck and good policy favour us, to have possibly some exceptionally good years in future. Can I ask the Deputy Prime Minister, in the event of a run of exceptionally good years, better than our predictions, would there be the possibility of putting back some of what we drew down from the Reserves during COVID-19, putting some of that back if we happen to have an exceptionally good run in the future, better than expected?[+2 sentences] Secondly, on our social reserves, Mr Speaker, I had spoken about how we need to give attention to our social trusts, social mixing, social togetherness. Can I ask the Deputy Prime Minister regarding the idea of the SG Togetherness office, which could be under the PMO Strategy Group, will the Government give consideration to that, so that with that togetherness in our society, we will be better placed to ride the challenges and perhaps have some of those exceptionally good opportunities in future?
Mr Lawrence Wong374 words
[+20 sentences]Sir, our immediate instincts naturally, when you look at what we had drawn from our Reserves for COVID-19, would be to say, "Look, we would also like to put it back into the Reserves as we had done in the last round". So, hypothetically speaking, if there is indeed such a bumper year, maybe it will happen, we will consider it. But in reality, if you look at the facts and if you look at what is going to happen, this will not happen. I mean, I cannot imagine that we will be able to produce surpluses that we used to have like in the past. That was what I was trying to say. Where will the surplus come from? Even if GDP grows, revenue will likely grow at the same rate of GDP; so will NIRC. So, always think in terms of a share of GDP, do not just think in absolute terms. Is expenditure maintaining as a share of GDP? Hardly so. So many programmes are being spent on all the things that we think are important. So, how do we then generate surpluses, as we used to in the 1980s or 1990s? It is not going to be the same. So, I think we just have to be realistic. Those days of structural surpluses are over. We are in a different environment and we will do well just to be able to maintain balanced Budgets on our current settings. On the SG Togetherness office, there have been various proposals from Members – whether it was mental health, whether it is SG Togetherness – to keep on setting up offices in PMO, I think if we do that more and more, we will have many many offices in PMO and I am not sure that PMO will be equipped to handle all of these different functions. So, I think the point is, they do not all need to be centralised within PMO. There are many things we want to achieve: mental health and well-being, togetherness, social mixing. The Ministries will be tasked to do this important work and we will continue to make sure we achieve good outcomes and, in the end, we will track and monitor these outcomes and publish them.
Mr Speaker3 words
[+1 sentence]Ms Hazel Poa.
Ms Hazel Poa207 words
[+9 sentences]I have two questions for the Deputy Prime Minister. But before I ask the two questions, I would like to first respond to what the Deputy Prime Minister said earlier about the Opposition asking to spend the Reserves. I wish to clarify that PSP is not asking for past Reserves to be spent. At the recent debate on public finances earlier this month, we have made it very clear that we are not asking for spending past Reserves. What has been accumulated stays there, but we are asking for a slowdown in the further accumulation of that Reserve. I just want to clarify that point. My first question is: the Deputy Prime Minister has said that MOF has done its five-year, 10-year fiscal projection; so, based on the Government's assessment, is there any need to raise GST further from now until 2030 to fund higher expenditures? My second question relates to the chart that the Deputy Prime Minister showed earlier, showing that the income growth of the bottom 20% is much higher than that for the top 20%. Can the Deputy Prime Minister clarify whether the income that is used here in this chart includes investment income like dividends and rental income as well as capital appreciation?
Mr Lawrence Wong84 words
[+5 sentences]Sir, on the three points. First, Ms Hazel Poa clarified that the PSP has not advocated using Past Reserves. But the PSP has talked about using land proceeds. So, when we talk about Past Reserves, you may have a different definition, but the Constitution defines what Past Reserves is; and clearly, some of your proposals will require constitutional change and will require changes in our framework and using of Past Reserves as it is currently defined. Number two, what was the second question again?
Mr Speaker2 words
[+1 sentence]Ms Poa.
Ms Hazel Poa3 words
[+1 sentence]The GST increase.
Mr Lawrence Wong263 words
Yes, whether there will be a need for GST increases up to 2030.[+1 sentence] Sir, we have published our forecast up to 2030. We have closed the funding gap up to 2030. The GST increase that we announced was intended for this, so we are okay up to 2030. We do not need further GST increases, up to 2030.[+3 sentences] This was made clear in our Occasional Paper too, but as I said, this is up to 2030. We will continue to update this on a rolling basis, not just at every year's Budget, but from time to time, we will update the projections of our medium-term fiscal needs. So, post-2030, we will have to see what the picture is. And beyond that, we will have to see if, indeed, there is a funding gap, if there are increased expenditures and whether or not, additional revenues or tax changes are needed to close those funding gaps. But as of now, up to 2030, we are in a sound position.[+5 sentences] On income and whether the figures I showed just now included investment income, I have to confirm it. I do not think it is all inclusive, particularly, capital appreciation, wealth-generated income. Not likely to. It was also a point that Ms He mentioned just now in the debate regarding the Gini coefficient and the measure of Gini coefficient looks at income from work and does not include all sources of income. The Department of Statistics (DOS) is aware of this, and DOS is working on getting better income statistics, so that we can update our figures.
Mr Speaker4 words
[+1 sentence]Mr Xie Yao Quan.
Mr Xie Yao Quan (Jurong)31 words
[+2 sentences]Mr Speaker, Sir, the hon Member, Ms Hazel Poa, sought clarification from me earlier, specifically on the ITE Progression Award. With your indulgence, Sir, may I address Ms Poa's points, please?
Mr Speaker3 words
[+1 sentence]Please go ahead.
Mr Xie Yao Quan524 words
[+3 sentences]Thank you, Mr Speaker. First, on whether there is really a wage gap between diploma graduates and ITE graduates who then go on to attain a diploma, I think it is not difficult to see that there is a real wage gap here. Let us compare like for like and let us consider this baseline scenario. One student who enrols in polytechnic after secondary school, spends three years, graduates with a diploma, starts work at the average starting pay for a diploma graduate and then, works for, say, five years, so a total of eight years, as a comparison period. In the same eight-year period, consider another student who goes through ITE, gets a direct higher NITEC in three years, for example, and then starts work at the average starting pay for ITE graduates for two years, and then enrols in polytechnic, graduates in three years with a diploma at the end of the same eight-year period.[+3 sentences] The cumulative wage gap between these two students, in this very simple baseline example, is quite clear. And we can look at variations to the baseline example, for example, a work-study diploma scenario, but any which way you look, there is a wage gap. The wage gap manifests from the start of our young graduates' working lives and it accumulates over time. And so, I hope I have provided that clarification. I would add that the policy design that is announced in this Budget to focus on ITE graduates when they are young, before they reach 30 years old, is an extremely important feature, because it is about intervening early in our young graduates' working lives, giving them the support as early as possible, try to close the gap as early as possible.[+12 sentences] So, this is a very significant feature. On the wage gap between polytechnic and university graduates. Yes, there is a gap, and it is an issue that has been discussed in this House – and, I am sure, will continue to be discussed in this House. The Government has already taken some steps to address the issue, for example, increasing the cohort university participation rate quite significantly so that more Singaporeans have the opportunity to meet their aspirations to get a degree. The Government is also working closely with industry, to leverage market forces, to uplift the wages of diploma graduates and close the gap. I know that behind the scenes, there is a lot of work that is going into this. Should we do more? My position as a backbencher is: I certainly hope so, but we cannot boil the ocean. The move in this Budget is a huge step in the right direction. Focus first on the gap between ITE and polytechnic graduates, and I hope in time, we can extend the same basic policy intent to further address the gap between polytechnic and university graduates. But it will require resources, so we need to consider carefully, prudently and, most importantly, I think, if and when that time comes, it will require the whole of society to support such a policy direction. I hope I have provided the clarifications to Ms Poa.
Mr Speaker2 words
[+1 sentence]Ms Poa.
Ms Hazel Poa67 words
[+3 sentences]Sir, I would like to clarify that my understanding is correct. What Mr Xie is saying is that the wage gap is not so much that after they become diploma holders, they get lower salary, but that because they took a longer time to reach the point where they get the diploma and that, therefore, in terms of lifetime earnings, there is a gap. Is that correct?
Mr Xie Yao Quan16 words
[+2 sentences]Mr Speaker, Sir, the short answer is yes. And I think that is the policy intent.
Mr Speaker2 words
[+1 sentence]Ms Poa.
Ms Hazel Poa61 words
[+1 sentence]In that case, Mr Speaker, I would like to follow up and ask Mr Xie if he thinks that, for any reason, any student has a delay in his studies and he ends up with a degree or whatever qualification and it is later than others, is it Mr Xie's position that Government ought to compensate for that difference in wages?
Mr Xie Yao Quan116 words
[+5 sentences]Mr Speaker, Sir, the answer is no. I have never said that, so please do not put words in my mouth. There can be any infinite number of permutations and scenarios, but I think that the job of Government is to look at structural issues and find the best way forward to address structural issues. The starting point of this policy is that there is a structural gap between ITE graduates' starting pay and polytechnic graduates' starting pay. I have said that in my speech as well, if Ms Poa had listened to that, that is the starting point of my position, that I laid out in my speech. So, I think that is abundantly clear.
Mr Speaker4 words
[+1 sentence]Mr Sitoh Yih Pin.
Mr Sitoh Yih Pin145 words
[+3 sentences]Thank you, Sir. I thank the Leader of Opposition for his patience, but I think this is too important a matter to just let it go. I did a quick check. The last time we topped up our reserves after we drew them was in 2009, $4 billion after the Global Financial Crisis, and the economy recovered very fast, and as a result, the Government was able to top it up.[+4 sentences] In COVID-19, it was more than $40 billion. I know the Leader of the Opposition said he is not in Government, and I also said some months ago, we cannot assume it is a PAP Government forever. I hope it is forever, but we cannot assume. So, I think, just for the next five minutes, can the WP teach me, assuming that you are in Government now, how do you top up $40 billion?
Mr Speaker2 words
[+1 sentence]Mr Singh.
Mr Pritam Singh47 words
[+4 sentences]Mr Speaker, I do not mean to belabour this, because we are going to get into a hypothetical argument here. But the Government announced a 24-month instalment for property tax in this Budget. You can pay by instalments, can you not? Perhaps, that could be a way.
Mr Speaker2 words
[+1 sentence]Mr Sitoh.
Mr Sitoh Yih Pin64 words
[+3 sentences]Mr Speaker, Sir, three weeks ago when I stood here, I stated that the days of large fiscal surpluses are over. And Deputy Prime Minister also just mentioned that point. I think, surely, if we can get a $40 billion surplus over the next X number of years, sure, it is a happy problem, but teach me how you are going to do that.
Mr Pritam Singh20 words
[+2 sentences]Mr Speaker, I think I do not need to prolong this. The Member has not answered the point on instalments.
Mr Speaker2 words
[+1 sentence]Mr Sitoh.
Mr Sitoh Yih Pin107 words
[+5 sentences]Sir, I also do not want to prolong this, but as I said, if there can be a surplus of $40 billion over X number of years, sure, everybody is happy to top it up. But on another point, I heard the hon Member Assoc Prof Jamus Lim as he spoke just now. Not too long ago, he was talking in this House about pawning your assets and borrowing when interest rates were very low. Had we followed that advice, we would be in trouble today, because subsequently, interest rates rose. So, let us be very careful and let us be very conservative in our fiscal policies.
Mr Speaker4 words
[+1 sentence]Assoc Porf Jamus Lim.
Assoc Prof Jamus Jerome Lim (Sengkang)84 words
[+2 sentences]Mr Speaker, perhaps it is worth clarifying, when I spoke in the context of locking in the interest rates at the time, it was in the context of SINGA bonds. In particular, I said that had we locked it in at that time, we would be able to lock in a low interest rate, which actually, if anything, I would argue circumstances have proven to be the case, because interest rates have since risen and we did not lock it in at the time.
Mr Speaker2 words
[+1 sentence]Mr Sitoh.
Mr Sitoh Yih Pin140 words
[+12 sentences]Sir, I have got that video in my phone, but never mind that. It is not like that. I read a speech recently. In 1977, then-Foreign Minister, Mr S Rajaratnam, said about pawning our assets. When I had that debate with Assoc Prof Lim, I hesitated using the word "pawning". I think I used the word "mortgage". But since Mr Rajaratnam used it in 1977, I think I can use it. What he said was interest rates are low, go and pawn your assets and go and reinvest. I said then, he was in a stage of euphoria. He is assuming that tomorrow will always be better than today. If we had used that approach, Singaporeans may be waking up thinking that today will be bleaker than yesterday and tomorrow darker than today. That is the point I am making.
Mr Speaker3 words
[+1 sentence]Assoc Prof Lim.
Assoc Prof Jamus Jerome Lim20 words
[+3 sentences]Mr Speaker, just a quick point. I am afraid I cannot speak for Mr Rajaratnam. My point was very clear.
Mr Speaker4 words
[+1 sentence]Mr Leong Man Wai.
Mr Leong Mun Wai (Non-Constituency Member)99 words
[+3 sentences]Sir, running the risk of prolonging this debate that Member Sitoh Yih Pin as started, I would like to remind the House that I have mentioned many times in this House, that during the COVID-19 period, although we have spent $40 billion, we have raised more than $250 billion with a new mechanism called the Reserve Management Securities (RMGS). In a way, we do not need to replenish the reserves anymore, because we have actually accumulated more during the COVID-19 from the normal way that we are accumulating our reserves. Maybe the Deputy Prime Minister can confirm that, please.
Mr Lawrence Wong16 words
[+1 sentence]Sir, monies raised from RMGS are encumbered and do not add to our net asset base.
Mr Speaker3 words
[+1 sentence]Ms Mariam Jaafar.
Ms Mariam Jaafar134 words
[+5 sentences]I thank Deputy Prime Minister for both a really good Budget Statement as well as a really good Budget round-out speech. I am sure people worked really hard on it. So, in the context of the hard work and the request for more things to come under the Prime Minister's Office (PMO), I would like to reiterate that there are some issues that are really cross-cutting, despite the work that it entails, it really deserves to be sited within the PMO. I would like to repeat my suggestion in my speech where I asked if the AI, in particular, can be something that is taken under the wings of the PMO. I think the other similar thing would be climate change, another cross-cutting issue, which has a National Climate Change Secretariat within the PMO.
Mr Lawrence Wong114 words
[+7 sentences]Sir, we do have the Smart Nation Office, which does look at many AI-related initiatives. The Ministry of Communications and Information also drives our national AI strategy. So, again, I just want to appeal to Members, there is a desire for many things to be centralised. I am not sure, in fact, that more centralisation is always the best answer. Over time, if we have a bigger and bigger portfolio, all residing within one Ministry, there will definitely be bandwidth issues. Basically, the Government must work as a team, the Ministries must all work together. There are clear goals we want to achieve and we will work together as a team to achieve them.
Mr Speaker24 words
[+4 sentences]I heard many Members reminding yourselves not to prolong this Budget debate. Mr Leong Mun Wai, you still have clarifications? Okay. One last one.
Mr Leong Mun Wai13 words
[+2 sentences]Thank you, Sir. I thought we are scheduled to end at 3.00 pm?
Mr Speaker20 words
[+3 sentences]We are, we are. But you yourself reminded everyone not to prolong it as well. So, I repeating everyone's reminderm.
Mr Leong Mun Wai18 words
[+2 sentences]Okay, okay. Anyway, if there are questions to be asked, I think we should take the debate seriously.
Mr Speaker8 words
[+1 sentence]Which is why I gave you the floor.
Mr Leong Mun Wai250 words
[+7 sentences]Thank you. Thank you, Sir. First of all, I would like to take what Deputy Prime Minister had said just now about the drawdown rate for the endowment and trust funds. I would like to give a little bit more information of what I know about those funds, based on the financial data published by the Ministry of Finance. And I hope Deputy Prime Minister can clarify that. I think Deputy Prime Minister is right to say that various funds have got various drawdown rates. But by and large, I think we need to tell Singaporeans that for all the endowment and some of the trust funds, they are for social purposes. The average drawdown, according to what I have calculated from the financial data, is about 5%. That 5% is based on payout divided by the asset balance. However, the trust funds that are for economic purposes, like what the Deputy Prime Minister has said, like National Research Fund, GST Voucher, public transport funds – generally, these funds have got drawdown rates of between 20% and 30%.[+7 sentences] In other words, funds that are for social purposes, for the benefit of Singaporeans, the drawdown may potentially last for 20 years. Five percent. Five percent means 20 years, the fund. And the funds for economic purposes, yes, it is less than five years. So, that is the data I got. And I think that is a more accurate answer. But, of course, I need the Deputy Prime Minister to confirm that.
Mr Lawrence Wong182 words
[+6 sentences]Sir, as I clarified just now, there are Endowment Funds and there are drawdown Funds. Endowment Funds are not drawn down. So, we should look at Endowment Funds separately. Endowment Funds are created for a specific purpose so that whether good year or bad year, surplus or deficits, we do not have to worry. There will always be a continued flow that will allow spending for that particular purpose, whether it is Edusave or other types of endowments. But for the most part, and certainly many of the Funds we have created more recently, are largely drawdown Funds and they are not limited to economic purposes. The GST Voucher Fund is a very clear-cut case.[+4 sentences] It is for the permanent GST Voucher Scheme and that is drawn down very quickly and topped up repeatedly, so that we can continue to fund the GST vouchers. And there will be other examples too. So, all of these drawdown Funds are drawn down, as Mr Leong himself highlighted, well within a reasonable period. So, the monies are all given back to Singaporeans in different ways.
Mr Speaker2 words
[+1 sentence]Ms Poa
Ms Hazel Poa119 words
[+2 sentences]I have two clarifications to seek. First, on the support scheme for the involuntarily unemployed. Can I clarify whether this scheme will be for all workers, or would it be only limited to lower- and medium-income workers?[+3 sentences] And secondly, Deputy Prime Minister mentioned about how they have been helping to ensure that there are more Singaporeans in senior positions in the financial sector. I think that these senior executives in the financial sector earn higher salaries than in other industries and they are not the group that we are most concerned about. So, are there other sectors where lower- and middle-income Singaporeans are facing competition from foreigners that the Government is also paying the same level of attention to?
Mr Lawrence Wong83 words
[+6 sentences]Sir, I explained just now that we are looking at the support for the involuntarily unemployed for lower- and middle-income workers. What is the definition of middle? How far we go? I think, as I said, the parameters, the details will be released in due course. On supporting Singaporeans in leadership positions, I gave Finance only as an example. We are certainly planning to grow the leadership pipeline across all fields, which I also stated in my speech, and not just in Finance.
Mr Speaker2 words
[+1 sentence]Mr Leong.
Mr Leong Mun Wai310 words
[+10 sentences]Thank you, Speaker, Sir. I still have a few more questions. First of all, I think one of the most important takeaways for this Budget debate is to have an accurate assessment of the cost-of-living crisis Singaporeans are facing today. So, to that end, can I ask the Deputy Prime Minister to confirm whether he agrees with our points of view. One, part of our inflation problem is self-inflicted – due to the GST, which he had explained is a one-off thing, and other tax increases. But there is also the thing of escalating property prices, which has been an ongoing policies and also external environment-created phenomenon. And two, Singaporeans have very little savings to cope with the crisis because, in our opinion, the schemes that the Government has put in in the past had not allowed the Singaporeans to build up their savings. So, as a result, this is a good opportunity when we are looking at how we restart and how we promote a new social compact, to think of new ways of doing things. What the PSP has proposed is that do pay attention to more permanent schemes, rather than temporary handouts. So, this is the first question I wish the Deputy Prime Minister can confirm and opine on. The next question is, can I ask the Deputy Prime Minister whether the Government has a planning target for a minimum income for an individual and for a low-income family, and has the Progressive Wage Supplement help all workers and their families to attain their minimum income? Even if you say you do not want to put up a minimum income as an official thing, that the public know, do you actually, as part of your planning, have something to reference to? What is the minimum level of income you want Singaporeans to have in order to survive?
Mr Speaker19 words
[+2 sentences]Mr Leong, are these all your clarifications? Because I would prefer you raise all the clarifications at one go.
Mr Leong Mun Wai18 words
[+3 sentences]Sir, thank you. I think that would be a bit confusing. I think I have two more questions.
Mr Speaker8 words
[+1 sentence]I would rather you raise them all now.
Mr Leong Mun Wai5 words
[+1 sentence]Can I leave it afterwards?
Mr Speaker8 words
[+1 sentence]No, I would rather you raise them now.
Mr Leong Mun Wai1 words
[+1 sentence]Now?
Mr Speaker4 words
[+1 sentence]Just the clarifications, yes.
Mr Leong Mun Wai62 words
[+2 sentences]Yes, Sir. I have two last questions on retirement. The first question is, how much more the Government is currently paying to the Special Account (SAs), because of the difference in interest rates between the SA and the Ordinary Account (OA)?[+1 sentence] And second question, will the Government consider grandfathering the SA for Singaporeans who are above 55 years old now, going forward?
Mr Lawrence Wong619 words
[+2 sentences]Sir, let me take the CPF questions first. I do not have the specifics on the additional amount that the Government is paying. I think these can be addressed at the Ministry of Manpower Committee of Supply (COS) later on. But on the closure of the SA, we have made very clear why we do think it is necessary – because after 55, Singaporeans also have a Retirement Account (RA).[+38 sentences] The RA also enjoys and benefits from the same interest rate as the SA. So, almost everyone can transfer their monies from the SA to the RA, get the same interest rate because they can transfer up to the Enhanced Retirement Sum (ERS) because we have raised the ERS and they can get the same interest rate. And eventually, when they retire, they will benefit from higher retirement payouts through CPF LIFE. Many commentators out there recognise that CPF LIFE is the best annuity product that anyone in Singapore can get today. On the cost-of-living crisis, whether it is self-inflicted – I thought I addressed that. The whole point of me going through some charts and addressing that, is to show this. If it were indeed self-inflicted and because of unique Singapore moves, then we would be standing out. But it is not the case. Look at everywhere around the world. We are not the only country facing inflation, higher prices. In fact, we have been managing it better than many other places. And on top of that, as inflation has been coming down now, our inflation trends are also coming down. So, I think we should take it in that context to understand what are the key drivers of inflation. Of course, domestic moves can contribute to inflation too. I accept that. For example, raising wages for lower-wage workers. That will contribute to inflation too. More demand for domestic services, wage pressures – that contributes to inflation. But if you look at the big picture and where the big drivers of global inflation are, I think I have set them up quite clearly. It is not self-inflicted at all. On minimum income, whether we have a target, our aim is to continue to push up, uplift lower-wage workers, but do so in a way that is sustainable and in a way where the increase in income is matched with increase in skills and productivity. And that is the basis of our progressive wage approach. It has worked. It has shown results. And we will continue moving in this direction. There have been suggestions from Labour MPs and Members to expand the progressive wage to new sectors. We will study all these suggestions and we will continue to work on this. Finally, on permanent schemes and the preference for permanent schemes versus handouts. Mr Leong seems to suggest that handouts breed dependencies, but permanent schemes do not breed dependencies. But a poorly designed permanent scheme will breed dependencies permanently, forever. Is that not worse? So, we do not look at this or that, either one or the other. We do both. We have temporary relief measures where necessary, particularly, when inflation was higher in the last two years and in this Budget we are doing a little bit more as well. That is temporary for good reason. I think Singaporeans understand why that is needed. We also have structural schemes and in the structural schemes, these are not temporary at all. We continue to fine-tune them, make sure that they are designed well, so that we are providing all the support and assurance we need while also upholding our key ethos of individual responsibility and self-reliance, and avoiding dependency and entitlement – something which Mr Leong himself cautioned against.
Mr Speaker5 words
[+2 sentences]Dr Tan See Leng. Minister.
The Minister for Manpower (Dr Tan See Leng)21 words
[+1 sentence]Mr Speaker, Sir, with your permission, I would like to respond to Mr Leong's point on the closure of the SA.
Mr Speaker3 words
[+1 sentence]Yes, go ahead.
Dr Tan See Leng324 words
[+4 sentences]I think it is important, Members of the House, to understand that the closure of the SA is not aimed at saving interest monies. I will provide a fuller explanation and clarification at the Committee of Supply speech on Monday. I would urge Members to stay in the House and listen to that part of that speech, in particular. I want to put this in perspective. First and foremost, we are going to expand the ERS to four times of BRS. With that, the migration and the right-siting of the SA monies in excess of whatever they have beyond their FRS today, can then go over to the enlarged ERS and that should cover more than 99% of members.[+1 sentence] We have many, many esteemed financial experts in this House. I do not think that there is any system in the world, any financial institution in the world, any banks in the world that will pay a long-term, assured interest rate and allow you the flexibility to withdraw like an ATM machine. I think it is one of those policy moves that we are now doing to ensure that the monies that are meant for long-term savings be sited in a long-term retirement account.[+8 sentences] And for those members who want the flexibility after 55, they can always have the option to leave it in the OA. For the many people who feel that they have that ability to invest the monies wisely, they still have the option to invest their OA monies, whether it is in T-bills, in more secure investments. I think it is the option given back to them. So, this is not about saving money. It is not about locking up money. In fact, if anything at all, at age 70, CPF Board does not have any option for members to continue to retain monies indefinitely. If there is such a word, by 70, everyone has to decumulate. I hope that clarifies.
Mr Speaker2 words
[+1 sentence]Mr Leong.
Mr Leong Mun Wai131 words
[+5 sentences]Sir, I thank the Minister for Manpower for clarifying on that issue. What, I think, we gather from this is that the change in the Special Account is not because of the Government wanting to save money on the interest paid, but it is a matter of financial management principles. I want to clarify that that is correct. Secondly, and that is my final point, is that I totally agree with Deputy Prime Minister's point that any scheme, whether it is a permanent scheme or a handout scheme, it has to be properly designed in order to achieve its objectives. But generally, we still hold the opinion that the handout scheme has got a short-term nature and because it comes so often, it does create more dependency than a permanent scheme.
Mr Speaker80 words
[+5 sentences]Order. We have completed the debate on the Budget Statement. I propose to take a break now and we will resume the Sitting at 2.45 pm. I have revised the commencement time of the Committee of Supply — Yes, let me first put the question. My apologies.
Estimates of Expenditure for the Financial Year 1 April 2024 to 31 March 2025›Budget2 turns · 260w
· 3 highlighted
budget-2343
Speaker not recorded15 words
[+2 sentences]. (proc text)]
The Chairman245 words
[+1 sentence]Main and Development Estimates of Expenditure of Singapore for the financial year 1 April 2024 to 31 March 2025 contained in Paper Cmd 27 of 2024. For convenience, I shall take the totals for each Head of Expenditure in the Main and Development Estimates as they appear in the last columns of the schedules of estimated expenditure under the Main and Development Estimates Outlays for FY2024 on pages 6 and 7 respectively of the Command Paper. A total of 598 amendments to the Estimates of Expenditure have been submitted this year. The guillotine times to the discussion of the Heads of Expenditure under Standing Order 92(7)(a) have taken into consideration the earlier commencement time of a Sitting, the reduction of Question Time and the extension of Sitting times of the Committee of Supply for each allotted day.[+6 sentences] I must remind hon Members that the total time for discussion of each Head of Expenditure includes the replies from the front bench. With the assistance of the digital timer in the Chamber, I trust that hon Members will be able to keep to the speech times indicated against their respective amendments. I would urge hon Members from both the front and back benches to adhere to their time limits as I will be stringent in my time-keeping. I shall deal first with the Heads of Expenditure in respect of which amendments stand on the Order Paper Supplement. Head U – Prime Minister's Office. Ms Poh Li San.
Committee of Supply – Head U (Prime Minister's Office)›Budget67 turns · 20,918w
· 138 highlighted
budget-2344
Ms Poh Li San (Sembawang)392 words
[+6 sentences]Chairman, I beg to move, "That the total sum to be allocated for Head U of the Estimates be reduced by $100". As an island nation, Singapore is vulnerable to the impact of climate change and the resulting more extreme weather conditions. We have started on our transition to adopt more green practices to decarbonise. Although Singapore accounts for only around 0.11% of the world's carbon emissions, we want to do our part as global citizens to mitigate climate change. However, as an international oil and gas refining, storage and trading hub, the transition while reducing our primary emissions to zero will not be easy. We will need to transform our economy and decouple growth from fossil fuel consumption. In order to achieve net zero, Singapore needs to reduce the net output of each person by 8.31 tonnes of carbon emissions by 2050. This reduction needs to come from the power, industrial and transport sectors, which account for more than 97% of our total primary emissions.[+1 sentence] To decarbonise our power grid, we have to increase solar energy provision and purchase renewable electricity from other countries such as through imports of renewable energy from the Lao PDR-Thailand-Malaysia-Singapore Power Integration Project. Up to 100 megawatts of renewable hydropower from Lao PDR will be delivered to Singapore via interconnections with Thailand and Malaysia.[+8 sentences] Being a small country without natural resources, regional cooperation projects like this with larger neighbouring countries which are endowed with big land masses suitable for harvesting solar, wind and hydroelectric are necessary. Would the Ministry share what other regional cooperation projects are in the pipeline to boost our joint efforts to decarbonise as well as to manage and protect our regional environment and water resources? What are Singapore's capabilities and strengths which we can bring to the table in these collaborations to help in the fight against climate change? How will the initiatives from the 28th meeting of the Conference of the Parties (COP28) affect Singapore? And how will the Government encourage stronger international cooperation to address climate change? Singapore is well positioned to be the green finance hub for ASEAN and Asia. We can also play an important role in transition finance to help companies become greener via long-term initiatives. What can the Government do to encourage investment in climate action, especially in Southeast Asia?
Ms Poh Li San123 words
In January this year, the Centre for Climate Research Singapore released the Third National Climate Change Study, which estimated more extreme projections for Singapore's weather conditions, including temperature, humidity, rainfall, wind speeds, and sea level rise.[+5 sentences] Which are likely to be the most major changes that Singapore needs to prepare for? What are the Government's plans in response to these projections? Will some segments of our population be more vulnerable in the event of these weather changes and how can the Government support Singaporeans, especially those with less resources, in the green transition? How will the Government increase public awareness of the implications of more extreme weather conditions? How can businesses, households and individuals play their part in the fight against climate change?
Mr Dennis Tan Lip Fong (Hougang)439 words
[+3 sentences]Mr Chairman, with climate change, countries around the globe have been bracing themselves for changes in the nature of global supply chains and economic policy. One of the changes we have been following is the opening of the Northern Sea Route and how this may affect the economy of Singapore. The question at hand is not merely a transport or maritime issue which Minister Vivian Balakrishnan and Minister Chee Hong Tat addressed in 2020 and 2021 respectively, but is respectfully at heart an economic one. Today, Singapore is the second busiest port in the world and with the maritime industry contributing to 7% of local GDP, employing more than 170,000 people, the investment of $20 billion into the Tuas Mega Port can be seen as a vote of confidence in the development of Singapore's port capabilities as an economic strategy.[+3 sentences] However, with climate change, should the Arctic sea ice continue with its current decline at a rate of 13% per year, an uninterrupted sea highway between Asia and Europe and the US that is navigable by large container ships will be created, allowing for a shorter route between Europe and the Pacific. What this means is that cargo shipments may bypass the Suez Canal and the Malacca Strait, and hence Singapore. This raises concern of whether Singapore will remain the top transhipment port in the world and a major port of call, which may in turn have trickle-down effects to the economy that should not be underestimated. Cargo passage along the Northern Sea Route has increased from 41,000 tonnes of cargo in 2010 to 285,000 tonnes in 2019 and is expected to only increase in the future, given that the warming in the Arctic has been four times faster than the rest of the world.[+3 sentences] I would thus like to ask: one, whether the Government has an update on the climate developments of the Northern Sea Route since 2021; two, whether the Government has studied the possible economic impact of the Northern Sea Route to jobs and businesses in Singapore; three, has the Government studied the projected impact to the capacity of Tuas Mega Port in 2050 and beyond, should the Northern Sea Route become the predominant shipping route, and if so, whether it has taken any measures into account in the planning of the Tuas Terminals? How will our economic policy adapt to the changes brought about by the development of the route in the coming years? And what are the Government's plans to ensure that the country remains economically competitive if the route should affect our status as a premier global hub, port and international maritime centre?
Mr Louis Ng Kok Kwang (Nee Soon)190 words
[+4 sentences]I am glad the voices of activists were heard, and Singapore will raise our climate targets and achieve net zero emissions by 2050. It is an ambitious target but one that is very much needed. Can the Government share whether we are on track to reach this target? I am also glad that Singapore is leading efforts to combat climate change. At the World Climate Action Summit, Singapore led the charge on regional partnerships by announcing plans to raise S$6.6 billion to finance efforts to green the region.[+4 sentences] Part of these efforts include the Sustainability Action Package (SAP) for sharing expertise and best practices on sustainability and climate issues. Under the SAP, Singapore will work with partners from the public and private sectors, and non-profit and international organisations to build capacity. Will the Government ensure that we cast a broad net and enable more diverse actors to contribute, including from smaller organisations and civil society groups who have valuable expertise to contribute? In this spirit, will the Government also look into increasing access research funding for a greater variety of researchers to join the research efforts and this global fight?
Mr Liang Eng Hwa (Bukit Panjang)126 words
[+1 sentence]Mr Chairman, in 2022, the Government raised our climate targets to achieve net zero emissions by 2050 as part of our Long-Term Low-Emissions Development Strategy. In addition, the Government has also committed to reducing emissions to around 60 million tonnes of carbon dioxide equivalent (MtCO2e) in 2030 after peaking emissions earlier as part of the revised 2030 Nationally Determined Contribution (NDC).[+4 sentences] These new targets have been duly lodged UN Framework Convention on Climate Change in 2022. This is an ambitious undertaking given our constraints as an alternative energy-deprived city state. I applaud the Government for pursuing these stretched targets and doing our part fight global climate change. Can I ask for an update on the preparations and what steps is Singapore taking to achieve these targets?
Dr Lim Wee Kiak (Sembawang)322 words
[+6 sentences]Mr Chairman, as a small island state, Singapore is highly vulnerable to the effects of climate change. The fight against climate change demands unwavering commitment and bold actions. As we navigate the path towards decarbonisation, I want to raise several key questions. First, how is Singapore keeping pace with emerging decarbonisation pathways? We need to be actively exploring and investing in low- and zero-carbon technologies like renewable energy, hydrogen and carbon capture. How can we ensure our efforts remain aligned with the latest advancements and evolving global strategies? How will the $5 billion Future Energy Fund be used to support the development of essential infrastructure especially those with long gestation periods like nuclear energy?[+4 sentences] Second, how can we further engage the private sector and philanthropic organisations in supporting decarbonisation efforts? What specific measures are being considered to mobilise private capital and expertise towards ambitious climate goals? Third, how will Singapore catalyse green and transition finance, especially within Southeast Asia? As a regional financial hub, we can play a leading role in channelling investments towards sustainable infrastructure, green projects and climate adaptation initiatives. Can the Government give an update on the Green Finance Action Plan?[+2 sentences] This is a comprehensive strategy to develop green finance solutions and capabilities, promote green finance standards and disclosures, foster green finance innovation and collaboration and build green finance talent and awareness. Finally, can we leverage our unique position as a global hub to accelerate climate actions, both at home and abroad? While mandating sustainable aviation fuel for departing flights is a commendable way, what other strategic initiatives are planned across different sectors to leverage on our hub position? How will such initiatives affect Singapore's economic competitiveness as a travel hub?[+3 sentences] Investing in decarbonisation is not just an environmental responsibility. It is an economic opportunity for us as well. By embracing innovation, collaboration and regional leadership, Singapore can chart a course towards a greener, more resilient future for all.
The Chairman5 words
[+1 sentence]Senior Minister Teo Chee Hean.
The Senior Minister and Coordinating Minister for National Security (Mr Teo Chee Hean)1912 words
[+9 sentences]Thank you, Mr Chairman. Ms Poh Li San and other Members have raised important issues which I will address from a whole-of-Government perspective. Some of the details will be dealt with by the individual Ministries during their Committee of Supply (COS) debates. I speak as Chairman of the Inter-Ministerial Committee on Climate Change (IMCCC). Amid heightened geopolitical and economic turbulence, the world is currently on a pathway to 2.1 to 2.8°C of global warming by 2100. The Ministry of Sustainability and the Environment (MSE) has been working to improve our understanding of the consequences of such a pathway. Today, we have a clearer projection. But it is a projection, because we are talking about what is going to happen for the rest of the century. The Third National Climate Change Study, released last month, forecasts the extreme climate conditions that we could experience – higher temperatures, heavier spells of rainfall, longer and more frequent dry spells. In the worst-case scenario, where global emissions continue rising rapidly, Singapore could face daily maximum temperatures exceeding 35°C almost year-round.[+17 sentences] This would be a marked increase from the historical average of 21 such days each year. Ms Poh Li San asked how we are responding to these latest projections. We take a long-term and proactive approach, and we are developing our adaptation plans. These are regularly refreshed to keep up with the latest science, to help us be ready for the climate risks we will face – whether they are physical risks such as flooding, or health risks. The physical effects of climate change also have wider implications for our economy, as Mr Dennis Tan has pointed out about the Northern Sea Route. If rising temperatures in the Arctic make this short-cut passable year-round, it could alter the flow of shipping between Asia and Europe. Our port will therefore have to be more efficient and better-connected to compete. This is why Singapore has been closely monitoring developments in the Arctic. Although Singapore is on the equator, we have been an Arctic Council Observer State since 2013 – for the last 11 years – and we contribute and participate actively in its discussions. Currently, the commercial viability of the Arctic routes remains low. It is a very difficult and treacherous route. In 2022, only 43 transit voyages were made through the Northern Sea Route, fewer than the 85 transit voyages in 2021. Still, we cannot ignore how profoundly climate change can disrupt our lives and livelihoods. For Singapore, this means not just acting now to achieve our own climate goals, but also catalysing regional and global action, so that other countries do the same. Only then can we collectively achieve our global climate action goals. As Ms Poh Li San pointed out, we emit about 0.1% of the carbon dioxide each year, but we are affected by the other 99.9%. Domestically, we have set ambitious targets. In 2022, we announced our enhanced climate targets, committing to reduce emissions by 2030 to 60 million tonnes of carbon dioxide equivalent, after peaking emissions earlier; and to achieve net zero emissions by 2050.[+2 sentences] We have essentially decided to target for the future, look at what the future will bring for us, shape our economy and our society and plan on that basis rather than doing incremental changes as we go along. Mr Liang Eng Hwa asked how we are turning our ambitions into action. Our carbon tax, which was raised to $25 per tonne this year, is a key enabler.[+10 sentences] It shapes behaviour across our economy, and we continue to use the revenues to help businesses and households become greener. I am truly heartened that both sides of this House have expressed support for a broad-based carbon tax. Some have advocated, for example, from the Workers' Party (WP), much higher tax rates and sooner than what the Government is actually intending to implement up to 2030. What we are intending to implement is carefully calibrated to take into account the adjustment as needed by households and businesses and also the maturing of technologies that will make it more efficient for us to decarbonise. We are also transforming our energy mix to run on greener power. We have doubled our solar power deployment since 2021 to over 1,000 Megawatt-peak (MWp), despite our limited land area. We aim to reach 2,000 MWp by 2030, or 2 Gigawatt-peak (GWp). As a comparison, our power supply consumption right now is about 8 GWp. Of course, 2 GWp is not the same – you cannot put them side by side. We are importing low-carbon electricity, allowing us to tap renewable energy beyond our shores. Dr Lim Wee Kiak asked how Singapore can capitalise on emerging technologies to support our energy transition. This year, the Government will set up a Future Energy Fund (FEF) with an initial injection of $5 billion.[+13 sentences] The FEF will allow us to plan ahead to catalyse the infrastructure investments we need to deploy low-carbon technologies, when they are viable. There is a range of things it could be. It could be hydrogen, could be ammonia, could be a number of things and we need to start doing that within the next few years. We are also looking at new solutions beyond the power sector. We have been monitoring carbon capture and storage (CCS). The technologies underpinning CCS are not new and there is growing recognition from countries and organisations, such as the International Energy Agency (IEA), that CCS can play an important role in achieving significant reductions of industrial emissions. Countries in the region, such as Australia, Brunei, Indonesia and Malaysia, have strong geological potential for carbon dioxide storage, and some of our regional partners have announced plans to develop as regional CCS hubs. We are ready to work with like-minded partners on pathfinder projects to catalyse the development of such regional hubs. The Ministry of Trade and Industry (MTI) will provide more details on this. Mr Chairman, the climate transition will take a whole-of-nation effort. Ms Poh Li San asked how the Government is supporting businesses and households in this transition. Our small and medium enterprises (SMEs) are benefiting from schemes that help them decarbonise and seize green economy prospects. One example is bbp – an energy efficiency solutions provider. Leveraging Enterprise Singapore’s Enterprise Development Grant and other scale-up programmes, bbp has helped businesses achieve more than $90 million of energy savings and avoid 240,000 tonnes of carbon dioxide emissions, across nine Asian markets.[+26 sentences] Of course, developing a nice business for themselves. We will continue to enhance our schemes to encourage energy efficiency among businesses and households. These include expanding the Energy Efficiency Grant to more sectors, enhancing the climate-friendly households programme that offsets the upfront costs of switching to more energy- and water-efficient appliances. MTI and MSE will update this House on their efforts in these areas in greater detail. Mr Louis Ng asked about support for our research community. The Government’s Research, Innovation and Enterprise 2025 Plan (RIE2025) allocates significant funding to R&D across every pillar of the Singapore Green Plan. This ranges from low carbon energy research all the way to research in coastal protection and flood management, and covers a wide range of things. We recently enhanced funding for the RIE2025 Plan. This will facilitate the research community’s contribution to climate action. Ms Poh Li San asked how Singapore can play an active role in fostering international collaboration and catalysing global climate action. Mr Chairman, domestic action alone is necessary but not sufficient for us to succeed in global climate action. All countries and regions must do their part. This is why, under the Sustainability Action Package, Singapore supports capacity building for developing countries and brings together a diverse range of public and private sector partners to share best practices on sustainability and climate issues. Let me share a few examples of the efforts we contributed to at COP28 in Dubai. Minister Grace Fu helped broker a landmark consensus among the Parties to transition our energy systems away from fossil fuels. This is a strong signal of global resolve to pursue a net-zero future. Beyond the negotiating rooms, the Singapore Pavilion at COP28 was a hive of activity. It brought key organisations and persons from the private and people sectors together to forge new partnerships. For example, Singaporean ocean carrier Pacific International Lines and Dubai-based port and terminal operator DP World signed a memorandum of understanding (MOU) to jointly develop green solutions to decarbonise global supply chains. Our Pavilion was also home to Singapore’s inaugural youth delegation to COP28. Our young people deserve our support to apply their energy and ideas to the challenge of climate change and make a real difference. MSE will share more about how the Government is enabling youth action. The world needs to continue the momentum from COP28 to accelerate climate action. Dr Lim Wee Kiak asked how Singapore can leverage our strengths as a hub to do that. Let me highlight three ways. First, green and transition finance. Asia will require an estimated US$1.7 trillion dollars in climate and infrastructure investment annually through to 2030.[+2 sentences] This substantial amount will need to be met by a combination of concessional and commercial capital. As a financial hub, Singapore is well-placed to catalyse green and transition finance for the region. As an example, at COP28, I announced the launch of a new blended finance initiative – the Financing Asia’s Transition Partnerships (FAST-P) that will mobilise up to US$5 billion from public and private sector partners to de-risk and finance transition and marginally bankable green projects in Asia.[+5 sentences] Singapore is also helping to build high-integrity carbon markets and pursuing collaboration on carbon credits under Article 6 of the Paris Agreement with various countries. At COP28, we signed our first Implementation Agreement, and this was with Papua New Guinea. MTI will share more about our efforts on carbon markets. The second area is energy. Singapore is helping to accelerate Southeast Asia’s energy transition by promoting partnerships that benefit our nation and the region. To support regional energy transition, we will establish in Singapore the first-ever International Energy Agency Regional Cooperation Centre outside of its Paris headquarters.[+6 sentences] The Centre gives Southeast Asia greater access to the IEA’s expertise and facilitates capacity building. The third area is transport. As an aviation and maritime hub, Singapore can play a major role in developing the infrastructure and standards for green aviation and shipping. The Civil Aviation Authority of Singapore (CAAS) recently launched the Singapore Sustainable Air Hub Blueprint, which takes a balanced approach on the need for sustainability and competitiveness for our aviation sector. This will help catalyse the development of sustainable aviation globally and facilitate the industry’s progress towards decarbonisation. We are also making progress on green shipping. In December 2023, we signed a memorandum of cooperation with Japan to establish the Singapore-Japan Green and Digital Shipping corridor. This complements similar partnerships with ports in the Netherlands, China and the United States (US), allowing us to support the decarbonisation, digitalisation and growth of the maritime industry. Mr Chairman, I have explained why it is in Singapore's interest to commit to climate action, outlined concrete steps we are taking as a nation to meet our ambitious climate targets, and highlighted how Singapore is stepping up to encourage regional and global action. We must stay the course in our green transition because we want to leave behind a liveable, resilient and thriving country and world for future generations of Singaporeans.
The Chairman10 words
[+2 sentences]Mr Patrick Tay. You may take your two cuts together.
Mr Patrick Tay Teck Guan (Pioneer)329 words
[+7 sentences]Singapore faces pressing demographic challenges such as an ageing population and a low birth rate. Life expectancy has also gone up and many choose to remain single. Even those married may not have children either by choice or otherwise. Social issues such as ageism and increased caregiving responsibilities are further exacerbated by an uncertain global environment and economic outlook which present challenging conditions for Singapore’s economic growth. Within this operating context, what are the key population outcomes that the Government wants to achieve for our future Singapore and what are the Government’s strategies to achieve these outcomes? With fewer births and an ageing population, our local workforce is shrinking. Our NTUC strategy team recently embarked on a research study on our ageing population as well as slowing workforce growth. The key insights are that in the next five years, Singapore's labour market is predicted to tighten with unemployment and retrenchments expected to stabilise in the longer term.[+1 sentence] We also expect to see a decline in job vacancies in manufacturing, construction and segments of the services sector. The study found that there are barriers and drivers that enable mature workers and women with caregiving duties to find and stay in employment. We opine that other than automation, mature workers and women with caregiving responsibilities are untapped groups to supplement a shrinking local workforce.[+4 sentences] We further submit that professional networks, flexible work arrangements (FWAs) and training opportunities and skills relevance foster their continued employment and facilitate their entry into the workforce. In the study, we also found that there is a disconnect between perception and the actual action of hiring mature workers. Implementing training plans for mature workers was perceived by employers to be the most effective in extending the career runway of mature workers but is unfortunately not among the top practices adopted. My question is, therefore, how will we continue maintaining a vibrant economy that creates good job opportunities for Singaporeans and future generations amidst this slowing workforce growth.
Mr Yip Hon Weng (Yio Chu Kang)247 words
[+7 sentences]Chairman, Singapore faces pressing demographic challenges. Can the Government elaborate on the key population outcomes envisioned for our future? What are the Government's plans to achieve these outcomes within the current economic and demographic challenges? Falling fertility is a challenge that developed economies are struggling with. Singapore is no exception. A shrinking workforce due to falling birth rates raises concerns about sustaining our economy. How will we continue maintaining a vibrant economy that creates good job opportunities for Singaporeans and future generations? Our total fertility rate (TFR) has fallen to a historic 1.04.[+7 sentences] This raises concerns about our long-term demographic sustainability. This trend aligns with other developed nations like South Korea, where despite significant investments in childcare subsidies, birth rates remain low. What additional measures beyond existing schemes can alleviate concerns about starting and raising families? While marriage and parenthood remain aspirational for many Singaporeans, factors like career goals and housing affordability can lead to postponed parenthood. This delay, combined with the realities of biological limitations, can make achieving such aspirations more challenging. I urge the Government to further support couples who want children and cultivate a national culture of proactive family planning. In this context, I have three questions. What is the uptake of elective egg freezing since 2023?[+2 sentences] While awaiting the proposed extension of IVF co-funding to private clinics, what immediate options are available for couples actively seeking to start families? Can private clinics adequately address the affordability and quality concerns associated with fertility treatments?
Ms Joan Pereira (Tanjong Pagar)195 words
[+14 sentences]In many developed nations, including Singapore, falling fertility has become a challenge. Fewer and later marriages, later and fewer births, a rapidly ageing population – these trends combined will have a significant impact on all aspects of our lives, our social fabric, workforce, economy, national defence and more. Will we be able to sustain our society and our standard of living? Who will look after increasing numbers of elderly? Who will pay taxes? Will we have enough blood donors? How can we continue to maintain a vibrant economy and create good jobs for Singaporeans? We have to keep our country running. Even with advanced technology and artificial intelligence, manpower, especially younger people, are needed. What measures will the Government implement to reverse our falling fertility rate? Are we prepared to consider more extensive and innovative measures to support and encourage dating, marriages and procreation? Accepting younger migrants and having more temporary foreign workers and employees in our workforce offer only a partial solution, as these measures come with their own challenges. There are also issues of social integration, cohesion and stability. Nonetheless, will the Government be reviewing immigration policies to counter our falling fertility rate?
Mr Gerald Giam Yean Song (Aljunied)164 words
Mr Chairman, the Government has clarified that it does not aim for Singapore's population to increase to 10 million, and it is anticipating a population of significantly below 6.9 million by 2030.[+7 sentences] However, with 2030 only six years away and fast approaching, a key question arises – what are the Government's longer-term forecasts? Population projections are a critical tool for public policy planning. Given current birth rates and the intake of new citizens and Permanent Residents (PRs), what are the Government's projections for Singapore's population in 2040 and 2050? These figures are pivotal not just for immediate policy adjustments, but for securing a sustainable future for all. The Government claims that it does not seek to achieve any particular population size. I find this rather strange. If there is no population target, how does it decide how much to regulate the immigration tap or how much to invest in pro-natalist policies to achieve its desired economic, social and security outcomes over the long term?
The Chairman10 words
[+1 sentence]Mr Faisal Manap, you can take your two cuts together.
Mr Muhamad Faisal Bin Abdul Manap (Aljunied)541 words
[+2 sentences]Sir, according to figures released by the Government in 2023, our total population stands at around 5.9 million, of which 4.9 million are residents and 1.8 million are non-residents. Racial demographics have remained largely stable. The most worrying statistic released was the all-time low fertility rate of 1.04.[+18 sentences] Set against the backdrop of an ageing population, these statistics become more worrying. Sir, I would like to ask if the Government has a projection for the number of new residents and non-residents for the next five years. Following from that, I would like to ask for a progress update on the efforts to ensure that our infrastructure development is able to support an increasing population, in view of the delay and disruption in the construction sector resulting from the COVID-19 pandemic. Sir, I also note from the figures released by the Government in 2023 that there are over 200,000 Singaporeans presently based overseas. This is testament to the resilience and adaptability of our Singaporeans. But I also wonder if there are concerns of potential brain drain resulting from greater emigration. Does the Government have a strategy of managing emigration to ensure Singapore itself does not lose out on our homegrown talent? My final point is on the Government's effort in attracting Malay talent. In the past years, me and a few other Malay Members of Parliament, including former President Mdm Halimah Yacob, had asked through Parliamentary Questions and COS cuts on the measures and efforts taken by the Government in attracting Malay talent. Sir, back in December 2012, the Prime Minister commented during a session of Our Singapore Conversation that the Government had done its best and worked hard to attract Malay talent from Malaysia and Indonesia, but the numbers were small. Hence, I would like to ask for updates on the Government's efforts in attracting Malay talents till date. Sir, it is indicated on ICA's website with regard to the application for Singapore PR or citizenship that, I quote, "ICA takes into account factors, such as the individual's family ties to Singaporeans, economic contributions, qualifications, age, family profile and length of residency, to assess the applicant's ability to contribute to Singapore and integrate into our society, as well as his or her commitment to sinking roots." In short, ICA will assess each application for Singapore PR and citizenship based on its merits. As publicly known, there has been a Government stance in maintaining the racial balance in Singapore population to preserve social stability. Sir, based on the two points I mentioned above, I would like to seek clarification from the Government whether there are instances where applications for Singapore PR or citizenship have to be rejected resulting from a fulfilled immigration quota so as to maintain the racial balance in Singapore's population, even though these applications have their merits? Sir, if there are, indeed, such situations, I would like to ask how does the Government balance its commitment to maintain the racial balance of our population in the context of our immigration policy? For example, does it make it more challenging for foreign spouses and/or family members of Singaporeans to be granted permanent residency, which is necessary before citizenship is considered? I look forward to the Prime Minister's Office's (PMO's) clarification.
Ms Mariam Jaafar (Sembawang)134 words
[+7 sentences]Sir, immigrants add to our workforce and add diversity and vitality to our population. With the immigrant community already forming a significant share of the population, integration amongst all those who call Singapore home is crucial to keep our society cohesive. For this to happen, we need more social mixing and business networking, and these efforts should start from young. However, the vast majority of immigrant children attend international schools. We know that sports bring people together. So, perhaps including international schools in our national school games or forming joint sports teams between our schools and international schools is one way to bring Singaporean and immigrant students together, along with their parents. What is the Government doing to support integration in schools, community and workplaces, and how can stakeholders across society do their part?
The Chairman10 words
[+1 sentence]Mr Gan Thiam Poh, please take your two cuts together.
Mr Gan Thiam Poh (Ang Mo Kio)114 words
[+1 sentence]Thank you, Chairman. With an increasing number of elderly who may be frail who need help to look after them, what is the projected numbers of migrant domestic workers (MDWs) required to support and meet the needs of our ageing population?[+1 sentence] How would the Government ensure that we can recruit and retain enough trained MDWs? Our falling TFR will have a negative impact on the future of our society and economy.[+3 sentences] What will the Government do to encourage marriages and support young couples to have more babies? Many young people are working hard at their careers and further studies. How will the Government assist and support them to network and meet potential marriage partners?
The Chairman9 words
[+1 sentence]Ms Ng Ling Ling, take your two cuts together.
Ms Ng Ling Ling (Ang Mo Kio)366 words
[+1 sentence]Thank you, Chairman. On supporting marriage and parenthood, Mr Chairman, several hon Members of this House have already mentioned that in 2022, our TFR hit another low of 1.04 and there was also a 4% reduction in citizen births from the previous year. Although we have seen an encouraging increase in citizen marriages over the past two years, the annual average number of marriages and births over the last five years remains lower than that of the preceding five years.[+4 sentences] With these demographic challenges that we are facing as a nation, despite increasing Government financial incentives for young couples to start a family and have more children, I would like to ask: one, beyond the financial support, what other proactive and innovative approaches is the Government exploring to address the factors contributing to the decline in TFR? I suggested setting up a social ecosystem of mentoring on family planning and financial management to alleviate the financial anxieties of setting up families in my Budget speech. I would like to ask if this is something that the Government can facilitate in more local communities. Second question, considering the rising median age of first marriages and first-time citizen mothers, what additional measures can be taken to increase awareness of potential fertility challenges and encourage earlier family formation? Mr Chairman, in a recent pre-conference poll done by the Institute of Policy Studies (IPS) for the Singapore Perspective Conference 2024, seven in 10 of young Singaporeans aged between 21 and 34 believe that it is not necessary to get married, but most still want to do so.[+4 sentences] Seventy-two percent similarly think that it is not necessary to have children in a marriage, but most of them still would like to have children. Our young people are increasingly focusing on furthering their education and career advancement over marriage and parenthood. This aspiration and reality gap can contribute to continued implications on our demographic challenges. I would like to ask, given the importance of financial planning and fertility health in achieving family life goals, could the Government consider embedding financial education related to family planning and fertility health in our Institutes of Higher Learning (IHLs), just like how career coaching is proliferated?
Ms Carrie Tan (Nee Soon)334 words
[+15 sentences]Mr Chairman, we need Flexible Work to be an imperative, as a country that needs to increase our total fertility rate – at the same time that people are coping with the rising demands of eldercare. One way to leapfrog this is to progress towards work-life integration, instead of getting stuck and caught with "work-life balance". This goes beyond mere semantics to a fundamental shift in mindset and concept. "Balance" reinforces the idea that "work" and "life" oppose each other and that there is a need to cut back in order to achieve balance. With the push for higher productivity amidst manpower shortages, "cutting back" of any sort makes companies nervous. But with "Integration", the two are melded – potentially mutually enhancing each other. Outdated notions like "going to work" or "clocking in and out" makes both employers and employees calculative when work encroaches into personal time or when personal matters encroach into work time. Such calculativeness is stressful and disempowering for both. Life does not happen like clockwork, nor does business. Work hours and routine helped organise people and shifts – which was relevant during the industrial era with factory-based work. But now technology and communication tools allow many people to work anytime, anywhere. We do business in the information and digital age, but we are still stuck in the industrial-era mindset when organising our workforce. Integrating work and life allows for tasks in each domain to get done, whenever it can be done. It enhances a sense of autonomy when employees can optimise their energies and time to organise their tasks in the most convenient and efficient manners that work for them. These will help boost productivity and mental well-being. Research has already shown that employees are willing to work for less pay with FWA.[+2 sentences] And that is how much people value such trust and autonomy. What are National Population and Talent Division's (NPTD)’s and Prime Minister's Office's (PMO)'s plans to accelerate work-life integration for a triple-win for employees, employers and Singapore?
Ms Yeo Wan Ling (Pasir Ris-Punggol)298 words
[+2 sentences]Building a Singapore Made For Families requires a whole-of-society effort. Many parents desire greater support and FWAs to better enable them to juggle work and family commitments. In a recent survey by the National Trades Union Congress' (NTUC's) Women and Family Unit and the PAP Women's Wing, close to 90% of nearly 3,000 caregivers surveyed chose FWAs as their most preferred form of support.[+1 sentence] For effective FWAs to happen, we need the support of employers. The NTUC has been advocating for FWAs since 1995, when we introduced FWAs in our collective agreement negotiations. We are also heartened to note that there are over 12,000 companies – mostly SMEs – which are signatories to the 2017 Tripartite Standards for FWAs. During COVID-19, introductions of FWAs in companies spiked with Singaporean firms offering FWAs rising up to 70% from 53% pre-COVID-19.[+7 sentences] However, reports show that post-COVID-19, companies have started to cut down on their FWAs offerings – citing productivity and trust issues. For employers, FWAs must lead to productivity gains and a culture of trust must be created in the workplace. Beyond providing for wider and extended family and elder-caregiving leave, I believe employers see FWAs as a tenable, sustainable way to retain and attract talent. But our less resourced companies like our SMEs, may find it challenging to implement this on the ground in the same speed and scale as larger enterprises. It is therefore important to ask: how will the Government continue to support employers in building a more family-friendly environment for Singaporeans? The Government's continued support for employers in implementing FWAs is critical in creating a family-friendly environment that meets the needs of our working caregivers. Together, we can build a Singapore that not only supports aspirations of our workforce but also nurtures strong and resilient families.
Miss Rachel Ong (West Coast)131 words
Chairman, under current regulations, childcare leave ends when a child turns 12 – assuming they are independent by then.[+5 sentences] However, this overlooks parents of children with severe disabilities or rare disorders who are undergoing care regardless of age. The level of care for these children does not diminish and may even intensify as their condition progresses. As a result, many caregivers have appealed to their employers to use their personal medical leave instead; believing they would not need it for themselves due to their dedication to their child's well-being. I brought up this issue during last year's Budget Debate, if the Government would consider extending childcare leave for parents of children with severe disabilities past the age of 12? What alternatives are available for these parents in terms of childcare leave?
The Chairman9 words
[+2 sentences]Mr Louis Ng. Please take your four cuts together.
Mr Louis Ng Kok Kwang (Nee Soon)705 words
[+8 sentences]Sir, last year, we celebrated the announcement of the extra two weeks of paternity leave. A year later, unfortunately, we are still waiting for these two weeks of paternity leave to be mandated. The sad reality is that – as reported in the media – some companies are waiting for the paternity leave to be mandated before they give it. Fathers are losing precious time with their babies – precious family time. We all wish this is not the case. We all hope that mindsets would have shifted, and paternity leave need not be made mandatory before companies give it. The Government must step in and ensure that we are indeed a Singapore made for families. Our policies and our firm commitment can help shape mindsets and change them more quickly. Can the Government provide a firm timeline on when the extra two weeks of paternity leave will be mandated?[+13 sentences] Next, Prime Minister Lee urged couples to add a little dragon in this Year of the Dragon. Our record-low fertility rate is an existential problem. We have been generous in giving parents bonuses, vouchers and tax rebates. But I hope we can give parents something even more valuable – time. Every year, I know I sound like a broken record asking for more parental leave, more childcare leave, more parent care leave, fertility leave and annual leave. But valuable time is important to many people. I sincerely hope the Government will consider providing parents with more parental leave – both maternity and paternity leave; and commit to a firm timeline to equalise both maternity and paternity leave. Can the Government also provide more incentives to companies to support them in giving their employees parental leave? We support companies when it comes to giving their employees time to serve their reservist. We should provide the same level of support when it comes to giving their employees time to welcome their babies into this world. This will help us truly become a Singapore made for families. Next, in a 2022 survey by the Breastfeeding Mothers Support Group Singapore, more than half of mothers stopped breastfeeding before their child turned one year old. The main reason cited was the challenges of expressing milk at work. Under the Code on Accessibility in the Built Environment, lactation rooms are only required for buildings with a floor area of above 10,000 square meters – this is less than 10% of more than 4,000 offices and business parks.[+12 sentences] For the rest of the offices, it is left to employers to provide lactation rooms. This can be challenging, especially for SMEs. We can do more to help. Currently, there is an Accessibility Fund for building owners to upgrade their buildings or install a lactation pod. Can the Government do more to publicise the Accessibility Fund and urge people to apply for it? Can the Government also look into providing additional support for building owners to retrofit their buildings, with dedicated lactation rooms or install lactation pods? Finally, under the Code on Accessibility in the Built Environment, accessible toilets for adults with disabilities or seniors must be present at a huge number of locations. However, under the same Code, there must only be one – at least one lactation room – only at limited areas. We recognise that our buildings should be inclusive in making sure that accessible toilets are widely available, even if some buildings may not have elderly or disabled users. Why the disparity when it comes to lactation rooms? About half of our population are female and many of them will go on to become mothers who should have the option of breastfeeding their children, if they wish to. We try to encourage Singaporeans to set up families through bonuses and vouchers. Designing our public facilities for families sends a visible and clear signal that this is a Singapore made for families. It has been more than five years since the Code was last updated. Will the Government make our Code more inclusive in the next iteration of the Code by lowering the gross floor area (GFA) threshold for the requirement of lactation rooms and also mandating more lactation rooms in buildings – the same way we do for accessible toilets?
Ms Hany Soh (Marsiling-Yew Tee)496 words
[+11 sentences]Chairman, in Mandarin, please. (In Mandarin): The practice of "marrying first and then advancing your career" is not common in today's society. For many young couples, the pressure of raising children is very significant. Therefore, they often hope to strengthen their respective career foundation, has stable financial capabilities before they consider whether or not to welcome a new life. However, by the time they reach that point, it is often too late. When they wish to add more family members, they have already missed the last bus. How should the Government alleviate the pressure on young couples to have more children and assist parents reduce and cope with their expenses and burdens of raising children? How should the Government provide reassurances to Singaporeans, especially those in the lower, middle-income families to ensure that our children have a good starting point, regardless of the family's financial situation, especially in terms of their healthcare and early childhood education. : As the saying goes “it takes a village to raise a child”. Hence, every bit of support – no matter how little – and be it through caregiving or financial assistance, is always a welcome relief to alleviate the stress encountered during parenthood journeys. Not all couples are fortunate in the sense of having able-bodied parents, or being able to afford the cost of hiring a reliable helper to assist in caring for their young children. Based on the concerns that my Woodgrove residents have shared with me, these couples generally face greater concerns about caregiving arrangements – especially in the early stages of their child's life and even more so when they – the parents or their child – fall sick. The ability to be present as the main caregiver of their children is one of the main wants of every parent and this, of course, includes daddies. I therefore applaud the Government's willingness to adapt to changing times by increasing paternity leave allowances, yet even that may not be quite enough as companies have been observed to be "rebalancing", by calibrating the number of remote working days allowed. Therefore, I ask: how is the Government looking into other measures such as increasing the number of childcare leave for both mummies and daddies in response, to ensure that both parents are able to witness every important milestone of their children?[+2 sentences] Besides the struggles of sourcing suitable caregivers for their children, families often also fret over the financial constraints while striving to provide the best for their children. What is the Government doing to provide stronger support for parents in these areas – particularly when cost of living issues continue to have an adverse impact on this group? With regard to the Baby Bonus Scheme, will the quantum of the cash gift be periodically reviewed to be aligned with inflation? And can the Ministry explore widening the list of approved uses for the Child Development Account (CDA) to further assist parents with child-related expenses?
The Chairman3 words
[+1 sentence]Minister Indranee Rajah.
The Minister, Prime Minister's Office (Ms Indranee Rajah)635 words
[+18 sentences]Mr Chairman, I thank Members for their cuts. Our vision for Singapore’s population is: a thriving people, a dynamic economy, an inclusive society and a resilient nation – a Singapore where all Singaporeans can achieve their personal and family aspirations; have good jobs, good incomes and good careers; and live fulfilling lives. We must also lay the foundations for future generations to do the same. However, we are confronted with the twin demographic challenges of a persistently low fertility rate and an ageing population. These challenges are not unique to Singapore. Many other advanced societies also face rapidly declining fertility. South Korea continues to grapple with a fertility rate below 1.0 – far below the replacement level of 2.1. Closer to home, Malaysia and Thailand saw their fertility rates fall in 2022. European countries, such as Italy and Spain, continue to see record lows in births year on year. Mr Patrick Tay and Mr Yip Hon Weng asked about the key population outcomes we want and our strategies for achieving them. Fundamentally, we need more Singaporeans. A strong Singaporean citizenry is the bedrock and wellspring of a thriving nation. We must hence continue to support Singaporeans in starting and raising families. Second, we must manage the practical impact of slowing local workforce growth and an ageing population on our society and economy. This is where our immigration, foreign workforce and integration strategies come in. Third, we must understand that this task cannot be undertaken by the Government alone. We can only succeed through our collective efforts. Mr Gerald Giam asked about our population projections and how we plan our population policies. As indicated at last year's Committee of Supply, our total population is likely to be below 6.9 million by 2030.[+8 sentences] This planning parameter remains relevant for the 2030s. Beyond that, our population size will depend on various demographic trends, such as birth rates, life expectancies, deaths and migration; as well as future social and economic needs. In planning for the longer-term, we develop various scenarios to ensure that we are adequately prepared for a range of possible outcomes, rather than focus on a single number. In all scenarios, however, supporting marriage and parenthood remains a fundamental priority. We have been and will continue to invest heavily in families as this is an existential issue for us. Also, our efforts to raise fertility will take time to show results. A carefully managed immigration policy is hence an important supporting measure to moderate the impact of low birth rates and an ageing population on our society and economy. So, let me now elaborate on our population strategies, the trade-offs we face and the whole-of-society effort needed. At the core of our population vision are strong and stable families.[+1 sentence] Last year, there were 26,500 resident marriages. We were also delighted to welcome 30,500 resident births. Overall, however, there were fewer resident marriages and births annually on average over the last five years, as compared to the preceding five-year period.[+1 sentence] Our resident total fertility rate, or TFR, has continued to decline. Preliminary estimates indicate a resident TFR of 0.97 in 2023, the first time it has dropped below 1.0.[+6 sentences] There are various reasons for Singapore's low fertility. Some are temporal, for instance, couples that had their marriage plans disrupted by COVID-19, which may in turn, have delayed their parenthood plans. Others cite concerns about the financial costs of child-raising, pressures to be an excellent parent, or difficulties managing work and family commitments. More broadly though, our low fertility reflects a global phenomenon where individual priorities and societal norms have shifted. This can be seen from a slew of articles on the TFRs of other countries. Mr Chairman, Sir, with your permission, may I please distribute an Annex which has some of these articles, to Members of the House?
The Chairman9 words
[+1 sentence]Please proceed.
Ms Indranee Rajah3130 words
[+25 sentences]Thank you. Members may also access these materials through the MP@SGPARL app. What I am circulating is the list, but the articles are accessible there, through the QR code and the links. These articles reflect a generational change in priorities and how young people around the world are increasingly finding meaning in other pursuits. They may not even see marriage or parenthood as important life goals. Our falling TFR has serious implications for Singapore's future. We are already seeing the impact of our falling TFR on our society. Families today are smaller than before, with more sandwiched couples having to care for both the young and old. A growing proportion of Singaporeans are remaining single and will have weaker familial support networks when they grow older. Our falling TFR will also impact our economy. As several Members have mentioned, a strong and vibrant economy is critical for Singapore, as it helps raise our standard of living and gives us resources to tackle challenges. However, a vibrant economy is ultimately driven by people. With fewer births, we will face a shrinking workforce. It will be increasingly challenging to maintain our dynamism, attract global businesses and create opportunities for the next generation. This has been the experience of countries like South Korea and Italy, who are grappling with economic slowdowns and declining wages, further compounded by low fertility and the resulting demographic changes. We are therefore determined to address these challenges. The bright side is that our young Singaporeans still aspire towards marriage and parenthood. However, as several Members have noted, they may not proactively plan towards these goals. As a Government, we respect Singaporeans' personal decisions on marriage and parenthood. But there is no denying that starting a family becomes more challenging with age. Singaporeans may prioritise their education or careers in young adulthood, only to face difficulty conceiving when they eventually try for children. We therefore strongly encourage young Singaporeans to actively build and develop relationships and intentionally factor marriage and parenthood into their life plans early on. Several Members have asked on how we will support marriage and parenthood. We will provide a conducive environment for couples who wish to start, grow and nurture their families. We made significant moves in this regard at Budget 2023. To support working parents, we doubled Government-Paid Paternity Leave to four weeks on a voluntary basis. We also increased Unpaid Infant Care Leave to 12 days per parent per year in their child's first two years.[+3 sentences] To strengthen financial support for young families, we enhanced the Baby Bonus Cash Gift for all birth orders. We also enhanced the Child Development Account, or CDA, by increasing the First Step Grant and raising the Government co-matching caps. We are continuing to address the housing needs of Singaporean couples and families. The Housing and Development Board (HDB) has ramped up Build-to-Order (BTO) supply and remains on track to launch 100,000 BTO flats from 2021 to 2025.[+12 sentences] Furthermore, HDB is catching up on BTO projects delayed by the pandemic, having delivered 80% of such projects as of end-2023. As announced at the National Day Rally last year, the new framework of Standard, Plus and Prime flats will take effect later this year, and cater to Singaporean families' different budgets and needs. The Ministry of National Development (MND) will help families awaiting the completion of their BTO flats by doubling the supply of flats under the Parenthood Provisional Housing Scheme, or PPHS, to 4,000 units by 2025. In the meantime, as announced at Budget 2024, MND will also introduce a one-year PPHS (Open Market) Voucher, to support PPHS-eligible families to rent an HDB flat or bedroom from the open market and MND will share more at its COS. As Mr Yip Hon Weng highlighted, some couples may also face fertility issues. Couples undergoing Assisted Conception Procedures at our public hospitals can tap on Government co-funding and use their MediSave to offset treatment costs. The Ministry of Health (MOH) is also studying the merits of extending co-funding to the private sector, taking into account clinical outcomes and costs. He asked about elective egg-freezing. Based on preliminary data, approximately 200 women underwent elective egg-freezing since it was implemented in June last year. But whilst this may be an available option for women, we still do encourage them to try for children earlier, to reduce age-related risks of conceiving and carrying a baby successfully to term. Ms Ng Ling Ling and Ms Hany Soh asked about support to alleviate Singaporeans' concerns regarding child-raising costs. The Government is investing heavily to ensure preschool, education and healthcare remain affordable for families. The Ministry for Social and Family Development (MSF) will lower childcare fee caps in Anchor and Partner Operator Preschools by $40 in 2025 and will lower them again in 2026.[+3 sentences] MSF will share more at their COS. Today, a Singaporean child can receive around $200,000 worth of education subsidies, including preschool subsidies, by the time the child completes secondary school. And, of course, there are significant subsidies for studying in the Institutes of Higher Learning (IHLs). In addition, all Singaporean babies are covered by MediShield Life from birth and their parents receive a MediSave Grant for newborns to help with the premiums. And Singaporean children also enjoy fully-subsidised nationally-recommended childhood vaccinations and developmental screenings at polyclinics and GP clinics under the Community Health Assist Scheme.[+10 sentences] We had just enhanced the Baby Bonus Scheme last year and will consider the suggestions raised, bearing in mind the overall suite of grants and subsidies available. Next, we are also focusing on supporting men in their role as husbands and fathers. Members on both sides of the House support this, and Mr Louis Ng, in particular, has been an active advocate and champion. Our leave provisions are differentiated between mothers and fathers to meet their respective needs. For example, maternity leave is longer to allow mothers to recuperate physically from childbirth and to care for and bond with their newborns. Nevertheless, parenthood is a shared responsibility. This is especially so, as more women want to continue to work while raising their children. Currently, around half of our eligible fathers take paternity leave. We encourage more to do so and play a part in caring for your newborns. Studies have shown that children benefit physically, cognitively and emotionally when their fathers are more involved in parenting. At Budget 2023, we increased Government-Paid Paternity Leave by two weeks effective from 1 January 2024, for fathers whose employers are ready to provide it.[+3 sentences] One father, Mr Daniel Lim, looks forward to this. He and his wife have two children and are expecting another in April this year. Daniel welcomes the additional paternity leave as it allows him to focus on supporting his wife and caring for his children during this important period. Mr Louis Ng asked when we will mandate this additional paternity leave.[+11 sentences] We will do so as soon as possible, to benefit more fathers. In the meantime, we encourage all employers to start adjusting to ensure a smoother transition when the mandatory provision eventually kicks in. During our Forward Singapore engagements, parents shared that care needs are greatest during a child's first 18 months. We will continue to strengthen support for parents during this critical period. MSF has been ramping up infant care capacity. It also plans to grow childminding services as an additional infant care option for families. MSF will share more at their COS. That said, we know many Singaporean parents prefer to care for their infants themselves and have asked if more leave can be given. We have studied the leave provisions of other developed countries like France and Denmark which have higher TFRs. These countries tend to provide parents with longer periods of leave during their child's infancy, sometimes at reduced pay. Parents appreciate the greater peace of mind, as they can care for their infants for longer while remaining employed. They can then return to work more easily once their children are older. We are therefore actively exploring how to increase paid parental leave.[+26 sentences] We must recognise that this requires workplace adjustments and that employers may face challenges in making arrangements to cover for employees' extended absences. We will therefore closely engage tripartite partners on further enhancements and pace out any proposed changes. Caring for and raising our children is a long-term endeavour. As Ms Hany Soh and Miss Rachel Ong have pointed out, this can be especially challenging when children fall sick or for certain groups, such as parents of children with severe disabilities or rare disorders. Hence, beyond leave provisions, we are exploring other sustainable ways to help parents better manage work and family commitments. These include flexible work arrangements, or FWAs. We must strengthen workplace flexibility in a manner that meets the needs of both employees and employers. As Ms Carrie Tan mentioned, we want to provide parents with the flexibility to optimise their energies as they navigate the demands of work and family. At the same time, employers' ability to meet their business needs will be critical in sustaining such flexibility. Through open communication and mutual trust, employers and employees can work out arrangements that meet both their needs. The Ministry of Manpower (MOM) is working with tripartite partners to develop new Tripartite Guidelines on Flexible Work Arrangement Requests. MOM will share more at their COS. Ms Yeo Wan Ling asked about Government support for companies. We recognise that some employees, including SMEs, may find it more challenging to adopt FWAs. We will consider ways to help all employers implement FWAs well and manage their teams productively. These are HR capabilities that will enable our employers to optimise their workforce and position themselves as employers of choice. We are glad to see more employers distinguishing themselves by implementing family-friendly practices and features. One such local company is Hegen, which develops infant care products. Hegen offers its employees various forms of workplace flexibility, including work-from-home arrangements, staggered hours, part-time work and compressed work schedules. Hegen's family-friendly culture has helped the company to attract and retain talent, showing that businesses can pursue excellence and innovation while at the same time implementing family-friendly practices. We encourage all employers to establish family-friendly workplaces and make a difference in practical ways. For example, fathers ought to feel supported when taking time off for their families. A CNA report cited an example of a father who wanted to take paternity leave, but encountered resistance from his female manager. She made passive-aggressive comments and pointed to the backlog of work he would accumulate if he did so. It would have been more helpful to discuss a mutually satisfactory covering arrangement instead. Employer support can also include family-friendly office features, such as lactation rooms, which Mr Louis Ng spoke about. The Building and Construction Authority (BCA) has progressively enhanced the building design requirements for lactation rooms and will continue to review them.[+2 sentences] We encourage building owners to voluntarily provide such family-friendly features beyond the minimum Code requirements. Premises which lack space for separate lactation facilities can consider lactation pods which are commercially available. Building owners, lessors and lessees of eligible private developments may also tap on BCA’s Accessibility Fund to co-fund the construction costs of such features as well as lactation pods.[+23 sentences] BCA has actively promoted the Fund via press releases, social media posts, industry seminars and targeted engagements. They will continue to reach out to building owners to encourage adoption. But ultimately, it will require a whole-of-society effort to build the family-friendly workplace culture that Members have called for. All of us have a role to play, whether as parents, employers or co-workers. We want parents to be able to tap on workplace flexibilities without fear of stigma. Every small act counts, from exercising patience when a colleague’s child interrupts a work call, to being understanding when a co-worker takes time off at short notice to care for their children. We also trust that parents will tap on these flexibilities responsibly, and stand ready to reciprocate when other colleagues have urgent personal or family needs to attend to. Together, we can make Singapore a great place for all to work and live in, for generations to come. Mr Gan Thiam Poh asked about supporting the needs of an ageing population. Indeed, a key thrust of Forward Singapore is enabling our seniors to age well. Primarily, we want our seniors to have good health. Good health is a lifelong commitment, as lifestyles in earlier years affect how healthy we are in our golden years. Therefore, we will step up the preventive health focus through Healthier SG, to empower Singaporeans to live healthily with support from their regular family doctor. We also want our seniors to age well in their homes and the community. This is the key purpose of Age Well SG, which complements Healthier SG by anchoring ageing well in the community. Through Age Well SG, we will encourage active ageing, improve support for seniors with care needs, and make our homes and neighbourhoods more senior-friendly. MOH, MND and MOT will share more information on their Age Well SG plans during their respective Committee of Supply segments. Mr Gan asked about the number of Migrant Domestic Workers, or MDWs, needed to support our ageing population. We expect that demand for elderly caregiving services will rise in the coming years, and MDWs play an important role in supporting households with caregiving needs. However, the scale of this increase is uncertain. It will be dependent on a host of factors, including how well our society ages and other efforts to support seniors with care needs. Even as we strive to support Singaporeans in their marriage and parenthood aspirations, and help seniors live healthier and more fulfilling lives, low birth rates and ageing will undeniably impact our economy and society. Our immigration policies play an important role in mitigating this. In 2023, we granted about 23,500 new citizenships, including about 1,300 to children born overseas to Singaporean parents. We also granted about 34,500 new Permanent Residencies (PRs).[+15 sentences] We continue to maintain a measured and stable pace of immigration, which moderates the impact of demographic trends on the size and age profile of the citizen population. The average number of new citizenships and new PRs granted per year since 2019 is slightly higher than that over the preceding period. We grant PR or citizenship to those who can integrate well, contribute to Singapore and are committed to making Singapore their home. Our immigration policy also helps us to meet our future population needs. For example, in recent years, we have granted a higher number of PRs to healthcare workers to support our growing healthcare needs. One such immigrant is Ms Josephine Marie Baljon Celis, who was granted PR in 2023. She has been a valued staff nurse at SingHealth Community Hospitals for almost 15 years, consistently delivering a high standard of care to her patients. Josephine’s colleagues describe her as friendly, positive and dedicated to her work. Beyond her core nursing duties, she has served as a Clinical Instructor for many years, guiding and training numerous batches of nursing students to help meet Singapore’s healthcare needs. She also does volunteer work. Like our forefathers, many immigrants have found their way here and stayed on because they hope for a better life in Singapore. With time, they become our friends and ultimately, our fellow countrymen who will work alongside us to build a brighter shared future. But crucial to this brighter shared future is a strong economy, supported by a dynamic and productive workforce. As Mr Patrick Tay, Ms Joan Pereira and Mr Yip Hon Weng have noted, for Singaporeans to have good jobs, good incomes and access to services for a high quality of life, we need a strong economy. Our low birth rates and ageing population have resulted in slowing local workforce growth. Even with immigrants, we do not have enough working locals to support continued good economic growth. We must, therefore, remain open to a diverse foreign workforce that complements the local workforce. Foreign workers create value for Singaporeans, for example, by filling manpower gaps in sectors that Singaporeans are less keen to work in, or in disciplines where we may need more time to develop our own pool of local workers.[+2 sentences] They can also generate opportunities for Singaporeans by bringing in new investments, networks and expertise. So, even as we welcome these complementary foreign workers, we will continue to strengthen the development of the local workforce. As detailed in the Forward Singapore report, SkillsFuture is a key pillar of our social compact.[+19 sentences] We will also support Singaporeans in gaining overseas work experience to provide opportunities for career development and progression. More information will be provided during MTI’s and MOM’s Committee of Supply segments, and we encourage all Singaporeans to make the most of these opportunities. Mr Chairman, I have outlined how our marriage and parenthood, immigration and workforce policies work in tandem to help us overcome our population challenges. However, these policies can only succeed if we remain an inclusive society. Globally, sentiments of disenfranchisement and xenophobia have gained momentum. A growing number of politicians across the world have stoked xenophobia to gain popular support. Some have been voted into office, the result of which has been division and instability. We must not go down that path. The well-being of Singaporeans remains at the heart of what we do. But this does not prevent us from welcoming foreigners who can contribute to our economy and add richness to our multicultural society. And we must, of course, also work hard at integration. This response extends to the enquiry Mr Faisal Manap made about how we can welcome Malays and others from the region to come and join us. All that I said earlier about welcoming foreigners here extends to those groups as well. So, in conclusion, Mr Chairman, Singaporeans and their well-being are at the heart of our population strategies. These strategies aim to build a resilient nation, anchored on the key thrusts of the Forward Singapore Report: opportunities, assurance and collective responsibility. The Government is committed to building an economy that will provide opportunities for all to achieve their aspirations. The Government will also provide assurance for Singaporeans at every stage of life. We will not let up on efforts to support Singaporeans in starting and raising families so that we may forge a strong Singaporean citizenry. For this to happen, we need everyone to do their part. While some of the bolder changes and mindset shifts may require more time, I call on everyone – individuals, families, employers and communities – to contribute towards shaping a Singapore that is Made for Families so that we can secure our future and thrive for years to come.
The Chairman10 words
[+2 sentences]Are there any clarifications for Minister Indranee? Ms Hany Soh.
Ms Hany Soh182 words
[+1 sentence]Thank you, Chairman. This is in relation to the Government's co-funding scheme for Assisted Conception Procedures (ACP).[+4 sentences] I can understand what Ministers have shared earlier on the rationale behind why we want to provide the better subsidy schemes for those who are below 40 years old. But through my interactions with several of the residents that have approached me for support and help, I can also understand that, generally, as women, we want to try our best to conceive naturally and without resorting to undergo ACP like IVF, unless circumstances require us to do so. Several of them, due to factors that are beyond their control, have entered marriage at a later stage and have eventually resorted to trying attempts at IVFs but have failed. I do hope that the Government can exercise flexibility in acceding to those appeals for those that have put in the effort and have unfortunately failed two attempts of the IVF trials and, as a result, have sought us to seek support for more additional fundings in order to eventually fulfil their dreams to become a parent.
Ms Indranee Rajah137 words
[+9 sentences]I thank Ms Soh for her clarification. We do have a lot of sympathy for those who, for whatever reason, were not able to try for children earlier. The only thing is that the fact remains that age does remain a factor. It does affect the success or the outcomes. So, we can certainly look at it and study it and, as time goes by, if technology gets better, if there are advances and improvements in medical science, then we can see how that can be done. This comes under the purview of MOH. We will certainly refer it to them. We will do our utmost but, at the same time, just to remember, age is a factor. So, where possible, if we can encourage Singaporeans to have children earlier, that would be really the best solution.
The Chairman3 words
[+1 sentence]Mr Gerald Giam.
Mr Gerald Giam Yean Song95 words
[+5 sentences]Sir, I thank the Minister for her response to my questions. The Minister, if I heard right, said that the population projections by 2050 will depend on trends in fertility and longevity. I understand there might be some concerns about publicly revealing population projections but does the Government have any internal projections for the population in 2040 and 2050 based on the different scenarios? Because in 2013, I recall that the Government was able to project our population until 2030. Now, in 2024, why is it not possible to project it until at least 2040?
Ms Indranee Rajah271 words
[+15 sentences]The difference really is that planning for the future has become a lot more complex. There are a lot more variables. It is not like when Singapore was first starting off and you have a clear trajectory and you can say that there is this projection. So, having one particular figure does not really help because you would have a range of scenarios. That is what I was trying to explain just now. Essentially, there are birth rates, TFR, we have just seen that it has fallen to an all-time low, life expectancy, deaths, migrations. So, basically, for the Ministries to plan, they have to plan on a range of scenarios and not all of them will plan on the same variables. For example, if it is public housing, you would just look at Singaporeans, when you plan your BTOs. But, obviously, if you are looking at some other things, then you would take into account the foreigners who work here as well. One of the strategies we have for this is modular planning. So, for example, if you were building something like T5, you do not have to build the whole thing straightaway to take into account a very large number that is coming through. You would build stage one and then if it looks like you are having more traffic, then you can build stage two. We apply some of that when we are planning for public housing, for transport. So, having one particular figure does not really address the issue. I think for the agencies, they are learning over the years, to plan within a range of scenarios.
The Chairman3 words
[+1 sentence]Mr Louis Ng.
Mr Louis Ng Kok Kwang171 words
[+2 sentences]Thank you, Sir. Can I ask again on paternity leave? Rather than just have ASAP, whether we can have a firm timeline on when we will mandate the extra two weeks of paternity leave.[+3 sentences] I think that is important for the fathers, but most important is for the companies, especially for the SMEs, which can then plan ahead and have resources made available in time for when we mandate this. I mean, we do this for carbon tax, where we are given a whole roadmap on when we will increase carbon tax so that companies can get ready. I hope we can do this also for paternity leave. Second, on lactation rooms, we do have the Accessibility Fund. I am just wondering whether the Government can consider increasing the co-payment.[+2 sentences] The current rate is at 60%; whether it can increase it to 80%. Similar for accessible toilets, so that more building owners perhaps will be spurred on to build the lactation rooms and this will help the breastfeeding mothers as well.
Ms Indranee Rajah81 words
Mr Chairman, Mr Louis Ng is right that the companies do need time to implement it if we make paternity leave mandatory.[+3 sentences] So, this is something that we are looking at and the Member can be assured that as and when it does become mandatory, actually when it does become mandatory, it will factor in a lead-in time for the companies as well. And I thank him for his suggestions with respect to the building code. We will look at that.
The Chairman47 words
[+6 sentences]Are there any clarifications for Senior Minister Teo? Earlier on, I did not see any Members raise their hand, so I moved on. Now, I do not see any. Senior Minister Teo is asking too, whether there are any for him? No? Okay. Mr Ong Hua Han.
Mr Ong Hua Han (Nominated Member)693 words
[+5 sentences]Mr Chairman, in my speech during the Budget Statement debate, I spoke at length about including persons with disabilities (PwDs) and why this is important. During the Committee of Supply debates, I will be shifting our focus more towards the "hows" to inclusion. Let me start this series of cuts by calling for more concrete ways to tackle discrimination in insurance practices. Sir, discrimination by insurers affects the lives of many Singaporeans – particularly those living with disabilities. This raises the issue of fairness and it demands action. The Monetary Authority of Singapore’s (MAS’) guidelines for insurance fair practice will soon address indiscriminate rejection of coverage applications.[+13 sentences] As an illustration: today, individuals with disabilities like Mr A, often encounter insurer assessments that exclude them from total and permanent disability benefits. In Mr A's case, Asperger's Syndrome and Attention Deficit Hyperactivity Disorder (ADHD) had been explicitly cited as reasons for his exclusion when he applied for a whole life insurance policy. Unfortunately, Mr A's experience is not unique. PwDs who contribute meaningfully to society or hold stable employment, frequently face similar rejections or exclusions. Often, outright denials or vague explanations of underwriting decisions are also given. This reflects a systemic failure in our insurance industry that disproportionately harms PwDs. There is no transparency in the insurer's decision-making process. Ultimately, PwDs are left guessing and are denied the insurance coverage they need and deserve. Therefore, we need appropriate measures that mandate insurers to disclose the data, research and methodologies used in the assessments to their customers and regulators, such as MAS and MOH. This will empower not just PwDs – but all affected Singaporeans – including those with mental health conditions, physical conditions or unrelated illnesses, to challenge unfair decisions and hold insurers accountable. Where necessary, MAS must also step in to take decisive action against insurers that indiscriminately reject applications – solely based on disability or mental health declarations. Every application must be objectively assessed by the insurer, based on reliable information or data relevant to the risks being insured and auditable. Clear examples of what is considered discrimination will provide clarity and guidance to insurers to ensure compliance with fair and transparent practices. Could MAS provide a non-exhaustive list of illustrations to show what constitutes discrimination?[+12 sentences] The use of irrelevant and discriminatory criteria in risk assessments is a barrier that must be addressed. Insurers must be prohibited from using factors, such as intelligence quotient (IQ) levels or academic ability, in their underwriting assessments. Other factors, like sensorimotor skills, must be evaluated judiciously and holistically under strict conditions and only when directly relevant to specific insurance policies and aligned with ethical and regulatory standards. Unfair or sweeping assessment practices not only perpetuate stigma, but also ignore the diverse experiences and capabilities of PwDs. Autistics have shared with me that they feel discriminated against when insurers exclude coverage for certain conditions – especially those related to mental health. SG Enable says that autism is a range of conditions – characterised by difficulties in communication and social interaction, sensitivity to sensory stimulation and repetitive behaviour. Autism is not a medical condition, it is a neurological difference. Therefore, even if research shows a high correlation between autism and a particular condition, it is unfair to exclude coverage. To achieve meaningful change, MAS should take in input from disability organisations and PwDs to refine the guidelines and monitor insurance practices. Their insights and perspectives are invaluable in ensuring that the needs and rights of PwDs are upheld and protected. Yes, private insurance is ultimately a business and insurers need to consider the risks presented by each policyholder to charge premiums reflective of the risk. However, this does not mean that insurers should be allowed to discriminate against any community in Singapore – including PwDs. By addressing the systemic discrimination in insurance, we can build a more inclusive and equitable society where all Singaporeans, regardless of disability, can access the financial protection they need to live with dignity and security. This will strongly signal the Government's commitment to work towards withdrawing its reservation of Article 25(e) of the United Nations Convention on the Rights of Persons with Disabilities (UNCRPD).
Mr Gerald Giam Yean Song (Aljunied)142 words
[+3 sentences]Mr Chairman, PwDs or special needs often receive inadequate insurance coverage to cover to protect themselves. Even if they manage to get insured, the scope of coverage and the insured amounts is often limited. MAS is proposing to issue guidelines to insurers that they should not indiscriminately reject an application, solely based on a declared personal information subject to disability. Instead, insurers are expected to carry out an objective assessment of every application, based on reliable information or data relevant to the risk being insured. However even under the new proposed guidelines, insurers are not prohibited from declining applications, setting higher premiums or applying conditions in view of the risks presented by an applicant with a disability.[+1 sentence] Can the Minister explain when these guidelines will be issued and how they will be materially different or more beneficial to PwDs or special needs?
Ms Sylvia Lim (Aljunied)318 words
[+3 sentences]Sir, in this environment of pervasive online scams, the Government should ensure that bank customers are adequately and fairly protected – both in prevention and in compensation. On this, I will raise two points today: developments in Australia and on Financial Industry Disputes Resolution Centre Ltd (FIDReC). First, on developments in Australia. In November last year, the Australian treasury issued a consultation paper on proposed industry codes for the private sector in combating scams – named the Scams Code Framework.[+1 sentence] The proposed Australian framework is consumer focused. The extensive obligations on banks, include training of staff, detecting, blocking, verifying and tracing scams; and the need to implement anti-scam systems that are responsive to new products, services, designs and technologies.[+4 sentences] Importantly, it requires businesses to take all reasonable steps to prevent the misuse of its services by scammers, "so that an undue burden is not placed on consumers to prevent scams." As far as Singapore is concerned, I acknowledge MAS' work, particularly in coming up with the two consultation papers in October on the Shared Responsibility Framework for phishing scams and on the proposed enhancements to the E-payments User Protection Guidelines (EUPG). That said, the EUPG paper while imposing some duties on financial institutions, also has a whole section on how consumers should also be subject to enhanced duties – including preventive actions such as updating the browsers of devices and patching operating systems with the latest security updates. How does the MAS assess whether these duties are reasonable, given the wide demographic profile of consumers? Second, FIDReC announced in January a public consultation on raising its monetary limit in adjudication cases – from $100,000 to $150,000.[+1 sentence] As few customers have the resources to sue their banks in Court, FIDReC is an important low-cost avenue for bank customers to seek redress. Should FIDReC consider raising its limit to $200,000, which is the daily threshold for PayNow transactions for consumers?
The Chairman5 words
[+1 sentence]Minister of State Alvin Tan.
The Minister of State for Trade and Industry (Mr Alvin Tan)1178 words
[+11 sentences]Chairman, with your permission, I will be taking clarifications after this reply – if there is available time. I thank the Members for their questions and comments. Allow me to start first by addressing Mr Ong Hua Han's and Mr Gerald Giam's questions on adopting fair and responsible practices towards PwDs and persons with mental health conditions. The MAS expects all insurers to deal fairly with their customers, including PwDs and persons with mental health conditions. Over the past three years, MAS has reinforced these expectations with insurers. Let me explain how. First, MAS has carefully reviewed individual cases that have been highlighted to us to ascertain that customers were treated fairly. Second, MAS has worked with the MSF to consult relevant medical professionals and industry practitioners – to ensure that the underwriting standards of the insurance industry, in particular for PwDs and persons with mental health conditions, are grounded in scientific evidence and data. Third, MAS has also worked with insurers to better explain underwriting outcomes to applicants. The upcoming revision to the MAS Guidelines on Fair Dealing – Board and Senior Management Responsibilities for Delivering Fair Dealing Outcomes to Customers, which Members have raised, formalises all of these expectations. MAS and MSF have engaged individuals and groups representing PwDs as well as industry practitioners in the process of refining these guidelines. Under the proposed guidelines, an example of inappropriate differential treatment would be to reject an application solely on the basis of declared personal information, such as a disability or a medical condition.[+2 sentences] This would fall short of the expectation for insurers to conduct an objective assessment of every application, based on reliable information or data relevant to the risks that are being insured. This applies to all types of insurance policies. Where an application is rejected or accepted with condition, insurers are to properly explain to the applicant the basis of the decision. This will also be set out in the revised guidelines, which we expect to issue by the middle of this year.[+23 sentences] In other words, insurers should not reject applications from PwDs and persons with mental health conditions without an assessment. And after they have conducted the detailed assessments, the insurers may choose to accept applications as is, with higher premiums or with specific benefits excluded. There may also be instances where the insurers assess the risks to be large and, therefore, are unable to provide coverage. Such cases are unlikely to be unique to Singapore, as insurers typically reference the underwriting guidelines of re-insurers which operate internationally, to which insurers would also transfer some of the risks. Why? The reason is that prescribing a "one-size-fits-all" assessment criteria on underwriting would result in some insurers taking on risks that exceed their underwriting expertise and capacity, which will not be prudentially sound. It could also have unintended consequences. For example, it could impair access to insurance protection if insurers stop providing coverage under such circumstances. Where the ability of insurers to adjust coverage and premiums for higher-risk individuals is constrained, it could then also lead to higher premiums for policyholders who pose lower risks. But I would like to assure the Members that MAS will closely monitor the effective and consistent application and implementation of the revised guidelines. This is part of our ongoing supervision of insurers. This will include reviewing the insurers' underwriting policies and processes, including via on-site inspections, to ensure that insurers maintain robust underwriting frameworks that are in line with MAS' regulatory requirements, supervisory expectations and sound international practice. When an insurer is found to have fallen short, or found to be dealing unfairly with its customers, MAS will take appropriate supervisory actions, such as directing the insurer to review their policies and processes to prevent a recurrence, and to review applications of the affected customers. Individuals who have concerns over their insurer's underwriting decision can make an appeal through their insurer's feedback channel. In this vein, MAS expects insurers to have a robust process to handle customer complaints independently and effectively. Individuals can also write to MAS, and MAS will investigate accordingly. Let me turn to Ms Sylvia Lim's cut. Ms Sylvia Lim asked about efforts to safeguard bank customers' interests. I would like to thank her, as well as Mr Derrick Goh in his speech yesterday, for raising this very important topic, and also for recognising and acknowledging the hard work that MAS – in partnership with our banking industry – has put in place to protect customers against scams. Other Members of Parliament, such as Dr Tan Wu Meng, Dr Lim Wee Kiak, Miss Rachel Ong, Mr Saktiandi Supaat, Ms Yeo Wan Ling and Mr Gerald Giam, have also spoken about this and advocated strongly about this topic in this House. In her Ministry of Home Affairs (MHA) COS speech, Minister of State Sun Xueling will more comprehensively outline the efforts by Government agencies and private sector entities to raise our collective defences against scams. These include initiatives and measures that have been explored under the guidance of MAS, such as the banks’ recent anti-malware controls, and the Shared Responsibility Framework (SRF) to strengthen the direct accountability of financial institutions and telcos to consumers. Our efforts are bearing fruit, especially for unauthorised transactions. The number of reported phishing cases in 2023 decreased by 16% compared to 2022, and the amounts lost decreased by 14%. The incidence of malware enabled scams has also reduced significantly after major retail banks introduced anti-malware security features on their banking apps.[+1 sentence] Despite this progress, we are not resting on our laurels; we will continue to push on. MAS will build on this progress by continuing to work with banks to further strengthen anti-scam controls. We will better safeguard funds by encouraging people to adopt Money Lock, and enhancing Money Lock's functionality. MAS is also working with banks to improve their fraud surveillance capabilities and to strengthen authentication measures at account logins and when making payment transactions.[+6 sentences] Admittedly, these will add more friction to the banking process, but we acknowledge and understand that these will better safeguard customers’ interests and also reduce the amounts lost through scams in the longer term. I would like to highlight to Members that today, the bulk of scams and amounts lost are cases involving authorised transactions, as compared to unauthorised transactions. Authorised transactions are transactions where victims willingly transfer monies to scammers under social engineering and deception. We cannot address such scams directly through banking sector-related safeguards alone. What we need is a vigilant public. We must all take steps to protect ourselves, by keeping up with new scam typologies which are rapidly evolving; and also banking controls, and checking for signs of scams. MAS and banks will continue to support national public education efforts, including the Government’s broader public education under the “Add, Check and Tell” anti-scam campaign.[+2 sentences] I thank Ms Lim for her suggestions. We have made some collective progress together, but we must and we will continue to strengthen all of these initiatives that I have outlined to help further safeguard bank customers’ interests.
The Chairman8 words
[+2 sentences]Are there any clarifications? Yes, Mr Gerald Giam.
Mr Gerald Giam Yean Song68 words
[+4 sentences]I thank Minister of State Tan for responding. Sir, from what I understand from his reply, the guidelines will only benefit PwDs if insurers had hitherto been applying inappropriate differential treatment indiscriminately. But even if insurers properly followed all their underwriting principles, many PwDs will still find themselves excluded. Does the Government have any plans to step in to assist these PwDs who do not have enough coverage?
Mr Alvin Tan329 words
[+2 sentences]I thank Mr Gerald Giam for his clarification. In fact, we have received feedback on this through Mr Ong Hua Han, Mr Gerald Giam and others who have written directly to us, both at MAS and MOH. Maybe what I can share is that MAS has not found instances where insurers have indiscriminately rejected applications by PwDs in our review of cases highlighted to us thus far.[+2 sentences] But we are doing a few things to ensure that overall, both insurers and the applicants are able to understand what PwDs and persons with mental health conditions require, and their circumstances. So, let me enumerate a few different aspects, so that it is rather comprehensive. Government agencies are committed to continue working with stakeholders to improve the accessibility to PwDs and overall to provide greater assurance that PwDs are treated fairly.[+8 sentences] I explained that in my reply. In this regard, MSF, partners such as the Autism Resource Centre, the Life Insurance Association and us have embarked in the following efforts – and I hope that the Members can also support us in these efforts. First, it is important to further enhance the awareness and understanding on PwDs and the various support systems in Singapore. This is to enable insurers themselves to better take into account all of these different factors in their underwriting. That is one. The second is to provide further training on communications with PwDs. Third, to raise an overall awareness on health underwriting among consumers, including PwDs. Fourth, we are working on this – to explore initiatives to further improve the insurance application process. Later on, in the middle of this year when the guidelines are out, many of these, as I mentioned earlier on, will be put in place, but there are also ongoing efforts to increase awareness in this regard.[+3 sentences] So, it is ongoing. And I think we are in line with international best practices. But it is an iterative process, it is an evolving process.
The Chairman3 words
[+1 sentence]Ms Sylvia Lim.
Ms Sylvia Lim276 words
[+13 sentences]Thank you, Chairman. I have two broad clarifications for the Minister of State. During his response he mentioned several times about closely the MAS is working with banks to come up with guidelines, preventive measures. But he did not say anything about how MAS was working with consumers at all, before the draft guidelines are issued. For instance, like I mentioned in my cut, the EUPG paper that sets out the enhanced duties of consumers. Were any consumers consulted about whether these duties are reasonable before the draft guidelines came out? So, the first clarification is about how MAS works with consumers, if at all, before it comes up with such guidelines in this area. Secondly, on the Australian example, I did point this out to him earlier that I was going to raise it. I think he would have noticed from what was being proposed by the Australian Treasury was that actually there would be a consumer protection body at the top of the apex when it came to looking at consumer interests in the scam space. This body actually has an overarching responsibility that cuts across sectors – banking, telcos, digital platforms – all that would sort of come under that consumer protection umbrella and there is going to be legislation, I believe, intended for this. I find that in Singapore, this is missing. There is no consumer protection overarching body that seems to be looking across the different industry sectors on whether consumers are getting a fair deal. So, I wonder if he can comment on whether he thinks that such a body would actually add value to our interest in protecting consumers.
Mr Alvin Tan380 words
[+12 sentences]Sir, I thank Ms Sylvia Lim for her feedback. Maybe I will just add, on the EUPG first. The EUPG, as you compared to the Australia's E-Payments Code; there is a list of consumer duties within the EUPG, as the Member had mentioned. And these are cyber hygiene duties that the consumer ought to perform. And that is why as a whole, I think that is very, very important, not just for duties by banks, telcos; but also in order to address scams, the consumers need to play an important role. They are also in line with public education efforts that the Government has been reinforcing. We also expect banks to treat customers fairly and take into account the specifics of the scams and the profile of the victims. We are assessing this feedback on both in SRF as well as EUPG, and in many of the different consultations, we reach out to consumers. That is one. And we get their feedback. The second on the SRF, the topic about the Australian example is the Scams Code Framework. The Scams Code Framework is quite similar to our SRF. SRF will be operational by the first half of this year.[+12 sentences] In the same way, it also looks at duties by financial institutions as well as telcos. I think the Australian example has other sectors as well that are inputted into this. We had mentioned in the SRF that we will continue to review it and see how these duties can be applied and where possible and where it is appropriate, we are looking at different countries' experiences with it and we may expand it. The SRF is not set in stone. We will review and it will evolve over time. But I would also like to share with the Member that the experiences in different countries are also very different. The scam typologies are also very different. The way that the banks, the telcos, operators and other aspects within the ecosystem that deal with this issue is also very different. So, I want to assure her and I assure the Members that we continue to take all of these into account. We studied the Australian Code. It is very similar to SRF. But we will continue to review them over time.
The Chairman33 words
[+2 sentences]Ms Lim, I will come back to you because I just want to clear the rest of the cuts, and if we have time, I will come back to you. Mr Patrick Tay.
Mr Patrick Tay Teck Guan187 words
[+8 sentences]The plethora and spectrum of issues confronting the Public Service are becoming more complex and cut across agencies. For example, COVID-19 showed that public health pandemic had implications on many other aspects such as the economy, education, work, social connections and support. Beyond COVID-19, we also see families with more complex needs cutting across multiple areas such as jobs, healthcare, education, emotional support and financial assistance. We are also seeing major changes on other fronts such as geopolitics, generative AI and sustainability. To tackle challenges ahead that are becoming more complex, the Public Service must review and refresh its agenda. To help develop and deliver this, public officers must also build new skills and experiences to better understand changing citizen needs. Public officers also need to understand changing external forces as geopolitics become more complex and even issues like sustainability have global dimensions and ramifications. Generative AI has also morphed the way we can and should do things ethically and without compromising data security and confidentiality. How is the Government equipping the public service, including our officers, with the right skills, experiences and perspectives for the future?
Mr Yip Hon Weng233 words
[+6 sentences]Chairman, as Singapore navigates an increasingly complex future, our residents' needs will grow even more diverse and interconnected. We must shift from agency-centric services to citizen-centric ones. We can no longer expect Singaporeans to navigate bureaucratic silos, going from agency to agency to access essential assistance for multiple needs which are in fact interconnected. Imagine a scenario where families in need seamlessly access financial aid, job training, housing assistance and healthcare for seniors, all through a single, integrated platform. This holistic approach, where services revolve around residents rather than agencies, is not just a vision but a necessity today. Initiatives like ServiceSG and the Municipal Services Office have made strides towards service integration. Can the Minister provide an update on the progress and impact of these initiatives.[+6 sentences] Can the Minister also share the Government's broader roadmap for further integrating and streamlining citizens’ access to services. While digitalisation holds immense potential and we should continue to pursue this as much as possible, physical accessibility remains critical for those who need it. Can the Minister share plans to expand dedicated physical service counters for seniors and individuals lacking digital literacy? Can the Minister also elaborate on the existing mechanisms for escalation across agencies, and how timely resolution is ensured? What are the types of cases that usually fall through the cracks? How is the Ministry addressing such cases to ensure no citizens are left behind?
Ms He Ting Ru (Sengkang)353 words
[+11 sentences]Sir, trust between elected officials and public servants on one side, and the public on the other, is important for a well-functioning political system. It is important to maintain and enhance this relationship. Yet, ties between state and society do not exist in a vacuum. As Singapore becomes an ever more important commercial and financial hub, more money and interests will flow into Singapore. They will have interests to advance and protect. Doing so may involve lobbying. It may involve the appointment of sitting Members of Parliament to boards or the hiring of former Members of Parliament and senior public servants to advise on the shaping of policy and legislation. We often see events by industry associations and others attended by elected officials. Lobbying happens in all systems. Yet what is important is how a system regulates lobbying to ensure that the proper political process is not circumvented, and there is no undue disadvantage given to different groups in society, especially those with less money, access and voice. To this end, how can we improve oversight on lobbying activities given Singapore’s changing circumstances? Specifically, what prevents Singapore from passing legislation on lobbying? Such a law could include publicly available registers of lobbyists, lobbying contact with political appointees, Members of Parliament, and very senior public servants, as well as board memberships of Members of Parliament.[+9 sentences] Some of this information is already provided by political parties under legislation governing political donations and the recently enacted Foreign Interference (Countermeasures) Act, or FICA. Some will say that such a move is not foolproof. Nothing is. The perfect cannot become an enemy of the good. Properly regulating lobbying activity and addressing potential conflicts of interest reduces chances of excessive influence by certain groups and a shorting of political processes. It is an improvement on the current absence of formal regulation. Some may find allowing more public scrutiny onerous. Building public trust in increasingly complex situations also comes with those in positions of authority trusting the public, not just calling on the public to trust authority. This not only must be done but must be seen to be done.
Mr Chua Kheng Wee Louis (Sengkang)312 words
[+1 sentence]Incorruptibility is fundamental to the success of the Singapore Government. Yet, public declaration of assets by Ministers is not practised here although Ministers do disclose this information as well as company directorships to the President via the Prime Minister in confidence as per the Code of Conduct for Ministers.[+2 sentences] As described in the Code of Conduct, this would help counter potential allegations of corruption and unexplained wealth, and to avoid potential conflicts between private interests and public responsibilities. Public declarations would thus go a long way in ensuring public accountability, the Singaporeans to whom the executive serves, and not just accountability to the President. In countries like the United Kingdom (UK), Ministers are required to disclose their financial interests publicly, including investment properties.[+9 sentences] Perhaps we can consider adopting such a practice in Singapore as well. Such declarations would go some way to bridge the trust gap between Singaporeans and their elected officials, and also help to prevent the spread of misinformation. For a start, we need not make the full disclosures of sensitive details mandatory. For example, in the case of residential properties, unit numbers can be redacted to protect the privacy of the Minister involved. I am sure that this practice will be appreciated by Singaporeans. The question of whether our Ministers can be trusted to scrupulously avoid any actual or apparent conflict of interest between their official duties and private financial interests, as the Ministers' Code of Conduct requires them to do, has been raised before in this house. During a Parliamentary Session on the rental of 26 Ridout Road last year, People's Action Party Member of Parliament Poh Li San suggested that it would be in the interest of transparency for Minister Shanmugam and Minister Vivian to declare all their property assets. However, this was not a requirement under the Code of Conduct at the time. It should be.
Mr Melvin Yong Yik Chye (Radin Mas)206 words
[+3 sentences]Mr Chairman, we are currently operating in an increasingly hostile global environment – one that is marked by fear, uncertainty and doubt. For Singapore to successfully navigate ourselves through these uncertain waters, we must ensure that our Public Service officers have broad perspectives so that they are equipped to take on the challenges of the future. I would like to ask how does the Public Service Division (PSD) intend to prepare its officers to expand their perspectives beyond the Public Service? How many Public Service officers have been seconded out of the public sector annually over the past five years?[+5 sentences] Does PSD plan to allow more of its officers to go on such secondments? Beyond secondments to private sector and civil society, we should also groom officers to better appreciate international viewpoints and equip them with the ability to negotiate globally. Does PSD offer structured programmes for public sector officers to take on attachments at international and regional organisations? I hope that the PSD will provide officers with a structured framework for rotation outside of the Public Service. This will allow future Public Service leaders to better understand the private sector, social sector and the international domain, and factor these perspectives when conceptualising and implementing policies.
Mr Saktiandi Supaat (Bishan-Toa Payoh)280 words
[+7 sentences]Mr Chairman, the global environment is becoming increasingly challenging and susceptible to rapid change. As a country, we also have matured and are now in transition. To imagine and chart our future as a nation will require greater engagement and partnership between the Government and Singaporeans. For one, the Government does not have a monopoly on the best ideas. Further, the Government's aim is to serve our citizens and closer engagement is necessary to better gauge citizens' trust and satisfaction in public services and institutions. The recent Forward SG exercise, launched in June 2022 to engage Singaporeans from all walks of life, has laid out a new social compact for Singapore. To move towards this new compact, changes are expected to be made in both Government policies and the way the Government engages and partners Singaporeans in creating and delivering policies and programmes. The formation of the new Singapore Government Partnerships Office (SGPO) is an example of how the Government is reorganising itself to support the new partnership and engagement approach set out under Forward SG.[+4 sentences] It is a welcome move to strengthen partnerships between the Government, private and people sectors for the national good. The new organisation could become the first stop for people to share ideas or proposals, gather other like-minded individuals and organisations, and access opportunities for citizen-government collaborations. Beyond the formation of the SGPO, may I ask how is the Public Service reorganising itself to better serve citizens and public good amid a changing environment and more frequent volatility? How can we better set ourselves up to tackle increasingly complex external forces and growing interdependency of issues as well as the build-up of complex domestic matters.
Ms Denise Phua Lay Peng (Jalan Besar)248 words
[+2 sentences]Chairman, many officers who join the Public Service are driven by the higher purpose of doing good, wanting to serve and make a difference to Singapore. Public officers can do good both through their, or during their work, or outside of work, fostering a culture of civic and engagement and social responsibility. To this end, Minister Chan Chun Sing had announced last year that the Public Service is launching the Public Service for Good movement from July 2023. The movement calls for public officers to get involved in new ways to do good for Singaporeans, beyond their day jobs.[+5 sentences] Such a movement is great. It helps foster volunteerism amongst public officers and also improves their understanding of ground issues. In fact, if properly matched, their voluntary services will enrich their beneficiaries with valuable manpower and skills. I have personally had the opportunity to serve with several senior public officers like Permanent Secretary Teo Zsin Woon and Deputy Secretary Poon Hon Yuen in the disability and the seniors space in initiatives beyond their day jobs. Recently, I also heard that public officers across the Service signed up as befrienders to seniors who live alone in Marine Parade. So, there are many good things happening but not much is known. I therefore would like to ask the Minister for updates on the progress of the Public Service For Good movement since its launch, and what more can be done to match more public officers to the needs on the ground.
The Chairman4 words
[+1 sentence]Minister Chan Chun Sing.
The Minister for Education (Mr Chan Chun Sing)3049 words
[+14 sentences]Chairman, we thank all the Members for their cuts, questions and suggestions for the Public Service and how we can do better. Indeed, today we have a Public Service that the vast majority, if not all Singaporeans, can be proud of. But we, in the Public Service, we are acutely aware of the need for us to stay ahead of the game. As Mr Patrick Tay mentioned, technology is changing rapidly. The way countries are organising themselves and their Public Service are also rapidly evolving. We must be careful that we do not rest on our laurels. We continue to innovate, continue to want to do better and come up with new solutions, lest we be overtaken by others. And if we do not have a strong, committed and innovative Public Service, it will certainly not help us to inspire confidence in investors, local enterprises, to put their investments here to create good jobs for our people. So, our Government believes that we cannot rely on today's or yesterday's solutions for tomorrow's problem. We have to constantly look for new processes, new organisations, to meet tomorrow's challenges. A forward-looking and future-ready Public Service is central to Singapore's success. Let me share how our Public Service is going to operate, develop and partner differently to ensure that we are ready for the future challenges. Let me start with how we are going to evolve the way we organise ourselves. Increasingly, our Public Service will be organised in a much more mission-centric way, given the complexity and interdependency of issues that many Members have mentioned. For example, to more effectively tackle climate change, we set up the National Climate Change Secretariat (NCCS) in 2010.[+4 sentences] This has worked out well and borne fruit. NCCS has allowed us to sharpen our focus on climate change issues across the whole of Government, cutting across many agencies. For example, NCCS worked with MSE to develop the Singapore Green Plan 2030 to achieve our long-term goal of net zero emissions. But behind that, there was participation from MTI, MOE, MOM and many other agencies. In 2019, to better harness the potential of technology, we formed the Public Sector Science and Technology Policy and Plans Office, or what we call S&TPPO.[+22 sentences] We are seeing the fruits of this effort too. For example, robots are increasingly deployed in buildings for services like cleaning and security, but they cannot communicate with each other because of different manufacturers having their own proprietary software. This is inefficient. To drive the adoption of robotics and automation, S&TPPO worked with A*STAR and GovTech to adapt and deploy a universal middleware for the Public Service. With this, robots from different manufacturers can now communicate with one another and with lifts, doors and security gantries to move autonomously around buildings. Successful trials have been completed in the Tampines Regional Library and the JTC Summit with the National Library Board (NLB) and JTC. S&TPPO is working with GovTech and the Infocomm Media Development Authority (IMDA) to further test the product with other public and private sectors. Yet another example where they have become much more mission-focused, mission-centric is ground operations. To improve efficiency, S&TPPO and GovTech are working with agencies to apply video analytics rather than just focusing on each agency's own CCTV video feed. S&TPPO is driving the consolidation of these sensitive feeds into a cloud video exchange before applying video analytics to the consolidated video feeds. This can improve decision-making and respond times, such as identifying an overcrowding situation that requires intervention or preventing worksite incidents. We will continue to build on these successes to refine the way we organise ourselves going forward. In response to Ms Mariam Jaafar's earlier questions to Deputy Prime Minister Lawrence Wong about centralisation, from a Public Service perspective, we just want to say this. Centralisation is not the only way that we can allow better coordination across the various agencies. In fact, depending on the nature of the problem, we have different methods. Sometimes, we may start up a new agency, centralise and put it under the PMO to incubate it. At other times, we may assign one of the agencies to be, if you like, the lead or the first among equals to coordinate that. But that agency, that lead agency, is, if you like, a mini joint staff. It must have people participating from other agencies to support it. Our hope is that over time, each and every one of our agencies, when tackling a new problem, can be a mini joint staff where it can harness the energies and capabilities and capacities of other agencies to come together. So, it does not mean that every new problem that requires more coordination needs to be centralised at the PMO or to create a new agency. Next, let me respond to Mr Yip Hong Weng's questions on how we reorganise our service delivery for us to be much more citizen-centric. In 2021, we formed ServiceSG to create a single touchpoint for citizens to access multiple services across agencies.[+1 sentence] In the digital sphere, we have made great strides in making services more intuitive, seamless and relevant for our citizens, and we will continue to improve. For example, Singaporeans can use SupportGoWhere, a one-stop portal, to find Government support schemes and services.[+3 sentences] A key feature is the Care Services Recommender for caregivers to find the support they need easily and conveniently. Another example is MyLegacy@LifeSG portal, which helps citizens plan ahead for end-of-life matters. Even as more services are digitised, the Public Service is committed to ensuring that our services continue to be accessible and inclusive for all. Today, citizens can walk into the seven physical ServiceSG centres across Singapore and access close to 600 services and schemes from over 25 agencies.[+4 sentences] Seniors who have difficulty making online transactions can simply walk in. Officers are cross-trained to help them access frequently used digital services. And 70% of citizens visiting ServiceSG centres in 2023 were aged 55 and above. We will continue to expand the network of ServiceSG centres to prioritise areas with higher demand and concentration of citizens, particularly seniors, who require support with multiple digital transactions. In line with this, two new centres will be established at Woodlands Civic Centre and Bukit Merah Central by the end of 2024.[+11 sentences] There are whole-of-Government service standards to ensure agencies uphold a consistent and satisfactory level of service. To avoid cases falling through the cracks, we have a no-wrong-door policy for any public feedback received. We will continue to ensure that our policies, standards and practices are inclusive to all. For municipal services, the Municipal Services Office (MSO), coordinates across agencies and Town Councils to serve residents. For businesses, MTI and GovTech are continuously evolving the Go Business portal to facilitate a globally competitive, pro-enterprise operating environment in Singapore. The Go Business portal allows businesses to access services across multiple Government agencies by milestone movements. So, these are just examples of how the Public Service is organising and evolving our organisation to be much more mission-centric and much more citizen-centric. Let me respond to Mr Patrick Tay and Mr Melvin Yong's cuts on your feedback on how public officers need to cultivate different skill sets and perspectives to thrive in the new operating context. Within the Service, public officers can gain new skill sets from formal training courses and increasingly through hands-on development opportunities. These range from short-term attachments, what we call Short-term Immersion Programmes (STIP) or gig work, to longer-term job rotations or structured job rotations (SJR). The take-up rate has been good. The number of officers matched to these opportunities jumped five-fold, from 730 in 2021 to 3,700 in 2023.[+11 sentences] Just as an example – Service SG Centre Head, Ms Uma, signed up for STIP with the Agency for Integrated Care's (AIC's) Silver Generation Office. She engaged seniors to better understand their concerns and share how Government can support them. We are happy to report that the people who have gone through this programme have found the cross-pollination of ideas very useful and at the same time it helps them to build the network of relationships required for a much more responsive Government service. We are also deliberate in exploring alternative modalities such as boot camps and competitions to generate interest in building new capabilities. To build data capabilities, GovTech organises the annual Data Champions Boot Camp and Data Arcade Tournament. To build AI capabilities, GovTech launched a Prom Royale Award, a Prom Engineering Competition last year. This year, GovTech will launch a new AI Champions Boot Camp. Public officers can also expand their perspectives through exposure beyond the Public Service. We are encouraging the public officers to experience the perspective of citizens and businesses through stints in the private and people sectors, such as the Talent Attachment Programme (TAP). Under the TAP, Enterprise SG officers like Clarence Tan was attached to DBS Bank's business analytics team. There, he learned how to operate with big commercial data sets to achieve an all-round understanding of customers. These insights were helpful when Clarence subsequently returned to Enterprise SG to use data to further partner businesses on their growth journey. We have set aside up to 40 hours per year for officers to pursue their own development opportunities outside the public sector.[+26 sentences] For example, Ivy Lee from NLB volunteered with Friends-in-deed Counselling Society as a certified counsellor. In her journey with three individuals over 10 months, she deepened her empathy and communication skills. This helped her to become a more empathetic middle manager in NLB. An effective Public Service needs to operate well, both locally and internationally. We are equipping more public officers with broader international perspective through exchange programmes and deployment to international organisations at all levels where they fly the Singapore flag high. Just to give some examples, Ambassador Rena Lee, who is the current CEO of IPOS, was elected as President of the Intergovernmental Conference (IGC) on Biodiversity Beyond National Jurisdiction (BBNJ). In 2018, when she was an officer in Attorney-General's Chambers' (AGC's) International Affairs Division. As IGC President, Rena built upon her strong international networks and mastery of international law, which helped her build bridges during multilateral negotiations. The success of Ambassador Lee's presidency has entrenched Singapore's standing in the international community as a top leader in international law and as an advocate for a rules-based multilateral system. Another example, Mr Daryl Ong from the Intellectual Property Office of Singapore (IPOS) participated in a two-year Madrid Fellowship Programme administered by the World Intellectual Property Organisation (WIPO). Through this, he built his network with other countries' trademark examiners and deepened his knowledge of the Madrid Protocol. Daryl transformed the way trademark data is communicated from IPOS to WIPO to be faster and more accurate. This benefits trademark owners in Singapore. We will continue to look out for opportunities for our officers to be attached to international organisations at all levels, including the UN agencies, because this allows us to understand what are the issues that are evolving at the international circles and how we can better prepare ourselves to integrate and work with these agencies in time to come. Beyond organising ourselves differently and building new capabilities in our offices, we also need to partner differently. As part of Forward SG, partnership is a key component of the refreshed social compact. Strong partnerships are anchored on trust. The Public Service has worked hard over generations to earn the trust of Singaporeans and is committed to a strong system of governance. Ms He Ting Ru asked whether our regulations or practices need any updates to ensure that our governance frameworks are not compromised and Mr Louis Chua asked about making assets declarations public for Ministers. I think I have responded to these topics previously, extensively in past Parliamentary replies, but if I may, I will just reiterate a few things. I think different countries have different rules for their people and organisations and as all of us will agree, no one rule is a panacea to prevent corruption or lobbying. But what we need to do is to look at the system holistically. What we also need to do is to look at the outcome that we have achieved and ask ourselves what is the scale and magnitude of our problem. Putting in new and more rules does not necessarily solve the problems that we may not even have to start with. Whenever we put in new rules, we must also be careful if it causes any unintended consequences. For example, I just checked the data that was quoted by some Members about some of the countries that have perhaps adopted some of those rules. In the Corruption Perceptions Index, Singapore in the last five years has been ranked consistently between number three and number five. But those countries who supposedly have some of these more elaborate rules are actually ranked much lower.[+17 sentences] For example, the UK was ranked somewhere between 11 and 20. So, I think when we look at how to make sure that we retain the trust of our people, we must look at it at a system level. If I may reiterate what I have said previously, this must occur at three levels. First, we must make sure that we select good people with the right values to understand not just the letter of the law, but the spirit of the law and uphold them. Second, we must work as a system, as a team, to make sure that we look out for one another, check one another's blind spots, help to prevent one another from falling into a situation where they might be compromised. And third, we must have layers of checks internally and externally to pick up issues whenever there are problems. That is how we have managed to keep our system relatively corruption-free, lobby-free all these years. But we will be the first to admit that no system is perfect and the situation is evolving and every time we put in rules, there will be parties out there that will try to go around our rules and we have to keep constantly evolving our own rules to make sure that we are never complacent. In trying to copy other people's rules, we must see what they have been able to achieve versus what we have been able to achieve, what problems they have been able to solve versus what problems we are trying to solve. There is no magic answer to this. And we should also have a care for the confidentiality of the information, the privacy concerns of the senior officers in the Public Service, including the political office holders. Why stop at the Ministers? Why not the Members of Parliament? Why stop at the Permanent Secs? Why not the Directors? I think for every rule that we put in, there are implications that we should consider carefully and ask ourselves whether the price that we pay is commensurate with the problem that we are trying to solve. Mr Saktiandi Supaat also asked how the Government can partner citizens better. The formation of the Singapore Government Partnership Office (SGPO) signals our commitment to the next round of partnerships and engagements.[+8 sentences] Beyond partnering on issues that are already on the national agenda, we will engage citizens to set the agenda. We are building from a position of strength. We have already established a clear track record of engagements and partnerships with the community from consulting to co-creating and co-delivering solutions. For lower-income families and their children, we have moved beyond public consultations on Government proposals to proactively co-create and co-deliver solutions with the public. For example, under the Growing Together with KidSTART initiative, corporates and volunteers partnered KidSTART Singapore to co-create fun learning opportunities for KidSTART families and their children. As part of the Singapore Green Plan 2030, the Green Action for Community (GAC) movement was launched in 2022 to involve the community in co-creating ground-up sustainability efforts. We are also strengthening partnerships with the private sector. During COVID-19, many came forward to help and co-create solutions together with the government. We are doubling down on these new ways of working together. There are now about 15 active Alliances for Action (AFAs), covering a range of common interests.[+4 sentences] We are also formalising our partnerships with corporates, such as the MOU with Singapore Airlines last month, to collaborate in areas such as training and volunteer management in essential support care roles in the healthcare sector and this will also allow the Public Service to search our capabilities in the contingencies, drawing upon some of the capacities in the private sector. I thank Ms Denise Phua for her cut on the Public Service for Good Movement. I launched it in July last year to provide public officers with opportunities to actively partner citizens on a personal level. I am happy to share that in 2023, over 1,000 public officers signed up to volunteer their skills for meaningful causes such as being a community befriender for low-income families and mentoring ITE students. Under the Public Service ITE Mentorship Programme, Higher NITEC students like Ryan and Ferris interned at GovTech for 20 weeks. GovTech officers Yeo Kian Chuan, Zorrel Chen and Supansa Tan noticed the interns' enthusiasm for learning and ensured ample opportunities for them to grow and eventually perform as Product Managers with the Public Service. In 2024, we will expand the Public Service for Good Movement to include a wider range of social causes and initiatives. This will include skills-based volunteering opportunities that empower our youths and families through mentorship, support seniors in ageing well, promote sustainability initiatives for a greener Singapore.[+6 sentences] Having said that, I come back to where I started. Past success is no guarantee for future success. I have shared how we are going to evolve the way we operate, develop our capabilities and partner others for the future. This is an ongoing effort. We must look ahead and continue to plan ahead, even if it means disrupting ourselves. In fact, we rather disrupt ourselves before other people disrupt us, so that our Public Service can continue to transform and remain relevant to the future needs of Singapore, and it will be a Public Service where all Singaporeans can be proud of.
The Chairman30 words
[+4 sentences]We are reaching the end of guillotine time. If there are any clarifications, I can probably allow one or two very short ones. Any clarifications for Minister Chan? Ms Lim.
Ms Sylvia Lim13 words
[+2 sentences]Chairman, thank you. In the interest of time, just on the FIDReC's jurisdictdion.
The Chairman8 words
[+1 sentence]Minister of State Tan, a short reply please.
Mr Alvin Tan116 words
[+2 sentences]Sir, just quickly to Ms Sylvia Lim, just two things. One, the earlier question about the overarching consumer protection. First, we have the Consumers Association of Singapore (CASE) which deals with general enquiries, and FIDReC to deal with financial disputes.[+1 sentence] I think we just look at how other jurisdictions handle that and we have a framework and a process where it fits our jurisdiction. On FIDReC, the Member would have noted that FIDReC is currently consulting on the terms of reference, one of which is to raise the current adjudication award limit from $100,000 to $150,000. This consultation closes on, in fact, 29 February, this week.[+1 sentence] So, please feel free to submit any feedback on this.
The Chairman4 words
[+1 sentence]Ms Poh Li San.
Ms Poh Li San54 words
[+1 sentence]Chairman, I beg leave to withdraw my amendment.
Committee of Supply – Head M (Ministry of Finance)›Budget44 turns · 12,288w
· 83 highlighted
budget-2345
Mr Liang Eng Hwa (Bukit Panjang)128 words
[+5 sentences]Mr Chairman, I beg to move, "That the total sum to be allocated for Head M of the Estimates be reduced by $100". Sir, even as we remake our social compact, set out to build our shared future together, we should not lose sight on the other non-social aspects like growing the economy and to ensure that we have sustainable finance. I am glad that both growing the economy and upholding fiscal prudence and fiscal responsibility are also featured in the Forward Singapore report. Having a strong and vibrant economy creates good jobs and gives us the means to tackle social challenges and enables us to bring about better lives for our people. The Forward Singapore report also reminded us that we are stewards of our limited resources.
[Mr Speaker in the Chair]580 words
[+23 sentences]While as the current generation of Singaporeans, we are beneficiaries of the strong financial position that we are in today, we should also be good stewards of our finances so that the next and future generations of Singaporeans can continue to benefit from the financial security and the financial resources available. Our social compact must, therefore, be inter-generational; so that future generations, our children, our grandchildren and those not yet born can also be sufficiently resourced to be able to deal with the challenges of their times. Sir, our Government spending has reached around 18% of gross domestic product (GDP) and is projected to increase to around 20% GDP by 2030. We are spending more for the better well-being of Singaporeans and to build for a more secure future. We cannot and should not cut costs to greatness, but we should ensure that our public spending is value-for-money and that we live up to the high governance standards. The Government and Public Service are a gigantic machinery with extensive functionalities and round-the-clock operations. Public Service has become more complex due to the changing social, economic and political landscape as well as the deeper proliferation of technologies and the use of digital channels in our daily lives. Understandably, the Public Service will need a comprehensive set of control and procurement policies and governance framework to administer its procurement of goods and services of this scale. To strengthen governance and accountability, agencies are also subject to the audits by their internal and external auditors as well as the Auditor-General's Office. As the agency that manages the Government's finances, how does the Ministry of Finance (MOF) ensure the effective and prudent use of public resources and that the intended outcomes are met? Sir, many local enterprises are suppliers and servicers to the Government. While they have no issues with the credit worthiness of the Government in fulfilling the contractual obligations and paying the bills, many do hope that doing businesses can be made even easier. For example, businesses hope that the Government's procurement contracts can be portioned into smaller bite sizes so that smaller businesses would not be disadvantaged. How would MOF continue to improve businesses’ ease of transacting with the Government? Also, importantly, how does the Government ensure prompt and timely payments to suppliers to ease their cash flow challenges amidst rising costs? Over the decades, Singapore has built up its reputation as the trusted hub for trade and enterprise. Trade serves as an important pillar for the economy; and along with rapid digitalisation, they are much better connected across the trade value chain today. Systems, such as the Networked Trade Platform (NTP) and TradeNet, helped us up the game and enabled greater efficiency and enhanced connectivity. In that regard, can I ask: how do we maintain and strengthen our position as a leading trade, supply chain and trading financing hub? Sir, Singapore has committed ourselves to ambitious climate targets, including to achieve net-zero emissions by 2050 as part of the Long-Term Low-Emissions Development Strategy. To achieve these targets, we have to transit to a green economy that deploys greener and more sustainable energy solutions. While the transition will pose significant challenges, especially to our cost structure, it also provides impetus for businesses and entrepreneurs to start seeking innovative green solutions and to explore new opportunities. Can I ask how is MOF supporting companies to seize growth opportunities and develop capabilities in the area of sustainability?
Mr Saktiandi Supaat (Bishan-Toa Payoh)165 words
Mr Chairman, in the Ministry’s Occasional Paper on Medium-Term Fiscal Projections dated February 2023, our total revenue is projected to shrink as a percentage of GDP up to FY2030, whereas Government spending is expected to increase from 18% of GDP today to more than 20% of GDP by FY2030.[+6 sentences] So, our fiscal headroom will get smaller. Where we in this House have committed not to dip into our Reserves set aside for future generations, outside of exceptional circumstances, we must ensure that we spend public resources prudently. But prudence does not mean incurring the lowest possible cost. I am sure most Members would agree with the Building and Construction Authority’s (BCA's) and Ministry of Manpower’s (MOM's) decision to raise the weighting of safety-related criteria in the evaluation of construction tenders from 1 April 2024. Besides after-the-fact audits by the Auditor-General’s Office and scrutiny by Parliament’s Public Accounts Committee, how does MOF ensure effective and prudent use of public resources? Can technology and artificial intelligence help?
The Chairman9 words
[+2 sentences]Mr Pritam Singh. Please take your two cuts together.
Mr Pritam Singh (Aljunied)303 words
Chairman, the registration threshold of $1 million for the Goods and Services Tax (GST) has been in place since 1994.[+4 sentences] The threshold works, for example, to exempt some small and medium enterprises (SMEs), such as hawkers and retail shops in our neighbourhoods. It also helps avoid incurring additional costs to comply with GST accounting and collection requirements. Almost 30 years later, this figure of $1 million remains in place. In an earlier Parliamentary Question to MOF on this matter, it replied that the Ministry would continue to assess the appropriateness of this threshold as part of its regular policy reviews. Can the Ministry share the factors that it considers with regard to the appropriateness of the $1 million registration threshold for GST and why it has not been minded to raise this threshold, particularly in view of inflation?[+1 sentence] Separately, are there plans to further simplify the compliance costs of GST registration, particularly for small businesses? Chairman, the chargeable income tax for the first $20,000 of one's personal income is 0%.[+5 sentences] This has remained the case for many years. Even though the effective tax rate of 2% is in place for those earning between $20,000 to $30,000, a figure that comes up to $200, this amount is not insignificant, especially for low-income earners, much of whose salaries get spent on food and consumables. An additional $200 to spend on such items can provide much respite and support for some families. For those who rent HDB flats under the rental housing scheme, and at the lowest tier, $200 can pay for seven months of rent. Would the Ministry be able to share how it determines the circumstances it takes into account in deciding when to raise its chargeable income threshold for the first $20,000, either to increase it, in view of rising prices and inflation?
Mr Mark Lee (Nominated Member)73 words
[+3 sentences]Sir, the RIE 2025 plan reinforces Singapore's commitment to long-term investments in enterprise development. It establishes Singapore as a leading global hub for innovation and intellectual property development, ensuring a sustainable competitive advantage for businesses. Given these goals, there is scope to expand our IP protection. Could the Minister consider broadening the definition of qualifying IP for corporate tax purposes and enhance the IP development tax incentive to spearhead our overall innovation drive?
Ms Hany Soh (Marsiling-Yew Tee)312 words
[+17 sentences]Chairman, cost of living remains as a top concern on Singaporeans' minds. Thus, I wish to seek the following clarifications, please. Firstly, has the Committee Against Profiteering found any instances of profiteering, especially in light of the recent GST increments? The Government must continue to safeguard Singaporeans against profiteering. Secondly, and specifically on food affordability, have food prices at dining outlets increased to the extent that Singaporeans have been materially affected from affording this necessity? I am particularly concerned about our seniors' ability to afford and access at least sufficient and adequate nourishment, whether they dine at home or outside. Thirdly, how else would the Government assist Singaporeans with household expenses, such as from water and electricity consumption? This point is raised as an aside to encouraging and incentivising households to minimising consumption levels. Fourthly, will the Government consider providing more support to social enterprises that provide free food to low-income families, especially those living in Housing and Development Board (HDB) rental flats, such as by giving matching grants to social enterprises? The measures under Budget 2024 are commendable and under which everybody will receive a slice of the pie. My concern is a nuanced one. How can we raise greater awareness so that every Singaporean understands the nature and extent of the assistance or relief that they will receive? Simply put, the measures must not only work but also be felt by Singaporeans to be working. Finally, how will MOF track the efficacy of Budget 2024's objectives and assistance to its beneficiaries? Mr Chairperson, we as a House and the Government have always worked to ensure that no one is left behind. In my view, it is our duty to ensure that Singaporeans are aware and assured that we have been and always will do our best for our society. I look forward to the Government's response to my aforementioned points.
The Chairman10 words
[+1 sentence]Mr Leong Mun Wai, please take your two cuts together.
Mr Leong Mun Wai (Non-Constituency Member)555 words
[+5 sentences]Chairman, in the 1970s, MOF provided the House with detailed breakdowns of the fees and taxes collected. For example, we know that in 1972, the Government collected about $190,000 in car park fines. The information provided today is much less detailed in comparison. I would like to use my cut today to ask for more detailed information on the revenue and expenditure estimates. First, on revenue. What are the taxes lumped together under “Other Taxes”, account code B90? This item has increased from an estimate of $6.3 billion to a revised estimate of $8.44 billion.[+15 sentences] What are the reasons for this increase? Why does MOF not provide a breakdown of these taxes, given the sizeable amount? What is the estimated amount of levy collected for Work Permit, S Pass and Migrant Domestic Workers respectively in 2023 and 2024? What is the account code for ERP revenue and what was the estimated amount collected? What are the reasons for the significant increase in corporate income tax from 2022 to 2023 of about $5 billion? Why is there a significant estimated increase in property tax collected for private properties of $753 million in 2024 despite the upward revision of the Annual Value bands announced in Budget 2024? Why is there a big estimated increase in land sale revenue from $18 billion in 2023 to $31 billion in 2024? Next, on expenditures. How much has been disbursed to SPH Media Trust in 2023 and how much estimated for 2024? What are the HDB deficits for 2023 and 2024? How much was spent by Ministers travelling overseas to fulfil the obligations of their international appointments in their private capacity in 2022 and 2023? How many ongoing development projects have cumulative investment of more than $1 billion? How many projects with total investments of more than $1 billion are expected to be initiated in 2024? Finally, what has been the amount invested by MOF as capital injections into Temasek Holdings in 2023 and 2024, and why is this not accounted for as a separate line item? Chairman, the Progress Singapore Party (PSP) welcomes the Government’s efforts to support the retirement and healthcare needs of younger seniors through the Majulah Package. As usual, the Government has set aside money from the current-year Budget to fund the full cost of the package upfront. This time, the Government has set aside $7.5 billion and the projected cost of the package is $8.2 billion.[+1 sentence] But how do we know whether we have set aside too much? Back when the Merdeka Generation Fund was set up in May 2019, Deputy Prime Minister Lawrence Wong told the House that the Government would set aside $6.1 billion and that the projected cost of the Package is over $8 billion. But on page 78 of the Government Financial Statements released in July 2023, there is now a note that says, “The estimated liabilities under the Merdeka Generation Fund as at 31 March 2023 are $6,021,419,859.64.” Even after adding the total net drawdown of about $400 million since 2019, the total cost of the Package now does not seem to add up to $8 billion.[+2 sentences] Can the Deputy Prime Minister explain whether this means that too much money was initially set aside when the Merdeka Generation Fund was set up? If yes, what will happen to the excess funds?
Ms Jessica Tan Soon Neo (East Coast)165 words
[+1 sentence]Mr Chairman, in Budget 2024, as in previous Budgets, funds are allocated to support Singaporeans, reinforce our competitive advantage, build on existing strengths as well as upgrade sectors where we have competitive advantage. The allocation in this year’s Budget is $20.4 billion.[+1 sentence] An example of these funds is the top-up of the Financial Sector Development Fund by $2 billion. Other funds include the $5 billion Future Energy Fund to invest in critical infrastructures to catalyse the move to low-carbon electricity; the GST Voucher Fund of $6 billion; and the $2 billion top-up of the Edusave Endowment Fund to recognise and encourage our students to develop competencies, such as adaptive and inventive thinking, communication skills and civic literacy, that will prepare them better and be future-ready.[+2 sentences] These initiatives are longer term and span over a few years. What measures does MOF take to assess and ensure the appropriate, effective and prudent use of public resources as they would be expected to be expensed over multi years?
Mr Dennis Tan Lip Fong (Hougang)195 words
[+6 sentences]Mr Chairman, a resident, who is a single father taking care of two daughters in their early teens, shared with me that while he welcomed the change in law last year doubling the paternity leave from two to four weeks, the benefits which he received are significantly less than single mothers, divorced or otherwise, who are having care of their children. For example, he does not enjoy the substantial reliefs which a woman is entitled to under the Working Mother’s Child Relief. My resident, who has a full-time job, would like to engage a migrant domestic worker to help with housework and care for his children. However, he is not entitled to any tax relief under the Foreign Domestic Worker Levy Relief. IRAS allows women who are married, separated from their husbands, divorced or widowed, and had children who lived with them to claim the relief. Can the Government consider equalising the entitlement to this relief, such that men or women can qualify to apply for this relief as long as other criteria are fulfilled, so that single fathers like himself needing domestic help will get the same relief as single women in his position?
Ms Jessica Tan Soon Neo69 words
[+3 sentences]Mr Chairman, against the backdrop of geopolitical volatility, digitalisation and climate change, we are witnessing structural changes in the global economy. Singapore’s growth and success are dependent on an open and global economy. How is Singapore strengthening our value proposition to address the risks and capture the opportunities driven by structural supply chain shifts to continue to anchor Singapore as a trusted and preferred hub for trade and business?
Mr Edward Chia Bing Hui (Holland-Bukit Timah)265 words
[+5 sentences]Mr Chairman, I will speak on Government procurement processes, focusing on quality discernment, support for SMEs and green procurement. Firstly, building Government capabilities is essential. Our public officers must maintain the Government's stewardship role in securing the best quality at the right price. How does MOF ensure the effective and prudent use of public resources and how do we ensure that procurement policies are not only cost-effective but are synonymous with superior quality? It is imperative to equip our public officers with the skills and knowledge to discern quality and excellence. The introduction of the SME-lite tender system in late 2023 is noteworthy.[+9 sentences] However, local firms have provided feedback that the tender process has challenges. SMEs face difficulties in fulfilling track record requirements and meet minimum financial grading criteria for larger projects. Could the Ministry provide an update on the SME-lite tender scheme and how it is being refined based on feedback? SMEs often face cash flow challenges. Hence, how is the Government ensuring prompt payment to ease SMEs’ cash flow issues and, in circumstances where the SMEs are the subcontractors, how does the Government ensure that main contractors promptly pay the subcontractors? What additional steps can MOF take to enhance the ease of business transactions with the Government? How will initiatives like Invoice Now contribute to streamlining processes and what strategies are in place to expand its adoption across the private sector? Finally, concerning green procurement, how does MOF enhance officers' understanding of genuinely sustainable initiatives to combat greenwashing effectively? Additionally, how does MOF support companies in leveraging growth opportunities and fostering sustainability capabilities?
Mr Derrick Goh (Nee Soon)415 words
[+6 sentences]Chairman, one way to support local businesses and SMEs to build up their capabilities and track record is through Government tenders. Industry groups have shared during my engagement with them that SMEs appreciate such opportunities, not just to increase revenues but also the chance to partner larger companies to sharpen their experience and learning. While the Government has taken steps to reduce the administrative burden with new functions in GeBiz, such as an online repository, SMEs continue to feed back that accessibility and efficiency of Government tenders can be improved. In particular, SMEs highlighted how contract specifications may at times be too stringent to fulfil or too rigid to allow room for SMEs to propose more innovative solutions to address requirements. They, therefore, hope contracts can be made more practical and flexible; while bundling and aggregation of contracts are logical, they could exclude smaller SMEs from bidding or compress their margins as they fulfil subcontracts with bigger SMEs as the middlemen; and startups, such as one specialising in AI video analytics which I met at the recent Singapore Airshow, asked whether the financial grading criteria can be eased to provide more opportunities for them to participate as vendors. The reality is that most are asset-light with different risk profiles from traditional companies and they are still in the midst of building up their financial track record. On payments, I note that the Government has fulfilled payments on e-invoices below $5,000 well before the 30-day credit period. However, SMEs wonder if the invoicing and progressive payment process for larger contracts can be further simplified, such as in the verification of work completion and, especially when variation orders are involved. I understand MOF had announced the Tender Lite procurement category in last year’s Budget to ease the Government tender journey for SMEs. On this note, can MOF: (a) update on the progress and effectiveness of Tender Lite’s implementation; (b) share if there are plans to further ease the administrative burden on SMEs during the Government’s procurement process, such as through further digitisation and automation; (c) consider improving inclusiveness of smaller SMEs and startups so that they can participate in Government procurement, such as by adjusting the requirements to prefer homegrown enterprises or MNCs that partner with them, so that our local businesses can also participate in the supply chain; and (d) share how the Government can improve the disbursement of payments and grants to be timelier and more frictionless to help SMEs ease their cash flow challenges?
Ms Jessica Tan Soon Neo124 words
[+1 sentence]Mr Chairman, the Government has outlined ambitious sustainability targets. In the drive to meet the targets and as a large purchaser of goods and services, public sector procurement plays a key role in catalysing the transition to green and achieving Singapore’s ambitious net-zero emission goals by 2030 and, subsequently, 2050.[+4 sentences] What measures has the Government taken in its procurement policies to support and encourage suppliers of products and services to the Government to adopt more sustainable practices and grow their sustainability capabilities? Are companies participating in the Government tenders able to meet the standards and requirements and the Government’s procurement considerations? Is the Government on track to achieve its green procurement goals? What challenges has the Government encountered in its drive to green procurement?
Ms Foo Mee Har (West Coast)593 words
[+8 sentences]Mr Chairman, the green transition, inherently complex, necessitates a catalytic role from the Government. It can help to mobilise funding and develop the right capabilities. By offering incentives, providing regulatory support and fostering a conducive environment, the Government's intervention will be instrumental in making the green transition a reality. Sir, on philanthropic capital. With the growing number of family offices in Singapore, philanthropy can be a promising avenue. With last year’s announcement of the Philanthropy Tax Incentive Scheme, philanthropy from Singapore is increasingly borderless and can be used to fund climate projects around the region. This geographical flexibility will help boost the impact of philanthropy. However, philanthropy alone is insufficient. Currently, it is estimated that less than 2% of the philanthropic dollars are allocated towards climate mitigation.[+7 sentences] We must find ways to rapidly scale this impact. Sir, the true gamechanger will be in mobilising private capital to fund climate projects. We will see real sea change when the trillions in private capital can be effectively directed towards climate solutions. However, private investors, who seek financial returns, say there is still a lack of sufficient bankable, investable and fundable deal opportunities on the ground. This is the main barrier. Many projects are sub-scale and are too risky for private capital to access. Innovative funding structures, such as blended finance, have been seen as a solution. Singapore has made consistent efforts to grow blended finance, for example, through the MAS’ Financing Asia’s Transition Partnership.[+3 sentences] Under this initiative, together with MAS, development finance institutions and philanthropies could provide concessionary capital in the form of grants, limited guarantees and debt or equity at below market rates of return. On the basis that concessionary capital has been put together, this creates the conditions for banks and institutional investors to crowd in private and commercial capital. When blended finance works well, the impact is significant. A global example is the Zero Gap fund established by the Rockefeller Foundation and the MacArthur Foundation, which committed $30 million in catalytic investments. As of 2022, this sum has, in turn, mobilised more than $795 million in private capital for projects aimed at achieving the Sustainable Development Goals.[+13 sentences] However, the adoption of blended finance has been slow. Blended finance often involves complex structuring to balance the risks and returns for different types of investors. Many blended finance projects are in new and emerging markets, with relatively few historical precedents to demonstrate their viability and potential for success. This lack of proven track record can make investors hesitant to commit funds. I therefore call on the Government to build awareness and understanding of blended finance amongst potential investors. Sir, on climate disclosure regime. As the net-zero goal will increasingly become a pre-requisite in the expectations of customers, investors as well as regulators across the world, it is urgent that we support our businesses to take action to stay competitive and relevant. Companies will increasingly be subjected to tighter sustainability reporting and regulations – particularly those with trading partners, such as those in the European Union, which have placed higher standards. Government support to build a framework to help companies comply with reporting requirements and compliance practices that are required by their counterparties will be critical. Finally, on green procurement. The Government's green procurement can significantly bolster green transition. By prioritising the purchase of eco-friendly and sustainable products and services, the Government sets a powerful precedent – encouraging suppliers to innovate and shift towards sustainable practices. I would like to ask the Government how it is progressing in its goals and targets towards green procurement?
Mr Mark Lee75 words
[+3 sentences]Sir, I would like to inquire about the timeline for both listed and non-listed large enterprises within Singapore to commence the implementation of Scope 3 climate reporting disclosures. This initiative – of paramount importance amongst the business community fearing the tight timeline might leave them unprepared, risking their compliance and operational continuity. Could MOF share insights into the extended milestones and how the Government plans to support companies – especially SMEs – through this change?
Mr Saktiandi Supaat195 words
[+5 sentences]Mr Chairman, it cannot be gainsaid that philanthropy and volunteerism are key ingredients for building a strong social compact in Singapore. They foster our sense of togetherness, in addition to supplementing Government spending in funding social programmes and initiatives. That is why we have traditionally offered generous tax deductions for cash donations made to Institutions of a Public Character (IPCs) for causes that benefit the local community. The Corporate Volunteer Scheme – previously known as the Business & IPC Partnership Scheme – extended that tax benefit to corporates whose employees volunteer and provide services for IPCs. So, I was quite surprised but also personally grateful, when Deputy Prime Minister Lawrence Wong announced the new Overseas Humanitarian Assistance Tax Deduction Scheme. The 100% tax deduction offered should catalyse increased cash donations to approve overseas emergency humanitarian assistance causes.[+4 sentences] There are many people elsewhere who are in greater need. Ultimately, regardless of the beneficiary, we can foster a culture of giving. What are the initiatives undertaken by MOF to strengthen our culture of giving and enable more people to contribute to our society? Also, how do we monitor the approved list of overseas emergency humanitarian assistance causes?
The Chairman8 words
[+1 sentence]Second Minister for Finance, Mr Chee Hong Tat.
The Second Minister for Finance (Mr Chee Hong Tat)3581 words
[+8 sentences]Mr Chairman, I thank Members for their questions and suggestions for MOF. The cuts cover four areas. First, improving businesses' ease of transacting with Government and supporting their green transition; second, building a strong society together; third, strengthening Singapore's competitive advantage as a trusted hub for trade and enterprise; and fourth, effective and prudent use of public resources. I will speak on the first two areas and Minister Indranee Rajah will cover the other two areas. Sir, Mr Liang Eng Hwa, Mr Derrick Goh and Mr Edward Chia asked how MOF improves businesses' ease of transacting with Government and facilitates their participation in Government tenders. Last year, we said that MOF will work with the business community to design Tender Lite – a new category of Government tender with fewer and simpler conditions. Over the past year, MOF has been engaging the Association of SMEs (ASME) and the Singapore Business Federation (SBF) to gather inputs from businesses to co-create Tender Lite together. We have incorporated suggestions and inputs from our business leaders, to make Government contracts more accessible to SMEs. First, MOF will cut the number of contract conditions by about 20% by streamlining the clauses.[+1 sentence] Second, we will share risks with businesses, while maintaining public accountability. MOF will remove the requirements for Security Deposits and Liquidated Damages by default for Tender Lite.[+1 sentence] This will reduce the cost on the businesses and the risk they bear when taking part in Tender Lite tenders. MOF will be launching Tender Lite from April 2024. Tender Lite will cover tenders up to $1 million for general goods and services. With quotations and Tender Lite, around 90% of Government contracts will be subject to simpler procurement conditions which will benefit our SMEs.[+32 sentences] We have also implemented the GeBIZ Supplier File Repository, which enables suppliers to upload their relevant business documents once – for use across multiple bids for all Government quotations and tenders. With the Repository, suppliers can save up to 5,000 hours in total across 100,000 bids submitted annually. Mr Derrick Goh asked if Government procurement could further support SMEs by giving preference to home-grown companies or to MNEs that partner with local SMEs. As a buyer, the Government needs to ensure prudent use of public funds by selecting cost-effective solutions that provide value-for-money outcomes. Our procurement rules are designed to achieve this in a fair and transparent way. For many SMEs, Government contracts are an opportunity for them to build credibility and track record, which is helpful when they subsequently bid for private sector and overseas contracts; a point that Mr Goh mentioned too. We are able to achieve this because the buyers know that the Singapore Government awards contracts based on merit via open and fair competition – focusing on quality and value-for-money outcomes. Our aim is to level the playing field and remove unnecessary obstacles that prevent competitive and innovative suppliers – including our small and new businesses – from participating in and winning Government contracts. So, this is what we seek to do under Tender Lite and other initiatives. Today, over 80% by number and about 40% by value of Government procurement opportunities have been awarded to SMEs. This is higher than the targets in Australia at 20% by value; and in China at 30% by value. We are also helping businesses reduce the cost of transacting with Government through eGuarantee@Gov, which is a simple and secure digital process for businesses and individuals to provide guarantees to Government agencies. Since its launch in 2022, we have tripled the number of participating financial institutions and agencies. Today, we have around 60 participating financial institutions and 45 agencies and key regulatory processes across Government have been enhanced as a result. For example, almost all guarantees submitted by businesses registering for import/export permits today, are now done through eGuarantee@Gov. This has reduced the time taken for the entire lodgement process of guarantees with Singapore Customs – from five working days to just one day. Businesses also benefit from not having to incur courier costs to deliver the physical guarantees to Customs. Over 120,000 eGuarantees were issued to date and eGuarantee@Gov is expected to bring annual cost savings of around $600,000 to businesses, financial institutions and Government agencies. We target to expand eGuarantee@Gov to all Government agencies with guarantee needs by end 2024, which will lead to even greater savings opportunities for the entire ecosystem. Sir, I thank Mr Liang Eng Hwa, Mr Edward Chia and Mr Derrick Goh for their comments on ensuring prompt payments by the Government to our suppliers. Today, over 99% of the invoices billed to Government agencies adopt 30 days' or shorter credit terms. We have committed to keep prompt payment rates above 95% and have consistently achieved this target. In FY2022, 98% of invoices were paid within their credit terms. This is comparable with the practices and commitment for prompt payments elsewhere, such as the UK and US. To ensure that we maintain these standards, the Accountant-General's Department (AGD) monitors the prompt payments indicators regularly across the public sector. We understand that businesses would prefer faster payments where possible to ease their cash flows. Since 2021, the Government has been paying ahead of the credit terms for invoices below $5,000, after the receipt of goods or services. From April 2023 to January 2024, Ministries and Organs of State paid 98% of invoices – below $5,000 – ahead of their credit terms. More than 85% of such invoices were paid to SMEs, benefitting over 15,000 of them. I would like to correct for the record, what was said during MOF's Committee of Supply (COS) in 2022. Then, we said, "As of end-January 2022, about 97% of e-invoices below $5,000 were paid within 12 days – ahead of the usual credit term of 30 days." Sir, this is incorrect. Instead, it should be, "For the period of September 2020 to January 2022, 97% of invoices below $5,000 were paid ahead of their credit terms.[+22 sentences] The average time taken to pay these invoices was about 12 days." Sir, there have been cases of incorrect billing and unsatisfactory delivery of goods and services by businesses – where invoices were rejected. While such cases remain below 10% of all invoices, they do contribute to SMEs' concerns over cashflow. We aim to do better. The Government will work with our trade associations and chambers (TACs) – including SBF and ASME – as well as businesses to identify specific areas where we can enhance our processes and enable more businesses to receive payments promptly. Similar to what we have done by working together with our TACs and businesses on Tender Lite. We will also study best practices from other countries and private-sector companies as part of our review. Public sector agencies have also collaborated with one another to improve services to businesses. One example is the upcoming One-Stop Payroll initiative developed by the Inland Revenue Authority of Singapore (IRAS), Central Provident Fund (CPF) Board and Ministry of Manpower (MOM). Currently, employers need to use different systems to report an employees' income to IRAS for tax purposes – to CPF Board for payment of CPF and to report updates to employees' occupational and employment details to MOM. The agencies got together to combine IRAS' existing Auto Inclusion Scheme seamless filing service with new filing services from the CPF Board and MOM, as an integrated digital solution offering. One-Stop Payroll will enable businesses to use the same payroll software to submit annual payroll to IRAS and monthly CPF contribution data to CPF Board; and seamlessly update employees' occupational and employment details under MOM's Occupational Employment Dataset. Three birds with one stone. A win-win outcome which is good for businesses and good for our agencies. Ms Foo Mee Har asked how MOF is helping companies capture opportunities with the green transition. The MTI will be addressing this at its COS. The support for businesses will also cover new requirements for sustainability reporting. Let me provide an update on sustainability reporting. In 2022, ACRA and the Singapore Exchange Regulation set up the industry-led Sustainability Reporting Advisory Committee (SRAC) to advise on a roadmap for climate reporting by companies in Singapore. The SRAC has made its recommendations and ACRA issued a public consultation last year to gather feedback. The Government has considered the public feedback carefully and will introduce mandatory climate disclosures in a phased approach – starting with listed companies, then larger non-listed companies. Other jurisdictions, such as the European Union, United Kingdom and New Zealand, have similarly introduced mandatory climate reporting requirements for both listed and non-listed companies. From FY2025, all listed companies will have to prepare climate reporting based on local prescribed reporting standards, which are aligned to those of the International Sustainability Standards Board. From FY2027, non-listed companies with annual revenue of at least $1 billion and total assets of at least $500 million will be required to provide climate-related disclosures. Listed companies and large non-listed companies, as defined above, are also required to obtain external limited assurance on Scope 1 and Scope 2 Greenhouse Gas emissions two years after they start reporting, from FY2027 and FY2029 respectively.[+8 sentences] ACRA will review in 2027 whether to extend the requirements to smaller non-listed companies. We have not made a decision on this. ACRA will give companies sufficient notice before introducing any requirements. We recognise that some companies may have started climate reporting using different internationally recognised standards and frameworks to meet investors’ information needs and requirements of the jurisdictions that they operate in. For such companies, we will provide a three-year transitional period during which we will exempt them from the new requirements, if they are using other internationally recognised standards and frameworks. Mr Mark Lee asked about the timeline for mandating Scope 3 climate reporting disclosures. Sir, while we recognise that Scope 3 disclosure provides a holistic view of companies’ emissions and supports decision-making for investors and the supply chain, we will need to take into account readiness of the companies before introducing such requirements. It is better to take a phased approach, which I think Mr Lee will agree. Listed companies will be required to disclose Scope 3 emissions from FY2026, a year after mandatory climate reporting.[+10 sentences] As for non-listed companies, we recognise that they need more time to build capabilities for Scope 3 disclosures. Hence, we will not require non-listed companies, including large ones, to disclose Scope 3 emissions before FY2029. We will consider the industry's readiness and implementation experience from the listed companies before deciding when to require Scope 3 disclosures for non-listed companies. Companies will be given at least two years' notice if the decision is to proceed with Scope 3 disclosures. The Government is also stepping up efforts to support large companies and SMEs through the green transition, including support to develop sustainability reporting and assurance competencies. The Ministry of Trade and Industry (MTI) will elaborate on these support measures. Ms Jessica Tan and Mr Edward Chia asked about policies to promote greener procurement practices by the Government. As buyers, our agencies are also encouraging and recognising the development of green capabilities by enterprises through green Government procurement. This helps our businesses build capabilities to meet the demands from consumers and investors for more sustainable products and supply chains. Over the years, the Government has incorporated environmental sustainability considerations into our procurement and continuously reviewed our policies to procure greener solutions. Starting from FY2024, we will set aside up to 5% of evaluation points for sustainability-related considerations, for larger construction and infocomm technology (ICT) tenders, which are in addition to the existing high standards that we require for our buildings and ICT equipment.[+4 sentences] We have implemented this for selected projects in 2023. For example, the Land Transport Authority (LTA) set aside additional evaluation points for greener suppliers for a number of their tenders for the Cross Island Line, such as for Clementi station and King Albert Park station. It will take time for businesses to adjust to new sustainability considerations, so we are phasing these into Government tenders gradually, in consultation with the business community. We are happy to see that companies participating in Government tenders are gradually adopting sustainability practices, such as disclosing their emissions and greening their operations and supply chains. Within the Government, we are also developing training programmes to strengthen public officers’ capabilities on sustainability. We are on track to achieve our target to include environmental sustainability considerations in all Government procurement by 2028, but further progress also depends on industry readiness and international developments.[+4 sentences] The Ministry of Sustainability and the Environment (MSE) will provide more details of the industry consultations and pilots. Mr Chairman, in Mandarin, please. (In Mandarin): Although there are signs of improvement in the inflation situation, the Government is aware that our SMEs are very concerned with operating costs. Hence the Government will introduce various initiatives to help businesses reduce costs and simplify transaction processes between businesses and the Government, allowing businesses to save money, effort and time. Starting from April this year, we will implement Tender Lite, simplifying terms for over 90% of government contracts and making it easier for businesses to participate in government tenders.[+16 sentences] We have also taken into account feedback from businesses and introduced a series of platforms to reduce the administrative cost for businesses and make transactions more convenient. These include eGuarantee@Gov, which allows businesses to quickly provide bank guarantees or risks guarantees to government agencies and a one-stop system to report employee income: One-Stop Payroll. Apart from assisting businesses in reducing costs, the Government will also help them to expand their business capabilities. In this regard, we will work with businesses to advance the transition towards sustainable development and acquire new skills in digital economy and environmental sustainability, thereby enhancing their competitiveness. The Government will continue to take a multi-pronged approach to build an efficient and sustainable pro-business environment, to actively support businesses in their development and transformation. : Mr Chairman, I thank Members for their questions and suggestions on taxes. Mr Mark Lee asked whether MOF could broaden the definition of qualifying IP for corporate tax purposes, and whether the IP development tax incentive could be enhanced. The Government supports businesses to leverage IP for their growth through various tax and non-tax measures. Enterprises may tap on Government grant schemes administered by Enterprise Singapore. The Singapore IP Strategy 2030 was also launched three years ago to strengthen Singapore’s position as a global intangible assets and IP hub. MinLaw will elaborate on this. In parallel, our corporate income tax regime also provides support through various schemes. The scope of qualifying IP for our tax schemes broadly follows the definition used by the World Intellectual Property Organization, as well as international tax standards. MOF will continue to review our schemes for relevance, with careful consideration of their costs, benefits and consistency with international standards. Mr Pritam Singh asked how MOF considers when to raise the chargeable personal income tax threshold for the lowest tiers, as well as the $1 million threshold for GST registration. The Government has taken steps to address cost-of-living concerns, especially for lower- and middle-income Singaporeans. Deputy Prime Minister Wong mentioned some of these during the Budget Debate. On the personal income tax exemption threshold, our $20,000 exemption threshold is higher than jurisdictions like Malaysia, the UK and Australia, where thresholds range from around S$1,500 to S$16,000. The threshold, taken together with our progressive tax rates, tax reliefs and rebates, results in around 40% of all workers not having to pay any income tax.[+5 sentences] Among those who do pay personal income tax, 80% of them have an effective tax rate of less than 6%. The vast majority of income taxes are paid by the top 10% of taxpayers. We review the personal income tax regime from time to time. We raised the top marginal tax rates in recent years and have just announced an increase in the annual income threshold for dependant-related reliefs from $4,000 to $8,000 this year. MOF will continue to review the regime, including the exemption threshold, and ensure that it remains competitive, progressive and fiscally-resilient. As for the GST registration threshold, the current threshold of $1 million was put in place when the GST system was introduced in 1994.[+2 sentences] It was set very high to exempt most SMEs from the additional costs necessary to comply with GST collection requirements; around 90% of businesses in 1994 were exempted from having to register from GST. At that time, the UK VAT registration threshold was just £45,000, which is about S$75,000, while Australia’s was A$50,000, or S$45,000, when they introduced GST in 2000. The $1 million threshold remains relevant today, as around 90% of businesses continue to be exempted from GST registration.[+5 sentences] And our threshold remains significantly higher than in most other jurisdictions. For example, the UK’s threshold now is £85,000, or about S$145,000, while Australia’s threshold is now A$75,000, or about S$65,000. In addition, around 70% of businesses that newly register for GST today do so voluntarily, even though their turnover falls below the threshold. We will continue to assess the appropriateness of this threshold as part of our regular policy reviews. Mr Dennis Tan asked about extending the Foreign Domestic Worker Levy Relief (FDWLR) to divorced single working fathers. Deputy Prime Minister Wong announced in Budget 2023 that the FDWLR would lapse with effect from the Year of Assessment 2025.[+15 sentences] He explained that this was because we already have a migrant domestic worker levy concession, which provides more targeted support for families who need help caring for their dependants, regardless of whether they pay income tax. This includes single working fathers with young children living in the same household. They can qualify for the migrant domestic worker levy concession. Sir, Ms Hany Soh asked how we are alleviating cost-of-living pressures and addressing concerns, and Mr Saktiandi Supaat asked how we will support and encourage more people to give back and contribute to our society. We will continue to implement comprehensive support measures to address the concerns of Singaporeans and foster an enabling and supportive ecosystem for community giving. This is key to helping us build a strong social compact, and a caring and cohesive society. As Deputy Prime Minister Wong explained, we apply monetary policy levers to temper imported inflation, and fiscal policy to further cushion the impact of inflation on Singaporeans. We enhanced the Assurance Package in Budget 2024 to provide near-term relief, as we think this is needed even as inflation moderates. As the Government deploys these measures, we actively monitor the impact and we are prepared to do more to support Singaporeans should it become necessary. And we will do so in a manner which is fair, effective and sustainable, for both current and future generations, as Mr Liang Eng Hwa said earlier. We have also been actively strengthening our enabling ecosystem for mutual support, and this helps forge a strong and united society that progresses together as one people. MOF provides various forms of support for community giving. As Mr Saktiandi Supaat pointed out, we provide various tax deductions schemes – for qualifying donations made to Institutions of a Public Character (IPCs), for corporate volunteering, and for qualifying overseas donations towards emergency humanitarian assistance causes. Beyond tax deductions, we also support charitable giving through Government matching grants. For instance, during the challenging COVID-19 period, we enhanced our support for charities through Tote Board’s Enhanced Fundraising Programme which provides dollar-for-dollar matching for eligible donations received by charities. The programme has supported 480 charities and matched almost $200 million in donations since 2020.[+4 sentences] A key ingredient in building a strong society is partnership. When we harness the expertise, experience and passions of diverse stakeholders and combine our efforts to serve our community, this can create a ripple effect and lead to a sustained positive impact on our society. The Government has brought together the People, Private and Public sectors to support community and ground-up initiatives. This is a key element of Forward Singapore – individuals and corporates stepping up to work together on challenges facing our society and to care for our fellow Singaporeans. Tote Board, together with the Lee Kuan Yew Centre for Innovative Cities and the Institute of Policy Studies, launched the Future-Ready Society Impact Fund and Knowledge Partnership last year to provide funding support for piloting innovative, evidence-based solutions that can enhance the resilience of our social ecosystem.[+6 sentences] Another initiative – called BAGUS Together – was launched in January this year by Tote Board, Temasek Foundation and the National Volunteer and Philanthropy Centre to strengthen our groundup ecosystem. BAGUS Together – which stands for Building All Groundups for Success Together – will rally funders, corporates and volunteers to support groundups in their journey. It will provide groundups access to critical resources and networks to enable them to deliver stronger and more sustained community impact. Groundups play an integral role in meeting the needs of local communities and particular groups that are not easily catered for with broad-based programmes. So, this is why we want to support them. And, this is where BAGUS Together can come in as a first-stop platform to connect changemakers with a community of skilled volunteers and like-minded partners to share resources, grow capabilities and support one another's efforts to create a positive impact on our community.
The Chairman6 words
[+1 sentence]Second Minister for Finance Indranee Rajah
The Second Minister for Finance (Ms Indranee Rajah)1948 words
[+2 sentences]Mr Chairman, Mr Liang Eng Hwa, Ms Jessica Tan and Mr Saktiandi Supaat asked how the Government ensures effective and prudent use of public resources, including for spending needs that span several years. We seek to achieve prudent spending with good outcomes, that is, value for money. Today, our Government expenditure as a share of GDP is about 18%, which is among the lowest across advanced economies; yet at the same time, we are ranked highly on many economic and social indices.[+3 sentences] Based on 2022 OECD data, general government expenditure in other advanced economies, such as the UK, Korea and Germany, exceeded 40% of GDP, while that of Switzerland was about 30% of GDP. As our spending needs rise, we will continue to manage our expenditure growth carefully. We have mechanisms to evaluate our spending and to reallocate resources across the Government. For instance, in FY 2023, the Government implemented a 1% cut to the budgets of all Ministries and Organs of State and channelled the funds towards new and emerging priorities.[+2 sentences] Aside from prudent spending, at the macro level, we also constantly strive to optimise our spending. First, for large expenditure items, such as major infrastructure projects, MOF applies additional scrutiny to evaluate their worthiness and cost effectiveness. Of the large infrastructure projects submitted for approval in 2023, MOF was able to achieve total cost avoidance of around $1.6 billion, or 7.6% of projects' capital costs, by working with agencies to explore more cost-effective solutions and alternatives, and size the scope and budget of the projects judiciously.[+3 sentences] Larger-scale and more complex projects are also reviewed by the Development Projects Advisory Panel, comprising experts from across the private and public sectors and academia. This is in addition to agencies' own efforts to ensure cost-effective infrastructure spending when they are developing their designs. For example, the Land Transport Authority (LTA) considers rail alignment, site and ground conditions in determining the appropriate tunnelling design for our Mass Rapid Transit system. For phase 2 development of the Cross-Island Line, it was assessed that twin-bore tunnels instead of single-bore tunnels could be used for selected stretches. This is expected to achieve cost avoidance of approximately $310 million.[+16 sentences] Second, Government programmes are subject to evaluation and reviews to ensure that their purposes are met. Where relevant, the findings also inform how these programmes can be refined to enhance their effectiveness. For example, a study commissioned by the Early Childhood Development Agency (ECDA) showed that parents and caregivers who received KidSTART home visits had more positive interactions with their children than families who did not receive such support and these children also showed improved socio-emotional development. As a result, the revised KidSTART model will deliver child development interventions mainly through home visits. Government agencies also constantly re-engineer their processes and digitalise them for greater effectiveness and efficiency. For example, the Accountant-General's Department digitalised audit workflows across the public sector through the Audit and Governance Enterprise Management System to enable timely identification, analysis and remediation of audit issues across the Government. The public sector is committed to ensuring that our processes are kept lean and efficient, while providing ample guidance and ensuring sound governance for public offices to respond in an agile and nimble manner. Mr Liang Eng Hwa and Ms Jessica Tan also asked how MOF is strengthening our competitiveness and hub status. Through decades of hard work, we have built an international reputation as a reliable and trusted hub for business and trade. A key enabler is to have a strong and robust accountancy and audit ecosystem. Accountants play a vital role in safeguarding and supporting businesses, and Singapore's strong accounting sector has been the bedrock of our trusted business hub. But the sector has faced manpower challenges in recent years. Fewer students are enrolling in accounting degrees and among the graduates, fewer are pursuing accounting-related careers. MOF set up the Accountancy Workforce Review Committee (AWRC) in 2022 to study these challenges and see how we can build a sustainable pipeline of local accountancy talent. The AWRC's work is almost completed and the Committee expects to issue its recommendations in the coming months. In line with the AWRC deliberations, the Accounting and Corporate Regulatory Authority (ACRA) and the Institute of Singapore Chartered Accountants (ISCA), have expanded the pathways for Singaporeans to consider accountancy as a career and obtain the necessary professional qualifications and experience to practise as an accountant. One key initiative is the enhancement of the Singapore Chartered Accountant Qualification (SCAQ), which will create more opportunities for local polytechnic graduates to become professional accountants.[+12 sentences] Some of the programme's requirements will also be streamlined while maintaining rigour and quality. MOF and ACRA have also been galvanising stakeholders to support the AWRC's work. For example, the Nanyang Technological University (NTU) recently launched a new four-year Bachelor of Accountancy in Sustainability Management and Analytics. This builds on NTU's existing three-year Bachelor of Accountancy programme with new features, such as a 30-week internship component, for practical industry exposure and opportunities to work or study overseas. Through these, students will be able to accumulate more work experience and career development opportunities earlier, and enjoy an accelerated pathway to becoming a chartered accountant. I am confident that our partnership efforts with stakeholders will strengthen the accountancy sector and, in turn, Singapore's position as a trusted business hub. Another key competitive advantage of our business hub is our pro-business, pro-trade stance. MOF continually works to enhance our trade processes to facilitate the flow of goods and reduce regulatory costs for businesses. Singapore Customs has played a leading role in developing the Mutual Recognition Arrangement (MRA), signed by all ASEAN member states. The MRA will recognise each member state's authorised economic operators (AEOs). Under this arrangement, the AEO companies will enjoy faster documentary and cargo clearance for movement of goods within ASEAN. This saves time and money and shortens the time for goods to reach market. A six-month pilot has commenced with six ASEAN member states and we aim to implement the arrangement in the third quarter of 2024.[+9 sentences] This is our first multilateral MRA and adds to the 12 bilateral MRAs we already have with other jurisdictions. As trade with ASEAN member states accounts for a significant 28% of our trade in goods, this will benefit many businesses. By improving and streamlining our trade processes, we are also strengthening Singapore's position as a global trade node. We cannot take Singapore's hub status for granted and I urge all stakeholders to work with our businesses and help them acquire new capabilities and be more competitive. Mr Leong Mun Wai asked whether the Government has over-resourced the Merdeka Generation Fund and may be doing likewise for the Majulah Package Fund. This suggestion is not correct. Let us first start with the principle underpinning our approach. For large commitments like the Merdeka Generation (MG) Package, we set aside resources as and when we can to meet our commitment to every single one of our MG seniors. This is the approach of the Government. Back in 2019, we projected that we would need more than $8 billion in total to meet our commitments to all MG seniors.[+1 sentence] This was based on projections of spending and life expectancy. However, to meet this spending, we did not have to set aside the entire $8 billion. We needed to inject only $6.1 billion into the MG Fund because every year, the fund grows from investment and interest income.[+5 sentences] In the four years since 2019, we have disbursed $0.9 billion from the fund. At the same time, we have concurrently earned investment and interest income. As such, the net drawdown is $0.4 billion. The fund balance is now $5.7 billion. This can be found on page 79 of the Government Financial Statements. $5.7 billion is less than what we would need to meet our remaining commitment to the MG seniors. Taking into account that we have already met some of our commitments from paying out over the last four years, the estimated amount needed to meet remaining liabilities is $6 billion.[+20 sentences] That is at page 78 of the Government Financial Statements. This is more than the $5.7 billion remaining in the fund. There is a shortfall. We will continue to carefully monitor healthcare utilisation and longevity trends, and make top-ups in future, if necessary. Mr Leong then had several other miscellaneous questions. His questions can be categorised into two groups: one, on revenue; and the other group on some specific expenditure items. In relation to the first group, I think he suggested that we had not provided sufficient information on taxes. Actually, the information is already available in the Revenue and Expenditure Estimates – also known as the Budget Book – which can also be used for weightlifting. Let me deal with his questions quickly. He said that we did not explain what "Other Taxes" were. Actually, this can be found in the Overview of the Budget Book at page XIX, which tells you what the "Other Taxes" comprise, which essentially include Foreign Worker Levy, Water Conservation Tax, Land Betterment Charge and the Annual Tonnage Tax. And it is also on page XX; and it is in the footnote of page XX; and it is again on page XXI and it is also elaborated there. And again, it is on page XXII; and there is a further footnote at page XXII. So, actually, we explained what the "Other Taxes" were not once, not twice, not three times; but four times inside the Budget Book. Mr Leong also asked for the reasons that we collected higher revenue on Other Taxes and Corporate Income Tax. The reasons can be found in the Analysis of Revenue and Expenditure, which was published on the same day as the Budget Book and can be found on the MOF website. Very briefly, the FY2023 estimates for Other Taxes were revised upwards because of higher Land Betterment Charge collections from unforeseen redevelopment projects, and the increase in the FY2023 estimates for Corporate Income Tax was due to stronger-than-expected economic growth in 2022. So, now let me deal with the second group of questions. On Electronic Road Pricing (ERP), the revenue estimates are reported under the C16 Account: Transport and Communication, Licence and Permits. For both FY2023 and FY2024, ERP collections are estimated to be about $80 million annually. On Foreign Worker Levy, the total levy collected is projected to be around $6.5 billion for FY2023 and around $6.8 billion for FY2024.[+1 sentence] Based on actual collections from January to December 2023, Work Permit and S Pass holders accounted for around 77% and 17% of total collections respectively, with the rest attributable to Migrant Domestic Workers. On land sales proceeds, the receipts fluctuate based on the projected number and value of land sales each year. These are driven by our physical planning needs. We are estimating higher receipts in FY2024 because we expect more higher-value land sales in the coming year. On property taxes, because Mr Leong asked why there is a significant increase for property taxes of private properties in 2024 despite the revision of the taxable Annual Value (AV) bands, we would like to clarify that the revisions in the AV bands will only take effect from 1 January 2025. I should also point out that the $753 million figure was actually the change in property tax collections for all privately-owned properties, not just private residential properties.[+5 sentences] In other words, non-Government properties. So, it would include commercial properties as well. Mr Chairman, there are about 33 seconds left. I would only need maybe a couple more minutes to complete. I think there is some extra time for me, if I may complete the reply.
The Chairman13 words
[+2 sentences]Yes, there is. We have got up to 6.50 pm, so please proceed.
Ms Indranee Rajah623 words
[+5 sentences]Thank you. More generally, any report, including the Budget Book, presents data in meaningful ways for its users. So, not every single tax, fee, line item expenditure or capital receipt is listed. You can imagine how many more pages the Budget Book would need to have if that were to be the case. We therefore aggregate smaller items into larger groupings in our reporting and highlight the more salient changes. As it stands, our Budget Book has a comparable amount of detail to jurisdictions like Hong Kong and India.[+5 sentences] Moving on to expenditure, some of these cuts would have been better addressed by other Ministries. Nonetheless, since Mr Leong has raised them, I will touch on them briefly. On SPH Media Trust, the Minister for Communications and Information will share more at MCI’s COS. On HDB’s deficit, it is on the books of HDB, which is a Statutory Board. Hence, information on HDB’s deficit can be found in HDB’s Financial Statements, rather than the Revenue and Expenditure Estimates. Mr Leong can refer to the FY2022 Financial Statements available publicly for the latest figures.[+12 sentences] FY2023 and FY2024 information will be published in due course. With regard to Ministers travelling overseas for official appointments in their private capacities, this information is not tracked as a separate item of expenditure. First, it is important to understand that Ministers taking up international appointments in their private capacities are allowed to do so only when it is in the interest or in the service of the nation. In other words, in those situations, they are travelling and working on behalf of the state, albeit in their private capacity. In other words, they are doing it for the state even though they are using their private capacity. This is not a case where it is the state funding their own personal things. They are allowed to do this because it is in the interest of the state that they do so. As such, it would be part and parcel of the normal expenditure that you would expect and it comes under the expenses reflected in two accounts, "2100 Consumption of Products and Services" and "2400 International and Public Relations, Public Communications", on page 8 of the Budget Book. In any case, there are very few who have done so. And I should also say that when the few Ministers travel in the private capacity, do not forget when they go there, they may well also have official meetings. In fact, to save time, very often, we would do that. So, one trip may serve multiple purposes, some in their official capacity and then, one or two meetings in their private capacity. The spending on all development projects is available in the Budget Book. This includes ongoing projects with total project costs exceeding $1 billion, such as the Woodlands Health Campus and Phase 2 of the Deep Tunnel Sewerage System.[+3 sentences] The focus of providing these spending figures is for accountability of spending on these projects. As the total project cost and annual spending of each development project is listed in the Budget Book, Mr Leong can look these up, based on his area of interest. And finally, regarding capital injections into Temasek Holdings, Mr Leong previously filed a Parliamentary Question (PQ) on this topic in January last year. MOF provided him the figures for 20 years up to March 2022. Since then, capital injections into Temasek are similar to the average annual historical capital injections mentioned in our earlier PQ reply.[+2 sentences] Mr Chairman, MOF is committed to ensuring fiscal sustainability, prudent spending and achieving good value-for-money outcomes for the benefit of current and future generations. Let us continue to work in partnership to build a strong, united, and inclusive Singapore.
The Chairman10 words
[+2 sentences]We have till 6.50 pm for clarifications. Mr Don Wee.
Mr Don Wee92 words
[+6 sentences]Thank you, Chairman. Firstly, I would like to declare that I am a Council Member of the Institute of Singapore Chartered Accountants (ISCA). To Minister Indranee, pertaining to the Singapore Chartered Accountancy Qualifications or SCAQ, on behalf of ISCA, I thank MOF for making improvements to the Singapore Chartered Accountancy Qualifications. We shared these improvements to the IHLs last week. They were well received. May I ask if MOF can support and promote Singapore Chartered Accountancy Qualifications to the civil servants in the Statutory Boards and Ministries, who are performing financing functions?
Ms Indranee Rajah51 words
[+2 sentences]I think we can certainly bring the attention of the SCAQ not just to civil servants but to everyone who is looking to come into the accountancy sector, looking to upskill, upgrade and find new career pathways. And the accountancy sector comes under MOF, so we would recommend it in general.
The Chairman3 words
[+1 sentence]Mr Mark Lee.
Mr Mark Lee97 words
[+7 sentences]I thank Minister Chee for his response to my questions. I am glad to hear about the Government's ambition to be an IP hub. I have two subsequent questions. First, some businesses have patented IPs but prefer not to officially register to safeguard sensitive information, like formula and proprietary knowledge. Will the Government actually consider expanding the IP Development Tax Incentive to cover this? Second, I think IP valuation is both an art and a science. In our pursuit of being an IP hub for the region, what are the Government's plans in building this talent base?
Mr Chee Hong Tat155 words
[+6 sentences]Mr Chairman, I thank Mr Mark Lee for his questions. To his first question, we will take a look at the specific suggestion that Mr Lee has brought up. But I just want to go back to what I mentioned in my speech earlier, that MOF, when we review some of these schemes, we have to take a look at the cost benefit but also to check on consistency with international standards. I think this is important because at the end of the day, we do need to also make sure that our standards that we apply here are consistent with international standards. As to Mr Lee's second question, certainly this is a very important area under the Singapore IP Strategy 2030, because if you do not have a talent pipeline, you cannot execute and implement many of the good ideas. So, I think the Ministry of Law will elaborate on this during their COS.
The Chairman4 words
[+1 sentence]Mr Leong Mun Wai.
Mr Leong Mun Wai59 words
[+3 sentences]Mr Chairman, I thank the Minister for the detailed reply to the various questions, when I asked for more details on the estimates. However, I would like to ask on the Other Taxes, even in the Budget Book, it did not break down the Foreign Worker Levy, Water Conservation Tax and Land Betterment Charge. Minister, can you confirm that?
Ms Indranee Rajah190 words
When you look at the Budget Book, Sir, what it says is that Other Taxes, which include the Foreign Worker Levy, Water Conservation Tax, Land Betterment Charge and Annual Tonnage Tax, are estimated to be $8.86 billion, which is $77.7 million or 0.9% higher than the Revised FY2023.[+3 sentences] Essentially, as I mentioned earlier in my reply, you would give as much information as is necessary for people looking at the Budget Book to use it meaningfully, but you do not go down into — you have got line item, then every single one, then you go down further and further and further. There comes a point where the degree of granularity does not really serve as much of a useful purpose when you are considering the Revenue and Expenditure Estimates for an entire financial year. So, basically, the information that is provided in the Budget Book is very similar to what is provided in many other countries and the purpose, of course, is to allow people to see what the Revenue and Expenditure Estimates are like, and for Parliament to be able to debate and decide on the financial policy.
The Chairman4 words
[+1 sentence]Mr Leong Mun Wai.
Mr Leong Mun Wai79 words
Chairman, yes, I thank the Minister for the further clarification. So, now we have confirmed basically that this big item of $8.44 billion, which consists of the Foreign Worker Levy, Water Conservation Tax, Land Betterment Charge, it is all lumped up into one very big amount and there is no further breakdown on it.[+2 sentences] It is okay. I mean, I just want to confirm that that is the case, that that is the way we are treating the accounts.
Ms Indranee Rajah93 words
Mr Chairman, all I am confirming is that in the Budget Book that is how it is presented. As to whether there is any further detailed breakdown elsewhere, I would have to check.[+2 sentences] But for today's purposes and in my response, because you must remember that the initial cut was that we did not explain what these other taxes were and that we did not give a breakdown of the taxes. And, hence, my reply was that we have given a breakdown of the taxes because we told you exactly what they are.
The Chairman3 words
[+1 sentence]Yes, Mr Leong.
Mr Leong Mun Wai266 words
[+14 sentences]Chairman, okay, I will let the matter rest. But before that, my question actually specifically asks for a breakdown of these taxes, but okay, we let the matter rest. We are just talking about I think today and over the whole process of the Budget debate, one of the key themes that we were talking about is transparency. We hope that we can get more data and information so that we can understand the whole Budget process better. And over the years – this is my fourth Budget debate – I found that there are actually many information that is still lacking. However, I will let the matter rest. I just have one question left for the Minister and that is in view of what I said just now, to increase the amount of information that we can get, there are three areas at least I do not know whether the Government can commit to offer to us going forward. One is that MOF had come up with the medium-term fiscal projections last year, but the whole report is actually very brief. Going forward, can we offer more details as to how the analysis is being done, what are the basic data and all those details and things? I have seen a lot of financial reports in the course of my career. I would say that by the standard I know, the medium-term fiscal projections report is very brief. There is not enough information. It is like you want us to just take the conclusion. But I think we need to know the analysis behind it.
The Chairman10 words
[+1 sentence]Mr Leong, may I invite you to ask your questions?
Mr Leong Mun Wai197 words
[+6 sentences]Yes, the question is whether going forward, MOF can provide us with more detailed fiscal projections, spending and revenue projection, one? Secondly, is that the projections on the endowment and trust fund. How do you decide what amount you want to put in, the expected payout and all those things? I think that would allow us to understand the whole budget process better. Because right now, it seems that there is a budget process and there is also an off-budget process. All the money is in the endowment and trust funds. So I think we need actually an integrated view of this whole budgeting process. And the third thing we want to know is that since we have already passed the SINGA Bill and the big infrastructure projects are under this SINGA Bill and the SINGA Bill is also reported in the Budget – in terms of the capitalised costs and all that – so can Parliament have more information on the projects that are inside the SINGA Bill, that are under the SINGA financing?[+1 sentence] So all this I think would help us a lot going forward, to understand better about how we have used our money.
The Chairman19 words
[+2 sentences]Ms Indranee Rajah. I would like to remind Members that we are fast approaching the guillotine time, 6.50 pm.
Ms Indranee Rajah426 words
[+1 sentence]Mr Chairman, I thank Mr Leong for his further clarifications. For his first clarification, he asked whether or not for the medium-term — actually no, before he got on to that, he was asking whether or not we could give even more granular detail on the "Other Taxes". I come back to the reply that I made earlier, which is that the Government's Budget is a huge budget.[+1 sentence] There are lots of different items and the question is what level of detail do you need? And already, as you can see from the Budget Book, a lot of detail is already given. So, there is a question of how much do you actually need for the purposes of the Budget and what we have given, as I said, is the same as what other countries give.[+2 sentences] We adhere to the same general standards, so it is the same level of transparency. Then the second question that he raised was for the medium-term fiscal projections. Now again, I come back to this – which is that firstly, they are driven by long-term drivers. But at the end of the day, when we put out our projections – it is the same kind of standards that other countries use.[+7 sentences] Mr Leong says that he has seen lots of other financial documents. They may be documents of companies, but financial documents of other countries? When you look at a country – that is very different from reporting like a company. The volume, the business, the things that a country has to look at and the Ministries, the items are huge. So, what you do is you put forward projections in a way that gives sort of a meaningful direction; it sets out the Government's thrust; it sets out the key items or things that you think you will have to deal with. If the Member has questions or queries, then of course the Member can file questions and then that will be answered at the appropriate time. I was not quite sure I understood the thrust of that projection on the endowment and the other funds. But if he was asking how we decide whether our funding for specific purposes comes from the funds or the annual Budgets, is that the thrust of the question? So, generally we fund our spending through the annual Budget and we use funds for specific needs, which we know will come up, including large commitments.[+2 sentences] And that, I think was dealt with by Deputy Prime Minister earlier. So that is the general approach.
The Chairman12 words
[+1 sentence]Mr Liang Eng Hwa, may I invite you to withdraw your cut?
Mr Liang Eng Hwa108 words
[+4 sentences]Sir, allow me to first thank the Deputy Prime Minister and the MOF team for a very impactful and forward-looking Budget. And also for their continuing assurance to Singaporeans to cope with the current cost situation. I also want to thank Minister Indranee and Minister Chee Hong Tat for their comprehensive reply. Sir, with that, I beg leave to withdraw the cut.
Committee of Supply – Head J (Ministry of Defence)›Budget20 turns · 8,845w
· 63 highlighted
budget-2346
The Chairman5 words
[+2 sentences]Head J. Mr Vikram Nair.
Mr Vikram Nair (Sembawang)359 words
[+2 sentences]Chairman, I beg to move, "That the total sum to be allocated for Head J of the Estimates be reduced by $100". Sir, we live in a dangerous world. Following the end of World War II, the great powers of the world came together to build a cooperative framework for international relations. This included the setting up of the United Nations and the Bretton Woods institutions – namely the World Bank and the International Monetary Fund.[+2 sentences] The Charter of the United Nations enshrines the prohibition against the use of force – except in self-defence. This rule is generally regarded as jus cogens – or a peremptory norm of international law – which means it is a rule that permits for no derogation. Against this backdrop, Russia's invasion of Ukraine – in breach of this rule – is a direct challenge to the rule of international law itself.[+3 sentences] Russia is a member of the Security Council of the United Nations (UN) – the body that is supposed to lead the collective response of the UN to uphold international law. When the rule of international law is threatened or breaks down, it leaves small nations like us particularly vulnerable. Non-state actors are also becoming more powerful and potentially destabilising. The Israel-Hamas conflict has escalated dramatically since October, resulting in devastating loss of life.[+5 sentences] This is a conflict between Israel, which is – some argue – an occupying power in the Gaza; and Hamas, an organisation that has de facto control over the territory, but as a non-state actor. The violence has spread beyond the Gaza Strip, spilling into Lebanon and the Red Sea – threatening to destabilise the Middle East. The world is likely be more volatile and unpredictable in the coming year. As a small country, Singapore is vulnerable to changes in its external security environment – a peaceful order is critical to Singapore's success. Could the Ministry of Defence (MINDEF) therefore provide an update on the major global and regional trends that MINDEF and the Singapore Armed Forces (SAF) are closely monitoring, and how MINDEF and SAF will be affected by these trends?
Mr Alex Yam (Marsiling-Yew Tee)439 words
[+15 sentences]Mr Chairman, in the last few years, we stood witness to the winds of change sweeping across our globe. The pillars of international order have trembled and weakened under the weight of discord and conflict – casting shadows of uncertainty on all of us. Let us take for a moment to reflect on the sobering reality that the Russia-Ukraine War, is now into its third year. It has transcended mere territorial battlegrounds and has spilled into the virtual realm of cyber warfare and disinformation – shaping perceptions and narratives everywhere. Ukraine's resilient defence, buoyed by initial international solidarity – albeit now more tenuous than it was at the start of the war – stands as a testament to the indomitable spirit of the Ukrainian people. Yet, regrettably, the horizon remains shrouded in ambiguity – devoid of a clear end to this protracted conflict. And while the world's gaze was on Europe, another conflict rages now in the Middle East, where the ancient sands bear witness to a modern-day tragedy unfolding before all of us. The clash between Israel and Hamas serves as a poignant reminder of unresolved grievances and deep-seated animosities that have marred the region not just for decades – but for centuries and millennia. The hopes for a lasting peace seem now dashed against the rocks of historical enmity, leaving the world grappling for solutions in the face of entrenched divisions – not just far from our shores but within our own borders and between communities. In this crucible of conflict, we witness the evolution of warfare itself, where traditional boundaries between conventional and unconventional tactics now blur into obscurity. Tactical innovation have birthed a new breed of weaponry, where hybrid tools serve as the vanguards of destruction in an ever-shifting landscape of battle. Amidst this chaos and turmoil that grip our world, we must not lose sight of the implications that they hold for all of us – especially here in Singapore. Singapore, despite our small size, stands as a beacon of stability in a turbulent sea and it is incumbent upon us to remain vigilant, adaptable and resolute in the defence of our sovereignty. As we navigate the treacherous waters, let us stand firm against the tides of adversity – fortified by the knowledge that together, we can overcome even the greatest of challenges. In conclusion, I call upon the Minister for Defence to shed light on how MINDEF and the SAF are adapting plans and priorities to the evolving threats that confront us and how we can collectively chart a course together towards a future defined not by conflict, but by cooperation and peace.
Mr Chong Kee Hiong (Bishan-Toa Payoh)190 words
[+8 sentences]Chairman, the world is unfortunately experiencing more political turbulence and military strife. We have witnessed two major conflicts in the last few years and despite many international appeasement attempts, there are no signs of abatement. The rising temperature of US-China relations further adds to the global woes. Wary of the implications and the undercurrents of all these discords, many governments have increased their defence spending and some have gone on defence shopping sprees to fill their capability gaps. In Singapore's case, we have always put national defence as our priority. It has always been a non-negotiable since our Independence. In spite of the trade-offs and opportunity cost, our Government – with the trust and confidence of our citizens – has made steady investments in defence, as we have understood the importance of self-reliance. It is in this light that I would like to ask the Minister for Defence about our defence expenditure. What are the projections for our defence spending this year and what are the Ministry's priorities?[+1 sentence] What are the main issues or challenges in the process of procurement and maintenance and how is the Ministry overcoming these constraints?
Mr Kwek Hian Chuan Henry (Kebun Baru)254 words
[+2 sentences]Chairman, as my Parliamentary colleagues have said, it has been over two years since Russia's full-scale invasion of Ukraine. As Ukraine faces mounting shortages in traditional weapons systems and ammunition, their military has had to deploy low-cost drones on an improvised basis – which they have done with considerable success. Earlier this month, the Ukrainian President announced the creation of a separate branch of the Ukrainian Armed Forces devoted to drones.[+5 sentences] This is not the first conflict where unmanned aerial vehicles are being deployed in significant numbers, but the scale at which the drones have been deployed has resulted in major changes to the warfighting on the battlefield. In fact, the unprecedented numbers have led some to call this the world's first drone war. Apart from electronic-warfare drone swarms, we are also seeing the use of cyber warfare not just to target civilian infrastructure but also to achieve battlefield intelligence dominance in the Israel-Hamas conflict. In the Red Sea crisis, the Houthis are weaponising civilian technology to disrupt international trade flow and leveraging asymmetrical warfare by using anti-tank and anti-aircraft missiles. In the coming years, we can expect that warfare will be further shaped by the use of artificial intelligence and direct-energy weapons. With all this going on, can MINDEF share on the progress of the SAF's Next Generation transformation plans?[+1 sentence] With technological advances changing the face of warfare so rapidly, how can MINDEF ensure that that the SAF is able to deal with evolving security threats in a timely, but financially prudent manner?
Mr Don Wee (Chua Chu Kang)319 words
[+10 sentences]: Chairman, at last year's COS debate, Defence Minister Dr Ng said to the House that "we must never forget that defence is a long-term business." He went on to elaborate that for the SAF, major systems and platforms take 10 to 15 years to conceptualise, build and integrate into its fighting force, assuming all goes well. I am glad that Singapore has always taken a long-term view on defence. We cannot wait until conflict is at our doorstep, in order to prepare and defend ourselves. Since Russia's invasion of Ukraine, governments around the world have been rushing to build and buy new weapons as the war has put a significant strain on their stockpiles. However, even with increased spending in defence, it could be years before countries start to reap the dividends of their increased investment. Such are the unfortunate consequences of not making consistent investments in defence. In March last year, the online publication Defense News reported that Italy was considering the quick procurement of tanks and infantry fighting vehicles to serve as gap fillers before long-term projects took shape. The war in Ukraine has brought to the fore the importance of ground warfare capabilities, and Italy's stock of tanks and infantry fighting vehicles were ageing and depleting. I hope that in Singapore, we take in the hard lessons learnt by other countries. We cannot wait until things are heating up to prioritise investing in defence. Hence, MINDEF previously informed the House that the SAF would be adding more platforms and capabilities over the next decade.[+3 sentences] As the nature of conflict evolves, it is important for Singapore to be able to effectively defend herself against increasingly sophisticated conventional military and non-conventional threats. In particular, the war in Ukraine has shown us the continued importance of countries maintaining high-end, conventional military capabilities. Would MINDEF provide an update on the progress of the SAF's acquisitions and capability development plans?
Ms Poh Li San (Sembawang)202 words
[+5 sentences]Mr Chairman, MINDEF had previously announced plans to acquire the F-35B fighter jets. Can MINDEF provide an update on this acquisition? As a small country with no strategic depth, it is important for Singapore to have an effective military to deter potential aggression. We are keenly aware that it is necessary for us to modernise our military and ensure that the SAF can protect Singapore. Over the past few years, MINDEF has provided updates on the modernisation of the Republic of Singapore Air Force (RSAF) through the purchase of advanced fighter aircraft and other systems, which play a pivotal role in a nation's defence capabilities. In March 2019, MINDEF announced that it would purchase four F-35B aircraft, with an eye towards procuring a fleet of F-35s to replace the RSAF's ageing F-16 fleet. Since then, MINDEF has announced that it would acquire an additional eight aircraft, for a total of twelve.[+3 sentences] The Minister for Defence had also said that the RSAF would take delivery of its first four aircraft in 2026. However, over the past few years, the world seen many supply chain challenges, which have impacted the timelines for the delivery of some military platforms. Could MINDEF provide an update please?
Mr Vikram Nair336 words
[+12 sentences]Chairman, given Singapore's declining birth rates, we can expect that our full-time national servicemen and operationally ready National Servicemen (NSmen) cohorts will shrink in the coming years. The SAF will need to do more, with less manpower. It is clear that new technologies have the potential to help organisations optimise and streamline operations. Notably, the use of drones and other unmanned technologies can help to make up for tighter manpower constraints, and I understand that MINDEF has already made significant progress in this area. Unmanned technologies also enhance the military's capability edge. Mechanised warfare reduces the need to put troops in danger. There is also an ability to fight with precision, while limiting human frailties and vulnerabilities. For this reason, I ask about updates and developments in this area regularly in COS debates. I am heartened that MINDEF normally reports impressive developments on this front each year. During last year's COS debate, the Minister for Defence highlighted that when used at scale, unmanned platforms in the air, land and sea would be a game changer in the future. We have seen examples of drones being used in ongoing conflicts, such as in Ukraine and in the Middle East. Given the role that unmanned and autonomous technologies will play in the military domain moving forward, it is more important than ever for the SAF to utilise and integrate such technologies. The Minister for Defence also said that more unmanned aerial and ground vehicles would be introduced in our combat units, and the RSN would be shifting towards a force structure, in which half of its vessels would be unmanned.[+3 sentences] On the flip side though, automated technologies also pose greater risk to our forces, given barriers to entry and costs are relatively low. This may provide opportunities for enemies, including non-state actors, to use these technologies to threaten Singapore's securities. Could MINDEF provide an update on how the SAF has been integrating unmanned technologies to enhance its capabilities, and also dealing with the potential threat from these technologies?
Mr Desmond Choo (Tampines)420 words
[+5 sentences]Chairman, in January this year, Houthi rebels fired what the Associated Press reported as their "largest-ever barrage of drones and missiles" targeting shipping in the Red Sea. And just days ago, the US Central Command said that it had observed the Houthis using underwater drones against ships for the first time. There is growing commentary on the increasingly consequential role drones will play as a terrorist tactic and in the wars of the future. Many of these drones are relatively inexpensive. They can also be deployed at scale and pose a significant threat to our security. One-way attack drones, like the ones that the Houthis are using in the Red Sea, are estimated to cost roughly US$2,000.[+6 sentences] In its attacks on 7 October 2023, Hamas deployed commercial quadcopter drones with explosives to disrupt Israeli military infrastructure. In the Ukrainian-Russian war, drones have changed the complex of what was a conventional war. The attacks have changed because of attack and kamikaze drones. There were reports of commercial drones being retrofitted with explosives to attack conventional armies. Furthermore, there has been greater use of drones for surveillance and to direct artillery fire. Even the most advanced militaries are still grappling with how best to respond to these threats and new developments. One British Broadcasting Corporation (BBC) report described how the United States (US) Marine Corps had modified its fighter jets to serve an air defence role, in response to Houthi drone attacks.[+10 sentences] The US' interceptions have proven to be effective. However, one can imagine that the risks to servicemen to perform these missions are significant and the cost of each mission is high. If adversaries were to scale up such attacks, existing military responses would not be sustainable. We have not even examined how a swarm drone attack could be successfully defended, especially when it could be fully autonomous in time to come. Large swarms of drones can overwhelm conventional defences. This leads to questions on whether current air defences are adequate. The threat that I have described is just one that we are aware of today. But bad actors are continuing to find even more creative and cost-effective ways to evade and weaken conventional military defences. These tactics could exploit new technologies or commercially available, dual-use platforms. How is MINDEF/SAF meeting the drones challenge? Given the rapidly changing security environment, what is MINDEF/SAF doing to safeguard against emerging and evolving technologies and tactics that can be used to undermine our security? How is MINDEF training its personnel to meet evolving threats?
Mr Shawn Huang Wei Zhong (Jurong)183 words
[+5 sentences]Chairman, the nature of warfare is evolving, with battles no longer confined to the traditional physical domains of the sea, air and land. It is taking place in the digital domain. Increasingly, it is possible to inflict more damage by infiltrating networks, sabotaging government or civilian infrastructure and disrupting day-to-day operations. Similar to conventional warfare, such attacks target a country by eroding trust in the government, undermine social cohesion and weaken military industrial capacity. We have seen this strategy play out, for example, the hacking operations on Israeli sites and apps, as well as multiple Internet blackouts in the Gaza Strip since the start of the Israeli-Hamas conflict. Closer to home, we also remember the disruption caused by the SingHealth data breach in 2018, the distributed denial-of-service (DDoS) attacks on StarHub in 2016 and the 2017 cyberattack on MINDEF systems. In view of Singapore's vulnerability to such attacks, could the Minister for Defence provide views on what MINDEF/SAF is doing to address threats in the digital domain, including steps that the Digital and Intelligence Service (DIS) is taking to guard against these threats?
Mr Don Wee208 words
[+7 sentences]Chairman, in a commentary published by the S. Rajaratnam School of International Studies, Asst Prof Michael Raska wrote that the main source of strategic advantage in the next 10 years will lie in the ability of modern military organisations to fully integrate innovations in artificial intelligence, cyber power and data science, as well as cognitive science and robotics across all levels of operations and warfare. For the SAF to maintain its edge, it should continuously evolve to take advantage of new digital technologies. The SAF should also continuously develop responses to defend against new threats. In view of these rapidly evolving developments, I think that the establishment of the SAF's DIS over a year ago was very timely. It may take many years to fully integrate various digital and cyber capabilities and assets across all levels of operations, and of course, across the three Services, and for the service personnel to build up operational experience. The Ministry is taking the right and necessary steps. Can MINDEF provide a progress update on the DIS?[+2 sentences] What steps have been taken to build up its capabilities? How has the DIS been working together with the other agencies in Singapore that operate in the digital domain, in order to boost our security?
Mr Zhulkarnain Abdul Rahim (Chua Chu Kang)151 words
[+7 sentences]Chairman, many SAF regulars and NSmen have had the opportunity to train overseas, which allows them to gain ground experience and apply their skills and knowledge in an operational context. This is especially critical for certain types of training that would otherwise be challenging or impossible here, given Singapore's space constraints. As our global outlook becomes more uncertain, we cannot assume that we will always be able to maintain our current access to overseas training areas. It is, therefore, important to explore different ways to ensure that our NSmen and women train well and remain operationally ready. Can MINDEF provide an update on efforts to improve local and overseas training? In particular, how are we leveraging technological advancements to maximise the value and efficiency of the SAF's training? What opportunities has the SAF taken advantage of, to provide our servicemen with practical experiences in either conflict zones or humanitarian missions abroad?
Mr Patrick Tay Teck Guan (Pioneer)147 words
[+7 sentences]Chairman, my cut is on using technology to improve processes. While the worst of the pandemic might be behind us, it has impacted how we live and work, and pushes us towards embracing new ways of working, specifically going digital and leveraging technologies. From cloud technology to AI tools to robotic assistance, we have read about how these technologies are transforming the modern workplace. As the world becomes more digitalised, expectations for greater productivity and efficiency will likely ensue. We will need to seize the opportunity to lock in the digital gain and deliver better and also faster. MINDEF and the SAF has embraced digitalisation and modernised many generations of our forces since decades ago. I would like to ask how MINDEF and SAF is using technology, including generative artificial intelligence (GenAI), to improve the day-to-day experience of its servicemen and servicewomen and uplift their collective capabilities?
Ms Sylvia Lim (Aljunied)265 words
[+9 sentences]Sir, as a maritime nation, Singapore is dependent on unfettered access to sea lanes of communication and air routes, bringing goods and people to and from our shores. Disruption of these connections could prove costly. Indeed, continued investments in our Air Force and Navy, as well as efforts to work with regional and international partners, provide Singapore with an added guarantee of such access. Our nation's interests beneath the waves are no less important. Submarine cables bring data from everything from our financial markets to design blueprints and overseas orders to and from Singapore. These cables also help connect the Middle East, South Asia, and with us in Southeast and Northeast Asia. I understand that there are even plans to increase the number of submarine cable landing sites in Singapore. There are also plans to provide electricity to Singapore via undersea cables. They come in addition to undersea pipelines to carry gas, including from West Natuna in Indonesia. We know that these undersea assets can become targets for attack or sabotage during crisis and are also subject to accidental damage during peacetime. This is evident from the 2022 Nord Stream 2 explosion, as well as the severing of submarine cables in the Baltic Sea and between Taiwan and Matsu last year.[+1 sentence] These risks are more real, with increased tensions in Asia and the South China Sea, driven by US-PRC competition and growing maritime traffic. Could the Minister for Defence assure Singaporeans of our ability to protect and repair these undersea assets independently and in conjunction with partners?[+1 sentence] What are the efforts to enhance such capabilities?
The Chairman8 words
[+2 sentences]Mr Alex Yam. Take your two cuts together.
Mr Alex Yam (Marsiling-Yew Tee)399 words
[+7 sentences]Mr Chairman, in our rapidly changing world, the nature of threats we face is evolving. We now on confront a growing array of non-conventional security challenges. Terrorism, cyber-attacks and the spread of disinformation are on the rise, both in frequency and impact. Just last October, a devastating terrorist attack orchestrated by Hamas struck Israel, claiming the lives of innocent individuals. This heinous act sparked a brutal conflict between Israel and Hamas. Israel's disproportionate force and violence, despite the right to self-defence, has led to the loss of thousands of lives and the displacement of countless others. The repercussions of this conflict extend far beyond their immediate battlegrounds. Here, in Southeast Asia, a prolonged Israel-Hamas confrontation heightens the risk of radicalisation, posing a threat not just to Singapore but to our neighbours as well.[+4 sentences] Furthermore, cyber-attacks and the dissemination of false information have become preferred tactics for hostile entities seeking to further their agendas. These attacks are insidious, widespread and challenging to trace, capable of inflicting severe damage on our critical infrastructure and undermining public trust. Given Singapore's heavy reliance on digital technologies, we must remain vigilant against such threats. Take, for example, the issue of ransomware, which remains a serious concern in Singapore. Ransomware groups are becoming more sophisticated, swiftly extracting data and using tailored threats to coerce victims into paying up.[+3 sentences] It is clear therefore the challenges cannot be tackled by any single nation alone. Cooperation and coordination are essential. Therefore, I am eager to learn about the strategies and initiatives undertaken by MINDEF to address these common threats that transcend our national borders. To address these challenges, Singapore took the proactive step of establishing the ASEAN Defence Ministers' Meeting Cybersecurity and Information Centre for Excellence, the ADMM ACICE, in 2021. This move came amidst the growing digitalisation of society and the increasing prevalence of cyberattacks as well as disinformation and misinformation. I am pleased that the physical centre for ACICE was officially launched on 18 July last year.[+3 sentences] This initiative is crucial because cyber and information threats are multifaceted and constantly evolving. It is clear that collaboration with other ASEAN member states and international partners is essential. Therefore, I am also keen to find out from the Minister for Defence about the progress of ACICE and its plans for the future. How does ACICE intend to build upon its existing work to enhance cybersecurity and combat disinformation?
The Chairman4 words
[+1 sentence]Minister Ng Eng Hen.
The Minister for Defence (Dr Ng Eng Hen)1921 words
[+3 sentences]Mr Chairman, Mr Vikram Nair began his cut by asserting that our world is a much more dangerous world. Subsequent Members of Parliament (MPs) gave their spiels on the events around us. I do not think anyone in this House or out of it needs to be convinced that indeed the world has become a more dangerous place. Just last week was 24 February, another day in infamy. We are now in the third year of Russia's invasion of Ukraine. As many of the Members rightly pointed out, the Israel-Hamas conflict risks a contagion effect over the Middle East and there is a de facto trade war between the US and China.[+30 sentences] We are all concerned that the US and China can clash over Taiwan. If that happens, that will be a very bleak Asia for a very long time. When was this region beset with such trouble? If you remember your Shakespeare: "double, double toil and trouble; fire burn and cauldron bubble". The last time the region experienced this kind of turmoil and potential danger was probably in the 1980s during the Sino-Viet Conflicts that lasted from 1979 to 1991. The Singapore's Pioneer Generation (PG) lived through those tumultuous, perilous times, not only through that period, but for 60 years. The Japanese Occupation in the 1940s, the Korean War, the Vietnam War, Konfrontasi. 60 years. Mr Lee Kuan Yew recounted that he had to sing four national anthems because of the political upheavals that lasted 60 years. Those experiences hardened the PG that were born in the 1920s and 1930s. And the first order of the day when we gained Independence was to form the Singapore Armed Forces (SAF). It was a visceral reaction. My generation and for some of us in this House, were born in the 1950s and 1960s, the Merdeka Generation (MG). We lucked out. Many families like mine were poor at the start, but as Singapore prospered, so did we. It was the heyday for open trade and liberalisation, and when the Cold War ended in 1991, the global economy took off, lifting standards of living even higher today. So, Singapore's per capita gross domestic product (GDP) is the highest in Asia. When did we exceed Japan, the second highest? In 2007. With a strong dollar, overseas travel has become less expensive. I still remember as a boy when £1 was more than S$7. Fish-and-chips was expensive at that time. Prices in Japan were prohibitive. Now, hordes of Singaporeans go to Japan – not quite expensive. Sixty years of confrontation the PG lived through. The MG has lived through 30 years of relative peace. And we have assumed that this is the norm. Which is the norm – what the PG went through, or what the MG went through? If you had asked me even five years ago, I would have said that the current generation – they are lumped together, Gen X, Millennials, Gen Z and other alphabets – would be just as lucky as the MG. Because despite Brexit, the European Union (EU) held – if you remember, the EU was formed in 1993. During that time, there was a rising economic co-dependency with Russia, even in energy supplies. Before the Ukraine invasion, Russia supplied 55% of gas consumed in Germany.[+11 sentences] You do not buy gas in that proportion, if you did not believe in peace and lasting peace. Russia's invasion of Ukraine dealt a death blow to Europe's integration for a generation at least. Worse still, seeds of future discord and conflict have been sown. As the EU High Representative for Foreign Affairs, Josep Borrell said at the Shangri-La Dialogue held here last year, "This war is changing the role of Europe. Europe was and is a project for peace and about peace. But now we face a world where war is something that is in every corner, and these corners are close to our houses." In the Middle East, the signed Abraham Accords held out the future of accelerated peace and progress in that region. The zeitgeist following the Abraham Accords, not seen or thought possible for a long time, was to avoid conflict and find common cause so that that region could develop economically. This was a dictum following Deng Xiaoping: "to get rich is glorious", instead of war. And for this higher cause, even Saudi Arabia's Mohammed bin Salman reversed his position with the Houthis in Yemen, whom he had unleashed deadly strikes on earlier on. So, in this conflict, there is a reversal of roles. The US is striking the Houthis and the Saudis are saying: I want to make peace. That attack by Hamas on 7 October 2023 upended, delayed, if not decimated, these aspirations in the Middle East. Between the US and China, a trade war has already started.[+33 sentences] The plan on the US side is to conscribe it to limited areas, particularly high-end technology that have a bearing on national security. In theory, this seems possible. "Small yard, high fences" is the neat way that the US puts it. But in practice, it is much harder because in the name of national security, the yard could get bigger. Right now, a bill in the US Congress targets to exclude Chinese biopharma manufacturing because, I suppose, you could produce something, pharmaceuticals, that weakens your national security. Tomorrow, it may be electric vehicles. And of course, there is capital, the most fungible of all assets. If a country or company invests large sums in China, would it be seen as helping the potential adversary? And if so, what punitive measures or restrictions might be taken against that country? In this inter-connected world, will borders erected for national security regress the world to alliances and trade blocs as it did pre-World Wars I and II, and the Cold War? We are seeing this before our very eyes. That is the privilege of this generation. We are seeing it play out: all the world's a stage. It will take one, two decades for these various scenarios to come to fruition, whatever the outcomes. Two weeks ago, I was at the Munich Security Conference, the 60th. They titled this 60th Munich Security Conference as "Lose-Lose?" because everywhere they turned, and they analysed all the situations, every scenario they had talked about, both sides lose, and the world loses. This was my 12th Munich Security Conference. In 2014, I attended the 50th Munich Security Conference. There was a special session organised. I will never forget it. On stage was Henry Kissinger, Helmut Schmidt, former French President Valéry Giscard d'Estaing. All three gentlemen have passed away since. It has been the 50th Munich Security Conference. Helmut Schmidt and Henry Kissinger had been present in the inaugural Munich Security Conference in 1963. It was such a special forum. It had been 50 years of peace. The mood was one of celebration. I remember President Valéry Giscard d'Estaing saying that Europe had eliminated the concept of war. It was just one decade ago. All those dreams have been decimated. I can assure this House that surprises and unintended consequences are in store, some linked, others completely out of the blue. When the ambient temperature of geopolitics rises, sparks and fires will arise from multiple sources. So, I have reversed my assessment for today's generation in Singapore and elsewhere. The risk of regional and even global conflict, even in the next decade, has become non-zero.[+25 sentences] I do not make this assessment lightly. What are the precise odds? It is not productive. We are not Nostradamus. It is imponderable and your guess is as good as mine. But the most important question, I think, is what some Members here have said – Vikram Nair, Alex Yam and others. What can Singapore, as a small country, and Singaporeans, do realistically to prepare ourselves as best as we can for disruptions and unintended consequences? Because there will be disruptions and intended consequences – that we can be sure. How we meet it, we are not sure. I remember US Defense Secretary Gates; I quote him often for this quote. He was addressing West Point Military Academy graduates. And he told the West Point graduates that for the last decade, the US Department of Defense's record for predicting where they would be within a year of the conflict, was perfect. They never got it right. One year, with all its machinery of intelligence collection and prediction, the US Administration never got it right. So, we cannot pretend to know what will come and yet, we have to prepare. So, how do we prepare Singapore for this uncertain future? First, I think, we should recognise that Singaporeans have more to protect and with more resources to do so, compared to the PG and MG. Some Singaporeans may remember the invasion of Kuwait by Iraq in 1990. Among the justifications for the invasion, Iraq accused Kuwait of stealing oil – there was a particular field, it is called Al-Rumaylah oil field, which straddles both states, across the borders. Iraq said, "you are pumping from your side, but you are siphoning off from my side." Geographically, I think it is possible, but that was the claim, anyhow. Wealthy, small Kuwait with its rich resources was a tempting and lucrative victim. Wealthy, small Singapore can be a lucrative target, without a strong defence. In that invasion, the US came to the rescue of Kuwait and led 42 countries to join forces in an air and ground war. The SAF provided support for casualties. We deployed a 30-member medical team to the region. But I want to make clear here, that if ever something similar happens to us here in Singapore, this Government, MINDEF and the SAF do not plan on the basis that we can depend on another country to come to our rescue. If Singaporeans will not or cannot defend Singapore, there is no backstop.[+11 sentences] That is the simple truth. A strong SAF acts a deterrent against aggression towards us and keeps adventurism at bay. When I listen to the speeches of MPs, it was heartening because all of you understand, across the aisle, of whatever political persuasion, we are on our own. And I want to thank Members of this House for supporting MINDEF's Budget every year. We do spend precious dollars consistently on defence, as some of you observed. Money which could have benefited other causes, but we know that without security, there can be no progress. Singapore was ranked the sixth most peaceful country in the world in the latest Global Peace Index. I do not know and do not want to find out, what our ranking would have been if we had not put in the necessary investments to build a strong SAF. I think that experiment would be too costly. Mr Chong Kee Hiong asked to give us details on the defence spending this year and subsequent years. Let me do that. In the coming Financial Year, MINDEF projects an expenditure of around $20.2 billion – a 2.5% increase from last year, FY23.[+1 sentence] If you compare this to 2022, the increase is higher, but that was because we were catching up – projects and activities disrupted by the pandemic. Despite nominal increases for defence spending over the past years, the share as a percentage of GDP has been falling mainly because Singapore's GDP has been growing faster than defence spending.[+2 sentences] That is a good outcome. With your permission, Mr Chairman, I have asked the Clerks to distribute handouts.
The Chairman9 words
[+1 sentence]Please go ahead.
Dr Ng Eng Hen3026 words
[+4 sentences]Thank you. These handouts are instructive, so, while you are listening, take your time to peruse it. You can also access this through SG PARL MP mobile app. First, our GDP. As Members can see, two decades ago, we were spending 5% of GDP on defence.[+6 sentences] By the way, every time Budget comes around, I pick up and compare figures. The average Middle East spending, Middle Eastern countries is about 4% of GDP. Europe, of course, is undergoing huge turmoil, they have not spent even 2%. But two decades ago, we were spending 5% of GDP on defence. Now, we are down to about 3%. That is a 40% reduction in share. Now, we could be decreasing because Total Government spending has been either maintained or is reducing. But total Government spending as a percentage of GDP has increased, from an average of 16% in the early 2000s to an average of 18% in recent years. I think if you listen to Deputy Prime Minister Wong, there are structural reasons why our economy and our revenue flows will not be as high as before. I think it is good that we reach this level, and some of you have asked, including Mr Chong what are our future defence spending is, I would say that our spending can stay around 3%, move up or down a bit, but in this range over the next decade, with one important caveat: barring conflicts and wars, obviously.[+54 sentences] Mr Alex Yam, Mr Henry Kwek and Mr Don Wee asked "That is the overall picture, but where has this spending gone? And how are you preparing the SAF?" These are excellent questions. Let me make clear the decrease in defence budget as a percentage of GDP was not because the SAF cut back on what is necessary to defend Singapore. Our defence capabilities have never been compromised. It is also not because our manpower has come down. I think Mr Vikram noted that our NS cohorts, he said, "will be coming down." I must tell him it has already come down. And the last time we were in a dragon year, all of us expected that to have good news. Today, our total fertility rate is 0.97. We all expect a mini dragon. We never had real dragons for a long time since 1988. That was the last real dragon. Beyond that, every dragon cycle are mini dragons. I hope we are proven wrong this year, but let us leave that to another Ministry. It has come down because as various Defence Ministers and including MPs have said, we sustained defence spending and that was the most effective and efficient means of building a strong military over the longer term. So, today, we are reaping dividends of the sums we put in steadily over the past 20 years. And if we continue to invest wisely, we will reap more dividends in the future. If you read the newspapers today, what the Denmark, either the Defence Minister or Prime Minister was saying, "we should cut back on welfare to increase our defence spending." We never want to be in that position. We actually want to do both. Steady long-term defence spending enables platforms and capabilities to mature over the necessary timeline and to enhance synergy and reap efficiencies. Let me illustrate to make it more clear with practical examples along the way. Ms Poh Li San asked about our F-35s. So, that is a good place to start, to illustrate what I mean. The F-35s when operational will put the RSAF in the Premier League. That is it. The sixth generations are being developed, but it will take some time. So, when they are operational, we will be in the Premier League. When did we start looking at the F-35 programme? You think it is a matter of course, right? You pay the money, you get it. But we are in a very, very different position. We are in Singapore – 5.5 million people, looking at F-35s. And we started evaluating the F-35s in 2004, 20 years ago. First, as a Security Cooperation Participant, and then we dipped our feet in the water tentatively, ordered four aircrafts for evaluation. But since then, as Ms Poh Li San recognised, events have overtaken that. Because since that period, the F-35s have been deployed by other air forces for real missions, which is the final test of any evaluation, final test of any combat platform. So, for example, the US and the UK, their F-35s, they conducted successful strikes against ISIS in the Middle East. More recently, the US used their F-35s to locate and identify surface-to-air missile sites of Russian units in Ukraine. This information was shared with NATO countries. So, to-date, more than 900 F-35s have flown in operations around the world. When we began our evaluation, these were not the numbers. And their battlefield successes have prompted more countries – Switzerland, Germany, to jump on board the F-35 programme. Other countries, South Korea, Japan, UK, have placed additional orders. So, a question was asked whether there are supply chain disruptions? Not for the F-35, in fact, the reverse. More orders have gone in because around the world, they have recognised that the F-35 is a proven fifth generation fighter aircraft; advanced sense and strike capabilities. So, globally, there are close to 2,500 F-35s, and that is a healthy pipeline on the order book. Because of that the price is now more competitive. In fact, if you buy an F-35, put in an order for it, it is not like a car, but you understand what I am saying. If you put in an order for an F-35 today, the price is comparable to an F-15EX. That is how competitive it is. So, we will capitalise on this window of opportunity to accelerate our F-35 programme. We have ordered, as Ms Poh Li San said four plus eight F-35Bs. This time, we are putting in an order to acquire eight F-35As, adding to our 12 F-35Bs.[+2 sentences] The RSAF could take these decisions deliberately, cool and calculated mindset, because of the steady defence spending over the years. And this allowed our mid-life upgrade of F-16Cs, our Ds and D+s, which the F-35 will replace. The F-16s, after their mid-life upgrade, will be drawn down progressively from mid-2030 onwards. We will receive the first four F-35Bs which we ordered four years ago in 2026; it seems to be on schedule.[+2 sentences] And the subsequent eight F-35Bs that we are in 2028. That is a couple of years from now. The F-35A variant that I am announcing today, if Parliament approves this Budget, will arrive around 2030.[+5 sentences] We have to deprioritise other projects for this opportunity buy, but we have done our calculations and we think that this is the best time to put in the order for the F-35As. Why? Because the F-35As are designed for greater endurance. They have the ability to carry a payload at higher capacity. They complement the F-35Bs which are short, take off and vertical landing, because the F-35As are bigger, bulkier, bigger range, and provide more operational flexibility. In sum, after the F-16s retire, the RSAF will operate F-35As, F-35Bs and F15SGs.[+25 sentences] Premier League. Capable of performing the full suite of missions required to defend Singapore skies. This will be a capable Air Force above all to protect our skies. For the Navy, our first invincible class submarine returned to Singapore last year. You did not notice. If you notice, then it is not doing its job. Submarines are a hefty investment and obviously, I cannot use them for National Day Parade, like I do our planes. But rest assured that our submarines will silently and stealthily protect the waters around us. Later this year, we will commission her, as well as launch the fourth and final submarine in Kiel. This submarine programme, custom made for the RSN – this is the first time we have got them custom-made. Previously, we ordered used submarines, adapted for our use, of course. But this is the first time, from scratch, we dealt with the defence supplier, this is what we need. When did we start this? 2000. Twenty years ago. Defence is a long-term business. And as some of you rightly pointed out, including Mr Don Wee, you cannot decide that you are going to have defences up. President Zelensky spoke at the recent Munich Security Conference, in person. He sent a chill down the audience's spine, when he said, I think, "You European countries, are not ready for an invasion!" Ukraine, despite all its preparations, was not ready. For the next few days, that was the question back and forth, "Are we ready for an invasion?" So, if you look The Economist's front page, the title is: Is Europe Ready? It is not. Because they have not committed to that defence spending. Questions were asked, what happens if the US – they are looking at elections, too – what happens if the US reduces its commitment? And only now are the Europeans saying we have to be responsible for our own defence. Defence spending is a long-term business and because we stuck to it, all four submarines will be operational around Singapore waters by 2028.[+7 sentences] Submarines are a strategic asset. Those of you who are military buffs will understand what I mean. For the Army, the next-generation Armoured Tracked Carriers (ATCs) and the next-generation Howitzers will be brought into service. The ATCs will operate alongside the Bronco Tracked Carrier and replace the older BV206. Some of you may have used it – more protected, more mobile. I know that some Members here are from the artillery and will appreciate the difference between the new Howitzer and the old field Howitzer 2000 that they operated. You have memories of your old Howitzer that you operated. The new Howitzers are self-loading, shoot faster and move, and require 60% less manpower.[+2 sentences] Mr Vikram Nair and Mr Henry Kwek asked what about unmanned capabilities. The Ukraine situation, the situation in the Middle East, have proven that unmanned platforms are already part of today's current war, not even future. And it is a given in any modern military, and it will be increasingly used, and we will do the same. So, this year, the Navy's Unmanned Surface Vessel (USV) goes fully operational.[+32 sentences] In other words, no person on it, fully unmanned, automated. It will patrol the Singapore Strait alongside our Littoral Mission Vessels and patrol vessels. Locally designed, manufactured, these USVs, fully autonomous, can navigate our busy shipping lanes. Touch wood, that is what they promised me. It is a busy shipping strait, and these are unmanned, but I think they were put to trials and they performed. In addition, our Navy ships will have Close-Range Unmanned Aerial Vehicles by the second half of this year to extend their range for surveillance. So, UAVs on ships. The UAVs will also filter down to the soldiers in the Army. Some of you are sci-fi buffs and you know the movies where you have your own personal android that follows you that can survey and shoot people and protect you. We are not there yet, but our Army soldiers can use their own micro-UAVs. They will be an asset for soldiers on foot for last-mile surveillance. And we are tapping on a new generation of NSmen who are tech-savvy. So, for example, Corporal First Class Zubayr. He is an avid drone enthusiast. They tapped on his expertise. He comes from 3rd Battalion Singapore Infantry Regiment (3 SIR) to refine the drone tactics, techniques, procedures, including launching and operating from a Terrex. And we will continue to harness the skills of our NSmen to strengthen our capabilities. Mr Desmond Choo, Mr Vikram Nair asked if we can use it, and they gave examples of current missions in Ukraine, in the Middle East, others can use it against us. You are absolutely right. You have to assume that a potential aggressor can do the same. They can scale it. Terrorists can use low-cost drones to launch attacks here. It makes very little sense to launch a couple of million-door missiles to attack a couple of thousand dollars drone. The attrition of costs will bankrupt you. So, that cannot be the modus operandi. We are alive to these security threats. We set up groups to brainstorm and develop sustainable countermeasures. And they include off-the-shelf solutions: jammer guns, or our usual rifles fitted with a smart fire control system, an on-board computer to accurately shoot down a small drone. Mr Shawn Huang and Mr Don Wee said that the digital domain is an increasingly contested battleground. I agree completely with them. And that was the reason we formed the DIS in 2022, to build up competencies, to work closely with other national agencies. Mr Alex Yam also talked about this. The DIS co-organised the Critical Infrastructure Defence Exercise (CIDeX) in November last year.[+5 sentences] We had about 200 frontline cyber defenders, 25 other national agencies. Scenarios simulated attacks by both ransomware, some of you talked about it, and nation-state cyber attackers on our key infrastructure: power, water, 5G telecommunications. So, in other words, you sit them in a room, you simulate the attacks, how do we defend? This exercise will be like their live firing, will be held regularly to expand and cover more sectors. We are building a digital range because you cannot do it on live systems, right? But we have a digital range that replicates these systems. That digital range will be completed in 2026.[+19 sentences] It will allow us to scale, add complexity and realism in this digital domain. All in all, when it concerns hardware and systems for SAF, our steady defence spending has built up an SAF that is modernised and effective with a full suite of capabilities against threats: air, land, sea and cyberspace. This is a short summary statement and it belies the decades of hard work and commitment by our servicemen and women, including some in the House, and your constant support for MINDEF's budget. I have shown Members what it looks like in the ORBAT in the handout, but we must never forget people. We are only as good as our people, no matter how advanced our platforms. And we have made sizeable investments in building up infrastructure to train our NSmen and Regulars. So, if you look at the handout, SAFTI City Phase 1, together with our three Instrumented Battle Circuits. During my time, some of you maybe also, when you do exercises, you use blanks and bang, bang, bang, bang. So, I pretend to shoot you, you pretend to shoot back and nobody dies. Well, we have come a long way from that. Now, it is transcutaneous electrical nerve stimulation (TENS), which are electronic RFID things. If somebody shoots you, you are "dead". If your vehicle is shot, it does not move. It has become more realistic. We have built that up, but for urban built-up areas, we do not have that. That is what SAFTI City Phase 1 will do. Instrumented Battle Circuits means you go into a building, in a room, it is the same outfit, and if you are shot, you are shot. So, it is very good training because you can do an after-action review (AAR), video playback, see what you have done wrong. Shoalwater Bay Training Area is near completion. Last year, we deployed 4,300 personnel, 450 platforms to Shoalwater Bay.[+1 sentence] It was the largest-ever edition of Exercise Wallaby. So, not only is Singapore committed to its defence, we have friends who are willing to open up their country to allow us to put all these platforms there. And this year, the expanded training area will allow us to increase the scale of exercise by close to 50%, with an increase in training duration for six to nine weeks.[+1 sentence] Then, there is the adjacent Greenvale Training Area. The SAF will have a combined training area 10 times the size of Singapore.[+24 sentences] We can deploy up to 14,000 personnel, 2,400 vehicles and equipment annually. We will have improved administrative medical facilities by 2024. This took years to build up, but it is coming to fruition. We have been training in the Shoalwater Bay training area since 1990, and I want to thank, on our behalf, the government and the people of Australia for these opportunities. I have tried to give various examples to see where our defence dollars have gone over the years, and the overall picture is one of continuous progress and virtuous cycle, spiralling up even when new threats arise. But it is about the mindset among MINDEF and SAF personnel, the way we approach challenges, the constant emphasis to do things better, safer, not only to protect Singapore, but to improve the lived experience of our soldiers. Mr Patrick Tay said this is "digital gain", and I agree with him. So, we are using smarter chatbots to answer HR enquiries so that you do not have to go back and forth. Another example is the use of biometrics. For some restricted areas in MINDEF HQ, facial recognition is the norm to control access. It recognises you. If you are a foreign person, it shoots you. Not quite. This is a joke. It just does not let you enter. I am just trying to see if you are still awake. It just recognises you, and if it does not, you cannot go in. DSTA employees no longer require a camp pass to go to work because of this technology. The 2nd People's Defence Force (2PDF) is in the process of operationalising facial recognition for camp access. The aim is to progressively roll this out to the rest of our camps and bases to be the norm during peacetime. During war and periods of tension (POT), I think there may be issues. The applications of AI, when we apply it, but we have to do it judiciously. You will see in your handout, the new Central Manpower Base (CMPB) opposite Cashew MRT. My generation is Dempsey Parade Square.
Committee of Supply – Head J (Ministry of Defence)›Budget2 turns · 803w
· 1 highlighted
budget-2348
Dr Ng Eng Hen791 words
[+9 sentences]Mr Speaker, I want to assure the Members of the House I will not need that time. My time was Dempsey, right? Now, it is occupied by swanky restaurants. I am not sure who else; some of us in that vintage, we were none the wiser 18-year-olds. You go to Dempsey, and after that you go to General Equipment Base (GEB). Some of you grew up in the era of Depot Road. That is your memory. Well, the new CMPB is opposite Cashew MRT. I think this will be probably the permanent home. In the picture that you see, Phase 1 will be opening from 2025, and Senior Minister of State Heng will speak on this in more detail.[+45 sentences] At the outset, I posed this question: what can Singapore do to secure our future in a turbulent world? The answer is mundane but never simple – build a strong SAF for deterrence, but even that is not enough. To survive, Singapore needs Total Defence. We commemorate the 40th anniversary of Total Defence. Deputy Prime Minister Wong launched the Exercise SG Ready. It is an apt reminder. Members may have participated and Senior Minister of State Zaqy will speak more on this. I also said that we must not expect another country to come to rescue us like Kuwait. But that certainly does not mean we do not work with like-minded countries. This is what Members are talking about, to deal with transnational issues, Mr Alex Yam and Ms Sylvia Lim. I agree completely with Ms Lim that we have critical underwater infrastructure, subsea cables and pipelines. In law, it sounds protected, right? Because in 2019, ASEAN developed guidelines for strengthening the resilience and repair of telecommunications submarine cables. The United Nations Convention on the Law of the Sea (UNCLOS) sets an international legal framework to govern underwater critical infrastructure. Singapore works with partners to protect this infrastructure because we are either the intermediary or the tail end, and we are a hub for fibre optics subsea cables, including more subsea cables. But, in truth, it is thousands and thousands of miles of, whether it is gas pipelines, subsea cables. And they can be sabotaged. We cannot run away from it. We should not give false assurance. If they are sabotaged, there will be disruption. Certain militaries have now commissioned ships to map the entire universe, meaning subsea cables all around the world. You can map it. But all you need is to disrupt one point far away, and the whole so-called supply chain is disrupted. We have some redundancy because we have more than one fibre optic subsea cable. The natural gas pipelines of Singapore are designed and built to international standards. So, within our waters, they are protected with rock armour and laid in no-anchor zones. But of course, they move elsewhere. For redundancy, we have the capacity to import liquefied natural gas (LNG) to meet our electricity needs. Terrorism is another prime example, and I think Mr Alex Yam talked about the ASEAN Defence Ministers’ Meeting Cybersecurity and Information Centre of Excellence (ACICE). This is to deal with cyber disinformation and information threats. We opened it. And we held our inaugural Digital Defence Symposium and ASEAN Roundtable. We have to work with other partners. That does not mean all problems can be solved, but we have to build credibility and partnerships. And lastly, for humanitarian efforts, Mr Zhulkarnain Rahim talked about this – our Changi Regional Humanitarian Assistance and Disaster Relief Coordination Centre was set up in 2014 to better coordinate our efforts with local and international agenices. Mr Chairman, I want to close, and Senior Minister of State Zaqy and Senior Minister of State Heng will deal with other issues that Members have raised. But let me again reiterate my deep thanks to the Members of this House. We have not had difficulty passing MINDEF's Budget. Your questions have not been too hard or too spiky. And I think it reflects: one, the understanding that we are so vulnerable. So many examples and, honestly, for the last five years, it has not been difficult to sell defence. We see a turbulent world, but we must remember even in peaceful times; I gave the example of a PG that underwent 60 years of turbulence versus this generation of 30 years of peace – which is the norm. We may very well revert to the PG – 60 years of turbulence. We do not know what the future will bring but as long as we have a strong SAF, we have some deterrence, protection, and we can determine our own future if our people are united and with a strong SAF and various other agencies. Thank you for your support.
The Chairman12 words
[+2 sentences]It is a sobering yet assuring message. Minister for Defence, Dr Ng.
[+1 sentence]Mr Chairman, may I seek your consent to move that progress be reported now and leave be asked to sit again tomorrow?
The Chairman45 words
[+2 sentences]I give my consent. . (proc text)]
Mr Speaker3 words
[+1 sentence]Minister for Defence.
Dr Ng Eng Hen12 words
[+1 sentence]I assume, Mr Speaker, you are asking for Parliament to be adjourned?
Mr Speaker6 words
[+1 sentence]For the debate to be adjourned.
Dr Ng Eng Hen31 words
[+2 sentences]Yes, Sir. Mr Speaker, I beg to report that the Committee of Supply has made progress on the Estimates of Expenditure for this year, and ask leave to sit again tomorrow.
Mr Speaker4 words
[+2 sentences]So be it. Leader.
Extension of a Sitting›Motions1 turns · 29w
· 0 highlighted
motion-2347
The Chairman29 words
[+3 sentences]Order. Pursuant to Standing Order No 91(3)(d), I propose to extend the time of this day's Committee Sitting for a period of up to 30 minutes. Minister for Defence.
Adjournment›Motions1 turns · 19w
· 0 highlighted
motion-2350
Speaker not recorded19 words
[+2 sentences]. (proc text)] Adjourned accordingly at 8.05 pm.
International Students Receiving Tuition Grants and Their Employment Status after Graduation›Oral Answers to Questions19 turns · 957w
· 8 highlighted
oral-answer-3486
Mr Gerald Giam Yean Song76 words
[+1 sentence]asked the Minister for Education in each year from 2017 to 2023 (a) how many international students who received the MOE Tuition Grant graduated from local Institutes of Higher Learning; (b) how many failed to update the Ministry of their employment status with Singapore entities within (i) one year (ii) two years or (iii) three years of graduation; and (c) what are the most common reasons cited for being unable to find work in Singapore entities.
Mr Gerald Giam Yean Song49 words
[+1 sentence]asked the Minister for Education in each year from 2017 to 2023 (a) how many international students who received the MOE Tuition Grant applied for bond deferments due to their inability to find work in a Singapore entity; and (b) how many were granted bond deferments on that basis.
The Minister of State for Education (Ms Gan Siow Huang) (for the Minister for Education)15 words
[+1 sentence]Mr Speaker, may I have your permission to take Question Nos 1 and 2 together?
Mr Speaker2 words
[+1 sentence]Please proceed.
Ms Gan Siow Huang49 words
From 2017 to 2023, on average, about 2,900 international students who received the Tuition Grant graduate each year from our polytechnics and autonomous universities. Within the first three years of graduating, more than eight in 10 are employed. Of the remainder, the majority are granted deferment for further studies.
Mr Speaker2 words
[+1 sentence]Mr Giam.
Mr Gerald Giam Yean Song (Aljunied)36 words
[+2 sentences]Sir, I do not think the Minister of State answered my question about how many students have not fulfilled the conditions for the tuition grant, including getting local employment. Is that something the Ministry is pursuing?
Ms Gan Siow Huang58 words
[+1 sentence]Mr Speaker, from 2017 to 2023, we were not informed of the employment status in the first three years after graduation for about 5% of the international students who receive the tuition grant. We take the bond obligations of the international students on tuition grants seriously and we will pursue the international students who default on their obligations.
Mr Gerald Giam Yean Song21 words
[+1 sentence]Can the Minister of State explained how exactly the Ministry pursues these students who do not fulfil their tuition grant obligations?
Ms Gan Siow Huang49 words
For those who fail to pay the liquidated damages, actions will be taken to prevent them from working or residing in Singapore.[+1 sentence] As I had explained earlier on, there is a serious view taken by the Ministry towards the obligations of these international students who have taken tuition grants.
Mr Speaker2 words
[+1 sentence]Mr Giam.
Mr Gerald Giam Yean Song72 words
[+4 sentences]Just one more clarification on that point. The Minister of State said actions will be taken to prevent them from working in Singapore. But is it not that one of the requirements of the tuition grants is for them to work in Singapore for three years after they graduate? So, is there any other measures that the Ministry takes to ensure that they pay back what they are supposed to pay back?
Ms Gan Siow Huang101 words
[+1 sentence]For the individuals who fail to honour their obligations for the tuition grants, we do look at the reasons. Some of them cite genuine reasons such as health and that they find could not employment in Singapore. In those cases, we will ask them to pay the liquidated damages. [restates an earlier point]As I have said earlier on, majority of deferments that were sought were based on the international students' request for further studies.[+2 sentences] Not that they do not want to find employment, but they want to pursue further studies. For such cases, they will find employment after they have completed their further studies.
Mr Speaker4 words
[+1 sentence]Assoc Prof Jamus Lim.
Assoc Prof Jamus Jerome Lim (Sengkang)99 words
[+3 sentences]Could I just check with the Minister of State two things? First, what is the breakeven in terms of taxpayers' subsidies for the number of years if one of these students were to stay in Singapore and work, in terms of, perhaps, what they return in tax revenues and the like, that would be taken from them when they work here. Secondly, if the Ministry would clarify what the overall motivation is for providing these tuition grants – is it limited purely to providing a source of manpower or is there some soft power considerations that are also included?
Ms Gan Siow Huang80 words
[+4 sentences]For the first supplementary question, I do not have the answer off-hand. I ask the Member to file another Parliamentary Question. For the second one, having international students adds to the diversity of the overall education experience of our students and cultivates our students' sense of global orientation and ability to understand cultural practices across different nations. I think this is a healthy development and we want to encourage our students to be widely exposed to students of other nationalities.
Mr Speaker4 words
[+1 sentence]Dr Tan Wu Meng.
Dr Tan Wu Meng (Jurong)135 words
[+4 sentences]I thank the Minister of State for her answer and the other Members for their supplementary questions. Can I ask two supplementary questions to the Minister of State? Firstly, if not already done so, would the Ministry of Education (MOE) consider working with the Ministry of Foreign Affairs (MFA) to have a sense of how many former MOE Tuition Grant recipients progress to provincial, regional or national leadership of their home countries in the years following their education journey in Singapore, in the Singapore system while making Singaporean friends? Secondly, does MOE wish to consider working with the Ministry of Trade and Industry (MTI) and the Economic Development Board to see whether some of these tuition grant recipients in the years and decades ahead grow to become leaders of firms doing substantial business with Singapore?
Ms Gan Siow Huang103 words
[+5 sentences]I thank the hon Member Dr Tan Wu Meng for the two supplementary questions. The answer must be yes. In fact, we do know of international students who previously were on tuition grant in Singapore having actually moved up and moved on to very successful careers within their countries and also regionally. And certainly, this also augurs well for our economy because they stay connected, they understand Singapore's culture, and they do have friends and their networks built in Singapore while they were students here. So, there is definitely benefit in this regard and we will certainly be interested to find the information.
Ensuring Social Media Platforms' Rules of Engagement for Online Advertisements are In Line with Local Regulations›Oral Answers to Questions5 turns · 685w
· 9 highlighted
oral-answer-3487
Ms Yeo Wan Ling58 words
[+1 sentence]asked the Minister for Communications and Information given that online advertisements on social media platforms are easily uploaded by individuals based on the social media platforms' rules of engagement, what are the safeguards that the Ministry has put in place to ensure that these rules of engagement are relevant and in line with local regulations and best practices.
The Senior Minister of State for Communications and Information (Mr Tan Kiat How) (for the Minister for Communications and Information)218 words
[+1 sentence]Sir, commercial advertising in Singapore is regulated by the Advertising Standards Authority of Singapore (ASAS) through the Singapore Code of Advertising Practice (SCAP). The SCAP applies to all advertisements for any goods and services appearing in any form or any media, including on social media services. It stipulates that all advertisements should be legal, decent, honest and truthful. ASAS’ Guidelines on Interactive Marketing Communication and Social Media further set out the standards of ethical conduct that are to be adopted by marketers, advertising agencies or media that are involved in social media marketing.[+1 sentence] Marketers are also expected to familiarise themselves with the relevant laws and guidelines on each social media service. ASAS adopts a complaints-based approach in reviewing potential advertising breaches when reported to them and can get advertisers to amend or withdraw advertisements that are deemed to have breached the Guidelines or SCAP. Designated social media services with significant reach or impact are also required under the Code of Practice for Online Safety issued by the Infocomm Media Development Authority to minimise users’ exposure to harmful content.[+1 sentence] This includes putting in place specific measures to protect children, such as ensuring that children do not receive targeted advertisements detrimental to their physical or mental well-being. The designated social media services are Facebook, HardwareZone, Instagram, TikTok, X and YouTube.
Mr Speaker2 words
[+1 sentence]Ms Yeo.
Ms Yeo Wan Ling (Pasir Ris-Punggol)152 words
[+7 sentences]It has been observed that the process is much easier for individuals and companies to put up their advertisements on social media platforms, given that many of such platforms encourage boosting or ad buying proactively to their users. It is unclear what these social media platforms do to verify the content of these ads. In a recent case, a water purification company made certain arguably uninformed claims about the safety of Singapore tap water. The Public Utilities Board has since issued advisories for that. There has been other cases of companies who have also done similar things. Are there regular proactive dialogues the Ministry of Communications and Information holds with these popular social media platforms on their ad rules and what more can be done to advise companies and individuals on responsible advertising claims? Can we work on a local advisory notice embedded on social media platforms before and ad is triggered?
Mr Tan Kiat How255 words
[+7 sentences]As I mentioned earlier my main reply, commercial advertising in Singapore, like the one that Ms Yeo had referred to, is regulated by the ASAS and the ASAS is established under the Consumer Association of Singapore. At the heart of matter that Ms Yeo had raised is whether the advertisement meets the threshold or stipulation that is legal, decent, honest and truthful, and whether the parties like the marketeers, the advertisers and the media involved in displaying, presenting or putting in place the advertisements, meet the standards of ethical behaviour, ethical conduct. These are all the guidelines stimulated by the advertising council. So, what is the recourse if somebody believes that an advertisement breaches some of these stipulations or code of ethical conduct? ASAS takes a complaints approach. When ASAS receives the complaint, it will first advise the advertiser to amend the advertisement. There are direct financial costs to such amendments. Sometimes, they are reputational costs because of the publicity given to the advertisement. Therefore, making a false or misleading claim about products and services may also constitute an unfair trade practice under the Consumer Protection (Fair Trading) Act, or CPFTA.[+2 sentences] Recalcitrant companies could be referred to the Competition and Consumer Commission of Singapore, or CCCS, for investigation. And errant companies may be issued injunction orders by the Court. If a company under injunction does not comply with the injunction order, CCCS can take the advertiser to court for contempt of court, which is a criminal offence that could result in a fine or imprisonment.
Review of Healthcare Services Act 2020 to Enhance Recognition and Regulation of Mental Health Professionals›Oral Answers to Questions5 turns · 443w
· 7 highlighted
oral-answer-3488
Mr Yip Hon Weng78 words
[+1 sentence]asked the Minister for Health (a) whether the Ministry will consider reviewing the Healthcare Services Act 2020 to enhance the recognition and regulation of mental health professionals, such as registered psychologists, to reflect the growing need for accessible mental healthcare services; and (b) whether the review can include allowing mental health professionals to use the terms "doctors" and "treatment" under ethical guidelines and within their scope of practice to encourage people to seek treatment for mental health conditions.
The Senior Minister of State for Health (Dr Janil Puthucheary) (for the Minister for Health)155 words
[+1 sentence]Mr Speaker, Sir, psychological practice is evolving given the increasing importance of mental health and encompasses diverse fields with their own unique patient safety concerns. The Ministry of Health (MOH) is working with agencies, service providers and professional associations to update the risk assessment. This includes determining if there is a need for registration of psychologists to better support the safety and quality of the practice. The advertising controls under the Healthcare Services Act, or HCSA, were put in place to provide greater transparency and protect consumers from being misled by healthcare advertisements which misrepresent the services provided. The restrictions on the use of the term “treat” applies to all non-HCSA licensees, and not just standalone psychology service providers. Likewise, the protection of the title “doctor” applies to all non-registered healthcare practitioners and not just clinical psychologists. MOH is presently engaging with the psychologists and their association to clarify the proper use of these terms.
Mr Speaker2 words
[+1 sentence]Mr Yip.
Mr Yip Hon Weng (Yio Chu Kang)50 words
[+3 sentences]Thank you, Mr Speaker. I thank the Senior Minister of State for the reply. Given the growing importance of mental health professionals, will MOH consider expanding the role of such professionals, such as psychologists, beyond direct patient care, such as allowing them to participate in policy development or research initiatives?
Dr Janil Puthucheary158 words
[+3 sentences]Sir, I thank Mr Yip for his question. The current licensing and regulatory structure, as well as any potential review, does not in any way change the possibility for these professionals to be involved in policy development or for them to be involved in research. So, the issues are to do with consumer protection, regulation of clinical practice. Today, Allied Health Professionals, including psychologists and other healthcare professionals can and do participate in policy development – some of them are employed directly through MOH or some of its entities, some of them come and sit on our panels and our consultative entities and they already participate in research.[+1 sentence] And the protections around research are afforded by the academic institutions as well as the funding bodies that are supporting the research and none of that should change on the basis of the review that we are conducting, which, as I said, is focused on consumer protection and clinical practice.
Hawking Licences for Streetside Ice Cream Vendors and Their Transferability and Validity Period›Oral Answers to Questions8 turns · 611w
· 10 highlighted
oral-answer-3489
Mr Gerald Giam Yean Song63 words
[+1 sentence]asked the Minister for Sustainability and the Environment (a) in the last 10 years, how many street hawking licences have been issued for streetside ice-cream vendors; (b) how many of these vendors are still active today; (c) whether the licences from the inactive vendors may be transferred to new applicants; and (d) how much longer will streetside ice-cream vendors be allowed to exist.
The Senior Minister of State for Sustainability and the Environment (Dr Koh Poh Koon) (for the Minister for Sustainability and the Environment)79 words
The Street Hawking Scheme is intended to provide temporary assistance for unemployed individuals who are assessed to be best supported through a street hawking licence, rather than other financial assistance or employment matching schemes offered by a Social Service Office. All street hawking licences are therefore personal-to-holder and are non-transferable. In the past decade, 21 licences were issued under the Street Hawking Scheme for the sale of ice cream. Of these, 11 remained active as of January this year.
Mr Speaker2 words
[+1 sentence]Mr Giam.
Mr Gerald Giam Yean Song (Aljunied)74 words
[+5 sentences]I thank the Senior Minister of State for his reply. I understand that street hawking licence cost about $120 a year. Can I ask the Senior Minister of State what is the rational for this quantum because it is a considerable amount for some low-income hawkers and can the Ministry consider lowering it? And secondly, what is the actual eligibility criteria for these licences? Are they only given to those who are financially needy?
Dr Koh Poh Koon136 words
[+2 sentences]Sir, I think the first question on the $120 per year – this is really on a cost-recovery basis for administration. It is not really to make life hard for these hawkers because there is enforcement needed and there are also licensing requirements and the administration that needs to be done. On the eligibility, as I said in my main reply, the consideration is based on the fact that these people are not suitable for other forms of employment, or it is assessed by the Social Service Office as the most appropriate means to help them tide over a temporary period.[+2 sentences] But the longer-term intent, is for them to enter a good job where there are better job prospects. So, in the meantime, this is a temporary measure to help them tide over a rough patch.
Mr Speaker2 words
[+1 sentence]Mr Giam.
Mr Gerald Giam Yean Song65 words
[+3 sentences]Sir, on a separate point: does the Ministry see any cultural value in street hawking? For example, ice cream sellers. It is something that is part of our shared heritage and something that we all remember from when we were growing up. Is that something that the Ministry will consider letting to continue or even grow besides providing just a financial support for these hawkers?
Dr Koh Poh Koon190 words
[+1 sentence]Sir, I thank Mr Giam for his question. I think the fundamental question is this: for a person who may be in financial need, the first question we ask ourselves is, "What is the best way to support them for longer-term financial stability?" In present day Singapore, we do have hawker centres and we are building more hawker centres. For those who want to take on hawking as a longer-term job that they want to do, it probably will be better for them to be in a hawker centre where there are better facilities and for them to have a more fixed customer catchment.[+1 sentence] Having said that, it is true that ice cream at certain locations can help to liven up the place. This is where if there are funfairs or there are trade fairs, there are still people who are then given licences to participate in trade fairs to add to the festivity. But I would say that, fundamentally, the first question is to see how best we can help them to find a better career, where there are better job prospects for the longer term, and career stability.
Supporting Singaporean Businesses to Navigate Changing Economic and Trade Opportunities in Region›Oral Answers to Questions8 turns · 1,075w
· 8 highlighted
oral-answer-3490
Mr Yip Hon Weng54 words
[+1 sentence]asked the Minister for Trade and Industry in light of the ongoing challenges in China's property sector and current economic uncertainties (a) whether the Ministry foresees increased trade opportunities for ASEAN countries, including Singapore, with China; and (b) how is the Ministry supporting Singaporean businesses to navigate these changing economic circumstances in the region.
The Minister of State for Trade and Industry (Ms Low Yen Ling) (for the Minister for Trade and Industry)219 words
[+1 sentence]Mr Speaker, Sir, China remains a vital key market for Singapore businesses. In 2023, China was Singapore's largest trading partner and top investment destination.[+1 sentence] China's long-term economic outlook remains positive due to its large and growing consumer market, skilled workforce and rapid technological developments. To tap into the opportunities in China, Singapore has upgraded the Singapore-China Free Trade Agreement (FTA) to offer companies better market access for investments and services.[+5 sentences] We have also broadened our engagements with China, including signing memoranda of understanding (MOUs) on Digital Economy, Green Economy and E-Commerce Cooperation. In addition, Singapore is strengthening its regional economic integration with China through the Regional Comprehensive Economic Partnership and the ASEAN-China Free Trade Area, the upgrade of which is currently under negotiation. To navigate the evolving business environment and seize fresh opportunities, Singapore firms can tap on Enterprise Singapore's extensive network of overseas centres and the two Singapore Enterprise Centres in Shanghai and Chengdu operated by the Singapore Chinese Chamber of Commerce and Industry under the Global Connect initiative. In addition, Enterprise Singapore manages schemes, such as the Market Readiness Assistance grant, which helps our companies expand into new markets by defraying the costs of overseas market promotion, business development and set up. Business owners can also visit the GoBusiness portal for more information on the Government schemes.
Mr Speaker2 words
[+1 sentence]Mr Yip.
Mr Yip Hon Weng (Yio Chu Kang)53 words
[+4 sentences]Thank you, Mr Speaker. I thank the Minister of State for her reply. Can the Minister of State elaborate on emerging opportunities that the recent Joint Council for Bilateral Cooperation (JCBC) meeting has opened up for Singapore companies? Which areas of growth potential have been identified by the leaders; for example, digital economy?
Ms Low Yen Ling444 words
[+10 sentences]Thank you, Sir. I want to thank the Member Mr Yip Hon Weng for his two supplementary questions. Singapore and China are long-standing partners. Our bilateral ties are anchored on very frequent high-level exchanges, growing people-to-people ties and robust economic ties. I recall just last year alone, I mounted about seven work trips to China – some in support of Singapore Business Federation (SBF), bringing delegation of small and medium-sized enterprises (SMEs) to the 东博会, which is the China-ASEAN Expo in September. I recall SBF also led a huge delegation for 进博会, which is the Chinese International Import Expo (CIIE) in November. Members in the House will recall, about one year ago, during Prime Minister Lee Hsien Loong's visit to China in March – first to Hainan and then to Beijing; both him and President Xi Jinping announced the upgrade in bilateral relations to an "all-around, high-quality, future-oriented partnership". In Mandarin, "全方位高质量的前瞻性的伙伴关系." On the first supplementary question about the recent JCBC, which took place about three months ago, in the first week of December, Deputy Prime Minister Lawrence Wong brought a huge delegation. I had the privilege to join him in this delegation as well. He co-chaired the 19th meeting of the Joint Council for Bilateral Cooperation (JCBC) with China's Vice-Premier Ding Xuexiang. And during the JCBC meeting, we welcomed 24 deliverables, covering various areas: trade, renewable energy, environment, connectivity, finance, digital economy – cited by Mr Yip – and people-to-people exchanges.[+5 sentences] All these deliverables offer fresh opportunities and will support our businesses and create more jobs for our people. The Member asked about the digital economy. Allow me to elaborate how the digital economy will be a potential driver, key driver of grow for Singapore companies looking at the China market. China's digital economy is indeed the world's second largest and has nurtured many innovative companies. At the same time, Singapore's digital economy is also very significant and we have experienced substantial growth in recent years. For example, in 2022, our digital economy contributed 17.3% of Singapore's gross domestic product (GDP).[+4 sentences] On the Member's second supplementary question on the digital economy, I recall that the Minister for Trade and Industry Mr Gan Kim Yong signed an MOU on digital economy with China's Minister of Commerce Mr Wang Wentao, 商务部部长, 王文涛部长. Both leaders have signed it and launched a digital economy working group to strengthen the cooperation in digital trade and data flows. Other than the digital economy, another potential area is the green economy. On the green economy, we see that China and Singapore can cooperate on areas of complementary interests, including green trade, green investment, green services, renewable energy and carbon markets.
Mr Speaker4 words
[+1 sentence]Assoc Prof Jamus Lim.
Assoc Prof Jamus Jerome Lim (Sengkang)105 words
[+3 sentences]Sir, in addition to the importance of China as an important bilateral trading partner, I am sure the Minister of State is also aware of how the United States (US) is also a significant investor and bilateral trading partner for Singapore. In light of the possibility that there is a non-trivial chance of increased trade tensions and commercial tensions – between the US and China, how does the Ministry plan to advise Singapore businesses in how they manage their relationships and investments in China? I say this especially, since the US seems increasingly willing to exercise the tools of economic statecraft on their trading partners.
Ms Low Yen Ling194 words
[+3 sentences]Mr Speaker, I want to thank the Member Assoc Prof Jamus Lim for his question. We want to say that despite the current economic uncertainties and increasingly challenging trade environment, what we want to share with our Singapore companies is: businesses should continue to seek opportunities, in particular, regionally, in a few areas. Specific areas of growing demand, specific technologies and also areas with upside potential. China is facing challenges, as it was also mentioned in Mr Yip's Parliamentary Question, but it is also expected to be a major engine of growth, given its large and growing consumer market, its increasingly very-skilled workforce and also rapid technological development. Enterprise Singapore has a very extensive network and when I last looked at the numbers, we have about 37 overseas centres in 21 cities. All hands are on deck to support our companies, whether they are looking into expanding regionally, including into China, India or into US and Europe; or even into far-flung areas, like Africa and the Middle East.
Mid-career Entrants Taking Up Non-nursing Roles at Senior or Ageing Care Facilities via Government-funded Career Programmes›Oral Answers to Questions6 turns · 353w
· 9 highlighted
oral-answer-3491
Speaker not recorded75 words
The following question stood in the name of Ms See Jinli Jean – 7 To ask the Minister for Health for each year over the last three years (a) what is the number of mid-career entrants who took up non-nursing roles at senior or ageing care facilities via Government-funded career programmes; (b) what is the retention rate of the mid-career entrants; and (c) what measures will the Ministry be introducing to improve the retention rate.
Assoc Prof Razwana Begum Abdul Rahim (Nominated Member)4 words
[+1 sentence]Question No 7, please.
The Senior Parliamentary Secretary to the Minister for Health (Ms Rahayu Mahzam) (for the Minister for Health)109 words
[+1 sentence]Mr Speaker, between 2021 and 2023, about 1,400 individuals joined the community care sector in non-nursing jobs every year, including through schemes, such as the Community Care Manpower Development Award and the Senior Management Associate Scheme, for the training and induction of mid-career entrants into management positions. We do not track the retention rate for this group. To retain staff, the Ministry of Health (MOH) and Agency for Integrated Care (AIC) have been working with community care organisations to implement job redesign, enhance the competitiveness of community care staff salaries and recently published salary guidelines which would help inform job seekers on the expected remuneration in community care roles.
Mr Speaker11 words
Mr Pritam Singh, you have a supplementary question?[+1 sentence] Please go ahead.
Mr Pritam Singh (Aljunied)61 words
[+1 sentence]Thank you, Mr Speaker. I think the Prime Minister announced the expansion of Active Ageing Centres at his National Day Rally last year. And in view of what would be significant manpower requirements, is there a plan that the Ministry has to ramp up or mobilise this manpower and what sort of numbers are we looking at from the Ministry's standpoint?
Ms Rahayu Mahzam93 words
[+1 sentence]I thank the Member for the question. Indeed, manpower is an aspect that we have been monitoring quite closely, especially as we transform the efforts in the healthcare sector, in particular, with ageing.[+2 sentences] Yesterday, we had also another discussion on the Allied Health Professionals. So, we are looking at the different sectors, the different services that we need to have in place and the different manpower. With regard to the statistics, Sir, I do not have the data on hand. Perhaps the Member would want to file a separate Parliamentary Question on this.
More Bus Services for Fernvale with Increased Number of HDB Flats and Pending Completion of LRT System Upgrade›Oral Answers to Questions4 turns · 219w
· 3 highlighted
oral-answer-3492
Speaker not recorded53 words
[+1 sentence]The following question stood in the name of Mr Gan Thiam Poh – 8 To ask the Minister for Transport whether the Ministry will consider more bus services to be introduced for Fernvale in view of the increase in the number of HDB flats and the pending completion of the LRT system upgrade.
Mr Yip Hon Weng (Yio Chu Kang)3 words
[+1 sentence]Question No 8.
The Senior Parliamentary Secretary to the Minister for Transport (Mr Baey Yam Keng) (for the Minister for Transport)101 words
Besides the Light Rail Transit, residents at Fernvale are currently served by bus services that connect them to the transport hub at Sengkang town centre and to other areas, like Ang Mo Kio, Serangoon, Upper Thomson and Yishun. Additionally, City Direct Service 671 provides a direct connection from Fernvale to and from the city during the morning and evening peak periods.[+1 sentence] The Land Transport Authority makes enhancements to bus connectivity in tandem with new housing developments. For example, we adjusted the route of Service 102 and increased its capacity to serve the recently completed Fernvale Glades and Fernvale Woods Build-To-Order projects.
Mr Speaker62 words
[+3 sentences]Order. End of Question Time. The Clerk will now proceed to read the Order of the Day. [Pursuant to Standing Order No 22(3), provided that Members had not asked for questions standing in their names to be postponed to a later Sitting day or withdrawn, written answers to questions not reached by the end of Question Time are reproduced in the Appendix.]
Commencement Time of Committee of Supply›Announcement by Speaker1 turns · 91w
· 0 highlighted
speaker-2342
Mr Speaker91 words
[+8 sentences]Order. We have completed the debate on the Budget Statement. I propose to take a break now and we will resume Sitting at 2.45 pm. I have also revised the commencement time of the Committee of Supply. With the change in commencement time to start Committee of Supply at 2.45 pm, the revised guillotine time for Head U, Prime Minister's Office, is 5.20 pm. Hon Members will be notified of the revised conclusion times for the subsequent Heads of Expenditure. Order, order. Sitting accordingly suspended at 2.20 pm until 2.45 pm.
Breakdown of Citizenship Demographic Within Public Service›Written Answers to Questions2 turns · 85w
· 0 highlighted
written-answer-15918
Mr Leong Mun Wai34 words
[+1 sentence]asked the Prime Minister (a) within the Public Service, what is the current number of (i) Singapore permanent residents and (ii) foreigners employed; and (b) where are non-citizen officers employed in the Public Service.
Mr Chan Chun Sing (for the Prime Minister)51 words
[+2 sentences]Currently, there are about 144,000 Singapore citizens, 5,000 Singapore permanent residents and 3,000 foreigners employed in the Public Service. Non-citizen officers generally serve in positions that require skills that are in shortage among our local workforce, such as engineering and information technology; and where the security concerns can be managed adequately.
Statistics of Rejections in Applications for Civil Service Jobs›Written Answers to Questions2 turns · 54w
· 0 highlighted
written-answer-15919
Mr Leong Mun Wai35 words
[+1 sentence]asked the Prime Minister from 2010 to 2023 (a) how many individuals who applied to civil service jobs were rejected; and (b) how many of these rejections were due to failing background or security checks.
Mr Chan Chun Sing (for the Prime Minister)19 words
[+1 sentence]The Public Service Division does not track the number of applicants who are not selected for Civil Service positions.
Update on Budget Spent on Outsourced IT and Non-IT Activities for Whole of Government›Written Answers to Questions2 turns · 80w
· 0 highlighted
written-answer-15920
Mr Leong Mun Wai28 words
[+1 sentence]asked the Deputy Prime Minister and Minister for Finance what is the current amount of budget spent on outsourced IT and non-IT activities for the whole of Government.
Mr Lawrence Wong52 words
[+2 sentences]A procurement contract will be classified as Information Communications Technology (ICT) contract if the majority of the contract value is for this purpose. On that basis, over the last three years, the Singapore Government awarded an average of about $2 billion and $24 billion per year for ICT and non-ICT contracts respectively.
Tracking Targeted Outcomes Not Met Under Grants Governance Framework and Average Returns›Written Answers to Questions2 turns · 194w
· 0 highlighted
written-answer-15921
Ms See Jinli Jean74 words
[+1 sentence]asked the Deputy Prime Minister and Minister for Finance since the introduction of the grants governance framework in 2020 (a) what is the number and proportion of economic and social grants disbursed under the framework that did not meet their targeted outcomes; (b) how does the framework require accountability from these grant disbursing agencies; and (c) for grants that met the targeted outcomes, what was the monetary value of the average return on grant.
Mr Lawrence Wong120 words
[+4 sentences]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.
Crowd Control Management During Festive Seasons and Ensuring Effective Coordination Between Entities›Written Answers to Questions2 turns · 204w
· 0 highlighted
written-answer-15922
Mr Shawn Huang Wei Zhong73 words
[+1 sentence]asked the Minister for Home Affairs (a) what are the measures in place to manage increased crowd volumes in city areas during festive seasons; (b) how does the Ministry ensure effective coordination among various entities, such as police, emergency services and Government agencies, before and during festive events; and (c) how is the Ministry leveraging on technology, such as surveillance cameras and crowd monitoring software, to enhance crowd control and ensure public safety.
Mr K Shanmugam131 words
[+3 sentences]Regarding the query on the response of emergency services and the protocols in place, the Police deploys on the ground for festive events with large crowds to ensure law and order and to coordinate swift response to any incidents, including by the Singapore Civil Defence Force (SCDF). Depending on the Police's assessment of the event, SCDF resources may even be forward deployed on the ground. As for the other queries, the Member may wish to refer to the response by Minister of State Sun Xueling to Parliamentary Questions No 9 to 15 during the 28 November 2022 Parliament sitting. [Please refer to "Measures to Prevent and Manage Risks from Crowd Surges during Festive Periods and Public Events", Official Report, 28 November 2022, Vol 95, Issue 76, Oral Answers to Questions section.]
Possibility of Reviewing Industry Transformation Maps to Ensure Consistency with COP28 Outcomes›Written Answers to Questions2 turns · 98w
· 0 highlighted
written-answer-15923
Mr Louis Ng Kok Kwang59 words
[+1 sentence]asked the Minister for Trade and Industry whether the Government will conduct a review of the Industry Transformation Maps to ensure that they are consistent with the outcomes of the 2023 UN Climate Change Conference (COP28), including but not limited to transitioning away from fossil fuels, tripling renewable energy capacity, doubling rate of energy efficiency and cutting methane emissions.
Mr Gan Kim Yong39 words
[+2 sentences]Most of the 23 Industry Transformation Maps (ITMs) have been refreshed over the last two years. Their strategies and plans are consistent with our international commitments on sustainability, and our national ambitions to achieve net zero emissions by 2050.
Implications of Dominant Player in Ride Hailing and Taxi Services on Consumers and Drivers and Measures to Prevent Monopoly›Written Answers to Questions2 turns · 164w
· 0 highlighted
written-answer-15924
Mr Yip Hon Weng57 words
[+1 sentence]asked the Minister for Trade and Industry (a) what are the potential implications of a dominant player emerging in the ride hailing and taxi services market for both (i) consumers and (ii) drivers; and (b) what measures are in place to prevent the creation of a monopoly in the Singapore market and to ensure a competitive landscape.
Mr Gan Kim Yong107 words
[+4 sentences]The emergence of a dominant player is not problematic per se, as long as it does not abuse its position to undermine consumer, driver or supplier interests or create barriers that prevent the entry of new players and competitors. The Point-to-Point (P2P) Transport Industry Act sets out the regulatory framework for P2P operators. This includes maintaining an open and contestable market and prohibiting operators from offering exclusive arrangements that "lock in" drivers and prevent them from driving for competitors. In addition, the Competition and Consumer Commission of Singapore is empowered under the Competition Act to take enforcement action against anti-competitive mergers or the abuse of dominant position.
Update on Tracking Companies Tapping on Government Grants for Internationalisation to Uphold ESG Practices›Written Answers to Questions2 turns · 150w
· 0 highlighted
written-answer-15925
Ms See Jinli Jean68 words
[+1 sentence]asked the Minister for Trade and Industry (a) whether the Ministry tracks that companies tapping on Government grants for internationalisation uphold responsible Environmental, Social, and Governance (ESG) practices in the countries that they expand into; (b) what actions does the Ministry take if these companies are found to be irresponsible; and (c) what are the measures to guide these companies to uphold Singapore’s reputation as an ESG hub.
Mr Gan Kim Yong82 words
[+4 sentences]Businesses expanding overseas would need to comply with the prevailing Environmental, Social, and Governance (ESG) requirements in those markets. However, as ESG requirements and recommended practices vary across economies, it is not possible for the Government to track compliance. Through Enterprise Singapore and the Singapore Standards Council, the Government encourages companies in Singapore to adopt relevant international and local standards related to sustainability. Enterprise Singapore has also launched the Enterprise Sustainability Programme, which includes courses, playbooks and schemes to help with decarbonisation.
Ensuring Safe Consumption of Food Items Due to Extreme Weather Conditions Prolonging Delivery Timings›Written Answers to Questions2 turns · 156w
· 0 highlighted
written-answer-15928
Ms See Jinli Jean59 words
[+1 sentence]asked the Minister for Sustainability and the Environment what are the measures taken by the Singapore Food Agency vis-à-vis local cooked food retail establishments, supermarkets, food e-commerce sellers and delivery platform operators to assure Singaporeans that the delivered food items are safe for consumption in view of extreme weather conditions extending the time taken for delivery and hotter weather.
Ms Grace Fu Hai Yien97 words
[+3 sentences]Under the Sale of Food Act and Environmental Public Health Act, food businesses and delivery platform operators are responsible for ensuring that the food they deliver is transported in a manner that does not compromise food safety. In addition, all food delivery service providers are encouraged to adopt the Singapore Standard (SS) 672: 2021 Guidelines on delivery of ready-to-eat food, which include recommendations on ensuring that food items are maintained at the correct temperatures during transport. Consumers can also do their part by checking and storing the food products under proper conditions upon receipt of their delivery.
Measures to Reassure End Users that Water from Water Coolers is Safe for Consumption›Written Answers to Questions2 turns · 138w
· 0 highlighted
written-answer-15929
Ms See Jinli Jean34 words
[+1 sentence]asked the Minister for Sustainability and the Environment what are the measures put in place to assure end users that water from water coolers at buildings, public sites and schools is safe for consumption.
Ms Grace Fu Hai Yien104 words
[+5 sentences]PUB has a comprehensive sampling and monitoring programme to ensure the safety of the potable water supplied by PUB. This includes piped water supplied to buildings, public sites and schools, which may be fed into water coolers. The water supplied by PUB complies with the Environmental Public Health (Water Suitable for Drinking) 2019 Regulations and is well within the World Health Organisation Guidelines for Drinking Water Quality. Building and facilities owners are responsible for ensuring the proper installation and maintenance of water coolers on their premises. PUB and the Singapore Food Authority (SFA) will jointly investigate any water quality feedback received from the public.
Update on Timeline for Dedicated Lactation Room in Schools and Tertiary Education Institutions›Written Answers to Questions2 turns · 86w
· 0 highlighted
written-answer-15930
Mr Louis Ng Kok Kwang34 words
[+1 sentence]asked the Minister for Education for schools and tertiary education institutions that do not have a dedicated lactation room, what is the Ministry's timeline for working with them to set up such a room.
Mr Chan Chun Sing52 words
[+1 sentence]The Member may refer to MOE's reply to Parliamentary Question No 19 for written answer on the Order Paper for 3 October 2023. [Please refer to "Percentage of Schools and Tertiary Institutions with Lactation Facilities for Nursing Mothers", Official Report, 3 October 2023, Vol 95, Issue 113, Written Answers to Questions section.]
Installation of Stair Lifts or Escalators or Redevelopment for HDB Blocks without Direct Lift Access›Written Answers to Questions2 turns · 315w
· 0 highlighted
written-answer-15931
Mr Leong Mun Wai33 words
[+1 sentence]asked the Minister for National Development whether HDB has considered (i) installing stair lifts or escalators or (ii) redevelopment, for HDB blocks that still lack direct lift access and, if not, why not.
Mr Desmond Lee282 words
[+16 sentences]HDB blocks built since the mid-1990s have direct lift access on every floor. Amongst those blocks built before then, most do not have direct lift access on every floor. To address this, HDB launched the Lift Upgrading Programme (LUP) in 2001. Since then, HDB has implemented the LUP in more than 5,000 blocks. In implementing the LUP, HDB has piloted and adopted different design approaches and innovative solutions to bring direct lift access to more blocks. Some examples include machine room-less lifts, home lifts and bubble lifts. As mentioned in previous replies to the House, HDB has also studied installing wheelchair stair lifts and assessed that this is not feasible for large-scale adoption. This is because staircases within HDB blocks need to be kept clear for fire escape and retrofitting a stair lift will encroach into and impede the evacuation route in the event of a fire. Moreover, such stair lifts may potentially cause injury if not operated properly. Escalators are not feasible due to technical and space constraints. Currently, around 99% of all blocks have direct lift access on every floor. However, there are some blocks where the LUP is currently not feasible because of very high cost or technical constraints. HDB has no plans to redevelop these blocks. That notwithstanding, we recognise that there could be some households in these blocks who may urgently need direct lift access due to their family members' medical or mobility conditions. For such households, HDB provides a Lift access Housing Grant (LHG) of up to $30,000 to assist them in buying a flat with direct lift access. Households with such needs can approach HDB for advice on how they can apply for the LHG.
Single Unwed Parents Applying for Interim Housing under Parenthood Provisional Housing Scheme in 2023›Written Answers to Questions2 turns · 80w
· 0 highlighted
written-answer-15932
Mr Louis Ng Kok Kwang32 words
[+1 sentence]asked the Minister for National Development (a) how many single unwed parents applied for interim housing under Parenthood Provisional Housing Scheme in 2023; and (b) what are the outcomes of the applications.
Mr Desmond Lee48 words
[+3 sentences]In 2023, eight single unwed parents applied for the Parenthood Provisional Housing Scheme (PPHS). HDB assisted four of them with Interim Rental Housing. Of the remaining four, one was invited to select a PPHS flat but did not do so and three were not successful in the ballot.
Effectiveness of Cooling Measures in Addressing Concerns over Million-dollar and High-value Resale HDB Flats›Written Answers to Questions2 turns · 294w
· 0 highlighted
written-answer-15933
Mr Yip Hon Weng59 words
[+1 sentence]asked the Minister for National Development (a) whether the Ministry will consider assessing the effectiveness of cooling measures implemented to address concerns about million-dollar and high-value resale HDB flats, particularly the extended waiting period for private property downgraders; and (b) whether this measure has influenced the quantity of million-dollar or high-value resale transactions and, if so, to what extent.
Mr Desmond Lee235 words
[+10 sentences]Since 30 September 2022, current and former private property owners (PPOs/ex-PPOs) must wait out 15 months from the disposal of their private property before they may buy a non-subsidised resale flat. This measure was introduced to moderate the demand for resale flats and ensure that they remain affordable, especially for first-timers. To support seniors' retirement needs, Singapore citizens and their spouses aged 55 and above who are right-sizing from their private property to a 4-room or smaller resale HDB flat are exempted from the wait-out period. Following the ramp-up in BTO flat supply and implementation of three rounds of cooling measures, the rate of increase in resale prices has continued to moderate. HDB's quarterly Resale Price Index (RPI) increased by 1.1% in 4Q2023. This is slower than the average quarterly increase of 2.5% in 2022. For the whole year of 2023, resale prices rose by 4.9%, less than half of the 10.4% increase in 2022. Prior to the implementation of the 15-month wait-out period, PPOs/ex-PPOs constituted about 34% of buyers of flats sold for a million dollars or more, between 1 January and 29 September 2022. Since the wait-out was implemented, this proportion has fallen by more than half to about 14%, between 30 September 2022 and 31 December 2023. The Government will continue to keep a close eye on the resale market, with a view towards keeping public housing affordable and accessible for Singaporeans.
Making Work Injury Compensation Designated Insurers Manual Public›Written Answers to Questions2 turns · 98w
· 0 highlighted
written-answer-15936
Mr Louis Ng Kok Kwang35 words
[+1 sentence]asked the Minister for Manpower whether the "Work Injury Compensation Designated Insurers Manual" specified in the licensing conditions for insurers under the Work Injury Compensation Act can be made public and not just to insurers.
Dr Tan See Leng63 words
[+2 sentences]The Insurer's Manual issued by the Ministry of Manpower (MOM) contains detailed technical guidelines to assist in processing work injury compensation (WIC) claims, which are specific to designated WIC insurers and not relevant to members of the public. Information that employers and claimants require to understand their responsibilities and eligibility with respect to work injury compensation claims is already available on MOM's website.
Investigations Involving Employers Receiving Kickbacks from Migrant Workers›Written Answers to Questions2 turns · 105w
· 0 highlighted
written-answer-15937
Mr Louis Ng Kok Kwang46 words
[+1 sentence]asked the Minister for Manpower for each year in the past three years for investigated cases involving employers receiving kickbacks from migrant workers (a) what is the number of migrant workers affected per employer; and (b) what is the range of the amount of kickbacks paid.
Dr Tan See Leng59 words
[+3 sentences]From 2021 to 2023, the Ministry of Manpower (MOM) investigated about 210 cases per year for alleged kickback offences. However, after investigations, about 70 employers were taken to task each year for receiving kickbacks from migrant workers. The corresponding number of migrant workers affected was about seven per employer, with each worker paying about $2,000 to $7,000 in kickbacks.
Travellers Crossing Land Border at Woodlands Checkpoint by Public Transport›Written Answers to Questions2 turns · 146w
· 0 highlighted
written-answer-15938
Mr Leong Mun Wai76 words
[+1 sentence]asked the Minister for Transport (a) what is the current median number of travellers crossing the land border at Woodlands Checkpoint by public transport per day; (b) what is the maximum recorded number of travellers crossing the land border at Woodlands Checkpoint by public transport per hour; and (c) how does this maximum compare against the projected number of passengers that can be cleared per hour in each direction by the Johor Bahru-Singapore Rapid Transit System.
Mr Chee Hong Tat70 words
[+3 sentences]In December 2023, about 96,000 travellers crossed the land border at Woodlands Checkpoint to and from Johor Bahru by public transport every day. In the same month, the total number of arriving and departing public transport travellers cleared at Woodlands Checkpoint peaked at around 10,000 per hour. The Johor Bahru-Singapore Rapid Transit System Link is expected to have a peak capacity of up to 10,000 passengers per hour per direction.
Measures in Place to Manage Gaming Addiction among Youths›Written Answers to Questions3 turns · 468w
· 0 highlighted
written-answer-15939
Mr Shawn Huang Wei Zhong60 words
[+1 sentence]asked the Minister for Communications and Information (a) what policies or regulations are in place to manage the exposure of youths to potentially addictive gaming content; (b) whether the Ministry has any plans to deal with gaming addiction among youths; and (c) what preventive measures are being implemented to educate youths and their families about the risks of gaming addiction.
Mr Shawn Huang Wei Zhong44 words
[+1 sentence]asked the Minister for Communications and Information (a) whether the Ministry has current data on the prevalence of gaming addiction among youths in Singapore; and (b) how does the Ministry assess the impact of gaming addiction on the physical and mental health of youths.
Mrs Josephine Teo364 words
[+13 sentences]The Ministry of Communications and Information's (MCI's) focus is on encouraging healthy gaming habits amongst youths and ensuring age-appropriate access to online games. To these ends, we have worked with partners from the people, private and public (3P) sectors to support parents in guiding their children to navigate the online world safely and responsibly. In schools, MOE's Cyber Wellness education programme equips students with the knowledge and skills to protect themselves, support their peers and seek help when faced with issues of excessive internet use and gaming. The National Library Board's (NLB's) Source, Understand, Research and Evaluate (S.U.R.E) programme also provides useful resources and tips on positive online habits and responsible online gaming for parents and youth. The Digital for Life (DfL) portal now provides bite-sized resources including tips on healthy online gaming habits. MCI, MOE and the Ministry of Social and Family Development (MSF) are also working on a Parents' Toolbox to equip parents with practical strategies to support children's well-being and their digital journey. The Toolbox will be launched in phases from 2024. Beyond these public education initiatives, MCI and IMDA are working to strengthen our regulatory levers to address concerns over harmful content on mobile apps, including gaming apps, with the introduction of a new Code of Practice for App Distribution Services (ADSs). The new Code will require designated ADSs, which may include Google Play and Apple App Store, to put in place systems and processes to mitigate users' exposure to harmful apps. Gaming addiction, also known as gaming disorder or Internet Gaming Disorder (IGD), is a medical diagnosis associated with behaviors serious enough to result in significant impairment in one's personal and social lives. MCI does not have data on gaming addiction, which requires medical diagnosis. Parents who suspect that that their child may have IGD should seek help from their family doctors and public healthcare institutions, such as the National Addiction Management Service (NAMS), for their child to be assessed on the severity of their condition and determine suitable interventions. Alternatively, they may approach community partners, such as TOUCH Community Services, which runs counselling and intervention programmes for youths who may be exposed to excessive gaming and device use.
Update on Singapore Costal Waters Bacterial Contamination and Measures to Monitor, Mitigate and Prevent Such Contamination›Written Answers to Questions3 turns · 486w
· 0 highlighted
written-answer-15940
Mr Shawn Huang Wei Zhong50 words
[+1 sentence]asked the Minister for Sustainability and the Environment (a) whether an update can be provided on the current status of bacterial contamination in Singapore’s coastal waters; (b) what monitoring systems are in place to detect harmful bacteria levels in sea water; and (c) how frequent are bacterial contamination tests conducted.
Mr Shawn Huang Wei Zhong44 words
[+1 sentence]asked the Minister for Sustainability and the Environment (a) how will the bacterial contamination in Singapore's coastal waters affect marine ecosystems and biodiversity in the coastal areas; and (b) what steps are being taken to assess and mitigate the environmental impact of such contamination.
Ms Grace Fu Hai Yien392 words
[+13 sentences]The National Environment Agency (NEA) collects water samples along seven popular recreational beaches on a weekly basis. The water samples are analysed for the level of Enterococcus bacteria, given the known health risks of ingesting coastal water with elevated levels of Enterococcus. NEA publishes two beach water quality assessments: the annual beach grading exercise and the weekly Beach Short-term Water Quality Information (BSWI). In NEA's annual beach grading exercise, to assess the suitability of recreational beaches for primary contact water activities, the weekly results over a three-year period are benchmarked against criteria contained in the World Health Organisation's Guidelines on Recreational Water Quality (2021). In addition, as Enterococcus levels can fluctuate due to the currents, tidal influences and other factors even when the beach is graded "Good" by the annual beach grading exercise, NEA publishes the BSWI to provide the public with additional information on beach water quality over the preceding three weeks. On 5 February 2024, NEA issued an advisory that two recreational beaches, Pasir Ris and Sembawang Parks, have been graded "Fair" in the annual beach grading exercise, due to increased occurrences of elevated Enterococcus level. The public are advised against swimming and engaging in other primary contact water activities at these beaches. The other five recreational beaches, namely Changi, East Coast Park, Punggol, Seletar Island and Sentosa Island, have been graded "Good" and are suitable for all kinds of water activities. As the Enterococcus levels can fluctuate, beachgoers are encouraged to refer to the BSWI and associated health advisories on the NEA website or the myENV app if they intend to engage in water activities at these recreational beaches. An elevated level of Enterococcus bacteria is just one factor that causes deterioration of water quality and must be read together with other water quality parameters to assess the impact on marine biodiversity. As there have not been any significant changes to the other water quality parameters, NParks currently does not expect any significant impact on marine ecosystems and biodiversity due to the elevated Enterococcus levels at Sembawang and Pasir Ris Parks. NParks will continue to monitor the habitats and biodiversity along our shores. My Ministry and NEA are working closely with other agencies, such as PUB, NParks and the Singapore Food Agency, to investigate and address possible sources contributing to the elevated Enterococcus levels observed at the two beaches.
Alternative Measures to Address Ongoing Concerns on Affordability of BTO and Resale Flats›Written Answers to Questions for Oral Answer Not Answered by End of Question Time2 turns · 834w
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Mr Yip Hon Weng62 words
[+1 sentence]asked the Minister for National Development (a) whether the Ministry is exploring alternative measures beyond the existing support measures, including reducing the overall cost of HDB BTO flats which may lead to reduced resale flat values, to address ongoing concerns regarding the affordability of BTO and resale flats; and (b) what are the specific risks and concerns related to such an approach.
Mr Desmond Lee772 words
[+35 sentences]The Government remains committed to providing affordable public housing for Singaporeans. The COVID-19 crisis disrupted our BTO building programme and led to a supply and demand imbalance, as delayed BTO project completions and longer waiting times drove up demand for resale flats. The demand for flats also increased as more Singaporeans sought to move out to live on their own, a trend accentuated by the pandemic. As a result, resale prices increased. To address the supply and demand imbalance, we have undertaken a series of measures for both the BTO and resale markets to keep prices stable and affordable. First, we have significantly ramped up housing supply, made progress on delays and secured more shorter waiting time flats. Over the last three years, HDB offered more than 63,000 flats for booking. With the planned launch of about 19,600 BTO flats in 2024, we remain on track to offer 100,000 flats from 2021 to 2025. In 2023, HDB completed over 21,400 flats across some 23 housing projects – the highest number of projects and flats completed annually in the last six years. We have completed and delivered around 80% of projects delayed due to COVID-19. Barring unforeseen circumstances, HDB aims to complete all pandemic-delayed projects by early 2025. In 2024, we will launch about 2,800 BTO flats with shorter waiting times of under three years. We are working on having about 75% of new BTO flats with waiting times of four years or less. Second, we have implemented three rounds of cooling measures since December 2021 to temper housing demand and encourage greater financial prudence among homebuyers. As a result, HDB resale prices increased by 4.9% in 2023, less than half of the increase of 10.4% in 2022. This is the slowest growth since 2019. We expect that the housing market will continue to stabilise in the coming year as a significant supply of new homes comes onstream and as demand moderates in anticipation of expected easing of global economic activity and interest rates remaining relatively high for an extended period of time. Third, we have also kept BTO prices stable in the past few years, even as we saw a rise in resale prices and construction costs. HDB does not price new flats based on cost. Instead, HDB establishes the market value of flats by looking at prices of comparable resale flats, and then provides significant market discounts to ensure affordability. Fourth, to ensure that our public housing system continues to meet the needs and aspirations of Singaporeans, we announced a new flat classification framework at the National Day Rally last year. This will come into effect from the BTO launch in October. The new flat classification framework seeks to keep housing affordable for Singaporeans, ensure a good social mix and keep the system of subsidies fair. On top of the market discounts for Standard flats, Plus and Prime flats come with more subsidies to keep them affordable to Singaporeans from a wider range of income levels. To maintain parity with other BTO flat owners who are not accorded these additional subsidies, owners who bought Prime and Plus flats from HDB must return a percentage of the resale price or the valuation of the flat (whichever is the higher) upon the sale of their flats. These flats also come with tighter restrictions, such as a 10-year minimum occupation period and an income ceiling on resale buyers, to help moderate demand and keep prices affordable. Fifth, HDB offers substantial grants to offset flat prices. Eligible first-timer buyers can also receive Enhanced CPF Housing Grants (EHG) of up to $80,000, with more help for lower-income buyers. In 2023, HDB increased the CPF Housing Grant for resale flats to $80,000 for 4-room and smaller flats, and $50,000 for larger flat types. Together with the Proximity Housing Grant (PHG) of up to $30,000 to facilitate mutual care and support, eligible first-timer families buying a resale flat to live with/near their parents/child can now enjoy up to $190,000 in housing grants. Taken together, our various measures have ensured that public housing remains affordable for homebuyers. In 2023, more than eight in 10 first-timer families who collected keys to their new flats or bought resale flats had a mortgage servicing ratio (MSR) of 25% or less upon key collection. This means that they can service their monthly HDB loan instalments with their CPF contributions, with little to no cash outlay. We will continue to keep a close watch on the affordability of public housing, and adjust our policies where necessary. Households should continue to exercise prudence when taking on new financial commitments, including long-term mortgage debt service obligations.
Clarification by Minister of State for Trade and Industry›Correction by Written Statement3 turns · 176w
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Speaker not recorded41 words
[+1 sentence][(proc text) The following statement was in the reply given by the Minister of State for Trade and Industry (Ms Low Yen Ling) for Parliamentary Question No 6 in the Order Paper for the Sitting of 28 February 2024: (proc text)]
The Minister of State for Trade and Industry (Ms Low Yen Ling)111 words
[+3 sentences]Enterprise Singapore has a very extensive network and when I last looked at the numbers, we have about 37 overseas centres in 21 cities. [Please refer to "Supporting Singaporean Businesses to Navigate Changing Economic and Trade Opportunities in Region", Official Report, 28 February 2024, Vol 95, Issue 126, Oral Answers to Questions section.] I wish to make the following factual correction to the reply given for Parliamentary Question No 6 in the Order Paper for the Sitting of 28 February 2024. My reply should read as follows:
The Minister of State for Trade and Industry (Ms Low Yen Ling)24 words
[+1 sentence]Enterprise Singapore has a very extensive network and when I last looked at the numbers, we have about 37 overseas centres in 23 countries.
Committee of Supply – Head J (Ministry of Defence)›Budget48 turns · 11,704w
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budget-2353recorded 2024-02-29
Speaker not recorded52 words
[+2 sentences], (proc text)] . (proc text)]
Mr Kwek Hian Chuan Henry (Kebun Baru)200 words
[+5 sentences]Chairman, Sir. I would like to speak about optimising National Service (NS) deployment. It is a well-known fact that Singapore is one of the fastest ageing societies in the world. Despite our best efforts, Singapore's total fertility rate continues to decline. This means a smaller full-time National Servicemen (NSF) cohort over time. In fact, Minister for Defence Dr Ng Eng Hen, has told this House that we are to expect a one-third reduction in manpower by 2030. Needless to say, this will have profound implications to the way we organise the Singapore Armed Forces (SAF).[+1 sentence] At the same time, the nature of warfare has evolved tremendously. As the Russia-Ukraine conflict has clearly demonstrated, the competence and digital savviness of a civilian population that dons the military uniform in times of war, can be a decisive advantage.[+1 sentence] This is also one of Singapore's core strengths, as one of remaining countries that has a conscription service. Indeed, there is much more the SAF can do to tap on our people's civilian know-how to strengthen our capabilities.[+1 sentence] As such, can the Ministry of Defence (MINDEF) share more about how we are optimising the deployment of our NSmen?
Mr Saktiandi Supaat (Bishan-Toa Payoh)204 words
[+3 sentences]Mr Chairman, the sharp escalation of conflict in recent years, including in Europe and the Middle East, have brought the SAF into focus. The wars being fought today are more complex. A United States (US) general observed that Ukraine's information and media operations took 17,000 Russians off the battlefield without firing a shot. On the other hand, Russian cyber-attacks on government systems and critical infrastructure augmented its ground invasion. It was therefore timely that MINDEF pivoted away from the dichotomous classification of pre-enlistees into "combat fit" and "non-combat fit" groups, to implementing functional assessments two years ago.[+1 sentence] Pre-enlistees are assessed on their ability to safely perform the running, jumping and load-bearing that are necessary for specific vocational roles. Senior Minister of State Heng Chee How updated at last year's Committee of Supply (COS) that out of the 100 pre-enlistees with orthopaedic conditions who underwent the relevant functional assessments, 75 were deployable to a wider range of operational roles than before.[+2 sentences] Considering our ageing population and declining fertility rates and the creation of new roles like the Digital and Intelligence Service (DIS), are there any updates on the implementation of functional assessments for pre-enlistees? Will they extend beyond physical tests to intellectual tests, for example?
The Chairman10 words
[+2 sentences]Mr Gan Thiam Poh. Please take your two cuts together.
Mr Gan Thiam Poh (Ang Mo Kio)229 words
[+12 sentences]Thank you, Chairman. MINDEF introduced the Work-Learn Scheme in 2018. It is a good initiative for our young NSFs to learn and be prepared for the workforce while they undergo training to defend Singapore. Through the Work-Learn Scheme, NSFs have the opportunity to put what they have learnt into practice. In turn, the hands-on knowledge they have gained also enhances their understanding of what they have studied. This could also help them to better envision their future career pathways, as they would be in a better position to discern if they would like to pursue particular areas of study in the future. Can MINDEF provide an update of the Work-Learn Scheme? How many have benefitted from this scheme and are there plans for expansion? In my earlier cut, I talked about my support for the Work-Learn Scheme, which provides opportunities for our NSFs to work towards a diploma or university degree while serving in the SAF. In our polytechnics, we are seeing students developing critical knowledge in fields that have military applications, including engineering and IT. There is synergy between their areas of interest, their studies and what can be applied to SAF's operational needs. I would like to ask MINDEF if there are plans to tap on and further develop the relevant knowledge and skills that future NSFs may have acquired in courses prior to enlisting in NS?
Ms Yeo Wan Ling (Pasir Ris-Punggol)178 words
[+3 sentences]As our population grows increasingly well-educated and skilled, our NSmen will also bring to the table a diverse range of talent and experience that could be useful to the SAF. The NS system should have the necessary structures and processes in place to ensure that we are making the best use of NSmen's expertise. This will become increasingly important as falling fertility rates affect the number of enlistees the SAF takes in each year. MINDEF previously announced that it had sought to maximise the contributions of NSmen through the Enhanced Expertise Deployment Scheme. By deploying NSmen to roles that are aligned to the expertise that they have acquired in school or in their workplaces, a win-win situation is thus created. This not only enhances the SAF's operational capabilities and addresses their manpower needs, but also provides NSmen with the opportunity to practise their specialised skills in a military setting.[+1 sentence] I would like to seek MINDEF's update on how many NSmen have undergone expertise-based re-deployment to date and whether there are plans to expand on such efforts moving forward.
Dr Wan Rizal (Jalan Besar)115 words
[+5 sentences]Chairman, NS is the bedrock of our national defence, a duty that every generation of NSmen embraces with honour and commitment. Year after year, our NSmen dedicate – serving, defending and protecting our cherished nation. Given the complexities and challenges this vital service entails, to ensure that our NSmen are comprehensively supported in their roles, we must guarantee their safety during training, ensuring they can prepare for their duties without compromising their well-being. Achieving this balance between rigorous training and safety is paramount, as it directly impacts our operational readiness and effectiveness. Can MINDEF provide an update on the recent steps taken to improve training safety whilst ensuring that our operational needs are not compromised?
The Chairman11 words
[+1 sentence]Mr Mohd Fahmi Aliman, you may take your two cuts together.
Mr Mohd Fahmi Aliman (Marine Parade)226 words
[+3 sentences]Thank you, Chairman. As MINDEF and the SAF continue their relentless pursuit of safety and effectiveness, particularly in the domains of training realism, information dissemination and health monitoring, the pivotal role of technology in driving these advancements becomes increasingly apparent. Harnessing the power of technological innovations holds the promise of not only enhancing training efficacy but also ensuring the safety and well-being of our personnel. Last year, MINDEF provided an update on the implementation of the enterprise Safety Information System, facilitating rank and file reporting on near misses and incidents.[+2 sentences] Could the Minister for Defence elaborate on additional plans MINDEF has in utilising technology to further enhance the safety of our NSmen? The incorporation of "safety" into the SAF's core values in 2016 underscored the institution's commitment to achieving zero training fatalities while ensuring realistic training scenarios. Notably, the SAF's Enterprise Safety Information System (ESIS) marks a significant milestone in leveraging digital technologies and data-driven safety management. By facilitating enhanced situational awareness, predictive analytics and accident prevention mechanisms, ESIS promises to revolutionise the safety protocols within the SAF.[+2 sentences] Could MINDEF provide an overview of the outcomes and learning points derived from the recent safety audits and reviews conducted within the SAF? Additionally, an update on the work of the Inspector-General's Office, along with findings from safety audits conducted in the past years, would be greatly appreciated.
Dr Wan Rizal121 words
[+5 sentences]Chairman, the mental well-being of our National Servicemen (NSmen) is as crucial as their physical fitness. Serving NS entails not only physical challenges but also mental and emotional stress, which can impact the overall well-being and performance. Recognising the importance of mental resilience, it is essential to provide robust support systems and resources to address mental health concerns and promoting a culture of support within the military environment. In light of the increasing recognition of the importance of mental health in the overall well-being, what recent steps have MINDEF taken to enhance mental health support and resources for our NSmen? How are these initiatives tailored to address the unique challenges and stressors they face to ensure that they effective mental support?
Ms He Ting Ru (Sengkang)325 words
[+4 sentences]Sir, the complex landscape of modern warfare makes it imperative that we not only equip our forces with physical prowess, but also invest in their mental and moral strength. True preparedness extends beyond physical weaponry. It involves cultivating a resilient and balanced force that can withstand the rigours of duty and adapt to adversity in the complex dimensions of a modern conflict. Interventions that emphasise optimism, resilience, well-being and proportionate behaviour should be incorporated early to empower our servicemen and women to navigate the challenges of their duties with an approach to allow them to not only endure but thrive. With this in mind, the United States (US) Army developed the Global Assessment Tool (GAT) to measure psychosocial well-being of their soldiers in the domains of emotional, social, family and spiritual fitness.[+2 sentences] The GAT is confidential and is an annual requirement for soldiers and is linked to the ArmyFit online training platform, which provides training based on the GAT results. It has been taken by over one million soldiers and researchers have found that it appears to be a sound psychometric measure of competencies as well as leadership and character traits that are essential to army life. To bolster this, the US Army also has a 10-day Master Resilience Training Programme in the core competencies of self-awareness, self-regulation, optimism, mental agility, strength of character and connection.[+3 sentences] This enhances unit cohesion, decision-making and overall mission success, and provides skills that will undoubtedly be helpful beyond their time in the Armed Forces. I would like to ask about the resilience training conducted by MINDEF, for example, under the SAF Centre of Excellence for Soldier Performance and whether an assessment tool has been added to assess the psychological fitness of our military personnel, like what we already do for physical fitness through the IPPT. Such assessments should not only be focusing on weaknesses or pathologies but instead, would also be focusing on identifying strengths that will increase resilience.
The Chairman10 words
[+1 sentence]Mr Shawn Huang, you can take your two cuts together.
Mr Shawn Huang Wei Zhong (Jurong)304 words
[+4 sentences]Thank you, Chairman. As technology rapidly evolves, it is important for the Government to take the opportunity to redesign and streamline public services, ensuring that processes are easy to follow and are able to engage stakeholders effectively. As citizens of a smart nation, we also understand first-hand the value of harnessing technology to transform the way we live and work. This too can be applied to the NS experience. At the Committee of Supply debate last year, MINDEF unveiled the OneNS platform and also highlighted the introduction of an automated system to calculate make-up pay claim amounts.[+1 sentence] I was happy to hear MINDEF's update that ground feedback on the automated make-up pay system has thus far been good. As the filing of make-up pay and claims has been a major administrative burden for many employers and NSmen, could MINDEF share the additional steps taken to digitise and improve administrative processes for our NSmen?[+4 sentences] At the Committee of Supply debate last year, MINDEF updated that the first phase of the OneNS was rolled out to selected In-Camp Training units. Intended as a replacement for the existing NS Portal, the key benefit of the OneNS app has the potential of centralising all NS-related services and transactions into a single mobile app, enhancing efficiency and ease of access. I understand that the app is also able to anticipate and determine the unique needs of each serviceman and personalise digital services to ensure easy access to relevant information. Compared to the challenges that some may have encountered in using the NS Portal, I hope that the OneNS app will go a long way in improving the NS experience for all. Could MINDEF provide an update of when the OneNS app will officially replace the NS Portal platform, and whether further improvements have been made following earlier trial roll-outs?
The Chairman10 words
[+1 sentence]Miss Rachel Ong, you can take your two cuts together.
Miss Rachel Ong (West Coast)384 words
[+7 sentences]Defence serves as a pillar of societal stability, safeguarding our freedoms and way of life. However, its importance is often only truly appreciated in its absence, leading to the tendency to take the presence of strong defence for granted. Therefore, I would like to express my gratitude to our NSmen for their dedication to Singapore's national defence. The commitment of our NSmen to balancing personal, professional and NS responsibilities during their reservist years is truly commendable. Thank you for your silent yet steadfast protection of our shores. Over time, MINDEF has made efforts to simplify processes and lessen administrative burdens for NSmen. These initiatives include the automation of make-up pay claims and the digital distribution of NS Recognition benefits. In 2019, plans were announced for a centralised hub that would consolidate all NS-related services into one location to better cater to the needs of our NSmen.[+9 sentences] This development aims to provide a more user-friendly and convenient experience, eliminating the need for NSmen to visit multiple sites across Singapore and for services such as health screenings, annual fitness tests and equipment procurement. As it has been five years since the groundbreaking ceremony, can MINDEF provide an update on the progress of this facility? Our servicemen and women are the foundation of our defence force, and it is imperative that we prioritise their well-being by ensuring they have easy access to the healthcare services and resources that they need. Last February marked the opening of the Kranji Regional Health Hub, the first of six regional health hubs aimed at providing comprehensive healthcare services to SAF camps in Singapore's north-western region. These hubs are tailored to meet the specific healthcare needs of the units in surrounding camps. I am encouraged to learn that the Health Hub offers an array of enhanced medical services, including dental, physiotherapy and mental well-being support, with unique features that enhance pandemic readiness. The introduction of telehealth services to the region's camps also represents a step towards more convenient healthcare options for our servicemen and women. Efforts to enhance the accessibility and quality of healthcare for our soldiers are crucial and must be sustained. May I ask MINDEF to share the plans for the remaining five healthcare hubs and how they will further improve the healthcare services available to our servicemen and women?
The Chairman8 words
[+3 sentences]Mr Neil Parekh. Not here. Mr Gerald Giam.
Mr Gerald Giam Yean Song (Aljunied)214 words
[+6 sentences]Mr Chairman, NS is an obligation that every male Singaporean or second-generation Permanent Resident (PR) must fulfil. However, it is undeniably an opportunity cost that is disproportionately levied upon one segment of society. Due to NS, Singaporean men begin their careers two years behind their female peers, first-generation PRs, new citizens and foreigners. NS poses a significant challenge for aspiring professional athletes, disrupting their training and competition during their peak performance years, and hindering their world-class aspirations. The current philosophy of giving NSFs an "allowance for basic upkeep" needs to be reviewed in view of the significant increase in cost of living and NSFs' opportunity costs. As a first step, the terminology should be changed from "NS allowance" to "NS salary", and it should attract CPF contributions. The median NS salary should be at least the Local Qualifying Salary of $1,600 a month.[+2 sentences] This still would not be a market salary, but it will go some way to compensate NSFs for the opportunity cost of two years of service and help them contribute a little to their household income. I must emphasise that this does not in any way diminish the ethos of NS – just because we pay our NSFs fairly does not mean their service is any less of a national duty.
Ms See Jinli Jean (Nominated Member)213 words
[+1 sentence]My cut is on SkillsFuture@NS, shortening time-to-work proficiency for NSmen. A 2023 IPS study found that 29% of the over 1,000 Singaporans surveyed did not feel that NSF could learn skills that were useful for civilian employment through NS. This 29% is higher than the 18% recorded 10 years ago.[+5 sentences] IPS noted respondents felt that, and I quote, "NS should include more non-military training. This could be a result of the growing pressures for all to upskill and commit to lifelong learning, coupled with perceptions that NS involved some trade-offs to NSmen's education and career trajectories." Given the speed of technological innovation, a new NS-man with polytechnic education entering the workforce must now contend with fast-evolving industries and a steep learning curve. It is a tall order for a young person. In this regard, I wish to put forth three broad questions to the Minister. First, can MINDEF provide an update on the SkillsFture@NS initiatives that were launched in 2022, including SkillsFuture@NS Learning eXperience Platform? Second, what are MINDEF's plans to facilitate NSFs' transition post-NS, including those who aspire to become entrepreneurs or who must prepare to freelance if they join the creative, media, and coaching sectors? Third, what are MINDEF's plans to improve perceptions of the value of NS to soldiers' employability?
Mr Vikram Nair (Sembawang)405 words
[+21 sentences]Chairman, the concept of Total Defence was first introduced in Singapore in 1984, recognising that defending Singapore required a whole-of-society approach. At that time, the key pillars were military, civil, economic, social and psychological defence. In 2019, a sixth pillar, digital defence was added. Although Total Defence involves everyone, generally, MINDEF has taken the lead on coordinating defence across all pillars. Presently, two major armed conflicts are being fought – the Russia-Ukraine war in Europe and the Israel-Hamas conflict in the Middle East. Both conflicts have caused immense loss of human life and displaced millions of civilians. Both conflicts have expanded also beyond the traditional battlefield and military domains. These conflicts show that the modern warfare is total in nature, involving not only militaries, but the whole of society. In both conflicts, we have seen how important it is for societies to be resilient and united in the face of adversity. In times of crises, it is important for people from all walks of life to band together and help one another. There are many threats beyond an actual armed conflict that could undermine a society's ability to be resilient and remain united. Disruption to essential services can incite widespread fear and panic. Disinformation campaigns have the potential to ignite societal divisions, wear at our social fabric and erode people's trust in the Government. And, as we have seen in the past few years, a pandemic can erupt quite suddenly, disrupting our way of life. The events in the past few years have been a sobering reminder that threats can arise from anywhere and that we cannot rely on the military alone to deal with them. A strong military is a necessary but insufficient component of our Total Defence. To thrive, Singapore needs to invest in and build up a united, resilient society. Which is why Total Defence is important. This concept involves every Singaporean playing their part to build our nation – which is critical in periods of difficulty. While we all hope that a crisis does not befall Singapore, we need to prepare for it nonetheless. Given the ongoing conflicts in other parts of the world and the increasing prevalence of new frontiers of conflict and non-traditional threats, I would like to ask MINDEF – what Total Defence lessons we can we take away from these developments; and what MINDEF is planning to do in relation to Total Defence in the coming year?
Ms Joan Pereira (Tanjong Pagar)261 words
[+13 sentences]This year, we commemorate the 40th anniversary of Total Defence. We are very fortunate to have had decades of peace and prosperity, but we should never take this for granted. Eighty years ago, during the Japanese Occupation, Singapore experienced the horrors of war and suffered extreme privation. It was also a period when remarkable bravery and resilience shone through. Singapore is determined to be well-prepared for self-defence against future aggressions. Forty years ago, around the time the concept of Total Defence was introduced, the world split into two distinct blocs through the Cold War, with the threat of open conflict ever-present on the horizon. Today, we must be cognisant of the fact that the prospect of conflict, no matter how small, always exists. One needs only to look at the Russia-Ukraine war, which shows no signs of ending, and the Israel-Hamas conflict. Even though both are far from our shores, they each have had significant impact on the world we live in and on our lives. Total Defence is an important concept for all of Singapore society to coalesce around, especially in times of crises. Every Singaporean must play our part: as individuals and as part of our community. As we celebrate 40 years of Total Defence, we must ensure that the concept remains relevant and resonant for all Singaporeans from all walks of life. I would therefore, like to ask MINDEF to provide an update on how the 40th anniversary of Total Defence is being commemorated and how do we ensure that Total Defence continues to remain relevant and important?
Mr Chong Kee Hiong (Bishan-Toa Payoh)228 words
[+3 sentences]Chairman, I had briefly mentioned in my earlier cut about the insecurity of our global operating environment that has spurred many governments to invest in defence. Another important issue that I would like to elaborate on is about the preparedness of our people in times of such uncertainties. I spoke on the topic of civic preparedness through Total Defence during my cut for last year's Committee of Supply debate and I think it is timely to revisit this topic. Deputy Prime Minister Lawrence Wong recently launched the inaugural Total Defence Exercise – Exercise SG Ready.[+5 sentences] We need to enhance Singapore's readiness and build our nation's resilience to cope with potential crises and disruptions. In his message, he said that the most critical factor in upholding our security is the determination and will of our people; and that all of us have a part to play to defend Singapore. I would like to ask MINDEF if it would provide an update on Exercise SG Ready and how this and other related activities are helping to prepare Singaporeans for possible disruptions in the event of an emergency or crisis? How would MINDEF heighten public awareness and increase participation of our civilians in regular preparation exercises? How will MINDEF ensure that as many Singaporeans as possible, equip themselves with the necessary knowledge and skills to cope with potential disruptions and attacks?
The Chairman3 words
[+1 sentence]Mr Neil Parekh.
Mr Neil Parekh Nimil Rajnikant (Nominated Member)181 words
[+4 sentences]Chairman, our NSmen play a significant role in Singapore's defence. Our men put their career aspirations on hold for two years and after NS, they continue to serve as Operationally Ready National Service (ORNS) duties. Balancing NS along with professional and personal obligations poses new challenges as they enter the workforce and even more competing pressures as they start families. All of us, including our employers, must play our part in ensuring that our NSmen feel supported and recognised for their activities and sacrifices. Deputy Prime Minister Wong announced a special cash credit for former and current NSmen in Budget 2024. In recent years, I have been heartened to see initiatives like the NS55 Recognition Package and the enhancement of the NS HOME Awards.[+3 sentences] But we can certainly do more. My question for MINDEF is: what role can employers play in supporting NSmen in recognising their contributions towards Singapore's defence? Also, can MINDEF also provide an update on what steps are being taken to ensure that NSmen receive recognition and are well taken care of in their service to the nation?
The Chairman4 words
[+1 sentence]Mr Zhulkarnain Adbul Rahim.
Mr Zhulkarnain Abdul Rahim (Chua Chu Kang)165 words
[+6 sentences]Chairman, the ongoing conflicts in Ukraine and the Middle East have led to serious spill-over effects around the world – ranging from disruptions to global supply chains to the rise of extremist violence. We must do more to preserve our social cohesion and economic resilience amid these volatile and uncertain times. This warrants a whole-of-nation effort. In this regard, Total Defence continues to play a critical role in building a strong, cohesive and resilient society, premised on every Singaporean playing a part to help our country overcome any crisis. Can MINDEF provide an update on efforts to involve Singaporeans in Total Defence, such as to encourage them to strengthen Social and Psychological Defence in their individual capacities? In addition, how is MINDEF and the SAF helping Singaporeans to better understand its own efforts to strengthen Total Defence, such as through the formation of the new Digital and Intelligence Service, or the Republic of Singapore Navy's role in keeping sea lines of communication secure and open?
Miss Rachel Ong163 words
[+5 sentences]The recent developments in the Middle East and Europe serve as a stark reminder of the ongoing importance of Total Defence and its six pillars. The proliferation of fake news and disinformation through various media channels has expanded the battlefield to encompass not only physical borders but also the hearts and minds of individuals. There is an urgent need for the active implementation of Total Defence among our populace. Despite Singapore's prolonged period of peace, the concept of Total Defence may still feel distant to many Singaporeans. While it is taught in schools, its practical implications on daily life may not always be evident. As we commemorate the 40th anniversary of Total Defence this year, it presents an ideal opportunity for us, as a community, to come together and contemplate how each of us can contribute to Singapore's defence.[+1 sentence] How can MINDEF encourage conversations among Singaporeans, to explore ways to incorporate Total Defence into their daily lives, thereby fostering a more resilient society?
Mr Chong Kee Hiong222 words
[+1 sentence]Chairman, today's security challenges bear little resemblance to those of the past. Aside from armed conflicts, we have seen the proliferation of hybrid threats – from the likes of dis- and misinformation to well-coordinated online and offline influence campaigns.[+7 sentences] These will have a profound and undesirable impact on our defence and security, as they seek to undermine our social fabric and weaken the resilience of our society. It is thus important for us to provide the platform for Singaporeans to understand the various defence and security issues as well as the roles they can play. It is also important to encourage Singaporeans to participate proactively in initiatives in bringing Total Defence into action. In particular, we should involve younger Singaporeans, who may not fully appreciate the extent of these developments and may find the topic of defence unfamiliar, distant and unrelatable. It is important to encourage their participation, so that we can nurture and tap on their potential to contribute in different areas of defence. When they have gained a deeper understanding, they would be more interested in how they can play a part in defending their homeland at different stages of their lives as they grow up. On this note, I would like to request MINDEF to elaborate on their efforts in ensuring that our youths are engaged on defence issues.
Mr Muhamad Faisal Bin Abdul Manap (Aljunied)262 words
[+5 sentences]Mr Chairman, in 2015's MINDEF Committee of Supplies debate, I had raised the issue of fair and equal deployment in the SAF, particularly in the vessels of the Republic of Singapore Navy (RSN). In answering my previous question regarding having halal-certified kitchens on our vessels, the MINDEF Ministers had cited the key issue of space being a premium on ships and that other provision would be made not only for Muslim servicemen but any other services of other religions with dietary restrictions. Sir, RSN has produced a video series on YouTube titled "The Passage 2", which featured among other trainees, then-midshipman Johan Fadli – a RSN regular personnel being deployed in the LST RSS Endurance from July to August 2024 for the Midshipman Sea Training Deployment (MSTD), a rite of passage for midshipmen to be commissioned as naval officers or to graduate as a naval warfare system engineer. The video series was entertaining and educational on what midshipmen of both genders and races experienced during the MSTD. Sir, I had hoped to see some shots featuring some of the aforementioned provision that has been made for servicemen with various dietary restrictions. Nevertheless, I would like to seek an update from MINDEF on the steps and measures taken thus far in making RSN's naval vessels a more inclusive and open workspace that is fair and just to all Singaporean servicepersons.[+1 sentence] I believe that it is important that we clearly communicate to the public – that there are no systemic barriers in the way of any Singaporean wishing to serve on our navy vessels.
The Chairman11 words
[+1 sentence]Mr Lim Biow Chuan, you can take your two cuts together.
Mr Lim Biow Chuan (Mountbatten)389 words
[+9 sentences]Thank you, Sir. The ongoing wars in Ukraine and the Gaza strip are important lessons to Singaporeans – never to take peace for granted and to always be prepared to defend their nation. Countries around the world have been racing to reverse their shrinking militaries by increasing defence spending and reinstating some form of national service. Sir, I served my NS 40 years ago when there was no threat of war or aggression. For many of my contemporaries, we served NS because we felt the need to do our part to serve the nation. But in today's world, there are many different narratives out in social media and fake news abound. It will be more challenging for MINDEF to persuade Singaporeans to defend their country if there are external unfriendly forces trying to provide different reasons for aggression. Photos and reports can be easily manipulated to paint a different picture for Singaporeans. May I ask what can MINDEF do further to reinforce the importance of NS among Singaporeans and in particular new citizens? Can MINDEF do more to strengthen the understanding of total defence among Singaporeans?[+6 sentences] May I ask whether the Advisory Council on Community Relations in Defence (ACCORD) will carry out more initiatives to strengthen community support for defence? Sir, I get to meet many NSFs during the presentation of the Edusave awards. These young men have just completed their "A" levels or polytechnic education and they come to collect their Edusave awards with neat, shaven haircut and in NS uniform. Almost of all of them have a positive attitude towards NS and I wish to compliment MINDEF for a job well done. But we should not rest on our laurels because NS and the defence of our nation is critical to our nation's survival. May I ask MINDEF how is the ACCORD supporting pre-enlistees and their families as they prepare for the transition to full-time NS? Has ACCORD also considered steps to support those transitioning out of full-time NS?[+2 sentences] Can we do more to prepare our NSFs – for either a vocation or career after NS or to prepare them for their further studies? I urge MINDEF to do more to allow our NSFs to feel that their time spent during NS is for the right purpose and that they have benefitted from their stint in NS.
Ms Denise Phua Lay Peng (Jalan Besar)229 words
[+7 sentences]Chairman, the ongoing conflicts in Ukraine and the Middle East are grave reminders of the need for a strong defence of especially small nation states like Singapore. The SAF was created from scratch in 1965, as a result of the need to build our own security capability. We are blessed that political leaders like Mr Lee Kuan Yew and his team, including Dr Goh Keng Swee, had the foresight to build a strong SAF, bolstered by a robust conscription system. This, in turn, is made possible by the willingness and strong support of Singaporeans who saw this national need. Across generations since then, Singaporeans have played an important part in making personal sacrifices for the larger good of defending our nation. As the threats we face become increasingly complex in wars that are fought not only in the physical space but also in cyberspace, Singaporeans' commitment to a strong defence is now more important than ever. The commitment and support of Singaporeans are really needed. Can MINDEF provide an update on its plans to raise community awareness about the importance of NS and of a strong SAF? In light of our evolving threat environment, can we re-imagine NS to go beyond its current form, scope and method?[+1 sentence] For instance, are there avenues for women to serve in roles that are suitable for them and be recognised for their contributions?
The Chairman7 words
[+1 sentence]Senior Minister of State Heng Chee How.
The Senior Minister of State for Defence (Mr Heng Chee How)3028 words
[+12 sentences]Mr Chairman, the Minister for Defence described the dynamic nature of the security threats that we face and highlighted the importance of building an SAF to meet these challenges. NS is the cornerstone of Singapore's defence and it is critical that we continue to strengthen its effectiveness. Last year, I spoke about changes arising from the work of the NS Review Committee. We introduced measures to make the most of the contributions of NSmen to improve the NS experience and enhance the support for and recognition of NS. I will provide an update on those initiatives as well as announce new ones. Given low fertility rates, declining cohort sizes and an increasingly demanding mission, the SAF must continue to optimise the contributions of every NSman. Mr Henry Kwek asked how we are managing this. We are doing so in two key ways. First, by reviewing medical fitness criteria and matching these to the physical requirements of jobs, we maximise the effective deployment of NSFs. Mr Saktiandi Supaat also asked about the assessments conducted for pre-enlistees. Psychometric assessments are conducted before enlistment. Functional assessments, which were introduced in January 2022 for pre-enlistees with selected orthopaedic conditions, assess their ability to perform the physical tasks required for the job roles. This allows for more deployment options than if one were to rely purely on medical classifications.[+1 sentence] The results have been encouraging. We were able to deploy about 200 out of the 280 pre-enlistees tested since 2022 to contribute effectively in the wider range of roles.[+2 sentences] The SAF has also continued to redesign job roles for NSFs by leveraging technology to assist with physical requirements. More NSFs are then able to take on a wider range of roles. Since 2021, the SAF has redesigned 1,800 roles in vocations, such as Combat Medics, Infantry Carrier Vehicle Operators and Transport Operators. This has allowed about 700 NSFs to take on important operational roles, compared to if the roles were not redesigned.[+8 sentences] Second, we invest in and tap on NSmen's skills and knowledge. One example is through Work-Learn Schemes which Mr Gan Thiam Poh asked about. With these, NSFs attain a diploma or partial university credits while performing a period of full-time NS followed by Regular service. This allows NSFs to fulfil their academic aspirations, put their learning into practice and contribute even better to the SAF with their enhanced skills and knowledge. Since the first Cyber Work-Learn Scheme in 2018, we have expanded to domains such as engineering, supply chain management and artificial intelligence, and we will continue to explore additional domains. In 2023, we introduced two new schemes. One, for NSFs to pursue Diplomas in Paramedic Science and be deployed as Army Medic Specialists. The other for officer or specialist cadets to serve as NSF Trainers, while gaining credits for an undergraduate degree with the Singapore University of Social Sciences (SUSS). With this, we have now eight Work-Learn Schemes with about 520 NSFs enrolled since 2018.[+13 sentences] And we are doing more. Mr Gan Thiam Poh asked about tapping on pre-enlistees. We are partnering Singapore Polytechnic and the Republic Polytechnic to introduce new schemes for final-year diploma students to fulfil their internship requirements and enlist concurrently. With Singapore Polytechnic, we have launched the Polytechnic Cyber Work-Learn Scheme and the SAF-Polytechnic Sponsorship for Integrated Curriculum Diploma, or SPS-IC Diploma for Aerospace Electronics. With the Republic Polytechnic, we have launched the SPS-IC Diploma for Electrical and Electronic Engineering and another one for Information Technology. Students taking cybersecurity or aerospace electronics courses with Singapore Polytechnic, or electrical and electronics engineering or IT courses with Republic Polytechnic are eligible. Applications are already open. Those selected will serve for three to five years through a combination of full-time NS and Regular service as Cyber Specialists, or through full Regular service as Air Force Engineers or Naval Warfare System Experts. We will expand this to other polytechnics and vocations in due course. Our operationally-ready NSmen may also have developed niche skills beyond their full-time NS period, in their civilian careers. Since 2014, the SAF has been identifying NSmen with relevant skills and redeploying them to units where they can contribute their civilian expertise. Ms Yeo Wan Ling asked for an update. In 2023, we redeployed about 260 NSmen. In total, about 790 NSmen have been redeployed over the years into roles, such as Command, Control, Communications and Computers (C4) operators and legal officers.[+16 sentences] We will continue to expand our efforts, having introduced marine survey as a new domain in 2023. Maximising the operational readiness of NS personnel goes hand-in-hand with ensuring their safety and well-being. This is core to the social compact. Dr Wan Rizal and Mr Mohd Fahmi asked about training safety. We are employing technology to improve performance while enhancing safety. The SAF has successfully tested using wearables to allow trainers to monitor the physiological data of soldiers in real-time and to calibrate fitness training accordingly. This optimises training outcomes while enhancing safety supervision and minimising injury. Since April 2023, all SAF recruits have been issued wearables and heart rate zone-based training has been incorporated into their physical training. We have also made good progress in developing a next-generation digital safety information system. Today, SAF units actively use the SafeGuardian app to submit near-misses and incident reports. All of this data is stored on the Enterprise Safety Information System. Units, such as the 1st Commando Battalion, have used insights from past trends to identify potential risk factors and adjust their training programmes accordingly to mitigate musculoskeletal injuries. The Army has also used this data in a quarterly alert called PING, which stands for "Proactive Information to Nudge and Guide". It compares each quarter's training activities with the preceding work year, so that units are aware of and can prevent common safety incidents. Beyond technology, we regularly audit and review our safety systems and processes to ensure that they remain robust. Mr Mohd Fahmi asked about this. The Inspector-General's Office commenced its third audit cycle in April 2023, covering formations across the Services.[+17 sentences] Most recently, they completed system reviews to strengthen the training and qualification system for combat vehicle operators, and to enhance the safe conduct and management of inter-Service training. The SAF also regularly benchmarks itself against external practices and standards through the work of the External Review Panel on SAF Safety (ERPSS). The third ERPSS recently completed their work. It continues to find strong command emphasis on training safety across the SAF. They also noted the SAF's use of data in safety management and to prevent accidents. We appreciate the good work of ERPSS and the next term will commence soon. We will never let our guard down on safety. Care for our servicemen also goes beyond ensuring their physical safety. Dr Wan Rizal and Ms He Ting Ru asked how MINDEF/SAF is looking at the mental wellness and well-being of our servicemen. MINDEF/SAF has in place efforts to promote effective self-care, strengthen coping skills and better recognise potential mental health issues. All Regulars and NSFs also undergo psychological first-aid training to help them recognise distress signs, exercise self-care and support their peers. We have also continued our practice of screening for mental health conditions before enlistment. Those with severe conditions that pose harm to themselves or others are deferred from NS until they are professionally assessed to have improved and no longer pose those risks. Those with mild or moderate conditions, but who have been assessed to be able to serve in selected vocations, will receive additional monitoring during NS. Beyond pre-enlistment screening, we have increased our mental health support over the years, particularly during Basic Military Training (BMT). Care Hubs have been set up in the BMT centres since 2020 so that mental health professionals and medical doctors can work closely with Commanders to support NSFs during their transition to military life. Commanders interview NSFs regularly to identify potential problems and to render assistance. Those who are uncomfortable sharing their problems openly can call an anonymous 24-hour SAF counselling hotline. We have also doubled the number of full-time mental health professionals to 80 over the past decade and established a Mental Health Office for better synergy and delivery of care.[+6 sentences] I note that Ms He Ting Ru has also mentioned the importance of soldier moral strengths as well as resilience and how these will affect the effectiveness of the fighting units and fighting morale. This is an important aspect and I can assure Ms He Ting Ru that through the use of appropriate instruments, not necessarily the ones that she particularly mentioned, we pick up signals of weakness, as well as discern strengths for better deployment and development of our servicemen for different vocations and for different levels of command. We certainly want to press on with all efforts to make the most of the contributions of our servicemen. We understand also that Parliamentary Questions have been filed on this topic of mental health for our servicemen and we will give a more substantive reply at a subsequent Parliament Sitting. We also continue to enhance the NS experience and improve administrative efficiency, so that our NSmen can focus on their NS duties. Mr Shawn Huang asked about OneNS and the digitalisation of NS systems. Today, NSmen use the NS Portal for their major NS-related transactions, such as to apply for Exit Permits, to book Individual Physical Proficiency Tests (IPPT), and to receive and acknowledge NS notices. This year, the NS Portal will be replaced by a new OneNS web portal.[+5 sentences] This web portal will be hosted on a commercial cloud platform and feature an improved design, allowing NSmen to access NS services more easily and with few disruptions. Through OneNS, we aim to introduce a more personalised and engaging digital experience for all NSmen. OneNS is not just a web portal but a broader platform, including a mobile app that consolidates NS-related services and transactions. The app will make the daily routine more efficient for NSmen on In-Camp Training (ICT). NSmen currently queue and scan their physical IDs for in-processing for ICT. With this enhancement, they will be able to register their attendance easily with the app's geo-location and QR code scanning features. This will be rolled out to all NS units in 2024.[+2 sentences] Aside from the digital experience, we are also consolidating physical NS services for NSmen's greater convenience. Miss Rachel Ong asked about the progress of this one-stop location. As the Defence Minister spoke about last evening when he made his speech, the new Central Manpower Base (CMPB) will be open in phases from the year 2025.[+11 sentences] Once completed, the building will bear the CMPB name because of its significance for multiple generations of NSmen. This new CMPB will be an integrated service location for NS-related administration. NSmen will be able to undergo the Health Screening Programme, take their IPPT or attend NS FIT training at the all-weather Fitness Conditioning Centre. They can then buy NS necessities at the Lifestyle mart located on-premise, or make use of the "Click and Collect" and "Pick and Pack" services if they so wish. Pre-enlistees will attend medical screening and take their pre-enlistment IPPT there. The medical screening time will be shortened, thanks to an easier registration process and improved sequencing of stations. Enlistees, NSmen and the public can also look forward to amenities such as a food court, café, childcare centre, soccer field and fitness zone. We envisage these amenities to be open even on weekends, bringing convenience to NSmen and the community nearby. The new CMPB will also be home to the SAF's second Regional Health Hub (RHH), which Miss Rachel Ong asked about. RHHs consolidate the SAF's essential healthcare services under one roof for each region to provide even more responsive care. The first RHH serving the northwest region was officially opened in Kranji in 2023. Over the next decade, the SAF will be establishing up to four more RHHs in different parts of the island. The third RHH will be located at the Dieppe Barracks to serve the north. It will house the SAF's first Sports and Exercise Medicine Centre, to better manage musculoskeletal injuries and that is slated to commence operations in 2027.[+4 sentences] Mr Neil Parekh asked how do we recognise the contributions of NSmen. Sir, we have a strong track record of showing our appreciation to our NSmen. Examples include the NS Recognition Awards first introduced in the year 2010, which was subsequently enhanced into the NS HOME (Housing, Medical and Education) Awards in 2014. These awards support the NSmen's housing, healthcare and educational financing, and they are presented to NSmen in cash credits and top ups to their CPF and Post-Secondary Education Accounts at various milestones of their NS journey. After we enhanced the NS HOME Awards again in 2022, a NSman can receive up to $18,500 in the course of his NS journey.[+3 sentences] Good performance during NS is also recognised through the NS Excellence Awards. In addition, NSmen and their families receive tax relief every year. We also celebrate our NSmen's life milestones with celebratory gifts of $100, when they solemnise their marriage, or welcome a child to the family. Most recently, Deputy Prime Minister Lawrence Wong announced that all past and present NSmen will receive $200 in LifeSG credits in November this year.[+14 sentences] This is on top of the $100 presented in 2022 to commemorate NS55. These initiatives and others in this nature demonstrate and manifest and reflect MINDEF's continued strong emphasis on appreciating the valuable contributions of our NSmen. I note that Mr Neil Parekh also asked, "What about employers? How can employers also play a part in this?" Here, I want to record my thanks to the Advisory Council on Community Relations in Defence (ACCORD). We have a council within the ACCORD on employers and businesses. Through the work of that council, as well as broad employer groups and chambers, I think the message has really gone out to many employers that strong NS is synonymous with conditions to do good business in Singapore, because safety and security of this land enables proper business planning and investment decisions to be taken, for good business operations to be proceeded with. I think that over the years, more and more employers have understood this. You can see this manifested in the increasing numbers of employers who have merited the NS Mark recognition as well as so many employers, who in their own ways, have made arrangements to support their NSmen when they have to report for their ICT, to recognise the leadership skills of the NSmen as they apply to their work, to recognise the relevant vocational skills like in logistics, like cyber, as they apply to those particular industries, for example. I want to thank these progressive employers for doing so and I hope that all employers can take a leaf from their book and also do so. Mr Gerald Giam asked about the NS allowance. NS is a duty to the country. It is not a form of employment. Instead of a salary, NSF receive an allowance to support their basic personal upkeep. And this allowance is regularly reviewed, most recently in July 2023. And I must also say that if you look over 10 years since 2012, from 2012 to 2023, this allowance was reviewed four times.[+11 sentences] When we say that we will provide an allowance to support the basic upkeep of our NSFs, we mean it and we will ensure it. I note that Mr Giam has also used the word "obligation" in his cut – not wrong, but I also noted Dr Wan Rizal in his cut used the words "honour" and "duty" – also correct. We are all on the same page because Mr Giam also finished his cut by saying that we all recognise the importance of citizens defending this country. Because for whom are we defending this country? For MINDEF? For the SAF? No. It is for each and every Singaporean, for now and for the future. We will continue to review regularly to make sure that the allowance remains relevant. I spoke about the recognition packages, the ongoing allowances for our NSFs. There is something else which is that as they transit out of full-time NS into post-NSF life, many of them will either immediately or soon enough either further their studies or commence work. Therefore, we also pay close attention to ensuring that our NSFs' transition to employment is made as smooth as possible. In 2022, MINDEF and the Ministry of Home Affairs (MHA) partnered the National Trades Union Congress' (NTUC's) Learning Hub and NTUC's Employment and Employability Institute (e2i) to enhance the SkillsFuture@NS initiatives. Under this enhancement, NSFs can use the SkillsFuture@NS Learning eXperience Platform to gain unlimited access to 75,000 online courses.[+1 sentence] Ms Jean See asked for an update on this. Since its implementation, about 21,000 NSFs have signed up on the platform. MINDEF/SAF and Young NTUC also launched the Career Starter Lab programme to NSFs in September 2023, to support them with structured job training and career mentorship after NS.[+5 sentences] About 100 companies across a wide range of industries, such as food and beverage, retail and trade, health, energy and finance services, are already on board – and of course, every effort will be made to broaden this. NSFs may apply to take advantage of the programme and strengthen their value in the labour market. Therefore, we care for NSFs not only during the full-time service. We care for them their future. Finally, Mr Chairman, in the area of recreation, we opened SAFRA's seventh clubhouse in Choa Chu Kang in 2023. The Float@Marina Bay's redevelopment into the NS Square is on track, with construction commencing next month.[+4 sentences] When completed in 2027, it will again play host to major national events like the National Day Parade and bigger-scale community, sporting and recreational activities. Mr Chairman, NS remains the cornerstone in safeguarding our security, sovereignty and way of life. We must continue to do our utmost to strengthen the NS system, to make full use of our NSFs' and NSmen's talents and skills, and to appreciate their valuable contributions. We must take good care of them.
The Chairman6 words
[+1 sentence]Senior Minister of State Zaqy Mohamad.
The Senior Minister of State for Defence (Mr Zaqy Mohamad)507 words
[+2 sentences]Mr Chairman, Minister for Defence Dr Ng and Senior Minister of State Mr Heng have updated the House on our efforts to ensure that the SAF remains effective and ready to defend Singapore. To complement a strong SAF, Singapore needs a united and resilient population. I will address how we are building commitment to Singapore and strengthening resilience through Total Defence. This year marks the 40th anniversary of Total Defence. Since its inception in 1984, Total Defence has been our overarching defence strategy and a whole-of-society response against any threat to our sovereignty, our security and our way of life.[+13 sentences] For 40 years, Total Defence has continued to be relevant and has helped us navigate economic downturns, global uncertainties and even a recent pandemic. During the COVID-19 pandemic, we saw Singaporeans step forward to care for one another. Singaporeans delivered food and essential supplies to those who needed help, supported various COVID-19 measures, including vaccinations to protect our population, including seniors, and reminded one another to be discerning against fake news and misinformation. And this was Total Defence in action. Mr Vikram Nair asked about Total Defence lessons that we could learn from ongoing conflicts around the world. Even as we live in relative peace in Singapore, we must be prepared for threats that can disrupt our way of life and undermine our social identity. Europe enjoyed decades of peace and many countries abolished conscription due to the "peace dividend". Then, the Ukraine-Russia conflict happened – right at Europe's doorstep. Sweden and Finland quickly applied to join NATO. The physical conflict in Gaza might be geographically far away from Singapore, but it has strong resonance and strong ripple effects on our population and our harmonious social fabric. We have seen how cyber hackers can attack energy infrastructure, as they did in Denmark, or disrupt public transport systems like they did in Poland. These can affect public confidence and the economy. We have also seen the use of misinformation and hostile information campaigns. Such campaigns can sow distrust, increase anxiety and create divisions within communities if we are not united and vigilant. This is why we stood up our newest pillar of Digital Defence.[+3 sentences] Singapore must be ready for threats – both traditional and emerging ones. Hence, Total Defence is not just a concept or a narrative; it is imperative for all of us here in Singapore. If and when crises and disruptions hit our shores, every one of us must play our part and stand ready. Ms Joan Pereira asked about how we are commemorating 40 years of Total Defence (TD40). We have planned a year-long campaign to raise Singapore's threat awareness, as well as strengthen our resilience and readiness for crises and disruptions. Over the past two weeks, education, community, commercial and Government organisations have participated in the inaugural island-wide Total Defence exercise, called Exercise SG Ready.[+2 sentences] Mr Chong Kee Hiong asked for an update on the exercise. With your permission, Mr Chairman, I have asked the Clerk to distribute a handout on Exercise SG Ready.
The Chairman10 words
[+1 sentence]Please go ahead.
Mr Zaqy Mohamad1713 words
[+1 sentence]Members can also access this through the SG PARL MP mobile app. We launched the exercise about two weeks ago, and as Mr Chong Kee Hiong noted, we had 500 participating organisations then. But two weeks on today, more than 800 participating organisations have come on board and simulated some 250 power disruptions, 300 water or food supply disruptions, and 200 cyber disruptions.[+10 sentences] Nearly 200 evacuation drills were conducted too, but rest assured none today, here in Parliament. These include students and educators from all over, 330 schools. In some schools, students learnt about the value of water when they experienced water supply limitations during recess. In response to a simulated food supply disruption, some secondary school students ate Ready-to-Eat meals from the Singapore Food Agency and SATS, while others learnt to make do with alternatives from a smaller range of food items, which were made available in their canteens. During simulated power disruptions, teachers adjusted their lesson activities to teach outside of classrooms. Through these experiences, students said they better understood Singapore's vulnerabilities and the importance of being prepared and adaptable during times of disruption. In the heartlands, residents adapted to simulated food and water disruptions and learnt about facilities essential for civic preparedness. Some residents went to alternate places for their groceries and meals when their neighbourhood markets and hawker centres were closed for market cleaning to simulate food disruptions. Over 200 households living in Yung Sheng Road adapted to water disruptions by collecting water from PUB's water wagon and water bag filling machines. Visitors to community facilities such as the People's Association Integrated Community Hubs participated in evacuation drills. Last week, about 12,000 members of the public visited Civil Defence shelters at three MRT stations where they learnt shelter procedures and about how these shelters protect civilians in an emergency. Over 160 businesses took the opportunity to enhance and validate their business continuity plans.[+19 sentences] For instance, Pontiac Land Group, South Beach, Sofitel Singapore Sentosa Resort & Spa and others tested their business continuity plans in the event of a power failure. Other companies conducted their own simulated cyber phishing exercises, referencing playbooks from the Cyber Security Agency, which were developed in consultation with Google and Microsoft. I spoke to some of the CEOs and business owners, and they told me that the exercise was a timely one. But what shone through was the spirit of care for fellow Singaporeans. Thirty-five volunteers from Taman Jurong Community Emergency and Engagement Committee distributed water bags and made house calls during a simulated water disruption. Mr Cheok Xin Lin, a nursing student at the National University of Singapore (NUS), was one of the volunteers and used his professional training to ensure that all residents and volunteers could participate in the exercise safely. He said that this exercise allowed them to test their contingency plans and help those in need. It also helped them recognise that community support is crucial, as everyone had a part to play in times of crisis. This year's Exercise SG Ready has provided just a slice of the disruptions that could hit us in a crisis. It has prompted us to think about what we can do, how we can respond and why we must remain united. I am glad that it has resonated well with participants, and we will continue to find ways to educate, to activate, to think and to inspire action for Total Defence. Beyond the exercise, we will continue to engage Singaporeans on Total Defence throughout the year. Mr Zulkarnain Abdul Rahim and Miss Rachel Ong asked about these efforts. We launched the Total Defence Exhibition which showcases examples of Singaporeans putting Total Defence in action. Through the exhibition, we hope that Singaporeans can reflect on the role that they play to keep Singapore strong and prepared. Visitors are encouraged to make pledges in support of Total Defence. These pledges will be collated on a digital map of Singapore, showcasing Singaporeans' commitment to Total Defence. The exhibition is currently at the Singapore Discovery Centre and from March, it will move into several community spaces, including the National Library and SAFRA Choa Chu Kang. This year, we also hope to bring the Total Defence community together. MINDEF and NUS will jointly organise a Total Defence Convention for our partners and practitioners in April.[+6 sentences] The speakers will be both local and international and will provide perspectives around the theme of "Building Societal Resilience and Readiness in Disruptions and Crises". Our partners and practitioners will also have the opportunity to exchange best practises, network and discuss ideas through a series of workshops. Beyond the programmes planned for TD40, we will continue to engage different groups of Singaporeans to strengthen Total Defence. Mr Chong Kee Hiong asked about how MINDEF engages our youths. The Total Defence Sandbox (TD Sandbox) was launched in 2022 to call for ideas from Singaporeans on how the community can put Total Defence into action. I spoke about this at MINDEF's COS debate last year. The Sandbox is now in its third year, and I am happy to update that we continue to receive many ideas, especially from our youths. This year, we have shortlisted more proposals for implementation.[+2 sentences] You may have heard about TD@Singverse. Initiated and developed by Finute – a Singapore-based metaverse edutainment company – this proposal taps on the online platform, Roblox, to create a Singapore within the metaverse. Since its launch a week ago, over 3,500 players have joined the TD@Singverse virtual world where they have learnt about the six pillars of Total Defence through mini games.[+9 sentences] Another group of students from NUS proposed an idea to strengthen Digital and Social Defence by harnessing the collective wisdom and skills of an online community of volunteers to identify scam websites, and raise awareness and understanding of scam detection. These are good ideas and MINDEF will continue to partner the community to implement them. Mr Chairman, the theme of our Total Defence campaign this year is, "Together We Keep Singapore Strong". Our resilience and strength as a nation are dependent on each of us working together towards common goals. Similarly, in the SAF, our servicemen and servicewomen are steadfast in their commitment to Singapore's military defence. Ms Denise Phua and Mr Faisal Manab asked about inclusiveness in the SAF. The deployment of service personnel to vocations is based on merit, capability and aptitude, as well as their commitment to the SAF and to Singapore, regardless of race, gender or religion. This approach is fair and optimises our manpower for SAF vocations. Sir, we are heartened that Singaporeans continue to express strong support for Defence and NS. According to an Institute of Policy Studies (IPS) survey on Public Attitudes towards NS, concluded last year, 98% of respondents agreed that NS was necessary in the defence of Singapore. Close to 90% would encourage their friends and loved ones to serve NS even if NS was not compulsory.[+9 sentences] However, we must not take the strong public affirmation for granted. We will continue to raise community awareness about the importance of NS and defence, as Ms Denise Phua and Mr Lim Biow Chuan highlighted. One of our efforts is through the Advisory Council on Community Relations and in Defence (ACCORD), which like Total Defence, is turning 40 this year. Today, ACCORD continues to run a wide range of community outreach initiatives to reach out to pre-enlistees, youths, new citizens, Permanent Residents (PRs), NSmen, families and women. Some Members of Parliament such as Member He Ting Ru, Mr Zulkarnain Rahim and Mr Don Wee are also active members of ACCORD. The goal is to bring society together, to champion and to advocate for Singapore's defence and for NS. ACCORD initiated NS info-sharing sessions with pre-enlistees, including those who are new citizens and PRs, to better ease their transition into military life. ACCORD also initiated the NS Family Camp in partnership with SAFRA, where families built barshas with full camouflage on and even belted out familiar military tunes. Supporting our NSmen in their professional development is another key tenet of ACCORD's work. Last year, ACCORD signed Memoranda of Understanding (MOUs) with AETOS and Singapore Human Resource Institute.[+8 sentences] Under these MOUs, our NSmen enjoy concessionary rates for selected programmes to upskill, reskill and learn relevant security and Human Resource knowledge. Mr Neil Parekh asked about the role of employers in supporting our NSmen in recognition of their contributions towards the defence of Singapore. The best form of employer support for our NSmen is to support their NS commitments. For instance, some employers introduce flexible work arrangements before in-camp training or celebrate our NSmen's NS achievements during company events. We are heartened to see that in the same IPS survey, 95% of employed NSmen respondents agreed that their employers were supportive of their NS commitments. So, I thank employers too for their support. Ms Denise Phua also asked about the role of women in defence. Today, women are already contributing to our military defence as Regulars and volunteers. Since 2015, more than 600 women have volunteered as part of our SAF Volunteer Corps and have been trained and deployed in roles such as in surveillance operations, engineering and safety.[+8 sentences] Members might also be familiar with another ACCORD initiative, the Women's Boot Camp, which started in 2018 to provide women with a glimpse of NS life through participation in Basic Military Training activities. The experience has inspired some to even consider a career in the SAF. We continue to reach out to women to be our advocates for NS and defence and encourage them to do their part wherever they can. Mr Chairman, reflecting on the past 40 years of Total Defence, we find a journey marked by strength, resilience and a collective commitment by Singaporeans to safeguard our home and our way of life. Over the decades, we have continuously evolved our approach to Total Defence to adapt to evolving challenges. Yet, amidst all these challenges, what endures is the unwavering spirit of Total Defence and the understanding that everyone has a part to play. As we move forward, let us remember that keeping Singapore strong is a shared responsibility, not just during crises and disruptions, but also during peacetime. Together, let us keep Singapore strong for many generations to come.
The Chairman9 words
[+2 sentences]We have some time for clarification. Mr Gerald Giam.
Mr Gerald Giam Yean Song102 words
[+6 sentences]I thank the Senior Minister of State for responding to my cut. The Senior Minister of State said that NS is a duty to country and is not employment. However, does the Senior Minister of State agree that the two are not mutually exclusive? For example, SAF regulars, they are both employees and they are also serving their national duty. But that does not detract in any way their sense of national duty. I want to emphasise that I do support NS, but I feel that NS pay should better reflect the realities of the opportunity costs that NSmen have to incur.
Mr Heng Chee How124 words
[+2 sentences]Mr Chairman, I thank Mr Giam for his question. I think we agree that serving NS to protect this country is a duty of citizens. And when we enlist our young male citizens into NS, we do not just take them in as volunteers. We recognise that we call on their time for two years – well, 22 months if they have a certain level of fitness – and that during this period they do need basic upkeep as they fulfil their duty to this country.[+2 sentences] That is why we recognise that in the fulfilment of their duty, we also provide for this basic upkeep. And this is also why we regularly update and enhance the allowance that we so pay to our NSFs.
The Chairman3 words
[+1 sentence]Mr Faisal Manap.
Mr Muhamad Faisal Bin Abdul Manap56 words
[+2 sentences]Sir, I would like to thank Senior Minister of State Zaqy for his comment and remarks on my cut. I would just like to repeat my request: whether the Senior Minister of State can provide an update regarding the steps and measures taken thus far in making RSN naval vessels a more inclusive and open workspace?
Mr Zaqy Mohamad344 words
[+11 sentences]I thank Mr Faisal Manap for his clarification. We have given him replies on this issue previously and the considerations have not changed. The provision of halal food requires adherence to religious stipulations, including on the food source, preparation and storage. For local training and operations – that is, trainings in Singapore – these conditions can be met by having separate kitchens and halal-certified sources of food. The SAF also provides halal food to our soldiers in camps or when they are training outdoors. But when SAF soldiers are deployed overseas, there are practical constraints. For overseas exercises on land, the SAF links up with local suppliers to provide halal food where feasible. And depending on the country that they are training in. You have to understand that the landscape is very different from having our cookhouses here in Singapore. On Navy ships, the kitchens need to be self-sufficient to prepare and provide meals for all servicemen on board – not just the Muslim servicemen, but also others who may have other dietary restrictions. The space for kitchens and storage of food needs to be compact and maximised due to other operational constraints, such as control and combat systems, ammunition and equipment spares, as well as living quarters for our servicemen. For these reasons, a separate halal kitchen on our naval ships is not feasible.[+7 sentences] We have to separate the kitchen from the food being served – two different things. For our Muslim personnel on board our ships, our ships provide options, such as seafood, chicken and vegetables. I note that Mr Faisal Manap noted seeing our Malay serviceman in our video. Our servicemen have accepted this. For non-Muslim Navy personnel with specific dietary restrictions, such as vegetarians, they can also select from these options on the ships too. I think we have to basically consider that there are different considerations for different groups and we have operational considerations as well. Nonetheless, we thank all our servicemen and servicewomen, particularly those on ships and when training overseas, who understand these constraints and accept them.
The Chairman3 words
[+1 sentence]Mr Vikram Nair.
Mr Vikram Nair104 words
[+2 sentences]Thank you, Chairman. I think it is heartening to note that MINDEF is investing regularly and steadily, to keep our defence strong. In my cut on Total Defence, I had asked about how the whole-of-nation is getting itself ready as well and I think Senior Minister of State Zaqy shared exercise SG Ready on this – which was very heartening, more than 800 organisations taking part.[+2 sentences] In order for Total Defence to work, things like these probably need to be done regularly and institutionalised. I just wanted to check whether that is the plan and to get more organisations involved in understanding their roles?
Mr Zaqy Mohamad249 words
[+2 sentences]I thank the Member for his support for TD40. Because indeed, it is not just within these few weeks that we engage these organisations. As I shared earlier on, our initiatives will run the whole year long and we hope that beyond this, we can expand this and certainly get more onboard. If you look at some of the events that we are planning – not just the TD Exercise – we got the Total Defence Exhibition; we have the TD Sandbox that is ongoing with the schools for our youths; we got the Dynamic Defence Display; as well as the Total Defence Awards.[+8 sentences] These are all a collection of activities, events to commemorate the importance of Total Defence. What is more important is Singaporeans coming onboard and practising it daily, because we always have to be conscious. I hope that the experience, whether they are in school, whether they are part of a company, is something that is memorable and that people remember of some of the threats that are always around us. One thing I reckon, as Minister Ng said yesterday, is that Singaporeans understand our vulnerabilities. Therefore, there is a certain acceptance that we have to be united because the threats are not just within here. The threats are coming from outside, and we have to be united and resilient as a society. So, this is where Total Defence will play a role across all our six pillars. And I thank the Member for his support.
The Chairman20 words
[+2 sentences]Any other Members have clarifications for the Ministers? If not, can I invite Mr Vikram Nair to withdraw your amendment?
Mr Vikram Nair82 words
[+3 sentences]Thank you. My thanks to the Minister and two Senior Ministers of State for their sharing and for all our serving people in the armed forces and reservists. Chairman, I seek leave to withdraw my cut.